Saudi Arabia Sealants Market Size & Share Analysis - Growth Trends & Forecasts UP TO 2028

Saudi Arabia Sealants Market Analysis

The Saudi Arabia Sealants Market size is estimated at 171.18 million USD in 2024, and is expected to reach 210.71 million USD by 2028, growing at a CAGR of 5.33% during the forecast period (2024-2028).

Saudi Arabia's robust economic performance, marked by a GDP per capita of USD 28,760 and a significant year-over-year growth rate of 7.6% in 2022, has created a favorable environment for the sealants industry. The government's commitment to economic diversification through Vision 2030 has led to increased investments across various sectors, particularly in manufacturing and infrastructure development. This economic transformation has sparked innovation in sealant technologies, with manufacturers focusing on developing sustainable and eco-friendly products with lower volatile organic compound (VOC) emissions. The emphasis on environmental sustainability has prompted companies to invest in research and development of renewable raw material-based silicone sealants, particularly in the silicone segment.

The electronics sector has emerged as a significant growth driver for the sealants market, with the Saudi Arabian electronics industry projected to reach USD 5.97 billion by 2025. This growth is primarily driven by increasing demand for wearable gadgets, consumer appliances, and the rapid expansion of e-commerce activities. Electronic sealants play a crucial role in this sector, being extensively used in potting and protecting materials, sealing sensors, and cables. The industry has witnessed a shift toward specialized sealant formulations that offer enhanced thermal conductivity and electrical insulation properties, catering to the specific requirements of electronic device manufacturing.

The healthcare sector represents another vital growth avenue for the sealants market, with applications ranging from medical device assembly to surgical procedures. Medical sealants are increasingly being utilized for their unique binding capabilities with various substrates such as glass, metal, and plastic, while offering critical properties like weather-proofing, heat resistance, and anti-aging characteristics. The integration of artificial intelligence in healthcare, growing adoption of wearable medical devices, and increasing robotic surgeries have created new opportunities for specialized medical sealants development.

The Saudi government's ambitious infrastructure development plans, including the USD 500 billion futuristic mega-city 'Neom' project, are reshaping the sealants market landscape. The government's target to achieve 70% home ownership by 2030, up from 47% in 2016, has catalyzed residential construction activities. This massive infrastructure push has led to increased demand for high-performance construction sealants that can withstand extreme weather conditions while meeting stringent quality and sustainability standards. Manufacturers are responding by developing innovative products that offer improved durability, weather resistance, and environmental compatibility, particularly focusing on solutions for structural glazing and sustainable building materials. Industrial sealants are also becoming increasingly relevant in this context, providing essential support for large-scale construction and industrial projects.

Saudi Arabia Sealants Market Trends

Public and private investments for various residential projects to propel construction sector

• Saudi Arabia has one of the largest construction markets in the world, which is expected to record a CAGR of about 2.26% during the forecast period 2022-2028. The announcement of Vision 2030 and the associated National Transformation Plan (NTP) have increased investments in various sectors, such as healthcare and education, to support the country’s economic growth. The government has expansive plans for the development of social infrastructure in the country. The governmental and private investments in different sectors of the country are expected to lead to a rise in commercial building construction activities in the country.
• The Saudi Arabian government has implemented various construction projects, including a USD 500 billion futuristic mega-city ‘Neom’ project, the Red Sea Project – Phase 1, which is due to be completed in 2022, and 14 luxury and hyper-luxury hotels that may comprise 3,000 rooms, across five islands, and two inland resorts, Qiddiya Entertainment City, Amaala – the uber-luxury wellness tourism destination, Jean Nouvel’s Sharaan resort in Al-Ula, Ministry of Housing’s Sakani Homes, and Jeddah Tower, which is likely to boost construction activities in the country.
• The government is aiming to significantly increase the number of pilgrims visiting Makkah and Medina each year. In 2017, the government unveiled plans to build Al Faisaliah, a mega-city for permanent residents, located on the Red Sea coast. This project is expected to provide 995,000 housing units and accommodate 6.5 million people by 2050. All such factors are likely to increase the demand for adhesives across the country.

Rising demand for vehicles to foster the growth of automobile production

• Saudi Arabia had a GDP of USD 28,760 per capita, with a growth rate of 7.6% Y-o-Y in 2022. The automotive industry contributes around 2% to the country's GDP, and Saudi Arabia has the largest car market in the Gulf Cooperation Council (GCC). The production of automobiles in the country is mainly affected by the oil prices in the international market.
• The Saudi Arabian automotive market is predominantly import-based due to the limited automotive production in the country. However, the country has been trying to increase the non-oil economy and has welcomed the establishment of automotive production units in the past decade.
• Automotive production increased by almost 69% in 2019 compared to 2018. The oil prices were low in 2018, which resulted in a decline in the production of vehicles, but in the same year, Saudi Arabia's government introduced a 5% VAT (Value Added Tax) on exports of oil, which increased the oil prices in the international market. The country aims to grow its non-oil economy and increase automotive production.
• Automotive production is expected to increase by 30% in 2022 compared to 2021, owing to increased demand from other regions of the Middle East and Africa. The Greater Arab Free Trade Agreement (GAFTA) gives the country access to trade with 17 countries in the Middle East and African region, resulting in a growth in sales. The private sector has already invested in downstream industries to utilize the raw material advantage of oil and has begun producing oil filters, circuit boards, batteries, cabling, sensors, adhesives, paints, composites, trims, and seats. These factors are likely to increase the production of automobiles over the coming years,

