Construction Chemicals Market Forecasts to 2028 – Global Analysis By Product (Waterproofing Chemicals, Protective Coatings, Concrete Admixture and Other Products), By End User (Residential, Commercial & Industrial and Infrastructure) and Geography

Construction Chemicals Market Forecasts to 2028 – Global Analysis By Product (Waterproofing Chemicals, Protective Coatings, Concrete Admixture and Other Products), By End User (Residential, Commercial & Industrial and Infrastructure) and Geography

According to Stratistics MRC, the Global Construction Chemicals Market is accounted for $59.08 billion in 2022 and is expected to reach $97.46 billion by 2028 growing at a CAGR of 8.7% during the forecast period. Construction chemicals are specialised products that are essential for energy conservation, sustainable infrastructure, and building durability. They also provide additional protection against environmental hazards. In the global market for construction chemicals, the infrastructure sector is the most appealing. Due to the rapid urbanisation and population growth that fuels the demand for environmentally friendly products and sustainable infrastructure, it would be the first choice for new entrants. Similar to how concrete admixtures reduce the amount of cement and water typically needed during construction, chemical products work in the same way.

According to the latest findings by the World Bank, the construction industry accounted for 25.396% of the world’s total Gross Domestic Product (GDP). The construction industry is going to observe progress as the sector will be play a key role in the sustainable development goals (SDGs) documented by the United Nations. This is creating a lot of opportunities in the associated industries that are driven by the construction industry growth.

Market Dynamics:

Driver:

Increase in new construction activities in developing countries

Construction chemicals market growth is anticipated to be primarily driven by expanding new construction and repair & rehabilitation sectors in developing economies. Growth in the industry will be fueled by the high demand for residential and non-residential buildings in China, India, and South Korea as a result of rapid population growth. This demand has also led to an increase in cement consumption, which has led to a high demand for various construction chemicals like adhesives and sealants, concrete admixtures, and cement additives. It is anticipated that the introduction of better product offerings for enhancing performances will propel the growth of the global market.

Restraint:

High cost of construction chemicals

According to estimates, factors such as the unpredictable cost of energy and raw materials as well as the changing state of the economy will hurt the market for construction chemicals. As a result, this factor would slow the market's rate of growth for building chemicals. Moreover, the uncertainty surrounding a potential change in governmental rules and regulations is also anticipated to hinder market expansion, which will increase the time allocated for project completion.

Opportunity:

Growing urbanization trend in the construction industry

Due to increased migration to cities that are urbanising quickly, many emerging markets are doing so. An increase in per capita disposable income and a higher standard of living will encourage market demand as a whole. To meet the rising demand brought on by urbanisation, new residential and non-residential structures will be built. In addition to residential buildings, there are also structures like movie theatres, shopping malls, hospitals, and restaurants. This will accelerate the market's growth.

Threat:

Governmental restrictions on the construction industry's VOC emissions

Construction activities involve the use of chemicals that could produce harmful VOCs, which can result in widespread health issues like skin irritation, asthma, nausea, dizziness, headaches, and eye irritation. Dangerous VOCs like formaldehyde, acetone, and butanol are released through solid wood, caulking sealant, floor wax, and many construction chemicals used in residential construction. Government regulations prohibiting excessive use of construction chemicals because of VOC emissions serve as a barrier to the market's expansion.

Covid-19 Impact

The market for construction chemicals suffered as a result of the coronavirus outbreak. The market suffered a significant financial setback as a result of the severe disruptions in various manufacturing and construction operations brought on by the various precautionary lockdowns imposed by governments to stop the spread of disease. All over the world, especially in major construction hotspots like China, India, the United States, and European nations, construction work ceased. For instance, it is anticipated that the construction industry will contract by about 3% in 2020 as a result of the coronavirus outbreak and slower economic growth in South Korea. The market might experience a loss of investment plans and the cancellation of planned projects after the lockdown and the resumption of corporate activities, hurting building and construction throughout the region. Over the course of the forecast period, the aforementioned factors will have an impact on the market's revenue progression.

The Concrete Admixture segment is expected to be the largest during the forecast period

During the forecast period, the Concrete Admixture segment is anticipated to hold the largest share. Admixtures are added to concrete to enhance its properties. They offer advantages like a low cement water ratio, accelerated setting time, reduced segregation. The high usage of concrete admixtures, which is driving the growth of the construction chemicals market, is a result of the expanding construction industries in China, India, the United Kingdom, and Germany. Additionally, due to the enormous amount of infrastructure projects being undertaken, the Asia-Pacific region has the highest consumption rate for additives. Such factors are driving the segment growth.

The Commercial & Industrial segment is expected to have the highest CAGR during the forecast period

Due to significant public and private investments in commercial high-rise buildings, recreational, institutional, and governmental facilities, public works projects, retail outlets, and business office facilities, the commercial and industrial segment is anticipated to exhibit the highest CAGR during the projection period. The commercial and industrial segment consists of high-rise office buildings, public works projects, retail stores, and government, institutional, and recreational facilities. The demand for the use of construction chemicals to extend the durability of building structures and protect against chemical attacks has been driven by the rising construction of office buildings, hotels, and retail stores.

Region with largest share:

Asia Pacific dominated the market with a share of 45% and is estimated to hold largest share during the forecast period. In developing Asian economies like China, Japan, and India, the market for construction chemicals is booming. In order to meet the evolving entertainment needs of millennials, the region is seeing an increase in the construction of shopping malls, commercial complexes, and multiplexes. Infrastructure projects like smart cities implemented in the region also contribute to the market's growth. Construction chemicals are in constant demand as a result of this. Moreover, governments in nations like India are also introducing a number of affordable housing programmes, which spur the growth. The development of the construction chemical market in this region is further supported by growing consumer awareness of the advantages of products.

Region with highest CAGR:

Due the forecast period, North America is anticipated to witness highest CAGR for Construction Chemicals market over the forecast period. Growing construction activity in the U.S. and Canada characterises the market in this area. Furthermore, growth of the market in the region will be greatly aided by a number of government initiatives to promote infrastructure development along with the expanding residential sector.

Key players in the market

Some of the key players profiled in the Construction Chemicals Market include BASF SE, Fosroc, Inc., SWC Brother Company Limited, Arkema SA, Pidilite Industries, Covestro AG, SIKA AG, The 3M Company, Wacker Chemie AG, Huntsman Corporation, Guangzhou Jointas Chemical Co. Ltd., RPM International Inc., Ashland Inc., Chryso S.A.S., Mapei, Akzo Nobel NV, ACC Limited, Henkel AG & Co. KGaA, HB Fuller Company and Lanxess AG.

Key Developments:

In February 2022, Sika established a new manufacturing facility in Tanzania, East Africa, and is already producing mortars as well as concrete admixtures locally. This investment will help the company in backward integration.

In June 2020, Sika AG acquired Modern Waterproofing Group, a leading manufacturer of roofing and waterproofing systems in Egypt. The new boost growth for Sika in the Egyptian construction market.

Products Covered:
• Waterproofing Chemicals
• Protective Coatings
• Concrete Admixture
• Cement Grinding Aids
• Grout and Anchor
• Adhesives and Sealants
• Industrial Flooring
• Repair & Rehabilitation
• Asphalt Additives

End Users Covered:
• Residential
• Commercial & Industrial
• Infrastructure

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements