Saudi Arabia Asphalt Market, By Asphalt Type (Hot Mix, Warm Mix and Cold Mix), Product (Asphalt Paving Mixtures and Blocks, Prepared Asphalt and Tar Roofing and Siding Products, Roofing Asphalts and Pitches, Coatings and Cement), Additive (Polymeric Modifiers, Anti-Strip and Adhesion Promoters, Emulsifiers, Chemical Modifiers, Rejuvenators, Fibers, Flux Oil, Colored Asphalt and Others), Application (Road Construction & Paving, Roofing, Airport Construction and Others), End User (Residential and Non-Residential) - Industry Trends and Forecast to 2029.
Saudi Arabia Asphalt Market Analysis and Size
Rising demand for recycled asphalt and increased government and private sector expenditure on road construction and infrastructure development is expected to drive the demand for the Saudi Arabia asphalt market. However, the high cost of machinery such as asphalt pavers may further restrict the market's growth.
This Saudi Arabia asphalt is primarily used in constructing roads, parking areas and driveways as it binds crushed stone and aggregates into firm and concrete surfaces such as roads and pavements.
Data Bridge Market Research analyses that the Saudi Arabia asphalt market is expected to reach the value of USD 162,164.88 thousand by the year 2029, at a CAGR of 3.9% during the forecast period. The hot mix segment accounts for the most prominent asphalt type in the respective market, owing to the rising demand for recycled asphalt. The market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis and climate chain scenario.
|
Report Metric
|
Details
|
|
Forecast Period
|
2022 to 2029
|
|
Base Year
|
2021
|
|
Historic Years
|
2020 (Customizable to 2019 - 2014)
|
|
Quantitative Units
|
Revenue in USD Thousand
|
|
Segments Covered
|
By Asphalt Type (Hot Mix, Warm Mix and Cold Mix), Product (Asphalt Paving Mixtures and Blocks, Prepared Asphalt and Tar Roofing and Siding Products, Roofing Asphalts and Pitches, Coatings and Cement), Additive (Polymeric Modifiers, Anti-Strip and Adhesion Promoters, Emulsifiers, Chemical Modifiers, Rejuvenators, Fibers, Flux Oil, Colored Asphalt and Others), Application (Road Construction & Paving, Roofing, Airport Construction and Others), End User (Residential and Non-Residential)
|
|
Country Covered
|
Saudi Arabia
|
|
Market Players Covered
|
Al-Azizia Asphalt & Aggregates Manufacturers, Red Sea Waterproofing Factory, Nassir Hazza & Bros., Saudi Arabian Oil Co., Al Majwal Petrochemical & Bitumen Factory, Duramax ( A subsidiary company of PetroDeals), Al Rashed, Passing Road Co., among others
|
Market Definition
Asphalt is a black-colored and semi-solid binding material obtained from petroleum distillation residue. Asphalt is manufactured at an average temperature of 150 to 180°C and is highly durable and crack-resistant. It is primarily used in constructing roads, parking areas and driveways as it binds crushed stone and aggregates into the firm and concrete surfaces such as roads and pavements. Smoothly laid asphalt helps minimize fuel consumption and emissions in vehicles and adds to safety by providing a better grip on the wheels.
Market Dynamics of the Saudi Arabia Asphalt Market
- Rising demand for recycled asphalt
Asphalt is recyclable. It is among the most recycled products used in the construction industry. The recycled asphalt mix is also stronger, more durable and rut-resistant. Thus, recycled product offers superior performance.
Recycled asphalt is a reprocessed asphalt that contains asphalt and aggregates. The process of asphalt recycling involves milling and resizing the asphalt pavements. The asphalt layer is crushed and pulled from the existing surface, such as roads or highways. Asphalt milling is done, followed by pulverization and stabilization. The pulverization of the asphalt is done to blend the asphalt layer into sub-layers. Stabilization involves mixing tar, binding agents or other materials, additives and waterproofing materials with crushed asphalt.
- Increased government and private sector expenditure in the development of road construction and infrastructure
The rapid expansion of the Saudi Arabia asphalt market is predominantly due to the rapid expansion of the construction sector across the country. There is a growing demand from the residential and commercial sectors and rising knowledge of various materials, including asphalt. Rising urbanization, increasing smart cities, buildings and other urban construction projects, along with the expanding construction sectors, are major driving factors for the growth of the Saudi Arabia asphalt market.
- Asphalt as an alternative to the conventionally used concrete in the construction industry
Asphalt can be used as a choice material and a highly preferred alternative to concrete in the construction industry owing to its various properties. Asphalt has flexural strength and can handle various bends and contortions before it starts to crack or break. This is one of the reasons why it is a sought-after material for projects that need material like it. Concrete does not have this same strength, which puts asphalt in the lead when comparing these two materials.
