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Key Highlights

·         The automotive paints and coatings market generated a value of USD 18.8 billion in 2023, which will increase to USD 32.2 billion, powering at an 8.0% compound annual growth rate, by 2030.

·         Polyurethane paints and coatings are extensively used because of their long lifespan as well as rust-prevention properties.

·         Polyurethane coatings and resins, apart from metallic surfaces, are also used on concrete and wood.

·         These products are accepted for their robust protective layer, which enhances the durability of the coated surface by decreasing the impact of scratches, chemicals, and environmental changes.

·         Due to their strength and flexibility, they are exceptionally beneficial for harsh weather situations like in personal vehicles and marine structures.

·         The automotive sector has been affected by the rising need of customers for environment-friendly and sustainable coating, which is encouraging companies to adapt.

·         The necessity to tackle the ecological problems because of conventional paints and coatings is a major reason the automotive sector is changing to environment-friendly and robust paints & coatings.

·         To decrease the hazard of heavy metal poisoning in the repainting workforce, environment-friendly, water-based paints with no or less lead are being produced.

·         Automotive paints & coatings are therefore being developed with the lead content ranging from 0.00025-107.928 mg/g.

Market Insights

APAC was the largest contributor to the industry in 2023, with a 55% share, and it is also likely to advance at an 8.5% compound annual growth rate during this decade.

The environmental policies employed in the wake of the critical air quality in regional cities are boosting the need for environment-friendly paints & coatings.

Electrocoat led the industry in 2023, generating more than USD 8.5 billion, and it will continue this trend throughout this decade. This layer offers many advantages, such as uniform covering, less wastage, and rust resistance.

Waterborne technology accounted for the largest share of the industry in 2023, of approximately 50%, and it will remain the largest in the coming years. These formulations are environment-friendly and comprise nearly no VOC; therefore, they can decrease air pollution.

The polyurethane category was the largest contributor in 2023, with approximately 45% share. Polyurethane is weather-resistant, enabling it to protect the automobile from moisture, snow, heat, and hail.

In the automotive sector, polyurethane is extensively employed for interior components, exterior and interior cladding, production of gaskets and seals, protective coatings, and more.

Metallic texture led the industry in 2023, as it offers a polished and refined appearance. Not only does the metallic texture enhance the look of an automobile by giving it a superior look, but it also defends the automobile from severe weather.

The passenger cars category was the largest contributor to the industry. With the rising need for passenger cars, the requirement for paints and coatings is also surging, as car owners want a unique look.

The automotive paints and coatings industry is highly competitive because of the presence of numerous global and local companies. New companies are entering continuously, which leads to many problems for the existing players and opportunities for new players.

In this competitive industry, players often invest in better-quality products, customer service, and innovations.

Source: P&S Intelligence

Market Overview

In 2024, the Saudi Arabian building and construction sheets industry valued size will be USD 6,256.1 million in 2024, and it is expected to attain USD 7,919.3 million by the end of the decade, developing at a CAGR of 4.0% during the projection period. It will be because of the rising construction sector, along with the increasing populace, growing rate of urbanization, and thriving economy of Saudi Arabia.

A growing number of government steps in Saudi Arabia under Saudi Vision 2030 target to expand the economy and lessen the dependency on income from oil. These initiatives revolve around huge building activities in several industries, like hospitality, healthcare and education, therefore driving the need for building and construction sheets. The growing populace in the nation is fuelling the need for housing, healthcare services, and other bits of commercial and civic infrastructure.

The Saudi government is actively participating in promoting investment in the facilitate real estate investment by the local as well as the international companies as means of boosting the economy of the Saudi Arabia. For instance, the Capital Market Authority (CMA) in November 2021 extended rights to invest in Real Estate for non-Saudi residents in Makkah and Madinah. There is Vision 2030 National Development Plan which is the strategy map of from Saudi Arabia, and one of the key integrated growth projects being embarked on is the Ad-Diriyah Integrated Growth project.

Key Insights

•In 2024, metals account for the largest industry share of 45%, credited to their strength and adaptability in construction applications like roofing and cladding.

•Polymers are projected to be the fastest-developing category over the decade as plastic sheets provide defensive wrap and insulation for buildings.

•In 2024, the roofing category grips the largest share in of 35%, vital for building construction, needing robustness, thermal resistance, and water-repellence.

•Growing development, infrastructure growth, and government steps like Vision 2030 propels substantial need for roofing materials.

•The residential category had the largest share and is estimated to advance at a CAGR of 4.5% because of the increasing populace and need for residential buildings, supported by government housing initiatives.

•The residential sector includes single-family homes, apartment buildings, and housing complexes, all requiring construction sheets for various applications.

•Protection accounts for the largest share in 2024 and is expected to grow at a CAGR of 4.2% due to the rising demand for building protection from harsh climates, UV radiation, and dust.

•Insulation is projected to be the fastest-growing category due to new product launches providing thermal insulation.

•Al-Riyadh holds the largest province share in 2024 at 40%, attributed to large-scale construction projects and government initiatives.

