MIDDLE EAST CONVEYOR BELTS MARKET ANALYSIS

Market Overview

Conveyor belts are a mechanical device used for carrying objects from one point to another. These belts are generally used for transportation at close distances usually within a building. Generally, conveyor belts are comprised of two or more pulleys with endless loop of carrying medium that rotates about them. Lightweight conveyor belts are multilateral, with two- or one-sided rubber lining and uneven edges. Oil-resistant conveyor belts are made of components that are oil treated and have nitrile-based covers.

The Middle East conveyor belts market is estimated to account for US$ 253,193.9 Mn in terms of value by the end of 2027.

Market Dynamics- Drivers

1. Increasing number of construction activities worldwide is expected to drive growth of the Middle East conveyor belts market during the forecast period

Infrastructure development activities are increasing rapidly across the globe, which has increased the demand for automation at construction sites, in order to enhance productivity and efficiency. As a result of this, sales of heavy-duty conveyor belts is increasing significantly. Therefore, these factors are expected to drive growth of the Middle East conveyor belts market during the forecast period. For instance, in February 2015, Qatar Railway Company installed 5-km conveyor belts placed 6.3m above the ground to move debris and rubble from construction sites at West Bay Central and West Bay South stations. Moreover, in October 2014, Qatar Primary Materials Company (QPMC) implemented a conveyor stacker system in order to increase the efficiency of port facilities.

2. Enhancement of belt material in conveyor systems is expected to propel the Middle East conveyor belts market growth over the forecast period

Advancements in technology regarding materials of conveyor belts are expected to open up more application areas for conveyor belts. For instance, in January 2016, Yokohama Rubber Co. Ltd. introduced conveyor belts with improved, heat-resistant fabric. This new belt can be used in high-temperature environments such as in material handling of coke and sintered products, which can reach temperatures as high as 400°C. Therefore, these factors are expected to propel the market growth over the forecast period.

Statistics:

Turkey country held dominant position in the Middle East Conveyor belts market in 2019, accounting for 34.9% share in terms of value, followed by Kingdom of Saudi Arabia, U.A.E and Oman respectively.

Figure 1: Middle East Conveyor Belts Market Share (%), in terms of Value, By Country, 2019

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Market Dynamics- Restraints

1. Low-profit margins for manufacturers of premium products is expected to restrain growth of the Middle East conveyor belts market during the forecast period

Major OEMs in the market face challenges associated with price and low-quality belt. This in turn is challenging premium quality manufacturers to market their products in standard price offerings. Investments made into upgrading technology by key players often fail to fetch commensurate returns from the market, causing the players to exit the market in a very short period of time. Hence, these factors are expected to restrain growth of the market during the forecast period.

2. Heavy reliance on raw materials is expected to hinder the Middle East conveyor belts market growth over the forecast period

Majority of conveyor belt manufacturers in Middle East and Africa rely on imports of procuring raw materials such as natural and vulcanized rubber and galvanized steel wires. There are a handful of conveyor belt manufacturers in the region, with most of them concentrated in a few clusters of GCC countries and Turkey. Raw materials such as natural rubber, galvanized steel wires, and fabric in the region are primarily imported from South Korea, China, and Russia, while carbon black is imported from the Philippines. Therefore, these factors are expected to hinder the market growth in the near future.

Market Opportunities

1. Demand for halal-certified conveyor belts can present lucrative growth opportunities

Increasing demand for halal-certified food products in the Middle East in turn offers lucrative growth opportunities for OEMs of conveyor belts. Conveyor belts are an integral part of the food and processing industry. Halal-certified conveyor belts are further expected to adhere to dietary guidelines for production of halal-certified goods. For instance, in July 2014, Cambridge Engineered Solutions., a leading global conveyor belt manufacturer, announced halal certification of its conveyor belts by U.S.-based Islamic Services of America (ISA). As of 2014, the company is the only metal belt manufacturer with halal certification by the ISA.

2. Growing expenditure construction industry can pose major business opportunities

Increase in expenditure in the construction industry is expected to create new opportunities for OEMs of material handling equipment in the Middle East region, which in turn is expected to augment market for conveyor belts. According to Coherent Market Insights’ analysis, construction spending in the Middle East is expected to increase by 3.4% in 2016 as compared to 2015, which in turn is expected to create significant growth opportunities for OEMs of conveyor belts in the Middle East.

Figure 2: Middle East Conveyor Belts Market Value (US$ Mn), 2017 - 2027

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The Middle East conveyor belts market was valued at US$ 182,105.3 Mn in 2019 and is forecast to reach a value of US$ 253,193.9 Mn by 2027 at a CAGR of 4.2% between 2020 and 2027.

Market Trends

1. Increasing adoption of energy-saving belts across the region

End-use industries are focused on reducing energy costs by use of efficient products and processes. Moreover, manufacturers are introducing energy-efficient conveyor belts for various applications. Major manufacturers are developing conveyor belts with better visco-elastic properties, which can reduce energy consumption by up to 20%. For instance, in 2014, Bridgestone Corporation developed energy-saving belts using its fuel-efficient Ecopia tire technology. This new conveyor belts material maximizes belt performance as the belt runs along the indentation resistant rollers.

2. Rising demand for lightweight conveyor belts

In the Middle East, low noise and lightweight conveyor systems are gaining traction over the heavyweight conveyor belts. This is mainly attributed to the excellent beneficial features of lightweight conveyor belts, which significantly increases reliability of the device and significantly reduces maintenance costs of the system. Some of the leading companies offering lightweight conveyor belts in Middle East region include Ammeraal Beltech Holding BV, PROBE CONVEYOR, AND TRANSMISSION BELTS and Schieffer Magam Industries Ltd. These companies are offering their lightweight conveyor belts to wood/paper, bottling/canning, plastics, textiles, electronics, treadmill, and pharmaceutical industries.

Middle East Conveyor Belts Market - Impact of Coronavirus (Covid-19) Pandemic

Due to Covid-19 pandemic, many industries witnessed significant shift in their business. Logistics & supply chain industries are directly affected by COVID-19 pandemic.  The economic growth of the Middle East has slowdown due to disruptions in the supply chain across the country. For instance, in March 2020, Kingdom of Saudi Arabia (KSA) has suspended all the international flights. Additionally, FMCG and consumer goods companies are also affected by covid-19 and these companies are dependent on other countries for import/export of raw materials. Owing to these factors the demand for conveyor belts in declining, as these are highly used in the logistics sector.

Competitive Section

Key players operating in the Middle East conveyor belts market are Al Kuwaiti Industrial Solutions, Ziligen A.S., Arabian Universal, Semperit AG Holding, Bridgestone Corporation, Schieffer Magam Industries Ltd., ContiTech AG (Continental AG), Phoenix Conveyor Belt Systems Gmbh, Derby Conveyor Belt Industry and Trade Inc., Kale Conveyor, FaBa Commercial Services, and Fenner Dunlop Conveyor Belting.