United States Construction Chemicals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

United States Construction Chemicals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The United States construction chemicals market was estimated at USD 10,140 million in 2020 and is expected to register a CAGR of around 6% during the forecast period.

The construction industry is one of the industries that are badly impacted by COVID-19. Because of a lack of funds, labor shortage, and lockdown regulations, many projects were halted in 2020. Due to a ban on inter-state travel, an exodus of migrant workers, also known as informal sector workers, wreaked havoc on the supply chain. This caused less consumption of construction materials and decreased demand and supply. Owing to all these factors, the construction chemicals market is hindered by the impact of COVID-19.

Key Highlights

• Over the medium term, rising demand from the housing sector and increase in renovation and repair activities are expected to drive the growth of the market studied.
• On the flipside, tightening immigration laws likely to hinder the market’s growth in the coming years.
• The waterproofing solutions segment dominated the market, by product type. Moreover, it is expected to witness the highest CAGR during the forecast period.

Key Market TrendsWaterproofing Solutions is Expected to Dominate the Market

• Waterproofing chemicals are used to avoid premature deterioration of buildings and other concrete-made infrastructural facilities to avoid leakages and seepages. These chemicals adhere very easily to all types of surfaces and allow trapped water (vapor) to escape, preventing blistering and adhesion failures. They are non-flammable and non-hazardous and do not produce toxic vapors when exposed to fire.
• Buildings may get exposed to water through various sources, affecting the substructure and superstructure. Rising water tables, leakages from underground drainage systems, and surrounding water bodies, which may enter the cracks that develop in the concrete over time, may damage the substructure. Weather conditions, like rain, moisture, and heat, may also damage the superstructure.
• Waterproofing chemicals are used in buildings, toilets, sunken portions of basements, water tanks, swimming pools, concrete and masonry wall repairs, terrace roofs, and for the protection of concrete and salt penetration. These chemicals are suitable for structural repairs, restoration, abrasion-resistant flooring, reducing shrinkage, water permeability, and increasing flexural and tensile strength.
• In recent years, the use of waterproofing chemicals increased, as the construction industry has grown on a sustainable basis. A sudden shift was witnessed from conventional rigid waterproofing technologies, predominantly consisting of a single material, such as bituminous coatings and felts and elastomeric waterproofing, where the coatings are a combination of several materials, to achieve major performance advantages in the long term.
• There are several types of waterproofing chemicals, including synthetic rubber and bitumen, among others.
• Synthetic rubber membranes are used as a waterproofing solution for various buildings. However, synthetic rubber emulsions are also used as construction chemicals when mixed with mortars, resulting in water-resistant properties and enhanced adhesion.
• Bitumen is a black, highly viscous, sticky liquid or semi-solid found in natural deposits. It is composed of highly condensed polycyclic aromatic hydrocarbons. Bitumen has a high viscosity, stiffness modulus, cohesion, adhesion, and durability. Due to these properties, bitumen coatings are used for waterproofing to prevent water seepage.
• All such factors are boosting the sales of construction chemicals in the country.

Residential Segment is Expected to Dominate the Market

• The total construction spending in the country reached USD 1,521.45 billion in January 2021, which increased by 1.7% compared to USD 1,496.45 billion in December 2020 and increased by 5.8% compared to USD 1,437.72 billion in January 2020. The total construction spending by June 2021 increased by 8.2% and reached USD 1552.2 billion compared to USD 1,435 billion in June 2020.
• According to the Federal National Mortgage Association (Fannie Mae), residential houses construction was estimated to jump 10% across 2020, with 1 million new homes expected to hit the market by the end of 2021. Even though the United States construction sector had been declining in 2020, the industry is expected to start recovery by 2021, thereby increasing the demand for construction chemicals during the forecast period​.​
• Moreover, residential construction increased by 21.1% compared to USD 596.73 billion spent in January 2020 and reached USD 722.38 billion in January 2021. Residential construction has been increasing significantly since it has been impacted by the pandemic. ​
• Furthermore, the same trend continued in 2021, with the residential spending reaching USD 772.35 billion in June 2021, which increased by 28.8% compared to USD 599.665 billion in June 2020.
• Additionally, in early 2020, Microsoft announced its plan to invest about USD 500 million in the Puget Sound region of the United States to foster the construction of affordable homes for low and middle-income households.
• Even though the US construction sector had been declining in 2020, the industry is expected to start recovery by 2021. ​Moreover, the total US home improvement spending was recorded around USD 457 billion in 2020.
• Furthermore, there are numerous luxurious skyscrapers under construction across the country, which are expected to drive the demand for construction chemicals over the forecast period.
• All the aforementioned factors, in turn, are expected to drive the market growth in the coming years.

Competitive Landscape

The construction chemicals market in the United States is partly consolidated, with the top 5 companies occupying a share of ~45%-47%. The major players in the market studied include MBCC Group, Sika AG, Dow, RPM International Inc., and Mapei SpA.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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