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

The Middle-East Paints and Coatings Market is segmented by Resin Type (Acrylic, Alkyd, Polyurethane, Epoxy, Polyester, and Other Resin Types), Technology (Water-borne, Solvent-borne, Radiation Cure, and Other Technologies), End-user Industry (Architectural, Automotive, Wood, Industrial, Transportation, and Packaging), and Geography (Saudi Arabia, Qatar, Kuwait, United Arab Emirates, Iran, Iraq, Oman, Bahrain, and Rest of the Middle-East).

Market Snapshot

Middle-East Paints and Coatings Market Bar Graph
Study Period: 2016 - 2026
Base Year: 2020
CAGR: >3.5 %

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Market Overview

The Middle-East paints and coatings market was estimated to be valued at over USD 3.2 billion in 2020, and the market is projected to register a CAGR of over 3.5% during the forecast period (2021-2026).

COVID-19 has created economic instability and lockdowns, which created a fall in the various end-user industries such as the construction and automotive industry. Following the pandemic, the automotive industry in the GCC region decreased by nearly 24% in 2020 compared to that of 2019. Moreover, with construction companies entering the post-COVID-19 environment, they have a challenging job ahead, ensuring their workers abide by social distancing guidelines and remain productive. Also, construction companies around the world are deciding whether to close or stay open with strategies to keep workers healthy. However, the markets are slowly opening, which is likely to be an encouraging sign for market growth.

  • Over the short term, an increase in the construction of hotels and restaurants, re-painting old hotels, and maintaining architectural and decorative infrastructure (to attract the tourists) are expected to boost the market studied. Tourism in the Middle East is increasing primarily due to people traveling for leisure, business trips, etc. Around 85% of the people are traveling to the Middle East for leisure, and around 15% visit due to business trips. This, in turn, is driving the construction activities in the commercial and infrastructure sector in the Middle Eastern region.
  • The volatility of raw material prices and other restraints such as the recession of the construction industry in Iran and the decline of automotive sales is likely to hinder the market growth.
  • The rising demand for eco-friendly products is expected to offer various opportunities for the market's growth over the forecast period.
  • These very concerns have encouraged the emergence of bio-based paints and coatings, which are eco-friendly in nature.

Scope of the Report

Paints and coatings are used for various applications in interiors and exteriors of houses for protection from blistering summers, freezing winters, soaking rain, and also from UV radiation. The market is segmented by resin type, technologies, end-user industries, and geography. By resin type, the market is segmented into acrylic, alkyd, polyurethane, epoxy, polyester, and other resin types. By technology, the market is segmented into water-borne, solvent-borne, radiation cure, and other technologies. By end-user industry, the market is segmented into architectural, automotive, wood, industrial, transportation, and packaging. The report also covers the market size and forecasts for the Middle-East paints and coatings market in 8 countries across the region. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).

Resin Type
Acrylic
Alkyd
Polyurethane
Epoxy
Polyester
Other Resin Types
Technology
Water-borne
Solvent-borne
Radiation Cure
Other Technologies
End-user Industry
Architectural
Automotive
Wood
General Industrial Coating
Transportation
Other End-user Industries
Geography
Saudi Arabia
Qatar
Kuwait
United Arab Emirates (UAE)
Iran
Iraq
Oman
Bahrain
Rest of the Middle-East

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Key Market Trends

Increasing Demand from the Architectural Industry

  • Paints and coatings are extensively used in the architectural sector for both exterior and interior applications. Paints and coatings are applied on the exterior of the house, not only to give them a new look but also to protect it from blistering summers, freezing winters, soaking rain, and the daily exposure of UV radiation (without fading, peeling away, and cracking the exteriors).
  • Paints and coatings are also used in the interiors of houses to add color or decorative purposes and a wide range of other functions. The functions vary depending upon the type of environment and room that they are used in. For example, paints with glossier sheens have a tighter molecular structure than flat paints, making it more difficult for moisture to penetrate, and hence are used in bathroom walls. Most ceilings are painted flat white so that they could reflect most of the ambient light in the room to give the resident a spacious and relaxed.
  • There are an estimated USD 1.45 trillion worth of planned construction projects planned in all the GCC countries, supported by strong fundamentals, like increased population growth, young demographics, and a growing requirement for infrastructure across multiple sectors. Saudi Arabia and the United Arab Emirates are by far the largest constructing spenders in the region.
  • The construction industry in the Middle East has been steadily coming on track since 2014. Construction demand is expected to be strongest in Saudi Arabia, followed by Iran, Iraq, and the United Arab Emirates. Qatar and Kuwait are expected to register the highest growth rates for the next three years through 2022.
  • In 2019, a total of USD 102.3 billion worth of projects were processed across all GCC countries, compared to USD 101.8 billion in 2018.
  • 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.
  • All the aforementioned factors are expected to drive the Middle-East paints and coatings market in the architectural industry during the forecast period.
Middle-East Paints and Coatings Market Share