- In December 2021, Saudi Aramco announced that the domestic prices for diesel and asphalt producers would be reviewed annually in accordance with the governance procedures for adjusting the prices of energy and water products
- In 2020, in Saudi Arabia, the average bitumen and asphalt export price was USD 553 per tonne 2020, which increased by 4.5% against the year 2019
Restraints/Challenges
- Volatility in the prices and supply of asphalt due to dependence upon petrochemical
The asphalt market suffers a lot from factors such as the volatility of energy and raw material prices and the fluctuating economy of the region. This factor greatly slows down the market's rate of expansion. There is significant volatility in the prices of asphalt as it is a petrochemical product and fluctuations in the price of petroleum are reflected in the price of asphalt. Fluctuating petrochemical prices result in the inconsistent supply of asphalt, affecting construction projects undertaken by governments and road contractors, as it is a primary raw material used in the construction of road pavements and highways. Moreover, the asphalt additives are directly related to the asphalt market. Therefore, volatility in the prices and supply of asphalt additives also affects the market. This has also forced key players operating in the market to make changes in their asphalt products constantly.
- Heavy cost of machinery such as asphalt pavers
Asphalt pavers are machines used or distributed and lay on surfaces such as bridges, highways and roads. These machines are also called asphalt finishers. The purchase, reuse and rental of asphalt pavers is a major restraint in the Saudi Arabia asphalt market as they are very expensive and their maintenance also costs high to the users.
Moreover, owning and starting an asphalt plant is another major task and understanding the operating cost related to the same is another. This is because the very basic asphalt mix plant can start from as low a price as USD 45,000. It can go up to USD 2-3 million. The price highly depends on the capacity of the asphalt plant and the type of equipment used. The mobility factor and the accessories that can be added to the plant also affect the cost. There are two types of asphalt plants, continuous type and batch type. The batch type plant has more functions. It is more complicated than a drum plant and hence costlier to own and operate.
COVID-19 had a Minimal Impact on Saudi Arabia Asphalt Market
COVID-19 impacted various manufacturing industries in the year 2020-2021 as it led to the closure of workplaces, disruption of supply chains and restrictions on transportation. Due to the lockdown, the asphalt market has experienced a significant impact on the import and export of asphalt. The growing demand for consumer products will increase the growth of the Saudi Arabia asphalt market.
Recent Development
- In April 2016, Saudi Arabian Oil Co. awarded an EPC (engineering, procurement and construction) contract to Canada-based SNC-Lavalin for the asphalt production expansion project at the Ras Tanura refinery. This contract will help the company to expand its facilities worldwide
Saudi Arabia Asphalt Market Scope
Saudi Arabia asphalt market is segmented based on asphalt type, product type, additive application and end - user. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
By Asphalt Type
- Hot Mix
- Warm Mix
- Cold Mix
On the basis of asphalt type, the Saudi Arabia asphalt market is segmented into hot mix, warm mix and cold mix.
Product
- Asphalt Paving Mixtures and Blocks
- Prepared Asphalt and Tar Roofing and Siding Products
- Roofing Asphalts and Pitches
- Coatings And Cement
On the basis of product, the Saudi Arabia asphalt market is segmented into asphalt paving mixtures and blocks, prepared asphalt and tar roofing and siding products, roofing asphalts and pitches, coatings and cement.
Additive
- Polymeric Modifiers
- Anti-Strip and Adhesion Promoters
- Emulsifiers
- Chemical Modifiers
- Rejuvenators
- Fibers
- Flux Oil
- Colored Asphalt
- Others
On the basis of additive, the Saudi Arabia asphalt market is segmented into polymeric modifiers, anti-strip and adhesion promoters, emulsifiers, chemical modifiers, rejuvenators, fibers, flux oil, colored asphalt, others.
Application
- Road Construction & Paving
- Roofing
- Airport Construction
- Others
On the basis of application, the Saudi Arabia asphalt market is segmented into road construction & paving, roofing, airport construction, others.
End User
- Residential
- Non-Residential
On the basis of end user, the Saudi Arabia asphalt market is segmented into residential, non-residential.
Competitive Landscape and Saudi Arabia Asphalt Share Analysis
Saudi Arabia asphalt market competitive landscape provides details by the competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Europe presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to Saudi Arabia asphalt market.
Some of the major players operating in the Saudi Arabia asphalt market are Al-Azizia Asphalt & Aggregates Manufacturers, Red Sea Waterproofing Factory, Nassir Hazza & Bros., Saudi Arabian Oil Co., Al Majwal Petrochemical & Bitumen Factory, Duramax (A subsidiary company of PetroDeals), Al Rashed, Passing Road Co., among others.
SKU-