KSA Bearing Market Outlook to 2030

KSA Bearing Market Overview

• The KSA Bearing Market reached USD 131 million in 2023, reflecting steady growth driven by the expansion of industrial sectors and significant infrastructure projects under Saudi Arabia's Vision 2030. The market's growth is supported by the increasing demand for high-performance bearings across key industries such as oil and gas, automotive, and renewable energy.
• Major players in the KSA Bearing Market include SKF, NTN Corporation, Schaeffler Group, NSK Ltd., and Timken Company. These companies dominate the market due to their extensive product portfolios, local manufacturing capabilities, and strategic partnerships within the region. Their investments in innovation, coupled with a strong presence in the industrial and automotive sectors, enable them to maintain a significant market share and drive technological advancements in the bearing industry.
• In 2024, SKF expanded its manufacturing facility in Dammam to increase production capacity and meet the growing demand for industrial bearings in the region. This expansion highlights the importance of locally produced bearings, reducing reliance on imports and ensuring faster delivery times. The increased capacity is expected to cater to the needs of major industrial projects, reinforcing SKF's leadership in the KSA bearing market.
• Riyadh, Jeddah, and Dammam are the dominant cities in the KSA Bearing Market due to their robust industrial activities and strategic locations. Riyadh serves as the economic hub with a high concentration of manufacturing plants, Jeddahs proximity to major ports enhances its role as a distribution center, and Dammams location in the oil-rich Eastern Province makes it a key market for bearings used in the oil and gas industry. These cities benefit from strong infrastructure and government support, driving demand for bearings.

KSA Bearing Market Segmentation

The KSA Bearing Market can be segmented by various factors such as product type, application, and region.

By Product Type: The market is segmented into ball bearings, roller bearings, and plain bearings. In 2023, roller bearings held the largest market share due to their versatile applications in heavy machinery and industrial equipment. Roller bearings are essential for handling large loads and high-speed operations, making them crucial in the oil and gas, construction, and mining sectors.

By Application: The market is segmented by application into industrial machinery, automotive, and construction. In 2023, the industrial machinery segment dominated the market due to the high demand for bearings in various machines used across different industries. Bearings are vital for ensuring the smooth operation of equipment, reducing downtime, and enhancing productivity, making them indispensable in industrial settings.

By Region: The market is segmented regionally into North, South, East, and West. In 2023, the Eastern region led the market due to its extensive oil and gas activities, which require high-quality bearings for drilling, extraction, and processing operations. The regions industrial base and infrastructure projects further contribute to the high demand for bearings, solidifying its position as the leading market.

KSA Bearing Market Competitive Landscape

• NSK Ltd.: In 2024, NSK Ltd. introduced a new range of energy-efficient bearings designed specifically for the renewable energy sector in KSA. These bearings are engineered to reduce friction and extend the lifespan of wind turbines, catering to the growing demand for renewable energy solutions in the region. The launch of these innovative products is part of NSK's strategy to expand its market share in the Middle East by focusing on sustainable and high-performance solutions.
• Schaeffler Group: Schaeffler India acquired KRSV Innovative Auto Solutions Pvt Ltd, the operator of the Koovers platform, as part of its strategy to enhance aftermarket solutions. While this acquisition is focused on India, it aligns with Schaeffler's broader goal of strengthening its automotive aftermarket presence, potentially impacting its operations and market strategy in the Middle East.

KSA Bearing Market Analysis

KSA Bearing Market Growth Drivers

• Expansion of Industrial and Infrastructure Projects: The KSA Bearing Market is witnessing significant growth due to the ongoing expansion of industrial and infrastructure projects under Vision 2030. The governments commitment to diversifying the economy and reducing dependence on oil has led to increased investments in sectors such as manufacturing, construction, and renewable energy, driving demand for bearings. In 2024, the total value of infrastructure projects in the Kingdom exceeded USD 1 trillion, highlighting the scale of development and the consequent need for high-performance industrial components.
• Growing Automotive Sector: The automotive industry in Saudi Arabia is expanding rapidly, with the government promoting local manufacturing and the development of electric vehicles (EVs). The number of vehicles produced in KSA is expected to reach 120,000 units by the end of 2024, contributing to a rising demand for automotive bearings. Bearings play a crucial role in ensuring the smooth operation of engines, transmissions, and wheels, making them indispensable in the automotive manufacturing process.
• Increasing Focus on Renewable Energy: Saudi Arabias ambitious plans to increase its renewable energy capacity, particularly through wind and solar projects, are driving demand for specialized bearings. In 2024, the government announced its intention to add 5 GW of wind power capacity by 2026, which will require high-performance bearings capable of withstanding extreme conditions. The expansion of renewable energy projects is expected to create a consistent demand for high-quality bearings, supporting the markets growth.

KSA Bearing Market Challenges

• Supply Chain Disruptions: The global supply chain continues to face challenges in 2024 due to geopolitical tensions and the lingering effects of the COVID-19 pandemic. These disruptions have impacted the availability of raw materials and components required for bearing manufacturing, leading to increased lead times and higher costs. The KSA bearing market, which relies on both local production and imports, faces difficulties in maintaining a steady supply, affecting the overall market growth.
• Volatility in Raw Material Prices: The KSA bearing market is highly sensitive to fluctuations in the prices of raw materials, particularly steel and lubricants. In 2024, global steel prices have shown volatility due to changes in demand from major markets and trade policies affecting imports and exports. This volatility has resulted in increased production costs for bearing manufacturers, who often have to pass these costs on to consumers, posing a challenge to market profitability.

KSA Bearing Market Government Initiatives

• National Industrial Development and Logistics Program (NIDLP): As part of Saudi Arabia's Vision 2030, the NIDLP aims to transform the country into a leading industrial powerhouse. In 2024, the program allocated USD 50 billion to enhance local manufacturing capabilities, including the production of industrial components like bearings. This initiative supports the growth of the KSA bearing market by providing incentives for local production, reducing reliance on imports, and fostering innovation within the sector.
• Saudi Renewable Energy Project Development Office (REPDO): In 2024, REPDO launched several new wind and solar projects as part of Saudi Arabias plan to generate 50% of its energy from renewable sources by 2030. These projects require high-performance bearings for turbines and solar trackers, driving demand in the bearing market. REPDOs initiatives are expected to create opportunities for bearing manufacturers to supply products that meet the specific needs of the renewable energy sector.

KSA Bearing Market Future Outlook

The KSA Bearing Market is poised for significant growth, driven by continued industrial expansion, technological advancements, and increasing investments in renewable energy projects.

Future Market Trends

• Increased Automation and Smart Bearings: By 2028, the adoption of smart bearings equipped with sensors for real-time performance monitoring is expected to grow rapidly in Saudi Arabia. These bearings will enable predictive maintenance, reducing operational costs and minimizing downtime. The integration of IoT and AI technologies in industrial settings will drive the demand for smart bearings, making them a key component of the KSA bearing market.
• Growth in Local Manufacturing: Local manufacturing of bearings is projected to expand significantly by 2028, supported by government initiatives and increased investments from global companies. The focus on developing local production capabilities will reduce Saudi Arabia's reliance on imports and create a more self-sufficient bearing industry. By 2028, it is expected that over 60% of bearings used in the country will be produced locally, enhancing the resilience and competitiveness of the KSA bearing market.