The global Construction Chemicals Market is anticipated to reach USD 67.61 billion by 2024, expanding at a 6.3% CAGR during the forecast period. Rising requirements from numerous end-use industries including residential & non-residential and infrastructure are expected to drive the market growth over the next nine years.
In addition, the market expansion is expected to be driven by a rapid shift towards urbanization and a rising focus on infrastructure development in emerging economies. Moreover, government initiatives in emerging economies such as India are also presumed to drive market growth.
On account of stricter environmental regulations, the market participants are focusing on research and development activities to come up with new products complying with guidelines established by various regulatory bodies. The application of biochemical as construction chemicals is at its initial stage, which could prove to be a revolutionary technology in the future. Emerging countries such as India and China are presumed to fuel the market owing to various upcoming infrastructure projects under development. China was the major construction market accounting for over 20.0% of the global share in the year 2015.
The market growth is also expected to witness significant growth on account of the rising rate of mergers and acquisitions by major players in the market. In addition, technological innovations have resulted in the rise in usage of other specialty chemicals which consist of chemical flooring, surface coating chemicals, grouting compounds, and structural adhesives.
In terms of market volume share, concrete admixtures accounted for 64.07% in the year 2015 on account of their wide usage in concrete to strengthen its chemical and physical properties. Its applications include all types of constructions such as residential and non-residential infrastructure. The product improves the strength of the construction by providing strong durability, enhanced durability, chemical resistance and considerably lowering cement and water requirement.
Superplasticizers and plasticizers are broadly utilized as concrete admixtures. Superplasticizers are suitable for pre-stressed concrete as the majority of the products are chloride-free. Chloride causes an oxidation reaction with metals, which then causes corrosion, weakening the building structure.
Infrastructure and non-residential industry accounted for over 60% of the total market revenue share in 2015. Construction chemicals are applied in non-residential segments such as hotels, office spaces, retail, erection of warehouses, and industrial buildings. The growth for infrastructure activities is driven by government initiatives in developing economies which consist of India, China, Brazil, and Mexico. In addition, the market growth is anticipated to be fueled by the growing trend towards metropolitan developments caused an increase in the need for more residential buildings.
The expansion of the residential & non-residential segment is caused by growing per capita income together with strengthening economic policies in the emerging economies. Overseas investments have increased in recent years in the Asia Pacific, which is also propelling the growth.
With a market share of over 45%, the Asia Pacific region was valued as the largest market for the product globally in 2015. India and China are the key markets in the region contributing over 50% of the total regional market size. The growth of the construction chemicals market is directly associated with the development of the construction sector.
Asia is presumed to witness an investment of about USD 8.0 trillion by the year 2020 according to the Asia development bank. The growing urbanization trend and increasing disposable income of the population in countries such as India, Vietnam, and China have generated a necessity for better transport systems, water & sanitation facilities, and buildings. Further, numerous international investors are focusing on re-allocating their capital in APAC.
Construction and infrastructure activities have seen rapid growth in the country since the launch of the 2011-20 Economic Transformation Program (ETP) by the Malaysian government. The construction sector in Vietnam was valued at USD 24.0 billion in the year 2012. All these factors are projected to result in the consistent growth of the construction industry in the APAC region, which in turn will cause a high growth of construction chemicals in this region.
The major players in the global construction chemicals market are FOSROC chemicals, BASF SE, Grace & Co., Arkema S.A., Dow chemicals, Pidilite Industries Ltd., Mapei S.P.A and RPM International Inc. The market is extremely competitive in nature with key players engaged in product innovation and R&D.
Market players are trying to enlarge their customer reach through various strategies which consist of new product launches and exhibitions. The U.S.-based manufacturer, Dow Chemicals is a key player in this market. The firm manufactures a wide range of sealant products and adhesives. Strategic agreements and launching innovative products has helped the company to preserve their position in the construction chemicals market globally.
Construction Chemicals Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2013 - 2024)
• Concrete Admixtures
• Concrete Adhesives
• Concrete Sealants
• Protective Coatings
Construction Chemicals End-use Outlook (Volume, Kilo Tons; Revenue, USD Million, 2013 - 2024)
• Non-residential & Infrastructure
Construction Chemicals Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2013 - 2024)
• North America
• the Asia Pacific
• South Korea
• Latin America
• Middle East & Africa (MEA)
Research Support Specialist, USA
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