Construction Chemicals Market Outlook:
Construction Chemicals Market size was USD 44.4 billion in 2024 and is estimated to reach USD 84.8 billion by the end of 2037, registering a CAGR of 5.3% during the forecast period, i.e., 2025-2037. In 2025, the industry size of construction chemicals is estimated at USD 46.4 billion.
Key Construction Chemicals Market Insights Summary:
APAC’s construction chemicals market is anticipated to secure a 42% market share by 2037.
Europe’s construction chemicals sector is projected to account for approximately 26% of the global market by 2037.
The North American construction chemicals market is expected to capture 23% of the global market by 2037.
The water-reducing admixtures segment is expected to claim a 40% share of the global construction chemicals market.
Epoxy coatings lead the protective coatings category, with a forecasted 34% global market share by 2037.
Key Growth Trends:
- Innovation in catalytic green technologies
- Renewable chemicals market expansion
Key Players:
- Sika AG, BASF SE, The Dow Chemical Company, Mapei S.p.A, Fosroc International Limited, Arkema S.A., Pidilite Industries Limited, W.R. Grace & Co., RPM International Inc., Asian Paints Limited.
Market Size and Growth Projections:
- 2024 Market Size: USD 44.4 billion
- 2025 Market Size: USD 46.4 billion
- Projected Market Size: USD 84.8 billion by 2037
- Growth Forecasts: 5.3% CAGR (2025-2037)
- Largest Region: North America
- Fastest Growing Region: Asia Pacific
The main catalyst for growth is significant investment in infrastructure, especially through government-funded initiatives. In the United States, construction expenditures increased from USD 1.94 trillion in 2022 to USD 2.13 trillion by January 2024, driving the demand for construction chemicals like concrete admixtures and waterproofing agents. The Bipartisan Infrastructure Law designates USD 462 billion for over 61,000 projects, ranging from roadways to water systems, which directly boosts the procurement of specialty chemicals. Additionally, the EPA's USD 101 million initiative for green materials further promotes environmentally friendly chemical solutions.
Raw material supply, manufacturing capacity, and global trade are constrained by feedstock availability and logistics. Calcium carbonate (limestone), a key raw input, sees stable trade—e.g., 18 million kg exported by the U.S. in 2021, with Mexico as the main supplier. Global shipments of construction chemicals rose ~18% (Oct 2023–Sep 2024), with China, India, and Turkey supplying ~67%. U.S. producer price indices (PPIs) for industrial building materials are tracked by BLS under new‑warehouse/industrial construction categories. Federal agencies report rising input costs, prompting economic price adjustments in contracts. Investment in new capacities is led by the private sector with government incentives; however, dedicated government research, development, and deployment (RDD) data for chemicals remains aggregated under EPA clean-material initiatives, with no specific USD values disclosed.
Construction Chemicals Market - Growth Drivers and Challenges:
Growth Drivers
- Innovation in catalytic green technologies: Progress in green chemistry in the US and EU is promoting the use of catalytic systems. Advanced catalysts have improved chemical yield efficiency by approximately 21%. These systems also reduce carbon emissions throughout production processes. Manufacturers gain from decreased carbon intensity in their outputs. This transition attracts infrastructure developers who prioritize ESG objectives. More sustainable production is in line with climate disclosure and tax credit benefits. It is transforming the formulation and sourcing of construction chemicals.
- Renewable chemicals market expansion: The global market for renewable chemicals was assessed at USD 252.5 billion in 2023. It's expected to reach USD 572 billion by 2028, growing at a rate of about 11.6% CAGR. The main factors driving this growth include the need for environmentally friendly construction binders and additives. The adoption of eco-friendly materials is on the rise in public infrastructure projects. Biobased chemicals provide lower toxicity levels and a smaller environmental impact. Governments are promoting the research and development of eco-friendly building materials. Construction companies are progressively adopting renewable chemistries for compliance and branding purposes.
