Global GCC Specialty Chemicals Market by Product (Construction Chemicals, Oilfield Chemicals, Specialty Polymers, Industrial & Institutional Cleaners) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

GCC specialty chemicals market was valued at more than USD 21.8 million in 2019. It is projected to grow at a compound annual rate (CAGR), of more than 4.5% between 2020-2027. The primary driver of market growth is likely to be growing investments in construction, oil, gas, and automotive. In the near future, large-scale construction projects across the GCC including smart cities projects like NEOM and other projects such as Smart City Projects will fuel product demand. The market's largest revenue share is expected to be held by specialty polymers and oil field chemicals. The market will see significant growth opportunities in the near future thanks to significant oil reserves and major construction projects, such as Saudi Arabia and UAE.

GCC governments are focusing more on economic diversification to decrease dependence on oil revenue. This will create plenty of opportunities for other sectors such as personal care and cosmetics and industrial and institutional cleaners.

Due to the growing oil and gas, and construction and building sectors in the region, the demand for specialty chemical will continue to rise at a steady rate. These are the most prominent end-users for the products. Therefore, the GCC specialty chemicals market is expected to grow in the coming years.

For performance enhancement and production efficiency improvement, specialty chemicals are used in the oil and gas industry. The most popular product categories in oil and natural gas are demulsifiers and corrosive inhibitors. The significant refining capacities of the GCC nations are likely to increase the demand for petroleum chemicals.

Product Insights

In 2019, the others segment held 40% of the total revenue and will continue to hold that position for the forecast period. Construction and building chemicals will be in high demand due to the rapid growth of the construction industry. This is due to the extensive oil and gas investments, future infrastructure projects, urban development, utility, and other investments. Global Infrastructure Hub reports that the UAE has recorded more than USD 9,600 millions in private infrastructure investments over the past five years (2014-19).

The demand for automobiles has increased with the increasing population and urbanization. The expanding consumer base is expected to lead to a higher demand for automobile parts and vehicles. A favorable tax structure that excludes special consumption tax, luxury taxes, and value-added, combined with low fuel prices have resulted in an increase in car purchases. The recent Saudi Arabian women's driving permit will likely increase the number of cars on the road. These factors will likely lead to a favorable scenario for specialty chemicals such as catalysts, polymers, and CASE in near future.

Due to the COVID-19 epidemic and other containment measures, there is a lot of uncertainty in the global energy market. The industry is expected to be in turmoil due to the plunge in oil demand, falling oil prices, decreased rig count and investment in oil and natural gas sectors. This has been a major challenge for GCC oil and gas producers. After the OPEC supply pact collapsed, there was a price war between Russia and Saudi Arabia that led to a substantial decline in oil prices. Further, the further drop in U.S. crude oil price to minus 37 USD on April 20, 2020 (which was the largest fall in history) is expected to have a negative effect on the economies in GCC countries. This is expected to limit market growth.

Country Insights

Saudi Arabia has 17.2% of global oil reserves, and a large share of GCC oil reserves. There are many opportunities for the country's specialty chemicals industry to grow. The country projects other opportunities, including those from automotive, personal care, cosmetics and electrical & electronic. Vision 2030 is a plan to diversify the country's economy. The development of a large automotive cluster in Saudi Arabia's Jubail will likely increase the demand for specialty chemicals related to automotive and transportation. Vision 2030 calls for certain reforms, such as VAT, energy price reform, and expat levies, to increase the country's economy, and drive market growth.

In 2020, the country's industry will benefit from the introduction of megaprojects as well as the execution of the Private Sector Stimulus Package. Construction was one of Saudi Arabia's most successful sectors. It saw growth of 1.3% to 4.9% and 4.6% respectively in the first three quarters 2019.

The NEOM project for the creation of a new smart city in the Northwest region of the country, valued at USD 500 billion, is one of the most important megaprojects in building and construction. This is likely to create several opportunities for specialty chemicals in the near future, as they are reported to be more environment-friendly, cost-effective, and high-performing. The world's largest pipeline project, worth USD 1.1 million, is expected to boost the demand for specialty coatings and polymers, as well as specialty functional chemicals, and specialty building chemicals.

The expansion of the oil and gas, construction, and automotive industries is driving the growth of specialty chemicals markets in GCC countries like Qatar, Bahrain, Kuwait and Oman. UAE is the GCC's most diverse economy, offering lucrative opportunities for a variety of applications. Future construction projects, such as Jumeirah Garden City and Al Maktoum International Airport, will further enhance these opportunities.

The demand for specialty chemicals will likely increase due to technological advancements, including recent developments like the discovery of the Khalij al-Bahrain oil field in Bahrain and advanced recovery techniques used to increase natural gas production in Oman. Specialty construction chemicals will be in high demand as infrastructure development is a key focus of Bahrain's economic diversification.

Market Share Insights & Key Companies

The market is seeing an increase in joint ventures and associations with international businesses. Business integration, long-term contracts, and production expansion are all key development steps. Many international construction companies are entering the market through joint ventures or partnership. Many new projects in the GCC have increased competition and opened up new opportunities to both domestic and international construction companies. These opportunities include the availability of economical energy and the ease of doing business. New FDI norms that allow international companies to have a dominant part of ownership are likely to attract many other players.

In an effort to gain greater benefits from integrated business operations, or increase regional penetration, the market has seen acquisitions by distributors/ manufacturers. It is expected that long-term agreements will help market players maintain their business operations over a longer period of time and to establish their position in the market. It is also likely to reduce volatility and ensure uninterrupted supply. Manufacturers' interest in the market has increased with the increasing popularity of specialty chemicals in various end-uses. The region is seeing new specialty chemical manufacturing plants opening up, which is driving market expansion. The following are some of the major players in the GCC specialty chemical market:

• Arkema Chemicals Saudi Arabia

• EVONIK GULF FZE

• Fayfa Chemical Factory L.L.C.

• Halliburton

• Horizon Chemicals

• Huntsman (UAE), FZE

• Professional Specialty Chemicals Factory (Ahmad Al Amoudi Group).

• SABIC

• Sadara Chemical Company

• Sika Group

• Tricom LLC

Up Market Research published a new report titled “GCC Specialty Chemicals Market research report which is segmented by Product (Construction Chemicals, Oilfield Chemicals, Specialty Polymers, Industrial & Institutional Cleaners), By Players/Companies Sadara Chemical Company, Fayfa Chemical Factory (LLC), EVONIK GULF FZE, Sika Group, Arkema Chemicals Saudi Arabia, Horizon Chemicals, Tricom LLC, Halliburton, Professional Specialty Chemicals Factory (Ahmad Al Amoudi Group), SABIC, Huntsman (UAE) FZE”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global GCC Specialty Chemicals Market Report Segments:

The market is segmented by Product (Construction Chemicals, Oilfield Chemicals, Specialty Polymers, Industrial & Institutional Cleaners).

GCC Specialty Chemicals Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the GCC Specialty Chemicals Market

Overview of the regional outlook of the GCC Specialty Chemicals Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The GCC Specialty Chemicals Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of GCC Specialty Chemicals Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Construction Chemicals

                2. Oilfield Chemicals

                3. Specialty Polymers

                4. Industrial & Institutional Cleaners

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the GCC Specialty Chemicals Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the GCC Specialty Chemicals Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.