Saudi Arabia Metallurgical Equipment Market Size, Share, Trends and Forecast by Type, Equipment, Application, and Region, 2026-2034

Saudi Arabia Metallurgical Equipment Market Summary: 

The Saudi Arabia metallurgical equipment market size was valued at USD 1,425.79 Million in 2025 and is projected to reach USD 2,211.77 Million by 2034, growing at a compound annual growth rate of 5.00% from 2026-2034. 

The market is witnessing a high rate of growth owing to the ambitious economic diversification program in the Kingdom through Vision 2030, which has seen unparalleled investment in industrial infrastructure and manufacturing capacities. The rise in steel manufacturing plants and the escalation of demand by the automotive and construction industries are creating long-term needs for sophisticated metallurgical processing equipment. Additionally, the government's focus on developing industrial cities and mega-projects such as NEOM is creating substantial opportunities for metallurgical equipment suppliers, thereby augmenting the Saudi Arabia metallurgical equipment market share. 

Key Takeaways and Insights: 

• By Type: Steelmaking equipment dominates the market with 42.02% share in 2025, driven by extensive capacity expansion in the Kingdom's steel manufacturing sector. 

• By Equipment: Milling machines lead with 36.09% share in 2025, reflecting strong demand for precision metal processing capabilities across industrial applications. 

• By Application: The automotive holds 33.05% share in 2025, supported by the Kingdom's strategic push to establish domestic vehicle manufacturing capacity. 

• By Region: Northern and Central region dominates the market with 36% share in 2025, anchored by Riyadh's industrial zones and proximity to major manufacturing clusters. 

• Key Players: The Saudi Arabia metallurgical equipment market is moderately competitive, characterized by the presence of both regional and international suppliers who focus on technological innovation, customization, and strategic partnerships to cater to the Kingdom’s growing industrial and manufacturing sectors. 

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The Saudi Arabia metallurgical equipment market is experiencing transformative growth as the Kingdom advances its industrialization agenda. Government-led initiatives to strengthen the domestic steel sector are driving demand for advanced steelmaking equipment, including electric arc furnaces and continuous casting systems. The Saudi Arabia steel market size was valued at USD 8.7 Billion in 2024. Looking forward, the market is expected to reach USD 11.8 Billion by 2033, exhibiting a CAGR of 3.40% from 2025-2033. Additionally, the expansion of automotive manufacturing facilities is stimulating the need for precision machining equipment to support component production and assembly operations. Investments in modern industrial infrastructure, combined with efforts to enhance production efficiency and technology adoption, are collectively boosting the demand for sophisticated metallurgical machinery across steel, automotive, and related manufacturing sectors. 

Saudi Arabia Metallurgical Equipment Market Trends: 

Shift Towards Green and Sustainable Metallurgical Technologies 

The Kingdom is increasingly adopting environmentally sustainable metallurgical practices in line with global decarbonization efforts. Electric arc furnaces, which offer approximately 75% lower carbon emissions than traditional blast furnaces, are gaining prominence among Saudi steel producers. Direct reduced iron facilities powered by green hydrogen are being piloted at NEOM's Oxagon industrial hub, positioning Saudi Arabia as a potential leader in green steel production within the MENA region and supporting the country's net-zero ambitions. For instance, NEOM, the futuristic arcology and planned city in Saudi Arabia’s Tabuk Province, has reached a significant milestone with USD 8.4 billion in investments. Recently, 600 tonnes of equipment have arrived on-site, and 4 gigawatts of renewable energy capacity have been activated. These developments mark 80% progress toward achieving NEOM’s ambitious green energy objectives. 

Integration of Industry 4.0 and Smart Manufacturing Systems 

Saudi manufacturers are embracing digital transformation through the adoption of CNC-enabled and automation-integrated equipment. The Saudi Arabia machine tools market size reached USD 1,013.7 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 1,408.7 Million by 2034, exhibiting a growth rate (CAGR) of 3.72% during 2026-2034. In January 2025, Simplex secured USD 13 million to establish a 20,000-square-meter CNC factory in Riyadh, demonstrating growing domestic capacity for advanced manufacturing equipment production. 

Rising Demand from Automotive Manufacturing Expansion 

The automotive sector is emerging as a significant consumer of metallurgical equipment as the Kingdom develops domestic vehicle manufacturing capabilities. In January 2025, Lucid Motors became the first global automotive company to join Saudi Arabia's 'Made in Saudi' program, operating a factory at King Abdullah Economic City. The government's target of establishing 3-4 original equipment manufacturers producing 400,000 vehicles annually by 2030 is driving substantial investments in precision machining and metal forming equipment. 

How Vision 2030 is Transforming the Saudi Arabia Metallurgical Equipment Market: 

Saudi Arabia’s Vision 2030 is driving a transformative shift in the metallurgical equipment market by prioritizing industrial diversification, technological modernization, and domestic steel production. Government initiatives to expand integrated steelmaking capacity and support automotive, construction, and manufacturing sectors are fueling demand for advanced equipment such as electric arc furnaces, continuous casting systems, and precision machining tools. Investments in industrial infrastructure, including smart factories and automated production facilities, are promoting efficiency, quality, and operational scalability. Additionally, the emphasis on localization, innovation, and industrial competitiveness under Vision 2030 is encouraging manufacturers to adopt cutting-edge technologies, fostering a more resilient, modern, and globally competitive metallurgical equipment market in the Kingdom. 