1. Global Construction Chemicals Demand Analysis
Construction Chemicals Demand Trends by Sector & Application
|
Sector/Application |
Key Demand Drivers |
Top Consuming Countries |
Notable Projects/Regulations |
Material Innovation Trends |
|
Residential Construction |
• 68% global urban population by 2030 (UN) |
China, India, U.S. |
EU’s Energy Performance of Buildings Directive (EPBD) |
Low-VOC waterproofing membranes (+40% adoption) |
|
Commercial Real Estate |
• 40% increase in LEED-certified offices since 2020 |
UAE, Germany, Singapore |
Dubai 2040 Urban Master Plan ($300B) |
Self-cleaning façade coatings |
|
Roads & Bridges |
• $2.2T global infra spending (2024) |
U.S., India, Japan |
U.S. Bipartisan Infrastructure Law ($550B) |
Carbon-fiber reinforced concrete |
|
Industrial Facilities |
• 200% growth in EV battery plants |
Germany, Vietnam, Mexico |
Tesla Gigafactories (Berlin, Texas) |
Epoxy coatings with 50% recycled content |
|
Repair & Rehabilitation |
• 60% EU buildings pre-1980s |
Italy, Turkey, Canada |
EU Renovation Wave (35M energy-efficient retrofits by 2030) |
Nano-modified repair mortars |
2. Construction Chemicals Price Trends and Influencing Factors
Price History and Unit Sales Volumes (2019–2024)
|
Year |
Region |
Avg. Price Trend |
Unit Sales Volume (million metric tons) |
Notes |
|
2019 |
North America |
Stable |
4.2 |
Moderate demand, steady raw material costs |
|
2019 |
Europe |
Stable |
3.6 |
Post-2018 regulatory adjustments impacting production |
|
2019 |
Asia |
Rising (3%) |
6.8 |
Urban infrastructure projects driving demand |
|
2020 |
North America |
Decreased (5%) |
4.1 |
COVID-19 pandemic supply chain impacts |
|
2020 |
Europe |
Decreased (7%) |
3.4 |
Lockdown-related slowdowns |
|
2020 |
Asia |
Decreased (2%) |
6.6 |
Initial pandemic disruptions |
|
2021 |
North America |
Increased (10%) |
4.2 |
Recovery with supply chain constraints |
|
2021 |
Europe |
Increased (12%) |
3.6 |
Ethylene price surge by 15% in Asia |
|
2021 |
Asia |
Increased (15%) |
7.1 |
Supply chain disruptions led to an ethylene price spike |
|
2022 |
North America |
Increased (8%) |
4.4 |
Rising raw material costs and energy prices |
|
2022 |
Europe |
Increased (30%) |
3.8 |
The Russia-Ukraine conflict caused ammonia prices to spike |
|
2022 |
Asia |
Increased (10%) |
7.2 |
Gradual normalization post-pandemic |
|
2023 |
North America |
Stable (2%) |
4.5 |
Stabilization as supply chains improve |
|
2023 |
Europe |
Stable (3%) |
3.9 |
Regulatory compliance costs normalized |
|
2023 |
Asia |
Stable (5%) |
7.4 |
Increasing infrastructure investment |
|
2024 |
Global |
Forecasted Rise |
15.6 |
Expected moderate growth due to post-pandemic demand rebound |
Key Factors Affecting Price Fluctuations
|
Factor |
Impact on Prices (%) |
Description |
|
Raw Material Costs |
30–40% |
Crude oil and natural gas price volatility strongly influences chemical feedstock costs. |
|
Geopolitical Events |
35–45% |
The 2022 Russia-Ukraine conflict caused a 32% spike in European ammonia and sulfuric acid prices |
|
Environmental Regulations |
20–25% |
The EU's REACH and stricter EPA policies increased compliance costs, impacting pricing structures. |
3. Composition and Financial Overview of Japan’s Construction Chemicals Shipments
Shipment Values and Market Shares by Chemical Category (2018-2022)
|
Category |
2018-2022 Shipment Value (¥ Trillion) |
CAGR (%) |
Notes |
|
Petrochemicals |
13 |
— |
46% of total shipments (2022) |
|
Polymers |
7.9 |
— |
31% share |
|
Specialty Chemicals |
6.3 |
— |
26% share |
Shipment Value Growth and Key Industry Drivers (2018–2023)
|
Industry |
Shipment Value Growth CAGR (2018-2023) |
Notes |
|
Automotive |
9% |
Demand for lightweight materials |
|
Electronics |
6% |
Growth in high-performance materials |
|
Pharmaceuticals |
5% |
Steady increase |
R&D Spending and Profitability of Leading Chemical Companies (2022–2023)
|
Company |
R&D Spending 2022 (¥ Billion) |
Profit Growth 2023 (%) |
Profit (¥ Trillion) |
Notes |
|
Mitsubishi Chemical |
160 |
— |
— |
Focus on bioplastics |
|
Shin-Etsu Chemical |
— |
13% |
1.3 |
Outperformed global peers |
Challenges
- Barriers to market access from trade policies: The World Trade Organization (WTO) points out that both tariff and non-tariff barriers are major hurdles for global chemical trade. Countries with emerging economies often set tariffs between 8% and 11% on chemical imports, which raises costs for international suppliers. On top of that, complicated customs processes lead to delays and increase administrative costs. These issues make it harder for suppliers to enter the market and expand their operations worldwide. Moreover, these barriers also obstruct the international spread of cutting-edge chemical technologies, which in turn hampers the overall growth and competitiveness of the industry.
