The Saudi Arabia paints and coatings market is estimated to witness a significant growth, at an estimated CAGR of over 4%, over the forecast period. The major factor driving the market studied is an increase in private investment participation.
- The increasing raw material prices are expected to hinder the growth of the market studied.
- The rising demand for eco-friendly products is likely to act as an opportunity for the market studied in the forecast period.
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.
- The country’s primary growth in construction has been largely powered by the massive investments made by the government and the increased inflow of FDI. A few major construction projects are as follows:
- Junail II
- Makkah Grand Mosque Redevelopment
- King Abdullah Port Expansion
- The Kingdom Tower, Jeddah
- King Abdullah Economics City of Rabigh
- 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.
- These factors are boosting the demand for architectural paints and coatings market in the country
The Saudi Arabia paints and coatings market is fragmented. Major companies include Jazeera Paints, Jotun, Akzo Nobel N.V., PPG Industries, Inc., and National Paints Factories Co. Ltd, among others.
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