Construction Chemicals Market Overview and Growth by 2028

[Research Report] The construction chemicals market was valued US$ 50,952.86 million in 2022, it is estimated to grow at a CAGR of 5.8% from 2022 to 2028.

MARKET ANALYSIS

Construction chemicals are chemical formulations used with cement, concrete or other construction materials during the time of construction to hold the construction material together. Construction chemicals are specialty products that are crucial for sustainable infrastructure and energy conservation in construction industry to increase durability of buildings, and to provide added fortification from environmental hazards. The growing construction industry in developing countries as well as the increase in government support for the development of the residential construction sector is driving the growth of the construction chemicals market across the world.

GROWTH DRIVERS AND CHALLENGES

The strong growth of construction industry in developing countries has aided the construction chemicals market growth. The construction chemicals enhance the workability, performance, functionality, chemical resistance, and durability of the construction materials. In India, the growth in the construction activities is driven by continuing industrialization, urbanization, increasing population, growth in middle-class income, and the increase in infrastructural developments. According to the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investments (FDIs) in the construction development sector and construction (infrastructure) activities stood at US$ 26.20 billion and US$ 27.92 billion, respectively, between April 2000-March 2022. The construction industry is a best prospect industry sector for Mexico. Mexican construction industry is growing due to the economic growth and public investment in infrastructure projects. In 2019 and 2020, the country’s President López Obrador, along with private sector representatives, announced multiple projects as part of the nation’s infrastructure plan. Mexico is also moving rapidly towards green and environmentally friendly construction activities. The construction industry from the country has embraced the green building movement. Further, in Brazil, the construction sector is a key contributor to gross domestic product (GDP) growth. The construction market in Brazil offers key opportunities for the foreign multinational companies expanding into Latin America. Hence, the strong growth of the construction industry in these developing countries is mainly driving the construction chemicals market growth. The adoption of innovative product like ready-mix concrete is also the major factor in positively impacting the construction chemicals market size. Ready-mix concrete is a concrete that is batched for delivery from a central plant instead of being mixed on the job site. It is ideal for many jobs. Ready-mix concrete is particularly beneficial when small quantities of concrete or intermittent placing of concrete are required. Ready-mix concrete helps save on capital investments by not having to invest in plants and machinery for cement. All these benefits contribute to the increasing use of ready-mix concrete in various construction activities. Therefore, the development and adoption of innovative products such as ready-mix-concrete is predicted to boost the construction chemicals market size during the forecast period. However, fluctuations in the prices of raw materials can create an adverse impact on the market growth. Different polymers are used for the manufacturing of construction chemicals. The prices fluctuate due to various factors. For instance, if the cost of the oil involved in the production is raised, then the cost of the polymer is likely to go up as well. Hence, the fluctuating cost of raw materials and energy is expected to hamper the construction chemicals market growth.

Published Report - Construction Chemicals Market: Strategic Insights

REPORT SEGMENTATION AND SCOPE

The "Global Construction Chemicals Market Analysis to 2028" is a specialized and in-depth study with a major focus on the global construction chemicals market trends and growth opportunities. The report aims to provide an overview of the global construction chemicals market with detailed market segmentation by product, application, and geography. The global construction chemicals market has been witnessing high growth over the recent past and is expected to continue this trend during the forecast period. The report provides key statistics on the consumption of construction chemicals worldwide along with their demand in major regions and countries. In addition, the report provides the qualitative assessment of various factors affecting the construction chemicals market performance in major regions and countries. The report also includes a comprehensive analysis of the leading players in the construction chemicals market and their key strategic developments. Several analyses on the market dynamics are also included to help identify the key driving factors, market trends, and lucrative construction chemicals market opportunities that would, in turn, aid in identifying the major revenue pockets.

Further, ecosystem analysis and Porter’s five forces analysis provide a 360-degree view of the global construction chemicals market, which helps understand the entire supply chain and various factors affecting the market growth.

SEGMENTAL ANALYSIS

The global construction chemicals market is segmented based on product, application. Based on product, the construction chemicals market is segmented as concrete admixtures, asphalt additives, waterproofing chemicals, adhesives and sealants, flame retardants, and others. On the basis of application, the market is segmented as residential, commercial, industrial, institutional, and infrastructure.