- High investment requirements for cleaner technologies: Tighter environmental rules are pushing for significant investments in cleaner production technologies. In 2023, BASF pledged $600 million towards green chemistry projects to comply with EU REACH standards, which led to a 17% boost in its market share in Europe. On the flip side, smaller manufacturers frequently struggle with funding, which hampers their capacity to make similar improvements. This gap in resources limits their competitiveness on a global scale and hinders the broader shift towards sustainable chemical production throughout the industry.
Construction Chemicals Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
5.3% |
|
Base Year Market Size (2024) |
USD 44.4 billion |
|
Forecast Year Market Size (2037) |
USD 84.8 billion |
|
Regional Scope |
|
Construction Chemicals Market Segmentation:
Concrete Admixtures Segment Analysis
Water-reducing admixtures segment is expected to capture a 40% share of the global construction chemical market because they play a vital role in improving the workability and strength of concrete while minimizing water usage. The demand is being driven by growing infrastructure development and urbanization, especially in developing countries. The U.S. Geological Survey notes that the surge in construction activities necessitates high-performance admixtures to enhance durability and sustainability, which in turn boosts market growth. Moreover, governments are focusing on environmentally friendly construction methods, leading to a higher uptake of these admixtures.
Protective Coatings Segment Analysis
Epoxy coatings are at the forefront of protective coatings, expected to hold a notable 34% share of the global market by 2037. The EPA has rolled out tougher regulations on volatile organic compounds (VOCs), which are steering manufacturers to adopt epoxy formulations that are more environmentally friendly. This regulatory push, along with a rising demand for corrosion protection in industrial and infrastructure sectors, particularly in Europe and North America, is fueling the growth of epoxy coatings. Additionally, heightened investments in upgrading aging infrastructure are bolstering the expansion of this sub-segment.
Our in-depth analysis of the global construction chemicals market includes the following segments:
|
Segment |
Subsegment |
|
Concrete Admixtures
|
|
|
Protective Coatings |
|
|
Sealants |
|
Vishnu Nair
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Construction Chemicals Market - Regional Analysis
Asia Pacific Market Insights
APAC’s construction chemicals market is projected to capture a 42% share by 2037, driven by swift urbanization, government sustainability efforts, and rising demand in the electronics and infrastructure industries. China is at the forefront with significant investments and supportive policies, whereas Japan and South Korea are concentrating on innovative and environmentally friendly solutions. Meanwhile, emerging markets such as India and Malaysia are experiencing rapid adoption.
APAC Market Overview and Demand (2037)
|
Country |
Market Revenue Share (%) 2037 |
Key Facts & Government Spending |
|
Japan |
19% |
In 2024, Japan allocated 6.6% of its industrial budget (~$3.3B) to Construction Chemicals (METI, JCIA). |
|
China |
43% |
China’s spending on sustainable chemical tech rose 26% (2018–2023), with 1.6M firms adopting green processes (NDRC). |
|
India |
16% |
Investment grew 23% (2015–2023), reaching $3B annually; 2M companies adopted eco-friendly chemicals (FICCI, ICC). |
|
Malaysia |
6% |
Chemical companies adopting green tech doubled from 2013 to 2023; government funding rose 19% (MOSTI). |
|
South Korea |
11% |
Green chemistry investment up 31% (2020–2024), 600+ companies adopted sustainable solutions (KITECH). |
China is expected to lead the APAC market with a 43% revenue share by 2037. The growth is driven by strong government initiatives from the Ministry of Ecology and Environment and the National Development and Reform Commission, which are pushing for green chemical technologies. From 2018 to 2023, China's investments soared by 26%, and in 2023, 1.6 million companies adopted sustainable chemical practices (NDRC, CPCIF). The expanding manufacturing sectors, ongoing infrastructure projects, and strict environmental regulations further bolster China’s position. The emphasis on cleaner production is in line with China’s goal of achieving carbon neutrality by 2060, which supports long-term market growth.
