Saudi Arabia Drywall Panels Market is expected to reach US$ 304.43 million by 2028

Increasing Gypsum Production in Saudi Arabia to Escalate Growth of Saudi Arabia Drywall Panels Market during 2020–2028

According to our latest market study on “Saudi Arabia Drywall Panels Market Forecast to 2028 – COVID-19 Impact and Analysis – by Type (Regular, Moisture-Resistant, Plaster Baseboard, Paperless, Type X, and Others) and Application (Residential and Non-Residential),” the market was valued at US$ 207.70 million in 2020 and is projected to reach US$ 304.43 million by 2028; it is expected to grow at a CAGR of 5.0% from 2021 to 2028. The report highlights key factors driving the market growth and prominent players along with their developments in the market.

Saudi Arabia's economy is characterized by the pace and responsiveness of economic variables at the local, regional, and global levels, as indicated by the Kingdom of Saudi Arabia's year after year rise in the international ranking standards. The Kingdom of Saudi Arabia is the Gulf Cooperation Council’s (GCC's) largest sector, with steady growth in terms of wallboard demand. The population is becoming more educated about the advantages and benefits of wallboard, resulting in a natural increase in demand.  It is the largest economy in the Middle East and North Africa and one of the 20 largest economies in the world, with the most significant direct investment inward, making it one of the world's fastest-growing nations. Moreover, the demand for gypsum is primarily determined by the construction industry activity, where most of the gypsum consumed is used for building plasters, producing Portland cement, and manufacturing wallboard products. Further, there is an increase in production of gypsum in Saudi Arabia due to the presence of various manufacturers such as Mada Gypsum, National Gypsum Company, and USG Corporation. For instance, National Gypsum Company operates five plants in Riyadh and three in Yanbu with a total annual capacity of 450,000 tons of gypsum plaster. Furthermore, Mada Gypsum Co., a leading producer of gypsum plasterboards and related gypsum-based products in the region, announced the construction of a new environmentally friendly gypsum plant in Saudi Arabia to meet the growing demand for gypsum and modern building materials and systems in the GCC, Middle East, and Africa. The new plant in Saudi Arabia will have a significant impact on increasing the overall gypsum manufacturing capacity in Saudi Arabia. Thus, the rising production of gypsum in Saudi Arabia propels its demand in the market.

IKK Group of Companies, Mada Gypsum, EL-Khayyat Gypsum Factor, United Mining Industries, Knauf Gips KG, National Gypsum Company, Sinar, Al Watani Gypsum Co. Ltd., USG Corporation, and Saint Gobain S.A. are among the well-established players operating in the Saudi Arabia drywall panels market.

Impact of COVID-19 Pandemic on Saudi Arabia Drywall Panels Market

The chemicals & materials is one of the world's major industries suffering serious disruptions such as supply chain breaks and office shutdowns as a result of the COVID-19 outbreak. Moreover, due to the increased number of COVID-19 confirmed cases and the reinstatement of lockdowns following an initial easing, as well as uncertainty about the government's ability to cover its oil revenue losses and stabilize its debt burden in the short term, the Saudi Arabia drywall panels market is facing various challenges such as delays of projects, lack of manpower and many others. The Saudi government's revenues are expected to decrease because of low oil prices in coming years, which is most likely to influence the government's economic spending plans and all mega infrastructure projects in the pipeline. This, in turn, would also negatively affect the drywall panels market in Saudi Arabia. COVID-19 outbreak has had a major impact on construction projects in Saudi Arabia. Construction project participants are having difficulty in moving projects forward and resolving claims resulting from on-site suspensions, delays, and extra costs. Although some building contracts have already been terminated as a result of the pandemic, several others are currently being renegotiated. To mitigate the negative effects of the COVID-19 outbreak, parties have begun to seek solutions and common ground by compromising on their legitimate claims. On December 23, 2020, the General Panel of the Supreme Court of the Kingdom of Saudi Arabia issued a decision (KSA Supreme Court's General Assembly, Decision n° 45/m of 08/05/1442 A.H) regarding the effect of COVID-19 on construction contracts (KSA Supreme Court's General Assembly, Decision n° 45/m of 08/05/1442 A.H). The Supreme Court's decision offers guidelines on how the principle of good faith in contract performance can be applied in compliance with Sharia Law. Under the new decision, construction contracts regulated by Saudi Arabian law can now be amended by Saudi Arabian courts without the parties' consent under some situations. Furthermore, various companies have already announced possible delays in product deliveries and slump in future sales of their products. In addition, the travel bans and lockdowns imposed across Saudi Arabia are adversely affecting business collaborations and partnership opportunities. All these factors are hindering industries, which is restraining the growth of various markets related to the drywall panels market. In addition, the disruptions in overall manufacturing processes, research, and development activities are negatively impacting the Saudi Arabia drywall panels’ market growth.

The report includes the segmentation of the Saudi Arabia Drywall Panels market as follows:

Saudi Arabia Drywall Panels Market, by Type

• Regular
• Moisture-Resistant
• Plaster Baseboard
• Paperless
• Type X
• Others

Saudi Arabia Drywall Panels Market, by Application

• Residential
• Non-Residential