Market Trends of Middle-East and Africa Surface Treatment Chemicals Industry
This section covers the major market trends shaping the MEA Surface Treatment Chemicals Market according to our research experts:
Increasing Demand from Automotive Industry
- The automotive industry utilizes surface treatment for treating surfaces of automotive bodies as well as the surface of parts and components.
- Moreover, surface treatment of automotive bodies, parts, and components also imparts various significant properties to automobiles, which are among the necessary properties for modern automobiles, such as increased loads (mechanical, thermal, etc.), longer lifetime, weight reduction, friction reduction, and corrosion resistance.
- In the Middle East and Africa region, the major automotive producer includes Iran, South Africa, Morocco, Algeria, and Egypt.
- As per the OICA, Iran is among the major automotive producer in the Middle East region and produced 894,298 vehicles in 2021, 9% more than that of 2020.
- Moreover, the total automotive production in South Africa in 2021 was 499,087, registering an increase of 12% as compared to 2020.
- Similarly, in Morocco, the automotive production in 2021 stood at 403,007, registering an increase of 23% as compared to 2020.
- Furthermore, in Saudi Arabia Under Vision 2030, the Saudi Arabian government aims for OEMs to produce more than 300,000 vehicles in the country between 2020 and 2030.
- The increasing trends in automotive production in some of the major African countries and increased automotive sales in the Middle East countries are anticipated to propel the growth of the market studied in the region over the forecast period.
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South Africa to Dominate the Market
- South Africa is among the major automotive producers and has witnessed significant growth in its construction industry in the region studied.
- Owing to crucial surface treatment applications in these industries, the demand for the market studied is expected to witness significant growth in the coming years.
- In 2021, 499,087 units of vehicles were produced in the country, which resulted in a rise of about 12% compared to that of 2020. Moreover, according to the Department of Transport 2035 Masterplan, the government plans to increase the rate of vehicle production from the current 6,00,000 units to 1.4 million units a year.
- The construction industry in the country has observed a significant fall over the past years due to economic instability, fluctuations in the country's economy, and also the significant impact of the COVID-19 pandemic on the country. However, construction is expected to recover in the coming and significantly register growth in the construction sector of the country.
- As per the experts, the construction sector in South Africa can act as a revival for the dip in the economy with investments and various activities in the pipeline for which the South African government has announced for investments and schemes.
- The government of South Africa is implementing various support schemes like i12 financial assistance and incentive scheme among others to attract foreign investments, which can consequently enhance the industrial sector of the country in the coming years.
- South Africa's President in 2020 announced pipeline potential investments of over ZAR 700 billion (USD 42.77 billion) over the next 10 years, including both government and non-government contributions.
- In the 2021 budget, the South African Government announced plans to enhance the economy with approximately USD 45.3 billion for infrastructure development, including the advancement in energy, agriculture, transport, housing, water and sanitation, and digital infrastructure, thus boosting the demand for equipment and machinery, and consequently, the lubricants utilized in them.
- Increasing trends in the automotive and construction industry in South Africa are expected to favour the growth of the market studied over the forecast period.
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