The GCC Advanced Buildings Materials Market size is estimated at USD 2.80 billion in 2024, and is expected to reach USD 4 billion by 2029, growing at a CAGR of 7.29% during the forecast period (2024-2029).
The GCC Government is making efforts to develop smart cities in the region owing to rising urbanization and the increasing need for infrastructure and digital asset management. Some of the rapidly expanding verticals include smart transport and smart lighting. The GCC countries are highly urbanized, and by 2050 more than 90% of the population of these countries is expected to be settled in the cities, which is highly driving demand for the development of smart cities in the region.
The Gulf region aims to boast a trillion-dollar digital economy by 2025. The core of this goal is the realization of key smart city development. The region has already started taking efforts to construct smart-cities in the region. The UAE Government has announced the construction of the Zayed Smart City Project. The Abu Dhabi Department of Urban Planning and Municipalities was expected to complete this five-year project in 2023, which was launched in 2018. The Zayed Smart City Project is already a successful driver for introducing IoT and other advanced digital technologies to large sections of the capital’s critical infrastructure. The region has also introduced some other smart-city projects like NEOM- a line city, Desert Rose City, and Dubai City.
Moreover, the demand for smart homes is also increasing in the GCC region, which has further accelerated the market growth. The extremely hot temperatures experienced in the summer months in the GCC region have driven demand for smart home systems that can control indoor temperatures efficiently and reduce energy consumption. Additionally, GCC governments have taken initiatives to promote increased use of home technology and energy efficiency, contributing to market growth. Moreover, the region has invested significantly in internet infrastructure, including high-speed fiber-optic networks, making it easier for homeowners to connect and control devices remotely.
The developers and constructors in the GCC region are shifting their focus towards advanced building materials in constructing and fulfilling the demands for smart cities and homes in the GCC region as they could save money while improving construction quality, resistance to the harsh environments in the region, and durability of the construction. Thus, it is expected that as the demand for smart homes and smart cities will gain momentum in the region, the demand for ABMs is expected to increase accordingly.
The GCC advanced building materials market needs to be more cohesive. Some of the key players include Saint Gobain Group, Kingspan Group, PPG Industries LLC, CEMEX, and Knauf Gips. International players mostly dominate the market. The international players are collaborating with local players to expand their business reach in the GCC local market. Considering advanced building materials' advantages and increasing demand, many new players are jumping into the market. The market is expected to become fragmented in the forecast period.
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