Published: April 2016
Report Code: CM10626
Category : Specialty Chemicals
Waterproofing Chemicals Market Overview
The global waterproofing chemicals market was valued at $3,652.5 million in 2015, and it is expected to grow at a CAGR of 6.6% during 2016-2022. The growth in the end-use market, favorable environmental regulation, and increasing compliance with international manufacturing standard are driving the growth of the waterproofing chemicals market. Asia-Pacific accounted for the largest share (39.2%) in the waterproofing chemicals market with an estimated $ 1,431.1 million value in 2015.
It refers to a specific set of chemicals products that are used to protect the structural integrity of buildings from water seepages. Water seepage in the building structure can shorten the life span, leading to cause electrical, metal and health hazards. Waterproofing chemicals increases the shelf life of concrete structure and increases the durability of infrastructure when applied to the exterior of a building. Appropriate uses of waterproofing chemicals can reduce the maintenance cost of buildings.
Among the various applications, the building structures segment is expected to witness the fastest growth in terms of volume at 6.6% CAGR during 2016 – 2022 in the waterproofing chemicals market. Among the various types of waterproofing chemicals, the polymer segment is anticipated to witness the highest growth at 7.6% CAGR during 2016 -2022.
Waterproofing Chemicals Market Dynamics
A significant growth in demand for waterproofing chemicals is anticipated due to the huge investments in the construction and infrastructure sectors, high growth in the end-use market and favorable environmental regulation. However, the global market is highly cost conscious. The entire value chain process is dependent on petroleum products, which works as a feedstock for waterproofing chemicals. The global oil and gas market is volatile in nature. The ups and downs in the oil market, affects the waterproofing chemicals market directly. The bitumen is the main raw material for the bitumen type waterproofing chemicals. Being the end product of the crude oil, its supply and prices are quite unstable in nature. The manufacturer has to keep continuous tab on the global crude oil market, to formulate strategies accordingly. For developing countries, such as India, cost structure reveals that chemical industry faces a number of drawbacks, when compared to developed countries. India has higher taxes, higher cost of finance and adverse import duty structure. Therefore, all the aforementioned factors are anticipated to hamper the growth of the market to some extent during the forecast period.
The major factors driving the demand of waterproofing chemicals include growth in the end-use market and favorable environmental regulation. Lack of government policies have been the matter of concern for the growth of the waterproofing chemicals sector. At global level, the governments are taking initiatives to fix the loopholes. The governments are focusing on the policy of “Zero Effect and Zero Defect” to establish their manufacturing and construction market, which is anticipated to contribute to the growth of the waterproofing chemicals market. The regulatory authorities are setting up stringent guideline sighting the increase in pollution level, and incentivizing energy efficient and green buildings. These norms are expected to drive the demand for suitable innovative and safe waterproofing chemicals. In developing countries, the governments are taking initiatives towards infrastructural and industrial development. The governments are focusing on providing basic infrastructure facilities to their citizens, such as concrete houses, access to proper roads and better irrigation network. Therefore, the new infrastructure projects are anticipated to fuel the demand for waterproofing chemicals during the forecast period.
In addition, the industry is gradually aiming on improving its obligation towards the environment, and responding to public concerns regarding the manufacturing and use of waterproofing chemicals. Several initiatives are taken at the global, industry, and organization level to control the environmental pollution.
The current trend witnessed in the waterproofing chemicals industry is increasing compliance with international manufacturing standard. In developing countries, such as India, Brazil and Indonesia, waterproofing industry is concentrating on embracing best industrial practices from across the globe and implementing consumer standard similar to international standards. This is anticipated to help the current waterproofing chemicals industry to penetrate deeper; thus increasing the demand for waterproofing chemicals. For instance, banning of onsite concrete mixing is aiming to reduce air pollution level, and in turn will generate demand of ready-mix concrete (RMC) admixtures. In areas where space is a constraint, high rise buildings are manufactured, which is increased demand of high performance construction chemicals and waterproofing chemicals.
The increasing infrastructural investment in emerging and underdeveloped economies is the opportunity witnessed in the waterproofing chemicals market. Waterproofing chemicals market has a good growth potential during the forecast period. The industry needs investments initiatives from leading market players, governments, regulatory bodies and industrial federations for growth. In developing countries, the government’s initiatives towards infrastructure development are among the major factors driving the growth of the water proofing chemicals market. The infrastructure industry is observing backing from The World Bank and The Asian Development Bank, and all these funded projects necessitate the use of waterproofing chemicals. Government and regulatory authorities are coming together to define set quality standards for the industry. This is anticipated to reduce the growth of low quality and cheap waterproofing chemicals, and it would incentivize the leading players to invest further for the development of quality products; therefore, creating ample growth opportunities for the market.
In emerging economies, such as China, India and Brazil, governments are creating awareness among contractors about the use of quality chemical products for durable structures. Although, the durability of material is not extensively considered in developing countries, there is shifting interest for quality and durability of waterproofing chemicals. Earlier, infrastructure sector mostly employed unskilled labors at ground level. However, waterproofing chemicals required basic technical expertise due to their sensitive nature and uses. Owing to this reason, the manufacturers and governments have initiated several skill development programs, to enhance the end use application of waterproofing chemicals.
Waterproofing Chemicals Market Competitive Landscape
Some of the major players operating in the waterproofing chemicals market include BASF SE, The Dow Chemical Company, Evonik Industries AG, Thermax Limited, Pidilite Industries Limited, Bostik Inc., Fosroc, Mitsubishi Chemical Holdings Corporation, Zeon Corporation, and Sika AG.