Saudi Arabia has remained one of the most promising fire safety markets in entire GCC region. In last few years, the market has enjoyed strong growth owing to growing construction market in the areas such as residential, retail, hospitality, public infrastructure, healthcare, and education. Also, with recent fire incidences and emergence of high rise buildings the need for advanced fire safety systems have surged in the country.
The newly constructed buildings or ongoing construction would be equipped with advanced fire safety systems, however, immense opportunities exist for the players in retrofit buildings segment which have traditional fire safety systems.
The fire safety market in Saudi Arabia is expected to remain volatile until 2017In the year 2015, the market for fire safety systems in Saudi Arabia declined due to slumping oil prices, which affected infrastructure/real estate spending and construction activities. Moreover, many of the upcoming projects were put on hold by the government to reduce the burden on the Saudi Arabia’s economy.
According to 6Wresearch, Saudi Arabia’s fire safety market touched $577 million in 2015. The fire safety market in Saudi Arabia is expected to remain volatile until 2017, where growth would be recorded post 2017 with the recovery of the oil prices coupled with government spending.
Unlike Saudi Arabia, UAE, the second largest fire safety market in GCC region registered positive growth due to growing construction activities for the upcoming Dubai World Expo 2020. The event is likely to attract 25 million tourists, which is spurring the construction in the areas of hospitality, public infrastructure, retail, entertainment, etc. Also, government mandates are further fueling the growth of the market in UAE.
In overall Saudi Arabia’s fire safety market, fire protection systems have generated majority of the market revenues, wherein fire extinguishers, fire suppression systems and fire pumps & controllers have led the market growth.
Over the next six years, Saudi Arabia’s fire safety market would be driven by the government mandatory regulations and replacement of existing fire safety systems. Residential and industrial verticals would be the key verticals where major replacement markets exists.