Market Trends of saudi arabia engineering plastics Industry
Growing investments from manufacturers to foster industry growth
- Saudi Arabia's electrical and electronics industry stood at USD 12.68 billion, witnessing a 2.03% growth compared to the previous year. Aside from the oil and gas industry, Saudi Arabia has a sizable consumer base and a broad range of industrial pursuits, contributing to the rapid annual increase in production in the electrical and electronics industry. Thus, Saudi Arabia’s electrical and electronic production registered a CAGR of 18% from 2017 to 2019.
- In 2020, electrical and electronic production in the country decreased by 3.2% in revenue than the previous year, owing to the widespread lockdown adopted by the government and the supply chain disruption due to COVID-19. The impact of the pandemic was low because Saudi Arabia witnessed a higher rate of e-commerce growth, nearly 60%, between 2019 and 2020, mainly due to the pandemic. In 2021, the market registered a growth of 15% in revenue due to the rising demand for electrical and electronic goods, as newly constructed buildings required air conditioning, new security systems, CCTV, and other electronics.
- The electrical and electronics production is expected to witness a CAGR of 8.51% in value during the forecast period (2023-2029). The primary drivers of growth are likely to be government investments and the establishment of manufacturing plants by companies such as Samsung and LG. Samsung has also been promoting its 5G wireless technology in the country. Saudi Arabia implemented a 5G network as per the Vision 2030 initiative. All such factors are expected to boost electrical and electronics production over the forecast period in the region.
Understand The Key Trends Shaping This Market
Download PDF
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing military spending to drive the demand for aircrafts and components
- Government infrastructure projects to support industry growth
- Polycarbonate and polyamide are largely traded in Saudi Arabia
- Saudi's investment of over USD 6.4 billion in the recycling of waste by 2035 to boost polyamide recycling
- Saudi had a recycling rate of 5-10% in 2021 as the price of R-PET greater than virgin PET
- Focus on non-oil economy to support automobile industry in the country
- Demand for packaged goods to drive plastic packaging production
- Volatile crude oil prices to highly influence engineering plastics prices
- Mechanical recycling of polycarbonate plastics to be challenging because of the poor quality of the recovered material
- R-ABS to be manufactured using mechanical recycling and blended with virgin ABS to create partially recycled plastic
