Saudi Arabia Aggregate Market – Industry Trends and Forecast to 2030

Saudi Arabia Aggregate Market, By Product (Sand, Gravel, Recycled Concrete, Crushed Stone), Application (Infrastructure, Commercial, Industrial, Residential) - Industry Trends and Forecast to 2030.

Saudi Arabia Aggregate Market Analysis and Insights

The Saudi Arabia aggregate market is expected to gain significant growth in the forecast period of 2023 to 2030. Data Bridge Market Research analyses that the market is growing with a CAGR of 3.6% in the forecast period of 2023 to 2030 and is expected to reach USD 1,719.53 million by 2030. The major factor driving the growth of the aggregate market is the increasing spending on major commercial and sporting infrastructure, rising investment in housing and infrastructure development, and rising adoption of recycled aggregates for construction purposes.

Aggregate refers to a building construction material with a coarse and grainy texture. Some commonly used aggregates include sand, crushed stone, gravel, broken blast-furnace slag, boiler ash, burned shale, and clay. These aggregates are mixed with cement, bitumen, lime, and gypsum to be used for construction applications. They provide enhanced abrasive power, porosity, volume, stability, resistance to wear, and erosion to the building. Compared to other construction materials, aggregates are more durable, chemical-resistant, and can withstand high temperatures. As a result, they find extensive applications in the construction of industrial, commercial, and residential complexes.

The Saudi Arabia aggregate market report provides details of market share, new developments, and the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, products approvals, strategic decisions, product launches, geographic expansions, and technological innovations in the market. To understand the analysis and the market scenario contact us for an Analyst Brief, our team will help you create a revenue impact solution to achieve your desired goal.

Market Definition

Aggregate refers to a building construction material with a coarse and grainy texture. Some commonly used aggregates include sand, crushed stone, gravel, broken blast-furnace slag, boiler ash, burned shale, and clay. These aggregates are mixed with cement, bitumen, lime, and gypsum to be used for construction applications. They provide enhanced abrasive power, porosity, volume, stability, resistance to wear, and erosion to the building. Compared to other construction materials, aggregates are more durable, chemical-resistant, and can withstand high temperatures. As a result, they find extensive applications in the construction of industrial, commercial, and residential complexes.   

Saudi Arabia Aggregate Market Dynamics

Drivers

• Increasing Spending on Major Commercial and Sporting Infrastructure

Aggregates demand in Saudi Arabia is expected to rise with huge spending on major commercial and sporting infrastructure such as the planning of the world's largest entertainment city in Qiddiya and King Salman Park in Riyadh. Saudi Arabia has staked its position as one of the leading forces behind the growth of the Middle East's sports industry. This is owing to various reforms and increasing demand for various aggregates such as asphalt for sports venue construction and concrete for the construction of large buildings and commercial spaces such as offices and other public places.

• Rising Investment in Housing and Infrastructure Development

Natural aggregates including crushed stone, sand, and gravel—are the essential raw material used for residential construction projects. The residential market in Saudi Arabia is continuously expanding, which will have a positive impact and will favor the growth of Saudi Arabia’s aggregate market. This is owing to the growing demand from the fast-growing urban population, which is a direct result of an inflow of Saudi nationals and expatriates who are relocating to Riyadh and other cities from other regions. Similar to Riyadh, Jeddah's residential market is also seeing apartment prices surge by 11.7% in Q3 2021, which is the strongest growth rate in at least five years.  

• Rising Adoption of Recycled Aggregates for Construction Purposes

In the construction industry, concrete recycling is crucial because concrete is the most dominant waste of construction and demolition waste. The modern construction industry is providing effective and durable solutions for adopting such recycled aggregate materials, looking after their advantages over conventional ones. This will boost the demand for construction aggregates and drive the Saudi Arabia aggregate market.

Opportunities

• Ongoing Reforms to Diversify Away from Oil

Saudi Vision 2030 is a strategic framework to reduce Saudi Arabia's dependence on oil, diversify its economy, and develop public service sectors such as health, education, infrastructure, recreation, and tourism. Key goals include reinforcing economic and investment activities, increasing non-oil international trade, and promoting a softer and more secular image of the Kingdom.

• Giga Infrastructure Projects in Saudi Arabia

Some of the major urban construction projects in Saudi Arabia include the King Abdullah Security Compounds (Phase 5) and the Grand Mosque (Holy Haram Mosque expansion), each valued at USD 21.3 billion and developed by the Ministry of Municipalities and Rural Affairs in Makkah. In addition, various large projects have been developed in the region.

