Saudi Arabia Construction Materials Market is Booming: Projected to Reach USD 86.3 Billion by 2034 at 5.00% CAGR

Saudi Arabia Construction Materials Market Overview
Market Size in 2025: USD 55.6 Billion
Market Forecast in 2034: USD 86.3 Billion
Market Growth Rate 2026-2034: 5.00%

According to IMARC Group's latest research publication, "Saudi Arabia Construction Materials Market Size, Share, Trends and Forecast by Material Type, End User, and Region, 2026-2034", The Saudi Arabia construction materials market size reached USD 55.6 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 86.3 Billion by ​2034​, exhibiting a growth rate (CAGR) of 5.00% during ​2026-2034​.

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How AI is Reshaping the Future of Saudi Arabia Construction Materials Market

● AI-driven predictive maintenance is revolutionizing Saudi's construction materials sector by cutting downtime up to 30%, with Vision 2030 backing tools like IBM Maximo used in the Diriyah Project for real-time monitoring and smarter asset management.

● Supply chain optimization through AI helps firms like Asas Al-Mohileb slash material waste, integrating IoT sensors for efficient logistics, as government initiatives under Vision 2030 push for digital upgrades in procurement and inventory handling.

● Quality control gets a boost from AI in producing metals and concrete, benefiting 60% of pros who use predictive analytics to spot defects early, aligning with national strategies for sustainable manufacturing in mega projects.

● Digital twins and BIM tech powered by AI enable real-time material tracking, reducing rework rates in developments like NEOM, where companies leverage these for cost savings and better collaboration on eco-friendly builds.

● AI scheduling tools are streamlining resource allocation in the materials market, with news from Seera-like firms showing investments in analytics that optimize production, supported by Saudi's push for low-carbon cement innovations.

Saudi Arabia Construction Materials Market Trends & Drivers:

Saudi Arabia's construction materials market is booming thanks to Vision 2030's massive giga-projects like NEOM, the Red Sea Project, and Qiddiya, which are sucking up huge amounts of cement, steel, aggregates, and concrete-think billions in materials just for these alone. The Public Investment Fund (PIF) is pouring money into these developments, creating a ripple effect that boosts demand across transportation, energy, and tourism sectors. For instance, NEOM alone requires specialized high-strength concrete and eco-friendly glass for its futuristic builds, while the Red Sea resorts need corrosion-resistant steel to handle coastal conditions. This government-backed push isn't just talk; it's translating into real contracts for local suppliers and international firms, keeping factories humming and logistics buzzing. Meanwhile, urban population growth is fueling housing booms, with affordable units and luxury apartments demanding everything from bricks to plaster, ensuring steady orders month after month.

Sustainability is another big driver reshaping how materials are made and used, as developers chase green certifications under Saudi's updated building codes. Eco-friendly options like low-carbon cement and recycled aggregates are jumping in popularity, with projects like King Abdullah Financial District incorporating bamboo composites and solar-reflective glass to cut energy use by up to 30%. Companies are racing to innovate-take Saudi Cement's new plant upgrades for greener production or international players like Lafarge pushing recycled steel. Government incentives, including tax breaks for sustainable imports, make it cheaper to go green, while real-world wins show these materials lasting longer in harsh desert climates. It's not hype; it's practical, slashing long-term costs and appealing to eco-conscious investors flocking to the Kingdom's mega-developments.

Digital tech and modular construction are revolutionizing the scene, speeding up builds and cutting waste with tools like 3D printing, AI design software, and prefab components. The modular market is hitting USD 1.9 billion now, driven by factories churning out ready-to-assemble steel frames and concrete panels for projects like Riyadh's smart cities. Firms such as those in the PIF ecosystem are partnering with tech giants for automation, making sites 20-40% faster-perfect for tight deadlines on logistics hubs and tourism zones. Picture entire building sections printed off-site and snapped together, using less cement overall. This trend's backed by rising investments in digital twins and BIM software, helping suppliers tweak materials on the fly for better performance in Saudi's extreme heat.

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Saudi Arabia Construction Materials Industry Segmentation:

The report has segmented the market into the following categories:

Material Types Insights:

● Aggregate
● Cement
● Bricks and Blocks
● Metals
● Others

End User Insights:

● Residential
● Infrastructure
● Roads
● Bridges
● Waste Management
● Commercial
● Industrial

Regional Insights:

● Northern and Central Region
● Western Region
● Eastern Region
● Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Construction Materials Market

● January 2026: Foreign investors gain direct property ownership rights, with over 130 licenses issued and 3,800 building permits approved, including a 59% Q4 surge, opening Riyadh and Jeddah markets.

● January 2026: Riyadh Grade A office vacancy drops to 3%, prime rents rise 31% year-on-year via Regional HQ program, with 517 multinationals committing to tech-ready spaces.

● November 2025: King Salman Park District launches innovative nature-integrated towers and villas around the world's largest urban green space, prioritizing pedestrian designs in central Riyadh.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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