GCC Fiber Cement Market - Forecast(2023 - 2028)

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:

1. James Hardie Industries PLC
2. Toray Corporation
3. Etex Corporation
4. Nichiha Corporation
5. EvonikIndustries
6. CSR Limited
7. Cembrit Group A/S
8. The Siam Cement Public Company Limited
9. Plycem Corporation
10. Beijing Hocreboard Building Materials Co. Ltd
11. Hekim YAPI A.?.
12. UNiCEM
13. Other Companies