Construction Chemicals Market

The global Construction Chemicals Market is valued at USD 32.56 Billion in 2021 and is projected to reach a value of USD 69.31 Billion by 2028 at a CAGR (Compound Annual Growth Rate) of 8.11 over the forecast period.

Premium Insights

Construction chemicals are specialty products often utilized for sustainable infrastructure and energy conversation. These help increase building durability and add a fortified structure to the infrastructure. The global construction chemical market is expected to increase during the forecast period due to rising environmental regulations regarding VOCs compounds and a rising focus on sustainable materials. Additionally, the rising number of upcoming construction projects within emerging economies such as Asia Pacific and Europe is expected to increase the footprint of the global construction chemical market. The rising focus on luxurious projects such as apartments, penthouses, villas, and bungalows is further expected to add value to the expanding market.

Many residents show signs of purchasing luxurious homes for comfort, prestige, and privacy. This is expected to increase the demand for the global construction chemical market. Growing economic strength and a higher investment power by the general public from economies such as the United States, Canada, Germany, United Kingdom, India, and Japan is expected to expand the construction sector. For instance, in October 2021, Sao Paolo State Housing Union (Secovi-SP) announced they recorded 5,555 newer residential units sold in Sao Paulo. These residential units are expected to increase owing to increased consumer spending on residential housing units. An ongoing trend of single-housing family units is expected to add value to the global construction chemical market.

The expanding construction sector within developing economies is expected to support the growth of the global construction chemical market. The construction sector is expected to grow exponentially due to rising construction projects and increased focus on the repair and rehabilitation sectors. Due to expanding population, rising demand for residential units from emerging markets such as China, India, and South Korea shall drive industry growth. This is leading to an increase in cement consumption. This also leads to rising volumetric sales of construction chemicals such as concrete admixtures, cement additives, adhesives, and sealants. Additionally, prominent market leaders are introducing advanced product offerings, which will drive the growth of the global construction chemical market.

Economic Insights

Many financial experts and economists predicted that most of the global economy would be in a recession if it were not already. However, as 2022 ends, the global slump is expected to worsen as 2023 initiates. Studies have indicated that the US was in a recession during the first half of 2022, given how tight the country's labour market was. As the US raised its interest rates, there was expected to be a 75% chance of a recession occurring in 2023. The ongoing conflict between Russia and Ukraine has diminished many countries' prospects of a post-pandemic economic recovery. Developed and emerging countries' economies within Europe and Central Asia are expected to take most of this economic burden. Economic activity is expected to be depressed throughout 2023 as energy price shocks will continue to impact the global economy. Russia's invasion of Ukraine is expected to push the economy down by 0.2% within the European continent.

Top Market Trends

1. Rapid Urbanization: The global construction chemical market is expected to overgrow during the forecast period owing to rapidly growing urbanization. Consumers and architects are continuously gaining knowledge of the benefits of these substances. Construction chemicals improve the building’s durability, strength, and resilience in unfavorable working circumstances. The middle-class population is also growing at a significant pace in emerging economies. Many emerging markets are also expanding in terms of economic girth, favoring the construction sector's growth. The increasing number of residential and non-residential projects will further increase the footprint of the global construction chemical market. Structures such as movie theatres, retail centers, hospitals, and restaurants will increase the sales of construction chemicals.

2. Shifting Dynamics in Construction Industry: The expanding construction industry is leading to many sectors within developing economies, which is expected further to drive the growth of the global construction chemical market. The increasing need for residential and non-residential projects will boost the growth of the global market. Studies indicate that the sales of construction chemicals, including adhesives, concrete admixtures, and cement additives, are expected to rise. Building chemicals are used in various applications such as flooring, surface coatings, corrosion inhibitors, repair mortars, and grouts. These factors will increase the demand for the market to flourish.

3. Rising Number of Residential and Non-Residential Projects: The global infrastructure expansion and rising innovations for consumer residencies are expected to increase the footprint of the construction chemical market. Rising per capita income among the general population and increasing investments in FDI globally will add value to the market. Increasing demand for public, commercial, and residential buildings and the rising urban population will drive the demand for the construction chemical market to flourish. Growing residential and non-residential projects combined with an increasing number of buildings, roads, bridges, tunnels, and dams will increase the revenue generation stream for the market.

