Vision 2030 Spurs Growth in Saudi Arabia’s Advanced Construction Materials Sector

According to the latest market research study published by P&S Intelligence, the Saudi Arabian advanced building materials market is poised for substantial expansion, projected to grow from USD 1,242.3 million in 2024 to USD 2,022.2 million by 2030, at a remarkable CAGR of 8.5%. This growth is primarily fueled by the Kingdom's strategic investments in infrastructure development under its Vision 2030 initiative. These investments aim to diversify the economy and promote sustainable urban growth.

A significant contributor to this growth is the surge in demand for materials that enhance durability, energy efficiency, and construction speed. Major projects such as NEOM and Qiddiya are accelerating the use of advanced materials, necessitating faster project timelines and stringent environmental standards. Moreover, advancements in construction technologies—such as modular construction and 3D printing—are streamlining building processes and boosting the overall adoption of high-performance materials across the nation.

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Key Insights

• Advanced cement and concrete hold the largest share in the market, accounting for 40% of total revenue in 2024, driven by their superior strength, durability, and environmental advantages over traditional alternatives.
• The residential sector leads in demand for advanced building materials, spurred by the growing need for housing infrastructure to support the Kingdom’s rising urban population.
• Commercial and industrial applications are also expanding significantly, especially in smart city and industrial zone developments.
• Al-Riyadh emerges as the top regional market, benefiting from its role as the capital and a focal point for multiple development projects, while Al-Madinah is the fastest-growing region due to balanced regional development initiatives.
• Technology integration, such as 3D printing, building information modeling (BIM), and the Internet of Things (IoT), is revolutionizing the sector by improving efficiency, reducing material waste, and accelerating construction timelines.
• In 2024, the government issued 183 licenses for the building materials industry, a substantial rise from 132 in 2022, reinforcing its commitment to sectoral growth.
• Over the next eight years, planned construction investments in Saudi Arabia are set to reach SAR 8 trillion, which will further propel the market for advanced materials.
• Despite this promising outlook, challenges include high upfront costs for cutting-edge materials like self-healing concrete and nanomaterials, along with the need for specialized labor and equipment.
• Sustainability is a central theme, with increasing focus on eco-friendly and energy-efficient materials, especially in infrastructure like energy-efficient roads and smart cities.
• The market remains consolidated, with major players capitalizing on technological innovations and strategic collaborations to secure their positions and drive long-term growth.