Market Trends of Expansion Vessel Membrane Industry
This section covers the major market trends shaping the Expansion Vessel Membrane Market according to our research experts:
Increasing Demand from the Construction Industry
- Due to its applicability in water systems, the expansion vessel membrane is widely used in construction.
- Saudi Arabia is embarking on many residential and commercial projects, which are expected to increase the construction activities in the country. Some projects were undertaken or in various development phases, including a USD 500 billion futuristic mega-city 'Neom' project, the Red Sea Project - Phase 1. It is due to be completed in 2022. It includes 14 luxury and hyper-luxury hotels with 3,000 rooms across five islands and two inland resorts, Qiddiya Entertainment City, Amaala - the uber-luxury wellness tourism destination, Jean Nouvel's Sharman resort in Al-Ula, Ministry of Housing's Sakai homes, and Jeddah Tower.
- The construction industry in South Africa got severely hit by pandemic restrictions causing many significant projects to get delayed or canceled. The government launched an ambitious USD 60 billion economic reconstruction and recovery plan to stabilize the country's economy in October 2020. This plan includes four priority interventions: fundamental investment in facilities, expanding energy production capacity, creating jobs to support livelihoods, and industrial growth.
- The largest residential project being developed by South Africa in the north of Durban is the Cornubia housing project. This project will include residential, commercial, and industrial sites. The area allocated for this project is 1200 hectares, and the budget is USD 1.5 billion.
- One of the residential complexes developed in Abu Dhabi is Louvre Abu Dhabi Residences, which aims to construct 400 apartments within Saadiyat Grove.
- As per data published by General Authority for Statistics (Saudi Arabia), the construction revenue increased significantly in 2021 compared to 2017.
- All the above factors are expected to drive the market for expansion vessel membranes in the Middle East and Africa region in the coming years.
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South Africa to Dominate the Market in Middle East and Africa Region
- South Africa is expected to dominate the market in the Middle East and Africa region because of the country's increased automotive production and construction sector revenue.
- As per OICA, South Africa produced around 447.22 thousand vehicles in 2020, which declined by 29% compared to 631.98 thousand in 2019. In 2021, 499,087 cars were made, resulting in a rise of about 12% compared to 2020.
- In recent years, several vehicle manufacturers expanded their production and exported from their South African operations, backed by incentives offered through the government's Automotive Production and Development Plan (APDP). For instance, The International Finance Corporation (IFC), a member of the World Bank Group, announced an agreement to help BMW build local capacity by providing a loan of USD 150 million.
- Further, according to the National Association of Automobile Manufacturers of South Africa (NAAMSA), new passenger and commercial vehicle sales in South Africa increased by 7.6% year-on-year to 41,019 units in June 2022. Further, in the first half of 2022, sales volume increased by 11.4% year-on-year to 253,442 units.
- The largest residential project developed by South Africa in the north of Durban is the Cornubia housing project. This project will include residential, commercial, and industrial sites. The area allocated for this project is 1200 hectares, and the budget is USD 1.5 billion.
- Overall, all such factors are expected to increase the vessel membranes market growth in South Africa over the forecast period.
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