Middle East and Africa Industrial Coatings Market

Middle East and Africa Industrial Coating Market-Size-(2023-2028)

The Middle East and Africa Industrial Coating Market  is expected to grow at a CAGR of 3% in the period between 2023 and 2028.

Drivers and Restraints of the MEA Industrial Coating Market:

Middle East countries experience extreme climatic situations both in winter and summer, Industrial coatings find various applications in order to counter that. On top of that, countries like UAE, and Qatar have been attracting a lot of tourists with projects like luxury real estate and thus have geared up to improve their infrastructure, thus driving the industrial coatings market. In African countries too, the real estate market has picked up growth with high demand for long-lasting metal coatings. Oil and gas industries have also had a significant impact on the market in the Middle East.  

Challenges in the MEA Industrial Coating Market

The COVID-19 pandemic has been one of the biggest factors which have stagnated the market both in the Middle East and Africa. Lack of investment in Africa combined with the poor purchasing power of the local citizens has damped the growth of the manufacturing sector.  The automotive sector in Africa is very poor and less demand for industrial coating in this segment, however, this trend has been changing in recent years.

Market Segmentation:

On the basis of resin type

• Epoxy

• Acrylic

• Polyester

• Alkyd

On the basis of technology 

• Solvent-Borne
• Water-Borne
• UV-Cured Coating
• Powder Coating

On the basis of End Use 

• Architectural

• Wooden

• Automotive

• Protective Coatings

• Marine

• Aerospace

• Packaging

The Middle East and Africa are growing markets with investments in Infrastructure and the existing booming oil and Natural Gas industry.

Members of the African Union recently signed the African Continental Free Trade Area (AFCFTA) agreement ensuring free trade between African countries. This will improve the existing industrial coating industry and also allow cross-country trade smoothly.

The Middle East and African region are improving modern and medieval architecture and continuously growing markets in the architectural department. Qatar is continuously investing more in the infrastructure segment as a part of its preparation for the 2022 FIFA World Cup.

Geographical overview and regional presence:

Construction and Infrastructure demand is expected to be strongest in Saudi Arabia, followed by Iran, Iraq, and the United Arab Emirates along with Qatar and Kuwait. In the year 2019, a total of USD 102.3 billion worth of projects were processed across all countries of GCC compared to USD 101.8 billion in 2018. This number is expected to further grow in the next decade.

In African countries, Nigeria posts the strongest growth in terms of demand for industrial coatings thanks to its growing infrastructure industry. South Africa are falling short in this segment. Also, the GDP growth of Egypt has been significant in Egypt which was recorded at 5.6% by the end of 2019.

Impact of COVID-19 on the Middle East and African Industrial Coatings Market:

COVID-19 has exposed severe challenges for the coatings market by impacting the architectural and industrial sectors. With the Middle East and African countries were not the hotspots of the virus, all production activities and economic activities were shut down in Qatar, UAE, Saudi Arabia, and other African countries. Oil and Gas Production, Construction projects were all halted and as a consequence, the demand for industrial coatings significantly dropped. Middle East countries suffered a lot as their economy is heavily reliant on Oil and Gas production and during this period the prices even dropped negative values. Packaging industries are expected to grow thanks to the increase in demand for packaged goods. In this sector, the demand has slightly increased for the coating materials. But overall, the industry is expected to be negatively impacted by the end of 2021. Economic recoveries can be expected after 2021 but till then there is a very slight chance of growth. 

Recent Developments

• PPG and SIBI announced a 4-year partnership with Tricon American Homes for PPG paint products.

• During the second quarter of 2020(Q2) the pandemic did not have a significant impact on AKZO Nobel, and the company delivered robust profitability. Though, revenues dropped by 19%.

• In 2019, Jotun’s sales went up by 19% because of improvements in marine protective coatings segments and good growth in decorative painting segments. Powder coating sales also increased and overall profits went up to 71%.

• Around 200 consultants and designers for major projects familiarize themselves with the latest technologies for Jazeera Paints and its smart and innovative ideas in a meeting organized in Riyadh, Saudi Arabia.

Key Market Players:

• Jazeera Paints

• AKZO Novel NV

• PPG Industries

•  Jotun

• National Paints factory co. Ltd