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CHEMICALS AND ADVANCED MATERIALS

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

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Inflation And Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022.

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Purchasing power in the couPurchasing power in the country is expected to fell nearly by 2.5%. On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.                                                         Request Insights

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IN THE NEWS

  •  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.

Global Construction Chemicals Market Highlights Over 2023 - 2033

Base Year

2022

Forecast Year

2023-2033

CAGR

~7%

Base Year Market Size (2022)

~USD 55 Billion

Forecast Year Market Size (2033)

~USD 100 Billion

 

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 growth of the market can be attributed to growing construction activities. For instance, it is anticipated that 3,500 new structures would be added each day by construction workers by the year 2050.

construction chemical market

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Construction chemicals are known for adding more strength and to make the infrastructure corrosion free. Further there has been growing investment made in construction industry which is estimated to boost the market growth. A bill to create the National Bank for Financing Infrastructure and Development (NaBFID), a development finance organisation with a budget of about USD 3 billion, was approved by the Indian Parliament in March 2021.

Global Construction Chemicals Market: Growth Driver and Challenges

Growth Drivers

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 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 Remodelling

In a 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.

Growth in Chemical Industry

Small and medium-sized businesses in the domestic chemicals sector are anticipated to post more than 17% revenue growth in FY22, owing to improved domestic demand and higher realisation as a result of high chemical prices.

Challenges

  • Adverse Effect of Chemicals on Health
  • Rise in Market Volatility
  • Strict Government Regulations

Construction activities involve the use of chemicals that could produce dangerous VOCs, which can result in widespread health issues such skin irritation, asthma, nausea, dizziness, migraines, and eye irritation. Dangerous VOCs like formaldehyde, acetone, and butanol are released through solid wood, caulking sealant, floor wax, and many construction chemicals used in residential construction. Hence this factor is expected to hinder the growth of the market.

The construction chemicals market is segmented and analysed 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 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.

Major Macro-Economic Indicators Impacting the Market Growth

growth graph

The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.

Global Construction Chemicals Market Regional Synopsis

construction market share

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Regionally, the global construction chemicals market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in Asia Pacific is projected to hold the largest market share by the end of 2033, owing to the growing population in this region. Around 4.3 billion people live in the Asia and Pacific region, which also contains the world's two most populous nations, China and India. This region is home to 60% of the world's population.

The global construction chemicals market is further classified on the basis of region as follows:

North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook.

Market Segmentation

Our in-depth analysis of the global construction chemicals market includes the following segments:

             By Type

  • Admixtures
  • Flooring
  • Waterproofing
  • Repair & Rehabilitation

             By Application

  • Residential
  • Non-Residential

Top Featured Companies Dominating the Global Construction Chemicals Market

  • GCP Applied Technologies Inc.
    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis
  • SIKA AG
  • The DOW Chemical Company
  • RPM International Inc.
  • Ashland Inc.
  • MAPEI S.p.A
  • Akzo Nobel NV
  • Arkema
  • Fosroc, Inc.
  • Pidilite Industries

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