Construction Chemicals Market Analysis by Type (Admixtures, Flooring, Waterproofing, and Repair & Rehabilitation); and by Application (Residential, and Non-Residential) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
Buy Now Report ID: 1166 | Published Date: Feb 07, 2023
The global construction chemicals market is estimated to garner a revenue of ~USD 100 Billion by the end of 2033 by growing at a CAGR of ~7% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 55 Billion in the year 2022. The market's expansion can be ascribed to an increase in construction activity. For instance, it is predicted that by the year 2050, construction workers will set up 3,500 new structures daily.
Construction chemicals are renowned for increasing strength and preventing corrosion in the infrastructure. Additionally, the construction industry has seen an increase in investment, which is predicted to spur market expansion. For instance, the Indian Parliament approved a bill in March 2021 to establish the National Bank for Financing Infrastructure and Development (NaBFID), a development finance organization with a budget of roughly USD 3 billion. Furthermore, the increasing urbanization and the growing need for homes across the world are estimated to accelerate market growth over the ensuing years.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~7% |
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Base Year Market Size (2022) |
~ USD 55 Billion |
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Forecast Year Market Size (2033) |
~ USD 100 Billion |
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Regional Scope |
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Growth Drivers
Growth in the Chemical Industry – Key vendors worldwide have established production bases in the expanding chemical industries around the world, especially in developing countries owing to the easy accessibility of cheap raw materials and labor, as well as government subsidies and favorable environmental norms. This is expected to accelerate the market's growth over the course of the forecast period. For instance, owing to rising local demand and higher realization as a result of high chemical prices, small and medium-sized firms in the domestic chemicals sector have recorded revenue growth of more than 17% in FY22.
Growing Urban Population - 68% of the world's population is anticipated to live in cities by the year 2050, up from 55% in 2018. More building work is planned as a result of the expected increase in the number of people living in metropolitan regions. Consequently, the industry should increase faster than anticipated.
Rise in the Number of Residential Projects - Public residential construction investments in the US saw a considerable rise in value between 2002 and 2021. In 2021, the public sector invested about USD 10 billion in residential development projects.
Rising Population - In the next 30 years, the global population is expected to increase by 2 billion, from 7.7 billion presently to 9.7 billion in 2050, with a potential peak of 11 billion people around the year 2100.
Robust Growth in Remodeling - In research conducted in 2020, around 50% of participants said they had renovated their homes, and the median amount spent on renovations by a household rose to more than USD 13,000 in that year.
Adverse Effect of Chemicals on Health
Dangerous volatile organic compounds (VOCs) such as formaldehyde, acetone, and butanol are released through solid wood, caulking sealant, floor wax, and many construction chemicals used in residential construction. Moreover, construction activities involve the use of chemicals that could produce dangerous VOCs, which can result in widespread health issues including skin irritation, asthma, nausea, dizziness, migraines, and eye irritation. Hence this factor is expected to hinder the growth of the market.
Rise in Market Volatility
Strict Government Regulations
The construction chemicals market is segmented and analyzed for demand and supply by application into residential, and non-residential. Out of which the non-residential segment is anticipated to garner the largest revenue by the end of 2033, backed by growing non-residential activities. Demand for the construction of office buildings, hotels, retail stores, and entertainment facilities is growing. In 2020, the largest 6 cities in India saw a net absorption of about 30 Mn sqft.
The Asia Pacific construction chemicals market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The market's expansion can be attributed to the government's increasing infrastructure-related initiatives as well as the rising demand for residential and non-residential buildings. The region's growing urbanization is also expected to have a substantial positive impact on the infrastructure sector, which is expected to fuel regional market expansion. For instance, China's permanent residency urbanization rate was 64.72 percent in 2021 and the country wants to increase that rate to 65 percent by 2025. Additionally, the region's expanding textile industry and the presence of important market competitors are predicted to fuel market expansion.
Our in-depth analysis of the global construction chemicals market includes the following segments:
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By Type |
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By Application |
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GCP Applied Technologies Inc.
Sika AG and MBCC Group (former BASF Construction Chemicals) signed a binding contract. Regulations must approve the transaction before it may be completed. Sika's proposed acquisition of MBCC Group will be thoroughly investigated (Phase 2) by the UK Competition and Markets Authority (CMA).
The Dow Chemical Company announced a series of incremental methyl cellulose capacity investments to assist construction dry mix clients secure a consistent supply of essential additives for this booming market. These capacity additions show the company's dedication to the dry mix sector and are a part of a multi-phase investment plan for construction chemicals.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: The major factors driving the growth of the market are the growing urban population, rise in the number of residential projects, rising population, and others.
Ans: The market is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2023 – 2033.
Ans: Increasing side effects of construction chemicals on human health and the environment, rise in market volatility, and strict government regulations are some of the major factors expected to hinder the growth of the market.
Ans: The market in the region name is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are GCP Applied Technologies Inc., SIKA AG, The DOW Chemical Company, RPM International Inc., and more.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, application, and by region.
Ans: The non-residential segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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