•Al-Madinah is expected to be the fastest-growing province with a CAGR of 4.7%, driven by urbanization and the increasing demand for residential and commercial buildings.

Source: P&S Intelligence

Market Overview

In 2024, the Saudi Arabian fluoropolymer industry will produce an estimated revenue of USD 234.9 million, and the market is also estimated to experience a CAGR of 4.7% over the projection period, attaining USD 309.3 million by 2030.

This development can be credited to the beneficial properties of fluoropolymers, like low friction, high-temperature stability, and robust chemical resistance, which propel its application in several fields, like automotive, aerospace, and industrial machinery. Moreover, the industry is projected to witness fast expansion in the coming years because of constant investments in enhanced tech, infrastructure, and ecologically friendly and sustainable materials.

Investments in the oil and gas sector are rising, leading to higher demand for materials that can endure harsh conditions like high temperatures, extreme pressures, and corrosive environments. Fluoropolymers, known for their chemical resistance and durability, are crucial in manufacturing gaskets, seals, and pipelines for this industry. Furthermore, advancements such as automated drilling rigs and the industrial internet of things are further driving the adoption of fluoropolymers in oil and gas applications.

Saudi Vision 2030 aims to diversify the economy beyond oil, focusing on industries like petrochemicals, manufacturing, and construction. This industrial expansion is expected to boost the demand for fluoropolymers due to their extensive use in sealing, insulation, and protective coatings.

The industry is witnessing price fluctuations for raw materials, like fluorine compounds, which disturb production prices and have an impact on production companies' profit ratios. Geopolitical concerns have an impact on the supply chain since they reduce the availability of raw materials and raise their costs.

For instance, raw materials such as aluminum increased to 3.7% in 2022 due to supply chain disruptions

Key Insights

•Building and construction sector holds 40% market share in 2024, driven by fluoropolymers in cables, pipes, insulation, sealants, and architectural coatings.

•Saudi Vision 2030 boosts market with infrastructure projects, urbanization, and smart city initiatives.

•Automotive sector grows at 5.3% CAGR from 2024 to 2030, driven by fluoropolymers in gaskets, fuel hoses, seals, and wiring insulation.

•Technological advancements like autonomous driving and electrification increase demand for durable materials such as fluoropolymers.

•Polytetrafluoroethylene (PTFE) leads with 35% market share in 2024, known for thermal stability, chemical resistance, and low friction.

•PTFE used across construction, automotive, electrical, cooking appliances, and industrial sectors.

•Eastern region dominates with 40% market share in 2024, driven by oil, gas, and petrochemical industries in cities like Dammam, Jubail, and Khobar.

•Fastest-growing province with 5.5% CAGR, supported by industrial complexes and infrastructure projects.

•Market fragmented with strong competition among players like SABIC, Solvay Group, and Daikin Industries Ltd.

•Companies leverage technology and collaborations to maintain competitive advantage.

Source: P&S Intelligence

The humic acid market was USD 757.0 million in 2023, which will increase to USD 1,632.9 million, with an 11.9% compound annual growth rate, by 2030. 

The growth of this industry is because of the rising utilization of humic acid in agriculture and various other sectors, growing attention on organic farming & sustainable agriculture, and increasing consciousness of the harms of chemical fertilizers.

Humic acid is an organic element that derives from soils containing lignite, coal, and some other sources. It is employed in animal feed and organic fertilizers in the form of grains, liquid, and powder. 

For instance, sandy soils are incapable of holding water because of low humus content. Humic acid can produce ionized nutrients, which are formed by the preservation of humus and water biomolecules.

The increasing need for biostimulants and organic fertilizers is a major factor boosting the requirement for humic acid across the globe. The adoption of biostimulants comprising humic acid in agriculture has been linked with the possibility of enhancing production without losing the production of environmental crops. 

Another key trend being observed in the humic acid market is sustainable agriculture. Sustainable agriculture means offering suitable resources as per existing human requirements, without harming the planet. Though chemical fertilizers enhance the growth of the plant, those plants might not have the essential combination of nutrients for humans or develop appropriate root systems. 

Moreover, they also gradually reduce the soil quality, and the toxic chemicals further damage groundwater as well as customers' well-being. Humic acid assists in soil retention as well as erosion prevention and guarantees the finest plant growth by helping the development of the root system.

In the pharmaceutical sector, the effectiveness of medicine plays an important part in its success. Various research studies have revealed that humic acid can assist in boosting the antiviral agent’s effectiveness.

Generally, synthetic polymers are employed for targeted medication delivery, however, the application of humic acid has unlocked the entrance for additional natural substances.

APAC accounted for a significant share of the industry. This can be primarily ascribed to the fact that the largest agricultural land in in Asia, with more than 1.4 billion hectares, with China owning 527 million hectares. 

Moreover, the huge populace and the substantial dependence on the agriculture sector are the key factors for boosting the regional industry. In addition, the increase in the consciousness of sustainable agriculture will further boost the growth of the industry in this region. 

It is because of the increasing emphasis on organic farming and sustainable agriculture, the humic acid industry will continue to advance in the coming years.