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

Saudi Arabia Steel Pipes Market Size

Saudi Arabia Steel Pipes Trends & Growth Market Drivers

Growing Oil, Gas, & Petrochemicals Industry Is Foremost Trend

• Saudi Arabia has become the world's third-largest oil & gas producer, producing 12.1 million barrels per day of total liquid fuel and 10.4 million barrels per day of crude oil in 2022.
• Saudi Aramco planning to increase its sustainable crude oil production by 1 million barrels per day by 2027 from 2022, by raising production from its Safaniya, Zuluf, Marjan, and Berri oilfields.
• This propels the demand for high-quality steel pipes that can withstand hot and humid environments and resist corrosion, breaking, melting, and other forms of damage.

Vision 2030 Propels the Market

• Under Vision 2030, the country is planning sustainable housing models due to the rapid urbanization over the past several decades. This is why the country will need new pipeline infrastructure for water supply and waste management.
• The growth of industries, driven by the government initiatives for economic diversification, and investments from overseas countries, has the potential to make Saudi Arabia a key business hub in the future. It can open up new gates for Saudi Arabia’s steel pipe market as USD 1 trillion worth of infrastructure projects across various industries are underway in the kingdom.
• Already, 11,000 factories exported industrial goods worth SAR 106 billion from Saudi Arabia in 2023. The government aims to multiply the industrial GDP by three times, to SAR 895 billion by 2030, which opens up new opportunities in this market.

Government's Anti-Oil Policy May Affect Market

• Saudi Arabia’s government is gradually decreasing oil production to both achieve environmental sustainability and tap into other revenue sources for economic growth. For instance, Aramco has been ordered by the government to put its oilfield expansion plans on hold for now.
• The rising interest rate in the kingdom is now negatively affecting the building material sector, which may restrain the Saudi Arabian steel pipe market from growing.
• The growing awareness of low-carbon fuels and the adoption of electric vehicles can affect the oil production market, which could drive down the demand for steel pipes in the oil, gas, and petrochemical industries.

Saudi Arabia Steel Pipes Market Analysis

Steel Grade Insights

• Austenitic stainless steel is the dominant category in the Saudi Arabian market, with a share of 50% in 2024. This is a perfect steel grade for the oil and gas industry and water management systems due to its corrosion and high-temperature resistance, which offers pipes made from it strong and long-lasting.
• Moreover, austenitic stainless steel can consist of different percentages of minerals, as it is itself available in numerous sub-grades for different purposes.
• The key applications of austenitic stainless-steel pipes include oil & gas, food & beverage, chemical, road construction, buildings, and water handling.

Below are the steel grades from which pipes are made in Saudi Arabia

• Austenitic Stainless (Largest and Fastest-Growing Category)
• Ferritic Stainless
• Martensitic Stainless
• Duplex Stainless
  • Standard      
  • Lean  
  • Super 
• Precipitation-Hardened Stainless   
  • Martensitic
  • Semi-austenitic       
  • Austenitic     
• Super-Austenitic Stainless  

Type Insights

• The seamless steel pipes category is the largest and fastest-growing category in this market, with a 52% in 2024 and a CAGR of 6.0% in 2024–2030. This is because this type of manufacturing method is used in most of the oil, gas, and petrochemical plants, along with the food & beverage, pharmaceutical, and water supply industries.
• Due to their strength, durability, corrosion resistance, and lower maintenance requirements, seamless steel pipes are the most popular.
• Unlike welded pipes, seamless variants can withstand the high pressures, because they do not have any seams, which can be prone to breakage.

Below are the types considered in the report:

• Seamless (Largest and Fastest-Growing Category)
• Electrical-Resistance-Welded
• Spiral Welded
• Longitudinally Welded

Industry Insights

• The oil & gas industry holds the largest and fastest share, of 33%, in 2024. The country holds the world’s second-largest oil reserves and procures the third-highest quality of crude oil in the world. Steel pipes are used in the oil & gas industry for many purposes, including drilling, transportation, and refining.
• Much of the oil pipeline network in the kingdom is made of steel, which is why the growth in E&P activities will continue to propel the demand for these products.
• Since a large volume of oil is extracted from oil from hostile environments such as the sea, where the steel pipes offer corrosion and high-pressure resistance.

Below are the applications analyzed in this report

• Oil & gas Industry (Largest and Fastest-Growing Category)
• Pulp & Paper
• Mining & Metal
• Chemical & Petrochemical
• Water and Wastewater
• Energy & Power
• Automotive
• Food & Beverage
• Industrial Manufacturing
• Construction
• Others

Al-Riyadh Is Largest Province

• In Al-Riyadh is the largest market, with a share of 29% in 2024, and the fastest-growing market too during the forecast period. This is due to the massive construction projects underway, including New Murabba and Qiddiya.
• Makkah also holds the significant share in this market, in part, due to the ongoing construction of the Jeddah Tower. Projects such as this propel the demand for steel pipes both during construction as well as for integration into the built infrastructure for water supply, sanitation, and other purposes.
• The 1.2-million-square-meter construction project in Mecca involves commercial, residential, and industrial space development on a massive scale. Steel pies will be needed for the gas and water management systems here. 

Below are the provinces analyzed in the market:

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

Saudi Arabia Steel Pipes Market Share

• There are a few major players among the many in the Saudi Arabian steel pipe market, but there are still openings for new players. With the new infrastructure projects under development, new manufacturers can easily survive in this market if they can deliver the best product according to the demand of the project. For example, the oil & gas industry operates at high temperatures and pressures and needs ERW pipes with a suitable grade of steel. Similarly, there are many other grades of steel for every application that the market players can tap into.

Saudi Arabia Steel Pipe Industry News

• In July 2021, the joint venture of ArcelorMittal and the Public Investment Fund (PIF) acquired Jubail Energy Services Company from Industrialization Energy Services Company (TAQA).
• In March 2024, Group Five Pipe Saudi signed a contract worth SAR 3 billion with Saline Water Conversion Corporation for the supply of spiral-welded steel pipes for the Ras Al Khair-Riyadh water transportation system project.