Asia Pacific Construction Chemical Market Analysis and Forecast (2018-2028) – Segmentation by Geography, Product, and End User

Asia Pacific Construction Chemical Market Analysis and Forecast (2018-2028) – Segmentation by Geography, Product, and End User

Executive Summary

The Asia Pacific construction chemical market has experienced robust growth due to the increasing demand for construction projects, both residential and commercial, across the region. This growth is fueled by factors such as population growth, urbanization, and government initiatives to develop infrastructure.

China is the market leader for construction chemicals in the Asia Pacific region, with India having a small share of the market. However, as more people become aware of the advantages of construction chemicals, demand for these products is growing in India. In the Asia Pacific construction chemicals market, China accounts for the largest market value, accounting for 64%, closely followed by Japan.

More than one-third of the world's construction chemical sales are made in China, which is also the market with the highest volume. Due to rising domestic demand for homes and businesses, China is predicted to maintain its dominance. Other countries which are expected to boost the global market are India, Brazil, Russia and Australia.

Asia-Pacific (APAC) is back in positive territory after shrinking by an average of 2.4% in 2020. The area is anticipated to continue being the fastest-growing region in the globe in 2023, continuing a pattern that is anticipated to go well into the next ten years.

Product Segmentation

By Product: The majority of share is held by Concrete Admixture which accounts for about 35%. Over the forecast period, the market for concrete admixtures is anticipated to be driven by the rising residential construction activity in the Asia-Pacific region. Japan and South Korea are the two main Asian-Pacific nations that control the market for concrete admixtures.

By End User: The Asia Pacific Construction Chemical market by end user is divided into Residential, Industrial, Commercial, Infrastructural, and Others. Market in Asia is dominated by the residential sector. Asia region, which includes China and India, two of the world's most populated countries, has a high need for residential space. The residential market, which drives real estate growth in India, has seen unheard-of growth in all of the major real estate hotspots, including the important Delhi NCR cities of Gurugram and Noida. The demand for this market category increased by 34% in 2022, the largest increase in the previous nine years. Residential demand's rising trend persisted in Q1 2023 as well.

By Geography: The Asia Pacific Construction Chemical market by geography is divided into China, India, Japan, Australia, South Korea and Rest of APAC. In the Construction chemical market, China dominates the Asia-Pacific market. Due to increased investments and construction activity in the nation, the demand for construction chemicals is anticipated to increase over the course of the projected period.

• Performance of China: China’s construction market size was USD 7,363 Million in 2022 and grew at a CAGR of 2.1% between 2018-2022, supported by investment in infrastructure projects as part of the 14th Five-Year Plan (FYP) (2021–2025). In March 2023, Two-thirds of China’s regions announced more than USD 1.8 trillion in spending on major infrastructure investments which would function as a driving force for the construction chemical industry.
• Performance of India: The market for construction chemicals in India experienced a negative growth rate of 12% in 2020, falling from USD 2,381.0 million in 2019 to USD 2,092.0 Million in 2020. Considering the virus outbreak, the market expanded at a CAGR of 3.8% between 2018 and 2022.
• Performance of Australia: The Australia Construction Chemical Industry, valued at USD 596 million in 2020, and experienced a decline of -3.8% primarily attributed to the overall decrease in construction activity resulting from the impact of Covid-19. However, in 2021, the Australian building and construction market displayed signs of recovery. With the surge in commercial, residential, and infrastructure activities, the demand for construction chemical products is expected to remain at its current level.
• Performance of Japan: Japan is the third-largest economy in the world, and because of its high per capita income, many in the construction chemicals sector view it as a profitable place to invest. Over the period from 2018 to 2022, the market for construction chemicals in Japan experienced a CAGR of 2%. By the end of 2022, the market was worth USD 2,113 million. Reconstruction following the Great East Japan Earthquake and the Tokyo Olympics have both contributed to the construction industry's overall rising trend over the past decade.

Future Outlook

In 2024 and beyond, it is anticipated that changes in government spending and infrastructure projects will be essential in reviving the Asia Pacific construction sector. Residential construction in China is expected to continue to be vital. The expansion of construction operations in Asia and the Pacific will be fueled by the region's ongoing industrialization, urbanization, population growth, middle-class income growth, and infrastructure expansion. The need for the construction of higher-quality residential buildings will expand along with individual disposable income, which will boost the market demand for construction chemicals.

More than two-thirds of people will live in urban areas in East Asia by 2030, compared to 42% in South Asia and 55.8% in Southeast Asia.

It is important for industry participants to stay updated with the latest market trends, regulations, and innovations to capitalize on the opportunities presented by the Asia Pacific construction chemical market.

Makreo Research report titled "Asia-Pacific Construction Chemical Market: Analysis, Trends, and Forecast (2018-2028) - Segmentation by Geography, Product, and End User" focuses on the specific sector of construction chemicals in the Asia-Pacific region. The report offers a comprehensive examination of the historical and current industry trends, assessing the market based on product types, end-users, and geographical regions. The industry analysis of the Asia-Pacific market includes China, India, Japan, and Australia. The report effectively combines qualitative and quantitative analyses, providing a well-balanced mix of macroeconomic and microeconomic analysis. Moreover, the report takes into consideration changes in macroeconomic variables while carefully evaluating the future prospects of the market.

The report examines the construction chemical in terms of market revenue and further breakdown into market segmentation:

• By Region (China, India, Japan, and Australia)
• By Product Segmentation
• Concrete Admixtures, Asphalts Additives
• Waterproofing Chemicals
• Adhesives & Sealants
• and Others
• By End User
• Residential
• Commercial
• Infrastructural
• Industrial and Others