Market Outlook 2026-2034: 

The Saudi Arabia metallurgical equipment market growth trajectory will be underpinned by continued infrastructure investments under Vision 2030, the expansion of industrial cities managed by MODON, and the Kingdom's strategic focus on developing downstream manufacturing sectors, including automotive, aerospace, and renewable energy equipment. The ongoing consolidation in the steel industry and government incentives for domestic manufacturing are expected to further accelerate equipment procurement. The market generated a revenue of USD 1,425.79 Million in 2025 and and is projected to reach a revenue of USD 2,211.77 Million by 2034, growing at a compound annual growth rate of 5.00% from 2026-2034. 

Saudi Arabia Metallurgical Equipment Market Report Segmentation: 

Type Insights: 

• Ironmaking Equipment 
• Steelmaking Equipment 
• Metal Rolling Machine 

The steelmaking equipment leads with a share of 42.02% of the total Saudi Arabia metallurgical equipment market in 2025. 

The prominence of steelmaking equipment highlights the Kingdom's focus on expanding steel production capacity to support growing domestic demand from construction and infrastructure projects. Investments in integrated long-product facilities are driving the need for advanced equipment such as electric arc furnaces, ladle refining systems, and continuous casting machines, boosting opportunities for metallurgical machinery suppliers. 

The transition towards sustainable steelmaking is further driving demand for advanced equipment configurations. Multiple international steel manufacturers have announced major investments in Saudi Arabia, including Essar's USD 4 billion flat steel complex at Ras Al-Khair Industrial City and Tosyali Holding's planned to invest USD 3.6 billion steel plant. These developments are generating significant requirements for state-of-the-art steelmaking equipment capable of meeting stringent quality and environmental standards. 

Equipment Insights: 

• Milling Machines 
• Broaching Machines 
• Grinding Machines 
• Drilling Machines 

The milling machines segment holds the largest market share at 36.09% of the total Saudi Arabia metallurgical equipment market in 2025. 

The strong position of milling machines is attributable to their versatility in manufacturing precision components across multiple industries, including automotive, aerospace, and oil and gas equipment production. The Kingdom's expanding manufacturing base requires extensive metal cutting and shaping capabilities, with CNC milling machines particularly favored for their accuracy and repeatability in producing complex geometries. 

The adoption of multi-axis CNC milling centers is accelerating as Saudi manufacturers upgrade their production facilities to meet international quality standards. In April 2024, DN Solutions showcased its advanced multi-tasking machines at MacTech KSA 2024, demonstrating growing industry interest in equipment capable of combining milling, turning, and drilling operations in single setups to enhance operational efficiency and reduce production cycle times. 

Application Insights: 

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• Aerospace and Defense 
• Automotive 
• Medical and Dental 
• Oil and Gas 
• Industrial 
• ​​​​​​​Others 

The automotive holds the largest application share at 33.05% of the total Saudi Arabia metallurgical equipment market in 2025. 

Saudi Arabia's automotive industry is undergoing rapid transformation as part of Vision 2030's economic diversification objectives. The Kingdom is focusing on developing multiple original equipment manufacturers to strengthen domestic vehicle production and expand local manufacturing capabilities. Government initiatives are providing significant support to facilitate industry growth, enhance production infrastructure, and encourage technology transfer. Rising consumer demand and increasing interest in locally produced vehicles are driving expansion opportunities, signaling strong market potential and creating a favorable environment for investments in automotive manufacturing, supply chain development, and related metallurgical and precision equipment sectors. 

The emergence of electric vehicle manufacturing is creating additional demand for specialized metallurgical equipment. The Saudi Arabia electric car market size reached USD 500 Million in 2024. Looking forward, the market is expected to reach USD 2,600 Million by 2033, exhibiting a growth rate (CAGR) of 17.20% during 2025-2033. Saudi Arabia’s expanding automotive manufacturing sector is driving demand for advanced precision machining and metal forming equipment for chassis and component production. Investments in electric vehicle and domestic vehicle assembly facilities are creating significant opportunities for equipment suppliers, supporting Vision 2030’s goals of industrial diversification, technology adoption, and the development of a robust local automotive supply chain. 

Regional Insights: 

• Northern and Central Region 
• Western Region 
• Eastern Region 
• ​​​​​​​Southern Region 

Northern and Central region represent the highest revenue share at 36% of the total Saudi Arabia metallurgical equipment market in 2025. 

The Northern and Central region benefits from Riyadh's position as the Kingdom's industrial and commercial hub, housing numerous manufacturing facilities and industrial zones managed by the Saudi Authority for Industrial Cities and Technology Zones (MODON). The development of the King Salman Automotive Cluster and the relocation of corporate regional headquarters to Riyadh are generating sustained demand for metallurgical equipment across automotive, construction, and general manufacturing applications. 