On the basis of product concrete admixtures led the construction chemicals market with a largest market share. Concrete admixtures are soluble in water and are mixed in small quantities to concrete mixtures for altering certain properties. They help in minimizing the construction projects costs and alters the characteristics of hardened concrete. The adhesives and sealants is another key segment contributing to the construction chemicals market growth. Adhesives and sealants are barrier to external factors like dust particles, moisture, liquid, oxygen, etc. Sealants are used to seal an opening or a surface to avoid leakage of any gas or liquid, and sealants are used to fill small gaps that are tough to cover, with materials such as concrete, drywall and others. Based on application residential segment is dominating the construction chemicals market. Rise in population has led to increasing accommodation requirements especially in smart cities, and to fulfil this demand construction activities are increased by both government bodies and private sector companies, which has further resulted in expansion of residential construction thus, driving the construction chemicals market.

REGIONAL ANALYSIS

The report provides a detailed overview of the global construction chemicals market with respect to five major regions, namely, North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA) and South & Central America. Asia Pacific accounted for a large portion of the global construction chemicals market share and is valued at more than US$ 18,800 million in 2022. Asia Pacific comprises several developing and developed economies such as China, India, Japan, South Korea, and Australia. The critical factor contributing to its growth is the increasing demand for building & construction. Rising government and foreign investments in mega projects in the Asia Pacific are encouraging construction chemical manufacturers in the region to push strongly toward incorporating sustainable and technologically advanced materials in concrete admixtures, waterproofing, and industrial flooring. North America is also expected to witness considerable growth valued at approximately US$ 19,000 million in 2028. According to the US Census Bureau, building and construction spending in public and private sector of the US in January and February 2022 amounted to USD 237.8 billion, showing a growth of 10.4% compared to the same period of 2021. Furthermore, in Europe, there has been a widespread usage of construction chemicals in residential & commercial construction. This has created lucrative opportunities in construction chemicals market. The construction chemicals market in Europe is augmented to grow at CAGR of 6.7% during the forecast period.

INDUSTRY DEVELOPMENTS AND FUTURE OPPORTUNITIES

Partnership, acquisitions, and new product launches were found to be the major strategies adopted by the players operating in the global construction chemicals market.

• In Aug 2022, Sika AG launched a mortar and concrete admixtures manufacturing plant at Santa Cruz de la Sierra, Bolivia to strength its special chemicals manufacturing operations in South America region.
• In May 2022, MAPEI S.p.A. partnered with Black Buffalo 3D corporation to utilize the partners 3D printing technology and offer building materials based in its Planitop 3D layer design standards.

Construction Chemicals

Published Report - Construction Chemicals Market Players Density: Understanding Its Impact on Business Dynamics

The Published Report - Construction Chemicals Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

IMPACT OF COVID/IMPACT OF GEOPOLITICAL SCENARIO/IMPACT OF RECESSION

Lockdowns, travel restrictions, and business shutdowns due to the COVID-19 pandemic adversely affected economies and industries in various countries in North America, Europe, Asia Pacific (APAC), South & Central America, and the Middle East & Africa (MEA). The crisis disturbed global supply chains, manufacturing activities, delivery schedules, and essential and nonessential product sales. Various companies announced possible delays in product deliveries and a slump in future sales of their products in 2020. Further, the international travel bans imposed by various governments in Europe, Asia Pacific, and North America forced several companies to discontinue their collaboration and partnership plans. All these factors hampered the chemicals & materials industry in 2020 and early 2021, thereby restraining the growth of construction industry.

Before the COVID-19 outbreak, the construction chemicals market was mainly driven by the rising demand from construction industry. The COVID-19 pandemic has caused a delay in most ongoing construction projects and reduced the productivity of the construction industry. Due to the reduced construction activities worldwide, the demand for construction chemicals in different residential, commercial, industrial, and infrastructural application has reduced. However, the economies revived their operations. The previously postponed construction projects were resumed, further providing an opportunity for the construction chemicals market players to regain normalcy.

COMPETITIVE LANDSCAPE AND KEY COMPANIES

Some of the key players operating in the construction chemicals market include Ashland Global Holdings Inc.; BASF SE; Mapei S.P.A.; Linde Plc; Sika Ag; Fosroc, Inc; Compagnie De Saint-Gobain S.A; Pidilite Industries Limited; Choksey Chemicals Pvt Ltd; Rpm International Inc.; and Dow Chemicals Company among others.