Saudi Arabia Paints and Coating Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia Paints and Coatings Market Trends & Drivers

Implementation of New Technologies Is Key Market Trend

• Saudi Arabia aims to diversify its economy by investing heavily in infrastructure and industries, which require paints and coatings. However, due to limitations, the government has established guidelines to implement more-sustainable and environment-friendly technologies.
• To overcome environmental challenges and follow government regulations, big players, such as BASF, SABIC, and Linde, are collaborating to develop a sustainable steam crack furnace that can be fueled by electricity, rather than renewable sources, which would reduce CO2 emissions. These furnaces are used to break naphtha into 10 basic chemicals, from which 20,000 more chemical compounds can be produced for various industries, including raw materials for paints and coatings.
• Paints and coatings consist of components such as volatile organic compounds, fungicides, pigments, silicate minerals, and solvents, which can be harmful to both health and the environment when they evaporate. The government has enacted rules limiting the VOC content of interior paints to 30–50%, to minimize these hazards. Due to this, with the deployment of new technologies, more-sustainable paints and coatings with low VOC and water base are being used. 

Saudi Vision 2030 Is Key Driver of Market

• Saudi Arabia is a major producer and trader of hydrocarbons, with a significant reliance on crude and natural gas. Vision 2030 is a 2016 Saudi government project to reduce this dependence and diversify the economy into sectors such as infrastructure, tourism, and healthcare.
• Under this vision, the government has launched initiatives, such as NEOM and the Red Sea Project, which contribute to a rapid increase in construction activities.
• Saudi Arabia is ranked first in the Gulf, with its construction output predicted to be worth USD 70.33 billion by 2024 and up to USD 91.36 billion by 2029. Vision 2030 is responsible for this growth due to the significant investments in major ongoing projects, such as NEOM, a futuristic city project with an estimated investment of USD 500 billion; Red Sea Global, a sustainable luxury tourism project with an investment of USD 23.6 billion; and Qiddiya, an entertainment and leisure city with an investment of USD 9.8 billion. 

Saudi Arabia Paints and Coatings Market Analysis

Resin Insights

• Acrylic is the largest and fastest-growing category with a share of 35% by 2024 and a CAGR of 3.7% over this decade, respectively. They are widely used in construction projects due to the rising demand for efficient and sustainable coating.
• Acrylic resins are made from acrylic and methacrylic ester monomers. They are binders, used to improve weather resistance, adhesion, and color retention.
• Their ability to preserve color and their instant-drying characteristics set them apart from other resins, making them appropriate for a wide range of applications.
• These are better than conventional materials because they contain low VOCs and toxicity, as well as high resilience to abrasion and water retention. They are widely used in coatings for building exteriors and interiors. 

The resins covered in the report include:

• Acrylic (Largest and Fastest-Growing Category)
• Alkyd
• Polyurethane
• Epoxy
• Polyester
• Fluoropolymer
• Vinyl
• Others

Technology Insights

• Water-based paints holds significant share in 2024. The key reason behind is the environmental issues faced by conventional paints.
• Water serves as the base solvent in water-based paints, and it evaporates throughout the drying process, leaving the surface solid.
• This category is dominant due to the low VOC emissions, eco-friendliness, safety, ease of cleanup, instant drying, and less strong odor of water-based paints. 

The technologies we have come across are:

• Water-Based
• Solvent-Based (Largest Category)
• Powder-Based (Fastest-Growing
• Others

End Use Analysis

• The architectural category is the largest and fastest-growing, with a share of around 50% in 2024. The rising rate of urbanization, a developing economy, and increasing investments under Saudi Vision 2030 are driving the growth of this category.
• The architectural category dominates the paint and coating sector due to the high-volume usage of paints and coatings for building decoration and protection. Vision 2030 promotes the growth of the architectural category, as the government is significantly investing in mega construction projects, which is leading to the expansion of the paints and coatings sector.
• For instance, the Saudi government is investing heavily in malls to diversify the economy. One such project is Meydan One Mall, with a project cost of USD 1.5 billion. It is a 1,500,000-square-meter luxury shopping destination with 650 stores, including 620 retail stores.

End uses in Saudi Arabia paints and coatings market are:

• Architectural (Largest and Fastest-Growing Category)
• Industrial
• Others 

Geographical Analysis

• Geographically, Al-Riyadh is the fastest-growing market, with a CAGR of 3.7%. This significant growth of the market in this region is because the majority of the projects included in Saudi Arabia's Vision 2030 are being built in the region.
• Al-Riyadh is the capital city of Saudi Arabia and one of the largest infrastructure hubs, due to the growing population in the area. According to the World Population Review, the population of Riyadh in 2024 will be 7.8 million, which is estimated to grow to more than 9 million by 2030.
• This population growth has raised the demand for infrastructure development in the area, leading to increasing building activity and a greater need for paints and coatings.
• Al-Riyadh also leads the Human Development Index (HDI) table, with a score of 0.9 in 2021, the highest among Saudi provinces.

The provinces analyzed in this report include:

• Al-Riyadh (Fastest-Growing Provincial Market)
• Makkah
• Al-Madinah
• Al-Qaseem
• Eastern Region (Largest Provincial Market)
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Saudi Arabia Paints and Coatings Market Share

Market Nature - Fragmented

The paints and coatings market in Saudi Arabia is highly fragmented due to the presence of both larger and smaller players. Large players, such as Jazeera Paints, Jotun, Akzo Nobel NV, and Sigma Coating, offer a wide range of coatings, and they have international connections to facilitate R&D. On the other hand, smaller local players, such as National Paints, Sigma Paints, and Arabian Paints, understand the domestic market and cater to the needs of the local industries. These players raise the level of competition by implementing new technology and developing new ideas to acquire a competitive advantage, which is responsible for the market fragmentation.

Saudi Arabia Paints and Coatings Industry News

• In December 2023, Protech Group announced the result of the Pendulum Tests (PTV) conducted on its PE44 anti-slip coating. The test confirmed the abrasion resistance and anti-slip functionality of the product on wet surfaces as well as slopes ranging up to 35 degrees.
• In November 2023, Al-Jazeera Factory for Paints Co. attended the Saudi Build Exhibition held at the Riyadh International Convention and Exhibition Center.
• In November 2021, Al-Jazeera Paints introduced Green Silk Flexy, a base and finish paint suitable for ceiling elements, pipes, iron, galvanized iron, cement roofs, aluminum, and plastics.
• In March 2021, AkzoNobel and ECFG announced a collaboration with Qlayers to come up with more-sustainable and efficient paint and coating solutions.