Green Building Materials Market in Saudi Arabia Soars Amid Environmental Reforms

According to the latest market research study published by P&S Intelligence, the Saudi Arabian green buildings market is poised for robust growth, with projected revenues reaching USD 16.4 billion in 2024 and anticipated to escalate to USD 33.0 billion by 2030, reflecting a compound annual growth rate (CAGR) of 12.3% during the forecast period. This surge is driven by the Kingdom's commitment to sustainable development, aligning with its Vision 2030 objectives.

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Key factors propelling this market include the implementation of stringent environmental regulations, such as the Saudi Green Building Code (SgBC 1001) and the MOSTADAM certification system, which promote the construction of energy-efficient and eco-friendly buildings. Additionally, the rapid urbanization and increasing environmental awareness among the population are fostering a shift towards green construction practices.

The market's fragmented nature offers ample opportunities for innovation and collaboration among stakeholders, particularly in developing advanced materials and technologies that enhance building sustainability.

Key Insights

Segmentation Analysis

• The roofing segment dominates the application categories in the green building materials market.
• Insulation materials are experiencing the fastest growth, with a projected CAGR of 12.8% from 2024 to 2030, driven by the need to mitigate heat accumulation in the Kingdom's hot climate.
• Sustainable wood is anticipated to grow at a CAGR of 12.7% during the same period, attributed to its recyclability, acoustic properties, and structural rigidity.

Regional and Geographical Trends

• Al-Riyadh province is expected to hold the largest market share, accounting for 40% in 2024, and is projected to be the fastest-growing region with a CAGR of 12.6% through 2030.
• The province's status as an economic and financial hub contributes to its significant role in the adoption of green building practices.

Technological Advancements Shaping the Market

• Construction companies are actively seeking innovative materials that support sustainable development initiatives, leading to the development of materials that enhance structural integrity while being environmentally friendly.
• The Saudi Green Initiative (SGI) aims to reduce the carbon footprint and accelerate the transition to a green economy, supporting the goal of achieving net-zero emissions by 2060.
• Rapid urbanization is prompting the use of green building materials in city developments, aligning with the Kingdom's vision for 2030.

Competitive Dynamics, Major Players, and Emerging Opportunities

• The market is characterized by fragmentation, with various players focusing on different aspects of green building materials, such as roofing, framing, and insulation.
• Key companies operating in the Saudi Arabian green building materials market include:
• Saudi Ceramic Co.
• Saudi Readymix Concrete Co.
• Saveto Group
• Eastern Trading & Cont. Est.
• Saudi Arabian Saipem Ltd.
• Attieh Steel Ltd.
• Al Kuhaimi Group Holding
• Green Building Solution
• Edama Organic Solution

The diverse range of materials and the emphasis on sustainability present opportunities for companies to innovate and collaborate, enhancing their market presence and contributing to the Kingdom's sustainable development goals.