GCC Construction Adhesive Market Research Report: Forecast (2024-2030)

Market Definition

The construction adhesives are used for waterproofing, roofing, carpet laying, cladding, and insulation applications. Construction adhesives are materials that can permanently bind diverse materials together with better efficiency and design flexibility. During construction, these are used to attach drywall, tile, holdings, and fixtures to walls, ceilings, and floors.

Market Insights & Analysis: GCC Construction Adhesive Market (2024-30):

The GCC Construction Adhesive Market size is estimated to grow at a CAGR of around 5.5% during the forecast period, i.e., 2024–30. The GCC Construction Adhesive Market has been witnessing substantial growth driven by dynamic factors in the infrastructural and tourism sectors across the region. Countries such as Saudi Arabia, the UAE, Kuwait, and Bahrain have undergone substantial tourism development initiatives that have spurred the construction of numerous hotels and resorts. These countries are strategically focusing on tourism infrastructure and attractions, aiming to diversify their economies, reduce reliance on oil revenues, and enhance sustainability. This surge in tourism-related construction is creating lucrative opportunities for the Construction Adhesive Industry.

Specifically, the government’s investments in the tourism sector led to the establishment of a significant number of hotels in the GCC countries, contributing to the growing demand for construction adhesives. The construction of multiple hotels acts as a catalyst for the expanding Construction Adhesive Market, as the need for appropriate adhesives becomes pivotal in ensuring the longevity and robustness of these structures. The construction of a greater number of hotels has consequently spurred the evolution and growth of the construction adhesive industry in the GCC. The increasing number of hotel inaugurations signifies a surge in the demand for construction adhesives in the forthcoming years. For instance,

• In 2023, the Ministry of Investment of Saudi Arabia (MISA), Regal Hotels Group, and Cosmopolitan International Group are pleased to announce the signing of a Memorandum of Understanding (MoU) to jointly explore a strategic partnership in hotel development and management.

Hence, with the growing number of tourists, the construction industry also experienced a surge with the establishment of hotels, which has intensified the demand for construction adhesives. Moreover, the growing infrastructure sector has led to the need for building repairs and rehabilitation, leading to an increased demand for construction chemicals, including adhesives, to enhance structural strength, corrosion resistance, and sustainability while optimizing resource usage in construction activities. This multifaceted growth scenario positions construction adhesives as integral components in shaping the evolving construction industry in the GCC region.

GCC Construction Adhesive Market Driver:

Surging Investment in Infrastructure Development to Support Market Growth – In the GCC region, countries like Saudi Arabia, the UAE, Kuwait, and Bahrain have made substantial investments in the development of infrastructure. Despite being predominantly oil-based economies with significant government control over key economic activities, these nations have been actively engaged in initiatives to enhance their infrastructure. Countries in the GCC have been improving their infrastructure to meet future demands and enhance global connectivity. For instance,

• In 2024, the Saudi Arabia Government launched USD 373 million in road projects in Makkah to improve the transportation network and serve pilgrims in the country.

The government initiatives focus on the establishment of new cities and the overall improvement of infrastructure, creating a conducive environment for real estate investments. Initiatives such as Vision 2030, which is a strategic plan for national transformation, emphasize public-private partnerships (P3s) and privatization as crucial policies. These partnerships are expected to bring about new infrastructure developments, enhanced services, and increased involvement of the private sector.

GCC Construction Adhesive Market Opportunity:

Growing Emphasis on Sustainable Construction Practices to Offer Lucrative Opportunities – Construction adhesives play a crucial role in achieving sustainability goals in building projects. By using eco-friendly adhesives that meet stringent environmental standards, construction companies minimize their environmental footprint and contribute to a healthier built environment. Adhesives that are low in volatile organic compounds (VOCs), free from hazardous chemicals, and sourced from renewable or recycled materials are preferred for green building projects. In the GCC region, there is a growing emphasis on sustainable construction practices, driven by environmental concerns and regulatory mandates. Construction adhesives that meet eco-friendly standards and contribute to green building certifications, such as LEED (Leadership in Energy and Environmental Design), are in high demand.

GCC Construction Adhesive Market Challenge:

Resistance to Excessive Use of Chemicals in Manufacturing Adhesive – The emissions of potentially harmful chemical gases from adhesives and sealants have raised concerns regarding their safety and inhalation risks. Consequently, regulations governing their usage have become more stringent to address these health and environmental hazards. The increasing awareness among consumers about health and environmental issues has become a pivotal focus for manufacturers in the industry. Notably, several organizations in the GCC, such as the Saudi Arabia Standardizations Organization (SASO), have introduced regulations stipulating specific requirements and conformity procedures that adhesive materials, including tapes in various forms like liquid, powder, or paste, must meet before entering the GCC market. This has led to resistance to the excessive usage of chemicals in the manufacturing of adhesives, which has hindered the growth of construction adhesives, thereby impacting the expansion of the GCC Construction Adhesive Market.

