The Saudi Arabia Polyvinyl Chloride (PVC) Market is projected to grow at a CAGR of 4.5% in the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. A surge in the overall population of the country contributed by the rising expatriates & rapid urbanization to avail better job opportunities & livelihoods, has increased the demand for residential complexes in the country. The emergence of government housing programs such as the Sakani housing program has been a major growth driver in Saudi Arabia's residential construction industry, which has led to the demand for PVC-made products like pipes & fittings, wires & cables, etc. Additionally, the ongoing construction of large megaprojects such as King Salman Park, Jeddah Tower, Al Widyan, and others would push the demand for PVC materials in the coming years, further boosting the Saudi Arabia Polyvinyl Chloride (PVC) Market.
The growth in the construction of commercial buildings & expansion of the industrial sector comprising oil & gas, water & wastewater treatment, chemicals, etc., have also led to the demand for PVC in the historical period. Also, due to the National Transformation Program (NTP) 2020, Saudi Arabia has been witnessing significant growth in the investment & commercial sectors. The NTP 2020 aims to strengthen public-private partnerships, create jobs, and reduce dependency on imports. Thus, the rise in investment by private companies backed by government rules & regulations has led to the establishment of numerous commercial projects, such as hotels, corporate offices, retail stores, etc., subsequently leading to the requirement for PVC.
Moreover, the water & wastewater industry in Saudi Arabia has undergone significant developments & investments in response to the challenges of water scarcity. The country has made substantial efforts to overcome water scarcity through investments in seawater desalination, water distribution, sewerage, and wastewater treatment. According to the International Trade Administration, the country had around 204 wastewater treatment plants in 2019 & it aims to achieve 100% reuse of treated urban wastewater by 2025 by deploying additional water treatment plants. Similarly, as per the General Authority of Statistics, Saudi Arabia deployed 133 additional wastewater treatment plants in 2021, which has grown by around 14.66% year-on-year. Hence, it is projected that the market would grow at a steady rate during the forecast period owing to the rising construction & industrial activities in the country, further states the research report, “Saudi Arabia Polyvinyl Chloride (PVC) Analysis, 2023.”
Rigid PVC Leads in Saudi Arabia Polyvinyl Chloride (PVC) Market
Based on Product Type, the market is bifurcated into Rigid (Clear Rigid PVC & Non-clear Rigid PVC), Flexible (Clear Flexible PVC & Non-clear Flexible PVC), Low-smoke PVC, and Chlorinated PVC. Among all, Rigid PVC held a considerable share of the market, owing to its surging application in the construction, consumer goods, and packaging industry. The government of Saudi Arabia has been investing extensively in the construction industry, including the construction of commercial buildings, airports, metros, and tourist attraction sites to achieve the Saudi Vision 2030 target. Rigid PVC pipes are widely utilized in these infrastructures for water supply, sewerage systems, and drainage networks due to their durability, corrosion resistance, and cost-effectiveness characteristics. Rigid PVC is also utilized in packaging applications, including blister packs, clamshells, trays, and bottles, as it offers excellent transparency, impact resistance, and barrier properties.
Construction Industry to Augment the Demand for Polyvinyl Chloride in the Forecast Period
Based on the end-users the market is classified as Construction, Automotive, Packaging, Electrical & Electronics, Consumer Goods, and Others (Healthcare, Signage & Advertising, etc.). The Saudi Arabian government has been actively promoting economic diversification & industrial development as part of its Vision 2030 initiative, which includes government initiatives & investments to expand the manufacturing sector by promoting local production & attracting foreign investments. The expansion of these industries has led to a surge in the expatriate population seeking better job opportunities, hence leading to the demand for new residential & commercial buildings. This expansion of the construction industry in the country would further require PVC-made products like pipes & fittings, wires & cables, profiles, etc., ultimately leading to the growth of Saudi Arabia's Polyvinyl Chloride (PVC) market during the forecast period.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players including Saudi Basic Industries Corporation, Arabian Plastic Compounds Co. Ltd., Interplast Co. Ltd., ALRajhi Industrial Group, TIB Plastic Industries, Arabian Gulf Manufacturers Ltd., Saudi Plastic Products Company Ltd. (SAPPCO), Al Watania Plastics, AL Watanya for Plastic Industry, New Product Industries Co. Ltd., and others are looking forward to strengthening their market position.
Key Questions Answered in the Research Report