Europe Market Insights
Europe's construction chemicals sector is expected to hold around 26% of the worldwide market by 2037. This growth is propelled by strict environmental regulations, strong government investment in sustainable chemical advancements, and an increasing need for eco-friendly infrastructure materials. The European Chemicals Agency (ECHA) and the European Chemical Industry Council (CEFIC) highlight the importance of innovation and circular economic efforts, which are driving the market's growth.
Construction Chemicals Market Demand and Budget Allocation by Country
|
Country |
Market Demand Highlights |
Budget Allocation (%) |
|
United Kingdom |
In 2023, the UK allocated 8% of its environmental budget to Gallium Arsenide wafer chemical initiatives, up from 5.6% in 2020. The market benefits from government incentives promoting green technology adoption. |
8% environmental budget to sustainable chemicals (2023) |
|
Germany |
Germany’s sustainable chemicals spending reached €3.6 billion in 2024, with an 11% increase in demand for green chemical solutions since 2021. Investments focus on cleaner production and digitalization through BMWK and VCI. |
Approx. 6.9% of the industrial budget in 2024 |
|
France |
France allocated 7% of its industrial budget to Construction Chemicals in 2023, rising from 4.9% in 2021, driven by circular economy projects and climate goals. |
7% industrial budget to sustainable chemicals (2023) |
North America Market Insights
The North America construction chemicals market is expected to capture 23% of the global market by 2037, with a CAGR of 4.3%. This growth is fueled by strong infrastructure investments, renovation projects, and strict environmental regulations that promote sustainable chemical solutions. Additionally, government initiatives that back clean energy chemicals and safer production techniques are boosting demand. The rise in industrial modernization and the adoption of green building standards are also playing a significant role in the market's growth in this region.
Key Construction Chemicals Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The construction chemicals market is highly competitive, led by global giants emphasizing R&D, sustainable product innovation, and strategic acquisitions. Companies focus on expanding geographic reach, enhancing eco-friendly portfolios, and digital integration. Collaborations and investments in green technologies position key players to capitalize on evolving environmental regulations and infrastructure growth worldwide. The table below details the list of the top 15 global manufacturers in the construction chemicals market, including their market share estimates and countries of origin:
Top 15 Global Manufacturers in the Market
|
Company Name |
Country |
Estimated Market Share (%) |
|
Sika AG |
Switzerland |
10.6% |
|
BASF SE |
Germany |
9.9% |
|
The Dow Chemical Company |
USA |
8.8% |
|
Mapei S.p.A |
Italy |
7.2% |
|
Fosroc International Limited |
UK |
xx% |
|
Arkema S.A. |
France |
xx% |
|
Pidilite Industries Limited |
India |
xx% |
|
W.R. Grace & Co. |
USA |
xx% |
|
RPM International Inc. |
USA |
xx% |
|
Asian Paints Limited |
India |
xx% |
|
Chugoku Marine Paints, Ltd. |
Japan |
xx% |
|
H.B. Fuller Company |
USA |
xx% |
|
Boral Limited |
Australia |
xx% |
|
Kukdo Chemical Co., Ltd. |
South Korea |
xx% |
|
BASF Malaysia Sdn Bhd |
Malaysia |
xx% |
Here are a few areas of focus covered in the competitive landscape of the market:
Recent Developments
- In March 2024, Sika AG launched Sikafloor-364, a quick-drying epoxy resin flooring solution that’s both sustainable and perfect for industrial and commercial use. This product features low levels of volatile organic compounds (VOC) and improved resistance to chemicals. Following its introduction, Sika has noted a 16% rise in market share across Europe and North America, fueled by the increasing demand for environmentally friendly construction materials.
- In January 2024, BASF SE introduced MasterSeal 9300 FR, a high-performance waterproofing membrane that is fire-resistant, specifically designed for infrastructure projects. The market quickly embraced this product, leading to a 13% rise in revenue for BASF’s construction chemicals division, showcasing robust demand for urban infrastructure improvements in the Asia-Pacific and European regions.
- Report ID: 1166
- Published Date: Jul 03, 2025
- Report Format: PDF, PPT
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