Expansion Vessel Membrane Market

Expansion Vessel Membrane Market Analysis

The Expansion Vessel Membrane Market is expected to register a CAGR of greater than 5% during the forecast period.

COVID-19 negatively impacted the market in 2020. Several countries imposed duties on importing a particular variety of steel products. All the construction work and other activities were on hold to curb the spreading of the virus, thereby negatively affecting the market. However, the market is projected to grow steadily, owing to increased building and construction activities in the post-pandemic period.

• Over the short term, bullish growth trends in residential and commercial construction, coupled with increasing demand from the power generation industry, are major factors driving the growth of the market studied.
• However, high capital investment is a key factor anticipated to restrain the growth of the target industry over the forecast period.
• Nevertheless, developing newer materials for expansion vessel membrane construction will likely create lucrative growth opportunities.

Expansion Vessel Membrane Market Trends

Increasing Demand from the Construction Industry

• Due to its applicability in water systems, the expansion vessel membrane is widely used in construction.
• Saudi Arabia is embarking on many residential and commercial projects, which are expected to increase the construction activities in the country. Some projects were undertaken or in various development phases, including a USD 500 billion futuristic mega-city 'Neom' project, the Red Sea Project - Phase 1. It is due to be completed in 2022. It includes 14 luxury and hyper-luxury hotels with 3,000 rooms across five islands and two inland resorts, Qiddiya Entertainment City, Amaala - the uber-luxury wellness tourism destination, Jean Nouvel's Sharman resort in Al-Ula, Ministry of Housing's Sakai homes, and Jeddah Tower.
• The construction industry in South Africa got severely hit by pandemic restrictions causing many significant projects to get delayed or canceled. The government launched an ambitious USD 60 billion economic reconstruction and recovery plan to stabilize the country's economy in October 2020. This plan includes four priority interventions: fundamental investment in facilities, expanding energy production capacity, creating jobs to support livelihoods, and industrial growth.
• The largest residential project being developed by South Africa in the north of Durban is the Cornubia housing project. This project will include residential, commercial, and industrial sites. The area allocated for this project is 1200 hectares, and the budget is USD 1.5 billion.
• One of the residential complexes developed in Abu Dhabi is Louvre Abu Dhabi Residences, which aims to construct 400 apartments within Saadiyat Grove.
• As per data published by General Authority for Statistics (Saudi Arabia), the construction revenue increased significantly in 2021 compared to 2017.
• All the above factors are expected to drive the market for expansion vessel membranes in the Middle East and Africa region in the coming years.

South Africa to Dominate the Market in Middle East and Africa Region

• South Africa is expected to dominate the market in the Middle East and Africa region because of the country's increased automotive production and construction sector revenue.
• As per OICA, South Africa produced around 447.22 thousand vehicles in 2020, which declined by 29% compared to 631.98 thousand in 2019. In 2021, 499,087 cars were made, resulting in a rise of about 12% compared to 2020.
• In recent years, several vehicle manufacturers expanded their production and exported from their South African operations, backed by incentives offered through the government's Automotive Production and Development Plan (APDP). For instance, The International Finance Corporation (IFC), a member of the World Bank Group, announced an agreement to help BMW build local capacity by providing a loan of USD 150 million.
• Further, according to the National Association of Automobile Manufacturers of South Africa (NAAMSA), new passenger and commercial vehicle sales in South Africa increased by 7.6% year-on-year to 41,019 units in June 2022. Further, in the first half of 2022, sales volume increased by 11.4% year-on-year to 253,442 units.
• The largest residential project developed by South Africa in the north of Durban is the Cornubia housing project. This project will include residential, commercial, and industrial sites. The area allocated for this project is 1200 hectares, and the budget is USD 1.5 billion.
• Overall, all such factors are expected to increase the vessel membranes market growth in South Africa over the forecast period.

Expansion Vessel Membrane Industry Overview

The Middle East and Africa expansion vessel membrane market is partially fragmented. Some of the major players in the market include Dillinger Middle East FZE, Hidayath Group, Kanoo Group, Lloyds Engineering Co. LLC, and Al Shirawi Equipment Company LLC, among others.

Expansion Vessel Membrane Market Leaders

Expansion Vessel Membrane Market News

• March 2022: Al Shirawi Equipment LLC announced the acquisition of Thor Middle East LLC and TMEA FZCO. This strategic move will expand the company's presence in the Middle East region as a supplier of different equipment in the industry.