Saudi Arabia Cement Market Growing at a CAGR of slightly above 5.1% between 2014 and 2020

Zion Research has published a new report titled “Cement Market for Residential, Commercial, Infrastructure and Other Applications: Saudi Arabia Industry Perspective, Comprehensive Analysis and Forecast, 2014 – 2020” According to the report, Saudi arabia region demand for cement was valued at USD 3.90 billion in 2014 and is expected to reach USD 5.27 billion in 2020, growing at a CAGR of slightly above 5.1% between 2014 and 2020. In terms of volume, thecement market in the Saudi Arabia stood at 61,000 kilo tons in 2014.

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Cement is a basic ingredient used in the construction industry. It is used in wide range of applications in construction. Cement used as a binder in the preparation of mortar, concrete, non-specialty grouts and stucco, etc.

There are two types of cement available depending on their nature like hydraulic cement and non hydraulic cement. Non-hydraulic cement cannot bind or set the material in wet conditions or underwater, rather it easily gets affected by atmospheric changes or it gets reacts with carbon dioxide in air, therefore it is not used in construction. However hydraulic cement is offers strong binding of the construction material and it is mainly used in construction. Limestone, clay, and sand are the key raw materials used in the manufacturing of cement. These raw materials are available in abundance in Saudi Arabia. Due to wide availability of raw materials in the region cement is one of the lowest prices commodity used in construction activity in Saudi Arabia.

Applications of cement involve different types of constructions including commercial construction, industrial construction, residential construction, infrastructure development. Infrastructure development accounted for the largest market share of the cement market, both in terms of volume and revenue in 2014. In terms of volume, the segment accounted for around 50% share of the cement market in Saudi Arabia. Residential construction was the third-largest application segment of cement market in the Saudi Arabia in 2014. Residential segment is expected to exhibit fastest growth rate during the forecast period.

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Cement Industry for Residential Market

Wide availability of raw materials and strong growth in all aspects of construction activities such as commercials, industrial, residential and infrastructure is driving growth for the cement industry in the region. As compare to other countries the cost of cement is lowest in Saudi arabia, due to large supply of raw materials and availability of fuel. This is very useful factor for driving the cement market in Saudi Arabia.

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Demand for cement in the mainly driven by the expanding construction industry in the Saudi Arabia which accounted for the largest share of market. The government of Saudi Arabia has started a number of infrastructure development projects across all regions including central, eastern, northern, southern, and western. High investment in infrastructure development activities is expected to be a major demand driver for cement market in the Saudi Arabia. The government also owed a major segment of these funds for the construction of residential and commercial applications which include health cities and residential units in regions of Saudi Arabia. Increasing population requires improvement in infrastructure and services such as roads, hospitals, schools, etc. This in turn is anticipated to fuel the growth of cement market in Saudi Arabia.

Saudi Arabia cement market has been segmented on the basis of regions including North, South, Western, Eastern, and Central region. Central region dominated the cement market in Saudi Arabia with over 30% share of the total market in 2014. Increasing number of upcoming residential, commercial and infrastructural projects in the central region are expected to boost demand for cement in Saudi Arabia. It is also expected to exhibit fastest growth during the forecast period. Central region is followed by Western region in terms of market share in 2014. Eastern and Southern regions also holds significant market share.

Some of the key players involved in Saudi Arabia cement market include Saudi Cement Company, Riyadh Cement Company, Yamama Cement Company, and Najran Cement Company.

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