This opportunity entails developing the value chain for the production of bearings for industrial equipment to serve KSA and the broader GCC region.
Overall demand for bearings in Saudi Arabia has been increasing, estimated to be 1.55 million units in 2016 with an additional 1 million units of indirect demand estimated. Driven by investment in heavy machinery and technological advances in lightweight materials for high-performance products, demand is forecasted to increase at an annual growth rate of ~3% to reach 2.2 million units by 2025. Currently, KSA demand for bearings for industrial equipment is addressed fully through imports, presenting a great opportunity for investors to localize production.
Beyond the KSA market, investors in Saudi have the opportunity to tap into the larger regional market in the GCC, expected to increase from 0.8 million units in 2016 to 1.2 million units by 2025.
In addition to an increasing market demand, Saudi Arabia has an attractive cost base for materials, labor and logistics and offers funding and incentives to investors.
The main focus of this opportunity is to establish a manufacturing facility for bearings for industrial equipment.
- Manufacturing: establish manufacturing facility to fabricate plain and rolling-element bearings
- Manufacturing: partner with local players to develop the supply chain by conducting machining, heating, grinding and cutting services
However, additional opportunities for localization exist across the value chain of bearings production. These opportunities include:
- Design: establish a design and engineering capabilities
- Input materials: partner with local manufacturers to establish and enhance industrial grade steel supply
- Cage and assembly: establish sheet cutting, turning and plastic injection molding services
- Maintenance: offer support services, including quality control and maintenance services
contact our Manufacturing Of Bearings For Industrial Equipment Expert
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