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The Saudi Arabia - cement market size is estimated to grow at a CAGR of 6.27% between 2023 and 2028. The market size is forecast to increase by USD 2.25 billion. Several factors play a crucial role in the market's growth, such as the launch of Saudi Vision 2030, the increased government spending on infrastructure, and the growth of the housing mortgage sector.
The report includes a comprehensive outlook on the Saudi Arabia Cement Market, offering forecasts for the industry segmented by Application including residential and commercial. Additionally, it categorizesType into blended, portland, and others. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased government spending on infrastructure is the key factor driving market growth. Saudi Arabia gives high importance to infrastructure development because infrastructure spending is directly proportional to economic growth. This is because rapid economic growth provides jobs and delivers important services such as energy, housing, and clean water supply. A country's strong infrastructure encourages multinational companies (MNCs) to make heavy investments and set up their establishments.
In addition, apart from the overall development of the whole economy, it also affects the living standards and human development index of a country. It helps in meeting various demands created by the expansion of the population and the increasing spending power of citizens. Therefore, increased government spending on infrastructure will drive the Saudi Arabia cement market during the forecast period.
The construction of low-power-consuming cement plants is the primary trend shaping market growth. The cement industry is one of the world's highest energy-intensive industries, with fuel and energy costs normally representing approximately 30%-40% of total production costs. On average, the specific electrical energy consumption typically ranges between 90 and 130 kWh per ton of cement. With the proposed cut in energy subsidies that are expected to take place in the future, market players are looking for alternative ways to counter the expected increase in production costs.
Moreover, major players in the Saudi Arabia - cement market, such as Yamama Cement and Saudi Cement, are investing in new infrastructure to increase production efficiency and reduce power consumption. This trend among cement companies in the region is expected to balance the anticipated increase in production costs over the long term, which in turn will positively impact the market in focus during the forecast period.
Expat levy on foreign nationals is a challenge that affects market growth. The government of Saudi Arabia implemented an expat levy on sponsoring foreign nationals. This monthly levy, which is applicable for both employees and their dependents, is expected to increase at a steady rate over a four-year period. This expat levy is especially taxing on companies that have a workforce comprising more foreign nationals than Saudi nationals.
Moreover, in an industry heavily dependent on manpower, expat levies will reduce the inflow of blue-collar workers into the country, affecting the growth of the cement market. Consequently, this scenario is expected to impede the growth of the Saudi Arabia cement market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 14 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The residential segment is estimated to witness significant growth during the forecast period. The announcement of housing initiatives by the Saudi Ministry of Housing is expected to drive the growth of the residential application segment. In April 2020, Saudi Arabia's Ministry of Housing announced two new residential projects, namely Obhur Park and Mogan Village, located in Jeddah. The projects were initiated in partnership with the private sector to provide a total of 8,083 housing units.
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The residential segment was the largest segment and was valued at USD 3.40 billion in 2018. Likewise, in November 2020, Saudi Arabia's ROSHN announced its plans for the Riyadh Community Project. The project will be spread across 20 million square meters and consist of over 30,000 homes. The housing projects announced would encompass additional infrastructures such as playgrounds, mosques, and family entertainment platforms. Such initiatives are expected to benefit the cement industry during the forecast period.
The Saudi Arabia cement market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018-2028.
Saudi Arabia Cement Market Scope |
|
Report Coverage |
Details |
Page number |
142 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.27% |
Market Growth 2024-2028 |
USD 2.25 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
5.69 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Al Madina Cement Co., Al Rashed Cement Co., Al Safwa Ltd., Epcco Publishing Group Ltd., Hail Cement Co., Najran Cement Co., Northern Region Cement Co., Qassim Cement Co., Saudi Cement Co., Tabuk Cement Co., Umm Al Qura Cement Co., United Cement Industrial Co., Yamama Saudi Cement Co., and Yanbu Cement Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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