Construction Chemicals Market - Forecast(2023 - 2028)
Construction Chemicals Market Overview:
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).[1] 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, and one of those is the chemical industry, which is going to reap a lot of benefits due to the rapid industrialization and increase in real estate construction. A gamut of chemicals are utilized in the construction industry, which is creating a lucrative construction chemicals market, which observed an impressive valuation of $48,840m in 2018. Furthermore, considering the future prospects for application of chemicals in the construction industry, the demand for construction chemicals is poised to grow at a CAGR of 6.5% during the forecast period 2019-2025.
Owing to the rapid industrialization in countries such as India, Indonesia, and China, the construction chemicals market is booming in APAC. According to the International Trade Center (ITC), the trade value of prepared binders for foundry molds or cores and other construction chemicals was $6.2 billion in 2018, and the figure is attributable to China alone.[2] Similarly, India had experienced a significant demand influx for construction chemicals owing to the pharmaceutical expansion in the country for which a lot of investment has been made by the UN and the World Bank. In 2018, APAC held the greatest construction chemicals market share of 48%.
Construction Chemicals Market Outlook:
Construction chemicals is a term used for a gamut of chemicals that include concrete admixtures, asphalt modifiers, adhesives and sealants, protective coatings, and waterproofing chemicals. The construction industry also requires insulating compounds including polyurethane foam that has gained prominence in the sector. Similarly, the demand for other construction chemicals is poised to observe an increment.
The residential and commercial application segment of the construction chemicals market is poised to grow at a CAGR of 7.2% through 2025. This is attributable to the increasing construction of commercial buildings such as offices and malls and the population outgrowth that is leading to a demand influx in the real estate sector.
Construction Chemicals Market Growth Drivers:
· The Application of Paints & Coatings in Construction Raising Revenues –
The paints & coatings market was valued at $428.6 billion in 2018, and the market is poised to increment at a CAGR of 4.69% over the forecast period. A significant part of the revenue generated in the paints industry is attributable to the demand influx from the construction sector. The construction industry utilizes paints for decoration and protection purposes. Discernibly, the paints & coatings segment of the construction chemicals market has been contributing a lot to the revenue-generation which is expanding the global construction chemicals market size.
· The Dire Need for Infrastructure Development Driving the Construction Industry –
According to the UN, 937 million people in the world do not have access to electricity. Apart from that, there is a lot of scope for infrastructural development, which is generating a definite demand influx in the construction industry.[3] More infrastructure projects that include buildings as diverse as airports, power stations, and commercial complexes are in the pipeline. This foreseeable infrastructure development and rising urbanization in the future will lead to an augmented application of chemicals in the construction industry, which will drive the construction chemicals market.
· Repair & Rehabilitation Supporting the Construction Chemicals Market –
The increase in repair and rehabilitation activities for old infrastructure due to faulty design of the structure, improper execution, extreme weathering & adverse environmental condition, and high degree of chemical attacks will propel the construction chemicals market..
Construction Chemicals Market Trends –
· Green Chemistry Penetrating in the Construction Industry –
There is a perceptible penetration of green chemistry in a gamut of industries, and the construction industry is no different. The application of green chemicals is found to be relatively affordable and less time consuming as these chemicals do not require special curing time and also impart high dry film thickness (DFT) after coating. Organic primers, adhesive cements, varnishes, and paints are poised to gain traction in the construction chemicals market.
· Hydro-ceramics and Light Generating Cement Poised to Gain Traction –
Hydro-ceramics are found to reduce indoor temperature by as much as 6 degrees Celsius. The hydrogel present in these ceramics impart a cooling effect. The incorporation of innovative cooling systems in buildings is going to observe an increase. Dr. Jose Carlos from UMSHN of Morelia has created a light generating cement which will find a wide range of applications in the future.
Construction Chemicals Market Challenges –
The biggest challenge faced by the vendors in the construction chemicals market is the fact that these chemicals pose potential hazards on the environment, which is the reason the application of these chemicals is regulated by governments across the globe. However, the vendors are striving to provide ecofriendly construction chemicals in order to avoid the hurdles due to regulations. Moreover, the construction chemicals market is diverse and has a dynamic pricing environment. The requirement for construction chemicals varies according to the purpose of application or usage. However, the vendors specialize in a particular construction chemical, which provides solution to a specific problem. This creates a dynamic returns on investment that is highly dependent on the current demand because there is no consistency in demand for a particular chemical. The future will witness more construction, repair, and rehabilitation activities, which will keep generating revenue in the construction chemicals market.
Construction Chemicals Market Key Players Perspective –
The major players of the construction chemicals market are Ahlia Chemicals Co., Chemax Construction Chemicals Pvt.Ltd, Fosroc International, BASF SE, Hilti Corporation, Speciality Engineering Chemicals, Wacker Chemie AG, RPM International, Inc., Sika A.G., and Pidilite Industries.
Construction Chemicals Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the construction market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The construction chemicals market research report also analyses the application of construction chemicals in real estate and commercial buildings.
Construction Chemicals Market Report: Industry Coverage
The construction chemicals market report identified the current trends, opportunities, and challenges in the industry along with a detailed depiction of strategies by the existing market players.
The report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
- Middle East and Africa: Israel, South Africa, Saudi Arabia
Key Questions Addressed in the Construction Chemicals Market Report
Is the market demand for construction chemicals growing? How long will it continue to grow and at what rate?
Which type of construction chemicals presents the major growth opportunities?
Is there a possibility for change in the market structure over time?
Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
What are the short-term, long-term, and medium-term growth drivers for the market?
What are the short-term, medium-term, and long-term challenges for the market?
What are the short-term, medium-term, and long-term opportunities for the market
Who are the top players/companies of the market?
What are the recent innovations in the market?
How many patents have been filed by the leading players?
What are the types of patents filed by the leading players?
What is our Vision 2030 for the construction chemicals market?
A Few Focus Points Of This Research Are Given Below:
- Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies
- Provide an overview of the product portfolio, including product planning, development, and positioning
- Discuss the role of technology companies in partnerships
- Explore the regional sales activities
- Analyze the market size and giving the forecast for current and future global construction chemicals market during the forecast 2019–2025
- Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures
References -
[1] https://data.worldbank.org/indicator/nv.ind.totl.zs
[2] https://www.trademap.org/Country_SelProduct.aspx?nvpm=1%7c%7c%7c%7c%7c3824%7c%7c%7c4%7c1%7c1%7c1%7c1%7c%7c2%7c1%7c1
[3] http://in.one.un.org/page/sustainable-development-goals/sdg-9/