GCC Construction Adhesive Market Trend:

Rise of Hybrid Adhesive Technology Propelling Market Growth – As the demand for sustainable and eco-friendly products grows, manufacturers have been concentrating on the creation of adhesives and bonds with reduced carbon footprints and lower volatile organic compound (VOC) emissions. One key innovation is the utilization of hybrid adhesives, a category that merges silicones with polyurethane, forming a high-performance sealant renowned for its strong adhesion, durability, and overall effectiveness on painted surfaces. Often referred to as "modified polymers," hybrid technology, widely applied in the sealants industry, is gaining popularity in adhesives as well. Recent advancements in adhesive technology contribute to quicker bonding times, diminishing the requirement for clamps and supports, even in heavy-duty applications.

GCC Construction Adhesive Market (2024-30): Segmentation Analysis

The GCC Construction Adhesive Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the regional level. According to the analysis, the market has been further classified as:

Based on Resin Type

• Acrylic Adhesives
• Epoxy Adhesives
• Polyurethane
• Polyvinyl Acetate (PVA)
• Silicon Adhesives
• Cyanoacrylate Adhesives
• Others (UV Curing Adhesives, Plastisol Adhesives, MS Polymers, etc.)

During the historical years, the Acrylic Adhesives segment has dominated the GCC Construction Adhesive Market. The demand for acrylic adhesives is widely driven by the robust growth of construction activities. Their versatile bonding capabilities across various substrates such as wood, plastics, textiles, ceramics, leather, and metals are poised to drive significant growth in the segment. Countries such as Saudi Arabia and the UAE have embarked on a large number of residential and commercial projects, such as the USD 500 billion mega ‘NEOM’ project, The Red Sea Project—Phase 1, which includes the construction of 14 luxury and hyper-luxury hotels with 3000 rooms, Qidiya Entertainment City, etc. These projects are either in the planning or development phase, which is scheduled to be completed within the next five years. Hence, this is likely to increase the demand for acrylic adhesives for applications in the construction industry.

Based on End-User

• Residential
• Commercial
• Industrial

Residential projects stand at the forefront of the GCC Construction Adhesives Market, spearheading the demand for acrylic adhesives. With rapid urbanization and a surge in housing developments across cities like Abu Dhabi and Jeddah, the residential segment drives substantial growth in adhesive usage. Companies such as L&T Construction have strengthened their presence in the GCC region by securing multiple contracts, including the construction of substations and transmission lines in Saudi Arabia and Kuwait, as well as ongoing projects in Qatar, aligning with its mission to support urban expansion and infrastructure development in the Gulf. This dominance is expected to persist as the region continues its focus on housing infrastructure and sustainable building practices, which is further anticipated to enhance the market size during 2024–2030.

GCC Construction Adhesive Market (2024-30): Regional Projections

Geographically, the GCC Construction Adhesive Market expands across:

• The UAE
• Saudi Arabia
• Qatar
• Oman
• Bahrain
• Kuwait

To diversify the country’s economy, the government of Saudi Arabia has been playing a prominent role in encouraging private foreign investors to establish their business units by providing incentives & duty-free access. The Kingdom government launched the Saudi Vision 2030 strategy, under which the government introduced the Programme HQ policy. In this initiative, the government announced various requirements for foreign companies seeking state-sponsored contracts in Saudi Arabia, such as establishing their regional base headquarters in the country. Along with this, the government also allocated nearly USD 3 trillion in funding for foreign companies to support their businesses in the country. Hence, the construction and expansion of commercial infrastructure in the country increased, escalating the demand for construction adhesives to facilitate various bonding, sealing, and insulation applications in commercial buildings and facilities.

GCC Construction Adhesive Industry Recent Development:

• In 2024: H.B. Fuller Middle East, H.B. Fuller, and Saudi Aramco Technologies Company, in collaboration with Aether Industries Limited, a leading provider of specialty and fine chemicals and contract research and manufacturing services, have jointly announced the first commercialization of the sustainable Converge polyols technology.

Gain a Competitive Edge with Our GCC Construction Adhesive Market Report

1. GCC Construction Adhesive Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. GCC Construction Adhesive Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.