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

Saudi Arabia Structural Steel Fabrication Market Size

Saudi Arabia Structural Steel Fabrication Market Trends & Growth Drivers

Advancements in Steel Fabrication Are Key Trends

• Advancements in steel fabrication techniques are among the biggest trends in the construction industry of Saudi Arabia. These include 3D modeling, computer-controlled machines, and better welding techniques, which make steel fabrication faster, cheaper, and more precise.
• Overall, technological advancements would make the process cost-effective and simple, thus speeding up project development and commissioning. The handling of both huge and heavy as well as small parts becomes convenient.
• Process automation in this sector involves the utilization of digital technologies and platforms to optimize the workflow and maintain the required precision, efficiency, quality standards, and safety of workers. Hence, huge volumes of workflow become manageable due to the advantage of accuracy and speed.

Growing Count of Infrastructure Initiatives Is Key Driver

• In major Saudi cities, constant construction is going on to fulfill the demands of a burgeoning population. Many people are moving to cities, thereby raising the demand for homes, offices, and factories. All such properties need sturdy steel frames.
• Investments in the construction industry are on the rise to support the growing residential and industrial needs, thus propelling infrastructure development activities across various regions.
• Mega projects, such as NEOM, the Red Sea Project, Jeddah Metro, Makkah Public Transport Program (MPTP), AlUla International Airport, Qiddiya Entertainment City, and Riyadh Metro, are significant drivers for the Saudi Arabian structural steel fabrication market in present times.
• Saudi Arabia is expanding its industrial prowess from oil & petrochemicals to manufacturing. This means more factories, warehouses, and processing plants, all requiring fabricated steel structures.
• The industrial expansion initiatives taken by the Saudi government to promote new industries programs, with a focus on trade agreements with international companies, will further propel the market.

Government Rules and Regulations Are Major Challenge

• Structural steel fabricators must strictly adhere to regulatory rules, labor laws, and safety norms. However, compliance with regulatory standards and safety protocols complicates operations.
• Compliance with complicated legal frameworks increases administrative responsibilities and operational obstacles for steel manufacturers, thus affecting overall efficiency and profitability.

Promotion of Foreign Investment Is an Opportunity

• Saudi Arabia has initiated the promotion of corporate investments and extended a warm invitation to international companies to participate in Saudi’s economic growth.
• The government is offering various subsidies and incentives to encourage investments, which would make it easier for more companies to enter the market with innovative and customer-centric business strategies.

Saudi Arabia Structural Steel Fabrication Industry Outlook

Product Insights

• Heavy sectional steel is the fastest-growing category, with a CAGR of 11.7%, as it involves the production of large structures, equipment, and machinery.
• Light sectional steel holds the largest share, of around 50%, in 2024. This entails the creation of structures and components that are comparatively tiny and light. Typical uses for these manufactured goods include toolboxes, brackets, vehicle parts, and architectural elements.

The following products are included in the report:

• Heavy Sectional Steel (Fastest-Gowing Category)
• Light Sectional Steel (Largest Category)
• Others

Industry Insights

• The oil & gas category holds the largest share in the market, of 40%, in 2024.
• This is because the GDP of the nation is almost entirely dependent on the oil and gas industry. Government-controlled firms continue to dominate this sector because of its strategic relevance in supporting its ambitious diversification initiatives and playing a role in managing global oil prices.
• The construction category is the fastest-growing, due to the large number of mega projects under construction in Saudi Arabia. With advancements in technology and the influence of Western construction norms, an increasing number of buildings are being built on structural steel, rather than with bricks and mortar.

The following industries are included in the report:

• Manufacturing
• Power & Energy
• Construction (Fastest-Gowing Category)
• Automotive
• Oil & Gas (Largest Category)
• Others

Regional Insights

Tabouk Province Is Fastest-Growing Market

• Tabuk is the fastest-growing provincial market with a CAGR of 11.8% during the forecast period, as construction projects worth USD 100 billion are underway in this province.
• As part of the futuristic urban development project NEOM, the province is fusing cutting-edge technologies with natural marvels.
• NEOM, AMAALA, and Red Sea projects, which are Saudi Arabia's largest giga projects and important Vision 2030 efforts, will accelerate growth and investment in the region's vital industries.
• The province will host the first hyper-connected cognitive city in the world, showcasing state-of-the-art advancements in smart home technology.
• The Riyadh province is growing significantly in 2024. Riyadh, the capital of the kingdom, is a pivotal focus point for the country's transformation. At present, it represents 18% of all ongoing real estate and development projects, with a total value of USD 229 billion.
• Major projects include Diriyah Gate, with a worth of USD 63 billion and progress rate of 42%; Roshn-Riyadhk with a worth of USD 30.3 billion and completion status of 40%, King Salman Park, with a worth of USD 9.8 billion; and Riyadh Metro project, with a worth of USD 22.5 billion.

The regions analyzed in this report include:

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

Saudi Arabia Structural Steel Fabrication Market Share

• The Saudi Arabian structural steel fabrication market is fragmented with the presence of several key players. In recent years, the market players have involved themselves in product launches to attain a significant position.
• Additionally, several businesses are waiting for the construction industry to pick up steam before making calculated strategic moves, such as mergers and acquisitions, to broaden their regional reach.
• The market is influenced by innovation to enhance the production process. Companies have been focusing on developing new products and fabrication techniques to fulfill the changing demands of industries.

Saudi Arabia Structural Steel Fabrication News

• In January 2024, Turkish steelmaker Tosyali Holding announced plans to invest up to USD 5 billion in a new steel mill in Saudi.
• In December 2023, Saudi Arabia announced intentions to invest about USD 12 billion in steel projects to increase production for several applications.
• In November 2023, MS-Metals announced that is completely computerized and automated factory for metal solutions and modular building construction being built in Tabuk will begin operations in 2024.
• In October 2023, Essar announced plans to start work on its USD 4-billion Saudi steel plant in 2024. This low-carbon steel plant in Ras Al-Khair will produce 4 million tons per year.
• In October 2023, Ever Sendai Resources Sdn Bhd (ERSB) a Malaysian engineering group, and Saudi Arabia-based Algihaz signed an agreement to set up a joint venture to secure and execute structural steel projects in Saudi Arabia.
• In September 2023, Saudi Arabia’s Public Investment Fund (PIF) fully acquired the Saudi Iron & Steel Company (Hadeed) from Saudi Basic Industries Corporation (SABIC) for USD 3.3 billion (SAR 12.5 billion).
• In May 2023, an agreement was struck between Saudi Aramco, the Public Investment Fund and Baoshan Iron & Steel for the establishment of an integrated steel plant Ras Al Khair Industrial City, which will begin operations by the end of 2026.