Gcc Concrete Blocks Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Gcc Concrete Blocks Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The GCC concrete blocks market is expected to register a CAGR of over 5% during the forecast period 2022-2027.

The COVID-19 pandemic has had a major impact on the residential sector and disrupted the business of developers and manufacturers of construction projects. The COVID-19 pandemic led to negative consequences in the concrete block manufacturing market, where manufacturers are now making strategic decisions to offset losses from 2020. Most cement companies have continued to operate during the outbreak, mainly focusing on complying with safety and health requirements.

• Over the short term, factors driving the GCC concrete blocks market are increasing demand in the commercial segment and using concrete blocks in infrastructure. Furthermore, businesses are investing money to improve their product portfolio, which, in turn, will help in their market growth.
• However, the fluctuating cost of raw materials to manufacture concrete blocks and the high cost of building homes are likely to slow down the market growth and hinder the expansion of the studied market.
• Nevertheless, the growing consumer awareness for lightweight materials in modern buildings and construction will likely create lucrative opportunities for the concrete block market during the forecast period.

• The rise in the commercial segment due to the large-scale consumption of concrete blocks for remodeling and construction activities shall drive market growth.
• In the construction industry, concrete blocks are mainly used to build walls, foundations, and floors to support the building and other structural surfaces outside and inside the house.
• Structural designers and architects design buildings with concrete blocks because of their high structural capacity, resistance to water and fire, and insulating properties.
• The renovation and refurbishing of old buildings have increased investment in the construction industry, which, in turn, has augmented the demand for concrete blocks.
• UAE, Kuwait, and Qatar are registering strong growth in various remodeling and construction activities.
• Also, government spending will play a vital role in boosting the growth of the construction industry. According to Qatar’s 2021 budget, new projects worth QAR 54 billion (USD 14.81 billion) were proposed, which will help diversify the economy and develop infrastructure.
• These attributes are expected to witness significant growth in the GCC region over the forecast period.

• Construction is a leading economic sector in the GCC region, whereas Saudi Arabia is the leading investor in the construction business, with over USD 82 billion.
• Saudi Arabia dominated the market attributed of construction projects in the country. Giga projects, transport, and mobility schemes such as the Riyadh Metro, social infrastructure developments such as the Ministry of Housing's Sakani program, and energy mega-projects, such as the state-owned Aramco Berri and Marjan oil fields, shall drive the market growth.
• The Saudi Arabian construction market is anticipated to witness significant growth and offer opportunities due to its Vision 2030, NTP 2020, and several ongoing reforms to diversify away from oil. These factors shall drive the Saudi Arabian construction businesses in the next seven years.
• Currently, the country's economy is entering a post-oil era, in which the kingdom's megacities, which are under construction, will provide future growth. According to industry sources, more than 5,200 construction projects worth USD 819 billion are currently underway in Saudi Arabia. These projects represent approximately 35% of the total value of active projects within the GCC.
• An increase in demand for housing boosts residential construction and fuels the demand for concrete blocks as the growing urban population expands and migrates.

The GCC concrete block market is fragmented in nature. Some of the major manufacturers in the market include Raknor LLC, Consent Group, ESPAC, MJK Group, and MANSOOR CONCRETE BLOCK INDUSTRY LLC (MaCon), among others.

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