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Segment Analysis: End User Industry

Building & Construction Segment in Saudi Arabia Sealants Market

The building and construction segment dominates the Saudi Arabian sealants market, accounting for approximately 84% of the total market value in 2024. This substantial market share is driven by the diverse applications of joint sealants in construction activities, including waterproofing, weather sealing, crack sealing, and joint sealing. The segment is also experiencing the fastest growth rate of around 6% through 2029, propelled by major government initiatives like Vision 2030 and associated mega-projects. The implementation of various construction projects, including the USD 500 billion futuristic mega-city 'Neom' project, the Red Sea Project, and numerous luxury hotels and entertainment facilities, is significantly boosting the demand for construction sealants. These sealants are primarily used in both indoor and outdoor applications, with silicone sealants and polyurethane sealants being the most preferred choices for windows, doors, building facades, kitchens, and bathrooms.

Healthcare Segment in Saudi Arabia Sealants Market

The healthcare segment represents the second-largest end-user industry in the Saudi Arabian sealants market. Medical sealants, comprising silicone sealants and other resin-based formulations such as phenyl propane, tri-dimethacrylate, fibrin, collagen, and thrombin, are extensively used in various medical applications. These sealants play crucial roles in sealing tissue to prevent air and liquid leakages, control bleeding, wound edge approximation, cardiovascular sealing, gynecological surgery, pediatric procedures, and dental applications. The segment's growth is being driven by the increasing adoption of artificial intelligence in healthcare, the growing use of wearable medical devices, the rising geriatric population, and advancements in robotic surgeries across Saudi Arabian healthcare facilities.

Remaining Segments in End User Industry

The automotive, aerospace, and other end-user industries make up the remaining segments of the Saudi Arabian sealants market. The automotive sector, though currently small, is showing promise with the government's initiatives to attract Original Equipment Manufacturers (OEMs) through the National Industrial Development Center. The aerospace segment is benefiting from the country's partnerships with global aviation companies and its position as the largest foreign military sales recipient from the United States, driving the demand for aerospace sealants. Other end-user industries, including electronics, marine and locomotive, and DIY sectors, contribute to market diversity through specialized applications such as electronic component sealing, marine vessel maintenance, and consumer applications.

Segment Analysis: Resin

Silicone Segment in Saudi Arabia Sealants Market

Silicone-based sealants dominate the Saudi Arabian sealants market, commanding approximately 39% of the total market value in 2024. These silicone sealants are extensively used in both indoor and outdoor applications within the building and construction industry, particularly in plumbing, sheet cladding, curtain walling, roofing, and guttering applications. Their popularity stems from their superior properties, including flexibility across wide temperature ranges and resistance to weather conditions, water, chemicals, and mold formation. The segment's dominance is further strengthened by its critical role in structural glazing applications, where silicone sealants are preferred due to their higher bond strength and durability. The implementation of sustainable development practices in Vision 2030 Giga projects has also boosted the demand for silicone sealants, particularly in energy-efficient building designs.

Polyurethane Segment in Saudi Arabia Sealants Market

The polyurethane sealants segment is projected to exhibit robust growth in the Saudi Arabian market, with an expected growth rate of approximately 6% during 2024-2029. This growth is primarily driven by the segment's versatility and customizable properties, including hardness, bond strength, thixotropy, and flexibility. The segment's expansion is further supported by ongoing construction mega-projects and the government's initiative to increase automotive production capacity from 10,000 to 300,000 cars by 2030 through the National Industrial Development Center (NIDC). Polyurethane sealants are particularly valued in the construction sector for their effectiveness in sealing joints in rainwater collection pipes, aluminum pipe joints in HVAC systems, and various automotive applications requiring high adhesion strength.

Remaining Segments in Resin Segmentation

The other significant segments in the Saudi Arabian sealants market include acrylic sealants, epoxy sealants, and various other resin-based sealants. Acrylic sealants have gained traction due to their affordability and versatility in bonding with various materials like concrete, wood, brick, and metal. Epoxy sealants are valued for their superior bond strength and resistance to environmental conditions, making them crucial for indoor applications in commercial and industrial buildings. The other resins segment, which includes rubber-based sealants, polyesters, and polysulfides, serves specific niche applications across various industries, particularly in electronics and healthcare sectors where specialized properties are required for different applications. The demand for marine sealants is also notable in the marine and locomotive sectors, contributing to the diversity of applications.

Free With This Report

We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 24+ free charts, the section covers rare data on various end-user production trends including automobile production, newly built construction floor area, packaging production, aircraft deliveries, footwear production, and regional data on adhesives and sealants demand, etc.