Market Segmentation

The global Construction Chemicals market can be categorized on the following: Product Type, Application, and Regions. Based on product type, the market can be categorized into concrete admixtures, waterproofing chemicals, protective coatings, adhesives & sealants, concrete repair mortar, plaster, and asphalt additives. By application, the market can be segmented across infrastructure, commercial & industrial, and residential. By Likewise, based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Product Type

Concrete Admixtures to Dominate Market Owing to Rising Utilization of Cement in the Construction Sector

The global construction chemical market is expected to be dominated by the segment of concrete admixtures during the forecast period in terms of revenue and share. Cement is frequently employed as the primary binding agent in the construction sector. Concrete is made by mixing cement in precise amounts and combined with sand, water, and crushed rocks. The characteristics of concrete are further enhanced by mixing in concrete admixtures. They offer solid advantages such as a low-cement-to-water ratio, accelerated setting time, reduced segregation, and increased permeability. These factors are expected to increase the footprint of the segmental value. Waterproofing chemicals are expected to grow with the fastest growing CAGR during the forecast period owing to a rising focus on maintenance and preventative waterproofing elements. Studies indicating increased construction costs due to damaged structural components push the growth of waterproofing chemicals.

Based on Application

Residential to Account for the Largest Market Share Owing to Expanding Infrastructure Development

The residential segment is expected to lead the global construction chemical market in revenue and share during the forecast period. Expanding infrastructure development is leading to a predominance in the residential sector. This is expected to add value to the segmental growth. Rising demand for highways, tunnels, dams, and bridges will fasten market growth. Additionally, rising demand for more expensive, higher quality public buildings and an expanding population base are expected to increase the footprint of the residential segment. Growing disposable income among the general population combined with rising disposable economies is expanding the growth of the global construction sector, fuelling the segmental value for residential construction. Commercial and residential segments will grow with the fastest growing CAGR during the forecast period owing to rising urbanization and a flow of consumers moving towards metropolitan areas. Additionally, rising living standards and a desire for attractive residential construction projects in the manufacturing sector will widen the segment's growth.

Based on Region

Asia Pacific to Lead Global Market Share Owing to Rising Initiatives from Government Incentives

The global construction chemical market is expected to be dominated by the region of Asia Pacific in terms of revenue and share during the forecast period. Factors such as a rapidly growing construction industry in Asia Pacific owing to the rising number of government initiatives to support the infrastructure sector is expected to increase the footprint of the regional market. Also, the region is expected to indicate a growth spur in the middle-class population. Rising demand for luxury homes, expanding construction projects, and rising urbanization is expected to widen the growth of the Asia Pacific construction chemical market. Increasing demand from emerging economies such as India, China, and Southeast Asia is propelling the regional market's growth.

North America is expected to grow with the fastest growing CAGR during the forecast period owing to the region’s increasing economic and more robust market fundamentals. The rising number of real estate projects, along with the rising population and upcoming development projects, is expected to propel the growth of the North American construction chemical market.

Competitive Landscape

The global construction chemical market is highly fragmented due to numerous players worldwide. Market leaders invest heavily in their research and development departments to widen their product portfolio further. Players are also focusing on increasing their footprint in the global market by partnering with like-minded players in regional and local markets. Also, the prominent players are focused on maximizing their supply chains to cater to the rising demand from the global construction sector.

The key players in the global Construction Chemicals market include - Evonik Industries, H.B. Fuller, WR Grace＆Company, Saint-Gobain S.A, Ashland, Albemarle, Huntsman Corporation, RPM International, AkzoNobel Chemicals, 3M Company, Sika Group, Fosroc, KÖSTER, Tremco Group, Arkema, Royal Adhesives & Sealants, LORD Corp., MAPEI, Tata Chemicals, Thermax Global, Bostik SA, Illinois Tool Works Inc., RUDOLF GROUP, BASF SE, Muehringer, Dow Chemical, Wacker Chemie AG, Henkel AG & Company KGaA, Knopp GmbH, Normet, Avery Dennison, Eastman Chemical, Pidilite Industries among others.

Recent Market Developments:

· February 2022: Sika announced that they were establishing a new manufacturing facility in Tanzania, East Africa, and begun producing mortars and concrete admixtures at the local level. This investment is expected to help the company in backward integration.

· January 2022: Holcim announced they agreed to buy PRB Group, France’s most prominent independent maker of specialty building solutions, EUR 340 million. PRB Group provides a wide range of high-performance building solutions, insulation, coatings, flooring systems, and sophisticated energy efficiency and rehabilitation solutions.

· February 2022: Shining Building Business Co., a building construction company in Taiwan, announced they plan to launch new housing projects worth NTD 30 billion in Taiwan and China. The plan will include projects valued at NTD 10.8 billion in Taiwan and NTD 19 million in China.

Segmentation of the Global Construction Chemicals Market