Construction Chemicals Market Overview
The global construction chemicals market was valued at $55,111.6 million in 2017 and is projected to reach $80,025.4 million by 2023, witnessing a CAGR of 6.5% during the forecast period. Rapid urbanization and industrialization and growing awareness of green buildings are the major factors driving the growth of the market.
GLOBAL CONSTRUCTION CHEMICALS MARKET, BY TYPE, KILO TONS (2013-2023)
Construction chemicals are chemical formulations used with concrete, cement, and other construction materials to hold the construction material together. They are used by the construction and civil repair industries.
Based on type, the construction chemicals market is categorized into concrete admixtures, adhesives, sealants, protective coatings, asphalt modifiers, and others. Others include flooring chemicals and flame retardants. Among all types, concrete admixtures recorded the highest volume sales in the market, contributing more than 40.0% in 2017. The largest share of the type is attributable to its superior properties over other types, in reducing the construction cost by modifying the characteristics of the hardened concrete. For instance, the addition of admixtures to concrete reduces the requirement of water by 5-10%. Also, these admixtures enhance the quality of the concrete and enable smooth construction operations.
Globally, Asia-Pacific (APAC) was the largest construction chemicals market, accounting for more than 35.0% sales in 2017. The region has the largest market owing to the massive growth in construction activities in countries such as India, China, and Japan. Additionally, various incentives by the governments of these countries to promote the infrastructural sector, coupled with the fast-growing residential sector (owing to the rising middleclass population), have been driving the growth of the APAC market over the years.
Construction Chemicals Market Dynamics
The major trend witnessed in the construction chemicals market is the increasing consumption of construction chemicals in developing economies. The major drivers identified in the market are growing industrialization and urbanization and surging awareness about green buildings.
The increasing consumption of construction materials in developing countries is the major trend witnessed in the construction chemicals market. This can be majorly attributed to the increasing population, which is fueling the need of infrastructure development worldwide. According to a United Nations (UN) report, the world population is expected to reach 8.5 billion by 2030. Additionally, due to the rapid shift towards urbanization in developing countries, the use of these chemicals is increasing to provide structural integrity to the structures. Also, they are used to increase the durability of the buildings.
The urban population is increasing at a fast pace as people are increasingly migrating from rural to urban areas. This is especially true for developing countries, where people are shifting to urban areas in search of better opportunities and living standards. Urbanization brings enormous economic, social, and environmental changes. Thus, these countries will most likely face many challenges in meeting the requirements of their growing urban populations such as housing, transportation, infrastructure, energy, and others.
The major transformation caused by urbanization can be seen in emerging nations, particularly BRICS (Brazil, Russia, India, China, and South Africa). These countries are the fastest growing economies and are seeing construction of new factories/buildings and advancement in technologies, propelling the demand of construction materials, and resulting in the construction chemicals market growth.
The green building materials has an emission reduction potential, due to which their demand is growing, in turn driving the construction chemicals market. These chemicals improve the overall durability of buildings, along with providing protection against environmental hazards. Apart from adding strength to buildings, these chemicals bring down the volume of water and cement used in the construction process, which is also a major factor driving the demand of these chemicals. Along with that, awareness for energy conservation has also been increasing worldwide, thereby driving the market growth.
The construction industry in developed economies is moving towards saturation, as these countries are repairing old infrastructures rather than building new structures/buildings. Along with that, the limited technological advancements in construction materials is limiting the growth of the market in developed countries. In North America and Europe, most of the countries are rehabilitating the old infrastructures, except Germany. Hence, due to less scope of development, the construction chemicals market is expected to get hampered in the coming years in these economies.
Construction Chemicals Market Competitive Landscape
Some of the major players operating in the global construction chemicals market are Ashland Global Holdings Inc., Fosroc International Ltd., BASF SE, Arkema Group, Sika AG, W. R. Grace & Co., Mapei S.p.A, Pidilite Industries Limited, SOPREMA Group, Asia Mortar, Dayton Superior Corporation, Dahsin Waterproofing Co. Ltd., Bostik SA, Saint-Gobain S.A., SKK (S) Pte. Ltd., DowDuPont Inc., and H.B. Fuller Company.