The Middle East conveyor belts market has been witnessing significant growth in the recent years. Conveyor belts are integral part of mechanical power transmission and material handling systems. They are widely used across process industries such as mining, power generation, cement, food & beverage, and others to transport bulk material over short to long distances. Conveyor belts offer operational benefits such as reduced workload, improved safety, flexibility, precise quantity transportation, and lower operating costs. Growing industrialization and rising mining activities in countries such as Saudi Arabia, UAE, and Iran have been driving the demand for conveyor belts.
The Middle East Conveyor Belts Market is estimated to be valued at US$ 247.6 Bn in 2024 and is expected to exhibit a CAGR of 42% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Middle East conveyor belts are ABB, ANSYS, Inc., Autodesk Inc., AVEVA Group plc, Amazon Web Services, Inc., Dassault Systèmes, GE DIGITAL, General Electric, Hexagon AB, IBM Corporation, Microsoft Corporation, PTC Inc., Rockwell Automation, SAP SE, Siemens AG. The demand for conveyor belts is increasing due to rapid expansion of sectors such as mining, power generation, oil & gas, food & beverage, FMCG, logistics and e-commerce in the region. Countries like Saudi Arabia, UAE and Egypt are witnessing huge investments in infrastructure development which is contributing to growth of downstream process industries utilizing conveyor belts. The key players are expanding their geographic presence in Middle East countries to gain higher market share.
Market drivers
The rapid industrialization accompanied with economic diversification initiatives by various Middle Eastern governments is a major factor driving the demand for conveyor belts. Countries are promoting manufacturing sector growth by introducing attractive FDI policies and reforms. For example, 'Saudi Vision 2031' aims to expand non-oil industries such as mining, construction and FMCG. This is increasing utilization of material handling equipment across process facilities. Furthermore, surge in mining activities due to large reserves of minerals such as bauxite, copper and iron ore is propelling installations of conveying systems in the region.
The current geopolitical situation in the Middle East is significantly impacting the Middle East Conveyor Belts Market Growth. The ongoing conflicts and political instability in countries like Yemen, Syria and Iraq are disrupting Belt manufacturing and transportation networks. This is hindering the easy availability of raw materials and parts for Belt manufacturers in the region. The pandemic outbreak has further exacerbated the issue by restricting cross-border movement of goods.
Manufacturers will need to focus on developing alternate sourcing strategies and diversifying supply chains to mitigate geopolitical risks. Localizing production capacities can help insulate themselves from external disruptions. Belt producers may also consider strategic partnerships and joint ventures with local entities in politically stable countries within Middle East and North Africa region like Egypt, UAE, Saudi Arabia and Morocco. This will facilitate greater access to those mature market opportunities. Investing in protective infrastructure like warehouses can insulate inventory from security issues. Overall, Belt companies need to factor geo-political volatility while planning future capacities and distribution channels in the region.
Among regions, Saudi Arabia accounts for the largest share of the Middle East conveyor belts market value on account of rapid industrialization and infrastructure development activities underway as part of Vision 2031 reforms. Mining, oil & gas, construction and airports sectors contribute significantly to the demand for belts in the country. The UAE conveyor belts market is growing at the fastest pace owing to large numbers of projects across industries like cement, fertilizers, steel and power generation. Expo 2020 and diversification away from oil dependency are driving investments in industrial assets and logistics facilities, thereby propelling belts consumption.
Geographically, Africa region offers immense opportunities for the Middle East conveyor belts market players. The sub-Saharan region in particular is witnessing rising mining, agriculture and infrastructure activity. Developing partnerships with local EPC contractors and machinery importers can help Belt producers establish early presence and gain market share. North and East African nations are also attracting industrial investments due to strategic locations, cheap labour and free trade agreements. Tapping such high growth export markets will be critical for Middle Eastern Belt companies to sustain revenue momentum over the long run.
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