Construction Chemicals Market By Product (Protective Coatings, Industrial Flooring, Waterproofing, Concrete Admixture, Surface Treatment, Adhesives & Sealants, and Others), End-user (Commercial, Industrial, and Residential), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2024–2031
Market Perspective
The global Construction Chemicals Market size was worth around USD 44.41 billion in 2023 and is anticipated to grow to around USD 66.76 billion by 2031 at a CAGR of around 5.42% between 2024 and 2031. Construction chemicals are additional additives that provide additional protection to buildings against natural disasters and harsh weather and a changing climate. These chemicals also improve aesthetic properties and add functional value to the structure's architecture, ensuring long-term durability and high performance.
In addition, the industry is heavily affected by several regulations owing to which large companies are focusing on R&D to develop new bio-based products. Although, fluctuations in raw material prices and supply are likely to hold back market development. The increase in the number of apartments and other buildings and construction in various parts of the world drives the demand for products during the forecast period. These construction chemicals are durable and eco-friendly, which increases the growth potential of the market.
The use of building chemicals is very economical because it reduces the use of cement and water necessary in construction. Supporting ecological and energy-saving products is a growing trend in the market. Regulatory changes towards green and energy-efficient buildings are increasing the demand for environmentally friendly construction chemicals.
In addition, governments around the world are significantly focusing on improving their healthcare infrastructure and building new healthcare facilities to accommodate the growing number of patients, which has created huge business opportunities in the market. With the constant change in lifestyles and the need for housing, the demand for construction chemicals is increasing. Thus, such factors support the growth of the global construction chemicals market during the forecast period.
Key Insights
- Based on the product, the concrete admixture segment held the largest market share
- By end-user, the residential segment is expected to dominate over the forecast period
- On the basis of region, Asia Pacific accounted largest market share
Growing Awareness about the Green Construction Augments the Market Growth Rate
The significant growth of the construction industry with the use of sustainable materials in various parts of the infrastructure creates a positive outlook for the market. In addition, the widespread adoption of ready mixed concrete (RMC) in various civil and non-civil structures such as roads, bridges, tunnels, and dams is driving the growth of the market. Concrete admixtures are widely used by construction companies to improve the properties of hardened concrete and provide better performance during mixing, transporting, placing, and curing.
The increase in spending power of forces along with the implementation of the government's favorable infrastructural development policy is expected to propel the market towards growth. Additionally, increasing emphasis by governments on green building standards and eco-friendly chemicals expand profitable opportunities for market players during the forecast period. In addition, strong investments in eco-binders and silicate binders by established market players are expected to boost the construction chemicals market growth in the future.
According to the US Green Building Council (USGBC), the construction industry account for 40 percent of global energy consumption in May 2021, and emissions from commercial buildings accelerated by 1.8 percent by 2030. This is one reason why many building owners are turning to LEED-certified buildings. LEED certification is a globally recognized symbol of sustainability and leadership and provides a framework for healthy, highly efficient, and cost-effective green buildings. In addition, various product innovations, such as the development of green cement made from sustainable materials, are contributing to the construction chemicals market share.
Regulations for VOC Emissions are Restraining the Market Growth
The construction chemical market has seen continuous innovation over the years, and vendors have focused on bringing construction products and coatings with functional benefits which aid the market. Although, many construction workers experience skin irritation, asthma, nausea, confusion, headaches, and eye irritation when exposed to VOCs from construction chemicals. Formaldehyde, acetone, and butanol are harmful VOCs that can leach from the acoustic ceiling tile. Water-based reactive formulations are recommended to support solvent-based formulations and meet VOC emission regulations. Moreover, the market vendors are focusing on launching sustainable products with efforts to produce environmentally friendly solution-based products which can propel the market growth.
Acceleration of New Construction and Repair & Rehabilitation Provides Lucrative Opportunities for the Market Growth
The expansion of new construction and repair and renovation industries is driving the growth of the construction chemicals market. The need for housing and office space is increasing due to rapid population growth in China, India, and South Korea, which is fuelling the market growth. As a result of this need and the increase in the cost of cement, there has been an increase in the need for various construction chemicals such as adhesives, concrete mixes, and cement additives. The introduction of a better product range boosts market expansion during the forecast period. Products include polymer-based mortars and grouts, specialty chemicals, that improve structural performance and durability by reducing corrosion of the structure.