Saudi Arabia to Dominate the Market

  • Saudi Arabia is by far the largest national market in the Middle-East, accounting for nearly half of the total demand for paints and coatings in the region. According to the International Monetary Fund (IMF), the kingdom has announced a bold reform program under its Vision 2030, due to which growth is expected to be robust over the medium term as structural reforms are implemented.
  • Saudi Arabia had registered a growth rate of 2.4% in 2018, in terms of GDP, which slowed down to 0.2% in 2019, owing to the lower crude oil prices and unfavorable geopolitical factors. As per the International Monetary Fund, in 2020, the Saudi economy was expected to contract by 5.4%.
  • In Saudi Arabia, the construction industry accounts for nearly 6-7% of the total GDP of the country. The announcement of Vision 2030 and the associated National Transformation Plan (NTP) increased investments in various sectors, such as healthcare and education, to support the country’s economic growth.
  • According to the Middle East Economic Digest (MEED), the total value of the Saudi Arabian capital projects was estimated to be around USD 1.4 trillion.
  • The country has generated large-scale projects worth USD 800 billion to boost its infrastructure in the coming years. The government has expansive plans for the development of social infrastructure, transportation, and energy and utility construction in the country. The country’s primary growth in construction has been largely powered by the massive investments done by the government and increased inflow of FDI.
  • The urban construction sector is the largest contributor to the construction sector’s expansion, with 3,727 active projects valued at USD 386.4 billion.
  • Rapid urbanization increase in population growth and tourism are expected to drive growth in the building sector, especially in the residential and leisure markets. The government is stepping up investment in KSA’s transport infrastructure, fast-tracking key projects, and creating new opportunities for the service sector.
  • The country is a large importer of vehicles and auto parts, and it is trying to attract original equipment manufacturers (OEMs) to open their production plants in the country to develop the domestic auto industry.
  • Following the pandemic, the automotive industry in Saudi Arabia was nearly 252 thousand units compared to 387 thousand units in 2019. The markets are slowly opening, and this will be an encouraging sign.
  • According to industrial statistics, the total revenue of the furniture and appliances market in 2019 is estimated to be nearly USD 830 million. The furniture industry is growing, with the support of the real estate development projects, followed by the rising demand for residential properties in the country.
  • All such development is expected to drive the paints and coatings market in the country during the forecast period.
Middle-East Paints and Coatings Market  Growth Rate By Region

Competitive Landscape

The Middle Eastern paints and coatings market is a highly consolidated market, with the top six players contributing to about 70% of the market share. Key players in the market include Akzo Nobel NV, Jazeera Paints, Jotun, PPG Industries Inc., and National Paints Factories Co. Ltd, among others.

Recent Developments

  • In February 2020, PPG Industries Inc. completed Industria Chimica Reggiana (ICR) SpA, a manufacturer of paints and coatings for the automotive refinish and light industrial coatings industries. Industria Chimica Reggiana sells products in regions, such as Europe, Africa, the United States, the Middle East, and Latin America.
  • In October 2019, Sherwin-Williams launched a product line for architectural building products. The company launched Powdura and Anodite powder coatings series.
  • In April 2019, Jotun launched new wood coating products Ultra One, Ultra-Lite, and Primax Excel.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increased Focus on Tourism and Construction in the Middle Eastern Region

      2. 4.1.2 Booming Commercial Construction Activities

    2. 4.2 Restraints

      1. 4.2.1 Voltality in Raw Material Prices

      2. 4.2.2 Unfavorable Conditions Arising Due to the COVID-19 Outbreak

      3. 4.2.3 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Resin Type

      1. 5.1.1 Acrylic

      2. 5.1.2 Alkyd

      3. 5.1.3 Polyurethane

      4. 5.1.4 Epoxy

      5. 5.1.5 Polyester

      6. 5.1.6 Other Resin Types

    2. 5.2 Technology

      1. 5.2.1 Water-borne

      2. 5.2.2 Solvent-borne

      3. 5.2.3 Radiation Cure

      4. 5.2.4 Other Technologies

    3. 5.3 End-user Industry

      1. 5.3.1 Architectural

      2. 5.3.2 Automotive

      3. 5.3.3 Wood

      4. 5.3.4 General Industrial Coating

      5. 5.3.5 Transportation

      6. 5.3.6 Other End-user Industries

    4. 5.4 Geography

      1. 5.4.1 Saudi Arabia

      2. 5.4.2 Qatar

      3. 5.4.3 Kuwait

      4. 5.4.4 United Arab Emirates (UAE)

      5. 5.4.5 Iran

      6. 5.4.6 Iraq

      7. 5.4.7 Oman

      8. 5.4.8 Bahrain

      9. 5.4.9 Rest of the Middle-East

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis**

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Akzo Nobel NV

      2. 6.4.2 Asian Paints Berger

      3. 6.4.3 Beckers Group

      4. 6.4.4 Jazeera Paints

      5. 6.4.5 Caparol Paints

      6. 6.4.6 Hempel A/S

      7. 6.4.7 Jazeera Paints

      8. 6.4.8 Jotun

      9. 6.4.9 National Paints Factories Co. Ltd

      10. 6.4.10 PPG Industries Inc.

      11. 6.4.11 Premier Paints Company Limited (The Sherwin-Williams Company)

      12. 6.4.12 Ritver Paints & Coatings

      13. 6.4.13 RPM International Inc.

      14. 6.4.14 Tambour

      15. 6.4.15 Terraco UAE Ltd

      16. 6.4.16 Thermalite Middle East

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Rising Demand for Eco-friendly Products

    2. 7.2 Plans for New Luxury Real Estate Projects in Qatar

    3. 7.3 Growth Prospects in Oman

**Subject to Availability

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Frequently Asked Questions

The Middle-East Paints and Coatings Market market is studied from 2016 - 2026.

The Middle-East Paints and Coatings Market is growing at a CAGR of >3.5% over the next 5 years.

The Middle-East Paints and Coatings Market is valued at 3 Billion USD in 2016.

National Paints Factories Co. Ltd, Akzo Nobel N.V., Jotun, Jazeera Paints, Hempel A/S are the major companies operating in Middle-East Paints and Coatings Market.

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