The region is also witnessing significant investments in advanced manufacturing infrastructure. Saudi Arabia is driving extensive industrial development, particularly in the Northern and Central regions, with numerous ongoing projects supported by significant investments in machinery and technology. The creation of new industrial zones is generating substantial demand for metallurgical equipment, presenting growth opportunities for suppliers as the Kingdom advances its industrialization and modernization objectives. 

Market Dynamics: 

Growth Drivers: 

Why is the Saudi Arabia Metallurgical Equipment Market Growing? 

Vision 2030 Economic Diversification and Industrial Development 

The Kingdom's Vision 2030 program represents a transformative initiative driving unprecedented investments in industrial infrastructure and manufacturing capabilities. Saudi Arabia has witnessed remarkable growth in industrial establishments, expanding from 7,206 factories in 2016 to 11,549 by 2023, supported by 1,379 new industrial licenses and investments totaling SAR 81 billion in 2023 alone. The government's National Industrial Strategy encompasses over 140 initiatives targeting increased manufacturing sector contribution to GDP, with substantial allocations for machinery and equipment procurement. Infrastructure investments across industrial zones have exceeded SAR 3.1 billion, with expected returns for every riyal invested, creating a favorable environment for metallurgical equipment adoption. 

Steel Industry Consolidation and Capacity Expansion 

The creation of a national steel champion is driving strong demand for metallurgical equipment across the industry, reflecting the government’s focus on enhancing domestic steel production and building a globally competitive sector. Expansion of long-product facilities and new integrated steel complexes are stimulating procurement of advanced machinery and technology. Simultaneously, international investments in flat and heavy steel production are supporting capacity growth, modernization, and technological upgrades, further boosting opportunities for metallurgical equipment suppliers across Saudi Arabia’s evolving steel industry value chain. 

Growth in Automotive and High-Value Manufacturing Sectors 

The rise of automotive manufacturing as a strategic priority is driving strong demand for precision metallurgical equipment. Expansion of domestic vehicle production and the growth of the automotive components sector are creating opportunities for suppliers of advanced machinery, supporting the Kingdom’s efforts to develop a self-sufficient, technologically advanced automotive industry. The recent establishment and expansion of Saudi Arabia’s first car manufacturing facility highlight the rapid growth of the automotive sector. Rising domestic interest in electric vehicles is creating ongoing demand for precision metallurgical equipment, offering sustained opportunities for suppliers supporting vehicle production, component fabrication, and advanced manufacturing capabilities across the Kingdom. 

Market Restraints: 

What Challenges the Saudi Arabia Metallurgical Equipment Market is Facing? 

Skilled Workforce Shortage in Advanced Manufacturing 

The Kingdom faces significant challenges in developing a skilled workforce capable of operating and maintaining advanced metallurgical equipment. Gulf Cooperation Council countries are experiencing a significant shortage of skilled industrial workers, with the steel and manufacturing sectors being especially impacted, creating challenges for operational efficiency and industry growth. Although vocational training programs are being expanded, the specialized nature of modern metallurgical equipment requires extensive practical experience that takes years to develop. 

High Capital Investment Requirements 

The transition to advanced metallurgical equipment and green manufacturing technologies requires substantial capital expenditure that may constrain adoption among smaller manufacturers. The high investment needed for new steel production facilities incorporating sustainable technologies poses financial challenges, especially for small and medium enterprises aiming to modernize and enhance their metallurgical equipment capabilities. 

Dependence on Imported Raw Materials and Components 

Saudi Arabia's metallurgical industry remains dependent on imported raw materials, with the Kingdom importing millions of tons of iron ore annually from Sweden and Brazil. Global supply chain disruptions and commodity price volatility can impact production costs and equipment utilization rates, creating operational challenges for domestic manufacturers. 

Competitive Landscape: 

The Saudi Arabia metallurgical equipment market features a competitive landscape comprising both domestic manufacturers and international suppliers. Domestic industrial players drive demand for advanced metallurgical machinery to support steel production and structural manufacturing, while international suppliers leverage technological expertise, comprehensive service networks, and customized solutions to strengthen their market presence. The sector is witnessing growing collaboration between local industrial enterprises and global technology providers, facilitating knowledge transfer, joint development initiatives, and the adoption of cutting-edge equipment. These partnerships are enhancing operational efficiency, promoting modernization, and supporting the Kingdom’s broader industrial growth and infrastructure development objectives. 

Recent Developments: 

• November 2025: Abdullah Hashim Industrial Gases & Equipment Co. (AHG) signed a land lease agreement with NEOM, representing a phased investment of SAR 600 million to establish a localized industrial gases production facility at Oxagon, supporting manufacturing operations with green oxygen, nitrogen, argon, and hydrogen supply. 

• December 2024: NEOM and Samsung C&T Corporation signed a joint venture agreement valued at SAR 1.3 billion to establish rebar cage assembly factories utilizing advanced construction robotics and automation technologies, with plans to create 2,000 jobs in the region. 

Saudi Arabia Metallurgical Equipment Market Report Coverage: