GCC Fiber Cement Market Overview
GCC fiber
cement pouches market size is forecast to reach US$834.7 million by 2027, after
growing at a CAGR of 3.8% during 2022-2027. Fibre cement is a blend of cement, cellulose fibers, and water. They are lightweight, strong,
and fire-resistant. Fibre cement is used in a variety of applications such as
in construction, highway construction, highway repair, residential and
commercial construction. Portland cement is the most common type of
cement used in the construction industry. Additionally, it is used in mortar,
stucco, and non-specialty grout. As a building material, it is used in the
repair and construction of buildings, and water supply systems among others.
The product offers excellent binding properties and strength. Due to an increase
in Polypropylene fiber, the demand for corrugated sheets will also increase the market
demand. According to the data published
by MEED, there is about US$303 billion worth of planned construction and
transport projects in the GCC. Despite delays, these projects provide plenty of
opportunities in the construction industry which will further drive the demand
for fiber cement. In contrast, the post-Covid GCC construction market is
expected to grow at a rapid pace. The increase in government spending on
infrastructure, particularly rail projects, is supporting the market growth
during the forecast period.
COVID-19 Impact
The
COVID-19 pandemic is impacting different industries; one of the few industries
that were largely hit to some extent was the construction industry. Due to the
Covid-19, the construction and infrastructure industry are impacted very badly
which further impacted the GCC fiber cement market. Decrease in transportation
activities along with low production of fiber cement products during the
covid-19 pandemic has negatively impacted the market. Delay in construction
activities across the Gulf nations and economic crises are also challenging the
market growth.
GCC Fibre Cement Market Report Coverage
The report: “GCC Fibre Cement Market – Forecast (2022-2027)”, by IndustryARC,
covers an in-depth analysis of the following segments of the GCC Fibre Cement Market.
By Fibre Type: Polypropylene, Glass Rovings,
Mineral Fiber, Polyvinyl Alcohol (PVA), Carbon, Kevlar, Steel, Asbestos,
Lignocellulose, Others
By Product Type: Flat Sheets, Corrugated Sheets, Laminated Sheets, Shingle
Sheets Planks, and Others
By
Production Process: Hatscheck, Extrusion, Perlite, and Others
By Application: Runway,
Parking, Pavements, Industrial Flooring, Tunnel, and Canal Lining, Slope
Stabilization, Thin Shells, Curtain Walls. Pipes, Manholes, Dams and Hydraulic
Structures, Roof Tiles, and Others
By
End-Use Industry: Industrial, Residential (New Housing, Renovation,
Repair), Non-Residential (New, Renovation, Repair), Commercial and Others
By Geography: United Arab Emirates, Saudi Arabia, Qatar, Oman,
Kuwait, Bahrain
Key Takeaway
- GCC fiber cement market is projected to grow at a CAGR of 3.8% over the period 2022 to 2027.
- The commercial buildings segment holds a significant share in the GCC fiber cement market. The segment is accounted for more than 25% market share in 2021
- The fiber cement market consumption is projected to be the highest in Saudi Arabia followed by UAE and Qatar during the forecast period.
Figure: GCC Fiber Cement Market Revenue Share, By Country 2021
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GCC Fiber Cement Market– By Fiber Type
The
polypropylene fiber segments accounted for approximately 26% of the market share in 2021 and is estimated to
grow at a significant CAGR during the forecast period. Polypropylene fiber is
considered the best alternative for high performance, low cost, and low
environmental impact concrete. Increasing awareness regarding green building
products is driving the demand for the polypropylene fiber market. In addition
to reducing building-related impacts on human health and the environment, green
buildings strive to achieve resource efficiency in both energy and water
consumption. In terms of the highest number of LEED-certified buildings in
cities, Dubai comes in third, with the UAE ranking among the top ten countries
with LEED certifications. According to the data published by EcoMENA, In Abu
Dhabi, approximately 700,000 square meters of real estate are certified by the
Urban Planning Council under Estidama sustainability standards.
GCC Fiber Cement Market- By Product Type
The corrugated sheets segments
accounted for approximately 32% of the market
share in 2021 and is estimated to grow at a significant CAGR during the
forecast period. GCC countries have witnessed a high demand for corrugated
sheets due to their multifunctional applications in construction. The
corrugated sheets offer various properties such as lightweight, high
insulation, and high quality among others. The product is inexpensive compared
to other product types such as sheets, and planks among others.
GCC Fiber Cement market- By Application
The siding
segments accounted for approximately 32% of the
market share in 2021 and is estimated to grow at a significant CAGR during the
forecast period. The demand for siding is growing in the GCC countries, due to
its increasing demand for reinforcing the external wall of the building. The
growing demand for high-quality prefabricated buildings in UAE and Saudi Arabia
is driving the market growth. Key players in the market are planning to enhance
their operations in the GCC countries, which is likely to drive the market in
the next five years. Fiber cement sidings improve the aesthetic appeal of the
buildings. According to the Khaleej Times, approximately US$198.8 billion worth
of projects were completed in the GCC in 2019
GCC Fiber Cement market- End-Use Industry
The non-residential segment
accounted for approximately 40% of the market
share in 2021 and is estimated to grow at a significant CAGR during the
forecast period. The growing demand for fiber cement in the construction of
highways is driving the market for the non-residential segment. Some of the
ongoing construction projects in Qatar include FIFA World Cup 2022 stadiums,
Extension of the New Doha Port pro, Extension of Hamad International Airport,
and Expressways, which are supporting the market growth during the forecast
period. These are some of the non-residential construction driving the market
growth for GCC fiber cement.
GCC Fiber Cement Market: By
Geography
Saudi Arabia country held the largest share in the GCC fiber cement market in 2021 up to 60%, due to increased consumer spending, rising per capita income, and varying consumption. According to the industry sources, approximately 5,200 construction projects are under construction in Saudi Arabia. According to the data published by SIDF, the Saudi Government is involved in the construction of a $500bn NEOM smart city, located in the northwest of the country. The UAE and Qatar are also expected to hold a significant share in the GCC fiber cement market. The increase in the number of construction and renovation activities is fueling the demand for fiber cement in the region. Dubai has allocated USD 7 billion for infrastructure development and construction for the World Expo 2020. Under the National Vision 2030 program, the Qatar government plans to invest approximately US$ 16.4 billion in infrastructure and real estate projects over the next four years.
GCC Fiber Cement Market: Key Drives
Growing Construction Industry in GCC
Over the
past few years' construction industries are growing significantly in Gulf
countries. The economic growth, investments in infrastructure projects, and
technology advancements are boosting the industry. The construction sector
plays an important role in the GCC country's economy. The UAE construction
sector recorded growth of 3.3 percent in 2019 and it is expected to register
4.3% CAGR by 2021. In Saudi Arabia, a new wave of megaprojects being delivered by
the Public Investments Fund, including Neom, The Red Sea Project, Qiddiya
entertainment city, and Diriyah Gate, is focusing heavily on developing local
capacity. Emirati government initiatives
to stimulate future economic growth include Etihad Rail, which is already under
construction. Many new projects are being developed in Abu Dhabi's energy and
petrochemical sectors, and housing and real estate will also be key drivers.
GCC Fiber Cement Market: Challenges
High installation cost of fiber cement products
Fiber cement board siding is
expensive to install. The labor costs associated with fiber cement installation
and delivery are higher because fiber cement requires more manpower. The cost
of installing aluminium siding is typically two to three times that of vinyl
siding. In contrast to aluminium or vinyl siding, fiber cement siding needs to
be repainted. Sidings do need repainting after some time, although they
generally last a long time, usually fifteen years or more. If fiber cement
siding is selected, the task of painting it should be considered.
GCC Fiber Cement Market Landscape
Technology launches, acquisitions, and R&D activities are
key strategies adopted by players in the GCC Fiber Cement Market. GCC fiber
cement market top companies include:
- James Hardie Industries PLC
- Toray Corporation
- Etex Corporation
- Nichiha Corporation
- EvonikIndustries
- CSR Limited
- Cembrit Group A/S
- The Siam Cement Public Company Limited
- Plycem Corporation
- Beijing Hocreboard Building Materials Co. Ltd
- Hekim YAPI A.?.
- UNiCEM
- Other Companies