The market is driven by the ever-increasing demand for public, commercial, and residential buildings and the technologically advanced construction industry. The demand for new construction such as dams, roads, bridges, and tunnels to improve the country's infrastructure also accelerates the demand for construction chemicals. As a result, the growth of repair and renovation construction is also contributing to the growth of the market.
Recent Development
In April 2022: Pidilite collaborated with GCP Applied Technologies to offer waterproof solutions under the Dr. Fixit brand for locations exposed to high-temperature fluctuations and groundwater. The company strengthens its strong product portfolio by offering specialized waterproofing solutions which are easy to install and offers strong protection against water, moisture, and gas.
In June 2021: JSW launched a green range of products which includes ready plaster Enduro Plast, integrated crystalline waterproofing agent Krysta Leakproof and floor hardener Duraflor. The company has set up a 0.3 million tonne manufacturing unit at Ballari in Karnataka to manufacture its construction chemicals.
In February 2021: Nippon Paint (India) Private Limited entered into a partnership agreement with CCPL (Choksey Chemicals Pvt. Ltd), to expand its product range beyond paints and coatings to include waterproofing, architectural, flooring, wood, thermal insulation, and tile coating products. This partnership is expected to increase product visibility, distribution, and sales in various markets. CCPL's strong product portfolio and technical know-how, together with Nippon Paint India's advanced paint solutions and distribution power, offer both brands the opportunity to explore new markets and add innovative products.
Segmentation Analysis
Based on product, the market is segmented into protective coatings, industrial flooring, waterproofing, concrete admixture, surface treatment, adhesives & sealants, and others. Concrete admixtures enhance the concrete by providing advantages such as a low cement-water ratio, a faster setting time, less segregation, and higher permeability.
Based end-user, the commercial, industrial, and residential. The residential segment is the most dominating segment owing to the increasing demand for homes and other residential structures in metropolitan areas, building chemicals are frequently employed in residential construction. Developers are constructing projects to meet the increased demand for villas, flats, penthouses, and bungalows in gated communities with enhanced architecture and facilities.
Asia Pacific is Dominating the Market Growth Owing to the Increased Infrastructure Development Efforts
Asia Pacific has been the largest regional market for construction chemicals due to the rapid expansion of the construction industry in recent years. The market growth is supported by new product development and a high preference for sustainable construction chemicals. Asia Pacific accounted for the majority share owing to the rapid growth of construction in the region and government incentives to support the infrastructure sector.
In addition, the housing sector was driven by the growing middle class of the region, which contributed to the growth of the region's market. With the increased demand for luxury apartments, expansion of construction projects, and the escalation of product development in the construction industry, especially in Asian countries such as India, China, and Southeast Asia, the region has seen significant growth. The growth in residential and commercial construction significantly boosts the construction chemicals market growth.
The proliferating use of construction chemicals is used to add value by improving productivity and performance, as well as better protection against environmental conditions, better durability, and protection of concrete against leakage. The demand for infrastructure projects in these countries is strong, which in turn drives the demand for construction chemicals in the Asia-Pacific region, thus fostering the regional market.
North America is the Fastest Growing Market due to Increased Government Funding coupled with Surge in Renovation Programs
The North America construction chemicals market has maintained a significant position driven by economic growth and significant market fundamentals for commercial real estate in the region. The population growth and proposed new construction projects which accelerate the expansion of the construction chemicals market in this region. The market growth is further expedited by the rising number of renovation programs with the surge in substantial funding further spurring the market growth.
The vast infrastructure network, from bridges and roads to freight trains and ports to power grids and increased spending on public institutions & infrastructure, excluding housing and residential buildings. Government spending on public infrastructure through tax incentives or financing mechanisms supports market growth across the region. Manufacturers across the region are extensively investing in R&D and product development for construction chemicals, which is likely to enhance market growth.
Competitive Landscape
- Arkema
- Ashland
- BASF SE
- DuPont
- JSW Cement
- M&I Materials Ltd
- Nippon Paint
- Pidilite Industries Ltd.
- RPM International Inc.
- Sika AG
The global construction chemicals market is segmented as follows:
By Product
- Protective Coatings
- Industrial Flooring
- Waterproofing
- Concrete Admixture
- Surface Treatment
- Adhesives & Sealants
- Others
By End-user
- Commercial
- Industrial
- Residential
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Reunion
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Construction Chemicals Market By Product
- February-2023
- 148
- Global
- chemicals-and-advanced-materials
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