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.
Request InsightsPurchasing 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
IN THE NEWSSika 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.
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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 |
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.
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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.
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.
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.
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.
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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.
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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FREQUENTLY ASKED QUESTIONS
The major factors driving the growth of the market are growing urban population, rise in number of residential projects, rising population, and others.
The market is anticipated to attain a CAGR of ~10% over the forecast period, i.e., 2023 – 2033.
Affects health, rise in market volatility, and strict government regulations are some of the major factors expected to hinder the growth of the market.
The market in Asia Pacific is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
The major players in the market are GCP Applied Technologies Inc., SIKA AG, The DOW Chemical Company, RPM International Inc., and more.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by type, application, and by region.
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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