Saudi Arabia Paints and Coatings Market

Saudi Arabia Paints and Coatings Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

SR496849 | 26-Mar-2021 | 120 Pages | Mordor Intelligence |

Summary

The Saudi Arabia Paints and Coatings market was estimated at USD 1,271.67 million in 2020 and the market is projected to register a CAGR of over 2% during the forecast period (2021-2026). The market was negatively impacted by COVID-19 in 2020. Owing to the pandemic scenario, the country went into lockdown, which halted all the manufacturing and construction activities, thus creating a negative impact on the demand for paints and coatings market. However, the condition is expected to recover in 2021, thereby restoring the growth trajectory of the market studied.

- Over the short term, increasing residential construction activities with government support and increasing tourism in the country are driving the market's growth.
- On the flipside, the impact of COVID-19 on a short to midterm effect and halting of oil and gas production for a definitive period are expected to hinder the growth of the market studied.

Key Market Trends

Acrylic Resin Dominating the Market

- Acrylic resins are the most widely used polymers in the paint and coatings industry. Most of the acrylic paints are water-based or solvent-based and are available as emulsions (latices), lacquers (lower volume solids), enamels (higher volume solids), and powders (100% solids).
- The common acrylic polymers come in a wide variety of types and combinations, such as methyl and butyl methacrylate. In the case of inexpensive paints, polyvinyl acetate is used primarily.
- The two principal forms of acrylic used are thermoplastic and thermoset. Thermoplastics acrylic resins are synthetic resins achieved by polymerization of different acrylic monomers. Thermosets are cured at elevated temperatures by reacting them with other polymers. Thermoplastic acrylic resins are of two types, namely solution acrylics and acrylic latex coatings.
- Furthermore, the acrylic resins develop properties, such as transparency, high colorability, and UV resistance in coating solutions. They are used in waterborne systems very often, which result in low VOC emission. The application of acrylic coatings leads to high surface hardness. In certain applications, such as walls, decks, and roofing, the acrylic coatings provide elastomeric finishes to improve the UV resistance of the surface, if employed with some fluids.
- The application of acrylic coatings is primarily found in the construction industry for high-end finishing in roofs, decks, bridges, floors, and other applications. The water-based acrylic coatings are high in demand, owing to the environmental concerns, as the negative impact of VOCs affecting the air quality in the environment.
- The primary binder type in the Saudi Arabia paints and coatings market is acrylic, with a total share of more than 70% of all the waterborne coatings. Acrylic is widely used in architectural coatings.
- Such positive factors are likely to increase demand over the forecast period.

Increasing Demand from Architectural Industry

- Paints and coatings are not only used in the interiors of houses to add colors or decorative purposes, but also to perform a wide range of functions. Their functions vary depending on the type of environment and room that they are used on.
- For example, because of moisture, the bathroom walls need to have wipe-ability for keeping them clean. Paints with glossier sheens have a tighter molecular structure than flat paints, making it more difficult for moisture to penetrate. So, these types of paints are used in bathroom.
- Paints and coatings are applied on the exterior of the house to not only to give them a new look, but also to protect them from blistering summers, freezing winters, soaking rain, and the daily bombardment of UV radiation without fading, peeling away, and cracking.
- The modern advancements in paint technology, specifically in the acrylic formulations, have offered a wide range of weatherproof coatings.
- Saudi Arabia is embarking on many residential and commercial projects, which are expected to increase the construction activities in the country. Some of such projects undertaken or in various phases of development include a USD 500 billion futuristic mega-city ‘Neom’ project, the Red Sea Project – Phase 1, which is due to be completed on 2022.
- These developments in the construction sector are partly due to the robust economic growth and its positive implications on corporate profits, household income, and the state of public finances.
- Furthermore, due to COVID-19 scenario, the construction industry halted, which had an negative impact on architectural industry. But, the industry is expected to pick up pace in 2021, thereby driving the market studied.
- These factors are boosting the demand for architectural paints and coatings market in the country.

Competitive Landscape

The Saudi Arabia paints and coatings market is fragmented. Major companies include Jazeera Paints, Jotun, Akzo Nobel N.V., Sigma Coatings (PPG Industries, Inc.), and National Paints Factories Co. Ltd., among others.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

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