Report Overview

An increasing demand for high-performance coatings in the construction & marine industries, government initiatives to promote the use of sustainable materials, and surge in the relevance of renewable energy are expected to drive the growth of Saudi Arabia gelcoat market during the forecast period between 2023 and 2029.

Saudi Arabia Gelcoat Market - Industry Trends & Forecast Report, 2029

Saudi Arabia gelcoat market size was estimated to at USD 38.79 million in 2022. During the forecast period between 2023 and 2029, the Saudi Arabia gelcoat market size is projected to grow at a CAGR of 6.76% reaching a value of USD 60.69 million by 2029. Major growth factors for the Saudi Arabia gelcoat market include increasing demand for high-performance composite materials in various industries including transportation, aviation, aerospace, and military defense. Additionally, expanding construction activities in Saudi Arabia for economic diversification is also emerging as a major driving factor for the gelcoat market growth.

Saudi Arabia Gelcoat Market – Overview

gelcoat, also called Gel Coat, is a substance used to give a high-quality finish on the visible surface of a fiber-reinforced composite. It is a two-part polyester resin that has been particularly prepared for use as the initial resin layer to be put in a mold for creating a polyester or vinyl ester composite product. The objective is to produce an opaque surface that will totally prevent glass pattern show-through. However, free water will seep through the surface of the gelcoat and infiltrate into the structure since gelcoat is not waterproof. The water will then either evaporate or freeze, shattering the gelcoat as a result of temperature extremes.

Saudi Arabia Gelcoat Market

Growth Drivers

Expanding Application of Gelcoat in Automotive Sector

Gelcoat has a number of favorable attributes, including high gloss, UV resistance, corrosion resistance, and chemical resistance, which is why it is prominently used in the automotive and transportation industry. According to Forbes, Saudi Arabia is eying car production lines in the country as a part of its wider economic diversification. Domestic automobile manufacturers are also focusing on meeting global manufacturing standards. The Saudi National Automotive Manufacturing Co. is planning on producing 10,000 cars by 2023, as reported by Arab News. This robust expansion in the domestic automotive manufacturing industry is projected to boost the overall Saudi Arabia gelcoat market.

Restraints

Stringent Government Regulations

The most popular monomer used in polyester resin-based gelcoats is styrene, and its overuse has raised concerns about worker safety and health. This makes the Saudi Arabia gelcoat market expansion exceedingly challenging. To reduce styrene emissions from gel coats and resins, the Saudi Government has set strict restrictions and regulations. However, the regulations are anticipated to limit Saudi Arabia gelcoat market growth during the forecast period.

Impact of COVID-19 on Saudi Arabia Gelcoat Market

The unprecedented COVID-19 pandemic outbreak halted the growth of the Saudi Arabia gelcoat market. The operations of the major end-user industries of the gelcoat market including automotive and building & construction were temporarily hindered which is impacting the market demand for gelcoat in Saudi Arabia. Additionally, the production activities and import activities also negatively affected the Saudi Arabia gelcoat market.

Saudi Arabia Gelcoat Market

Segmental Coverage

Saudi Arabia Gelcoat Market – By Resin Type

Based on resin type, the Saudi Arabia gelcoat market is segregated into polyester, vinyl ester, epoxy, and others. The polyester segment holds the highest share in the Saudi Arabia gelcoat market. The growth of this resin type is mainly attributed to its excellent combination of mechanical performance, weathering, and value for money, which makes it the most widely used type of resin in composites. The high application of polyester resin type in the construction industry and rising construction activities in Saudi Arabia are significantly influencing its demand in this region.

Saudi Arabia Gelcoat Market – By Type

Based on type, the Saudi Arabia gelcoat market is segmented into standard gelcoat and specialty gelcoat. The standard gelcoat segment accounts for a higher share in the Saudi Arabia gelcoat market, as these types of gelcoat can be applied on the molded parts of various products including furniture, machine parts, canoes, and industrial molded parts. They can withstand both indoor as well as outdoor environments which acts as a favorable factor for their market growth.

Saudi Arabia Gelcoat Market – By End User

Based on end user, the Saudi Arabia gelcoat market is segmented into automotive, marine, building & construction, wind energy, and others. The marine segment accounts for the highest market share. Gelcoat is a form of polymer that is applied to boats and other watercraft as a protective covering. It protects the vessel's hull from UV radiation, seawater, and other factors and is commonly applied to the hull. The color options for gelcoat are many, and it may be polished to a brilliant gloss. “Saudi Arabia is placed 20th internationally in the marine transport sector and achieved the highest regional improvement in the 2021 Maritime Connectivity Index”, as reported by Arab News. As a result, the demand for gelcoat is also expanding in the marine industry.

Competitive Landscape

Major players operating in Saudi Arabia gelcoat market include LyondellBasell Industries Holdings B.V., 3M, SIKA AG, AEKYUNG CHEMICAL Co., Ltd, ALLNEX NETHERLANDS B.V., AOC, LLC, BÜFA GmbH & Co. KG, Changzhou Huake Polymers Co., Ltd., Eternal Synthetic, and Euroresins. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Resin Type

• Polyester

• Vinyl Ester

• Epoxy

• Others

By Type

• Standard gelcoat

• Specialty gelcoat

By End User

• Automotive

• Marine

• Building & Construction

• Wind Energy

• Others