• Increasing Tourism Industry in Saudi Arabia

With the growth in the construction industry, recreational projects are developed, which will increase the tourism sector in Saudi Arabia. This in turn is expected to drive the growth of the aggregate market in Saudi Arabia shortly. In addition, aggregates are highly used in the construction of homes, malls, roads, dams, airports, highways, and bridges owing to their benefits, including reduction of void content, compact concrete mixes, low consumption of concrete water, lower production costs, the high mechanical strength of the concrete, high hydraulic conductivity value, and others. All these places are highly utilized by tourists for their commuting purpose and stay.

Restraints/Challenges

• Shrinking Reserves of Sand

In addition, the main cause of this crisis is fast-paced urbanization. Therefore, the shrinking availability of sand will be the primary factor restraining demand growth in Saudi Arabia. This is because sand is a vital ingredient of concrete as a fine aggregate. Sand is an inert material in the concrete mix and its role cannot be neglected. Using sand in various aggregate products offers the requisite surface area for the film of binding material to adhere and spread. However, Saudi Arabia is trying to deal with rapidly depleting sand reserves, which will limit long-term supply and will continue to increase consumer prices in the regional market.

• High Transportation Cost

Transport costs are the costs internally assumed by the providers of transport services. They come as fixed (infrastructure) and variable (operating) costs, depending on geographical, infrastructure, administrative barriers, energy, and how passengers and freight are carried. Three major components, related to transactions, shipments, and the friction of distance, impact transport costs. In addition, despite the interdependence of products, the shipping, loading, and discharge port operations and inland stockpiling add up to the costs of various aggregate products.

• Stringent Zoning Laws and Regulations

There are various zoning and real estate laws and regulations implemented by the government in Saudi Arabia regarding the ownership, construction, and development of infrastructure and buildings. Among these, The Saudi Building Code (SBC) is a set of legal, administrative, and technical regulations and requirements that specify the minimum construction standards for buildings to ensure public safety and health. Several international codes have been studied and implemented in the country to choose a base code for the Saudi Building Code.

Recent Development

• In January 2021, CityCement announced the completion of the issuance of the memorandum of association and commercial registration for its subsidiary company. This subsidiary company is specialized in providing environmental solutions and services for the treatment and recycling of waste and is now a limited liability company 100% owned by the CityCement.
• In September 2021, Al Safwa, ltd. Became the proud recipient of two gold awards in the category of “green buildings” and “water or waste management” after competing with international companies in the Gulf Sustainability Award.
• In January 2021, CityCement announced the completion of the issuance of the memorandum of association and commercial registration for its subsidiary company.
• In July 2021, Saudi Cement donated SR 1 million to Ehsan. Ehsan is the National Platform for Charitable Work.
• In May 2022, SPCC completed technical studies and commenced construction of a new 5000t/day line at its Jazan cement plant.

Saudi Arabia Aggregate Market Scope

Saudi Arabia aggregate market is categorized based on product, and application. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.    

Product

• Sand
• Gravel
• Recycled concrete
• Crushed stone

Based on product, the Saudi Arabia aggregate market is classified into sand, gravel, recycled concrete, and crushed stone. 

Application

• Infrastructure
• Residential
• Commercial
• Industrial

Based on application, the Saudi Arabia aggregate market is classified into infrastructure, residential, commercial, and industrial.

Saudi Arabia Aggregate Market Regional Analysis/Insights

The Saudi Arabia aggregate market in the FMCG industry is segmented based on product and application.

Saudi Arabia aggregate market is expected to dominate the market due to increasing spending on major commercial and sporting infrastructure.

The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Data points downstream and upstream value chain analysis, technical test and porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Saudi Arabia’s brands and the challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing a forecast analysis of the country’s data.   

Competitive Landscape and Saudi Arabia Aggregate Market Share Analysis

Saudi Arabia aggregate market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product trials pipelines, product approvals, patents, product width and breadth, application dominance, technology lifeline curve. The above data points provided are only related to the companies’ focus related to the Saudi Arabia aggregate market.

Some of the prominent participants operating in the Saudi Arabia aggregate market are Saudi Saudi ReadyMix, CityCement, YCC, Saudi Cement, SPCC, Eastern Province Cement Co., Yamama Cement, Mastour Readymix (Subsidiary of Mastour Holding Group), Al-Rashed Cement Company, Al Safwa Ltd., Qassim Cement Co., Nassir Haza & Bros., among others.