Key Market Overview:
Construction Additives Market size was valued at USD 26.01 Billion in 2022, registering a CAGR growth of 8.5% during the forecast period (2023-2030), and the market is projected to be valued at USD 46.04 Billion by 2030.
Construction additives are specialty chemical products that are added to construction materials such as concrete, cement, mortar, and other building materials during their manufacturing or mixing processes. The primary objective of using construction additives is to enhance the properties and performance of these materials, such as increasing strength, durability, workability, resistance to water, chemicals, and weather, among others. Construction additives are used extensively in the construction industry to improve the quality and efficiency of construction projects. They are used in various construction applications, such as residential, commercial, and infrastructure projects.
Additionally, the market is expected to grow with the increasing world population and urbanization coupled with the rising awareness regarding the benefits of construction additives in commercial and residential areas. Moreover, the increasing demand for high-performance and sustainable building materials is also a major driver of the growth of the construction additives market. High-performance building materials offer several benefits, including increased durability, strength, and resistance to weather and chemicals. By using construction additives, manufacturers enhance the performance of building materials to meet these requirements, such as increasing the compressive strength of concrete or improving the thermal insulation of building walls.
Construction Additives Market Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||46.04 Billion|
|CAGR (2023-2030)||8.5 %|
|By Type||Chemical (Plasticizers, Air-entraining, Waterproofing, Retarding agent), Mineral, and Fiber|
|By Product Type||Liquid and Powder|
|By End Use||Residential, Commercial, and Infrastructure|
|By Geography||Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] |
Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
North America [United States, Canada, Mexico]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||BASF SE, Sika AG, DOW Inc., W.R.Grace & Co., Chryso SAS, RPM International Inc., Mapei S.P.A., Evonik Industries AG, Fosroc International Limited, CICO Technologies Limited|
• Rapid urbanization and infrastructure development in emerging economies are leading to a significant increase in demand for construction additives. Emerging economies such as India and China are experiencing a surge in population growth, and as a result, there is a need for new housing, commercial buildings, and infrastructure. As a result, driving the demand for construction materials, such as concrete, cement, and mortar.
• Governments around the world are introducing regulations that mandate the use of sustainable building materials boosting the construction additives market. For instance, the European Union introduced the Energy Performance of Buildings Directive, which requires all new buildings to be nearly zero-energy by 2020. Thus, all the above-mentioned factors drive market growth.
The construction additives market faces a significant challenge due to the hazardous nature of many chemical additives and treatments used in the industry. These additives often contain problematic compounds such as VOCs, SVOCs, and heavy metals, which can pose health and environmental risks if not handled properly. The need for careful handling and potential liabilities associated with their use are likely to limit the markets growth.
There is a growing awareness of the impact of chemicals used in construction additives on the environment, which presents an opportunity to manufacturers to develop sustainable, eco-friendly, and bio-based construction additives. Hence, by developing construction additives using sustainable materials and processes, manufacturers can cater to this demand and offer environmentally-friendly products. Bio-based additives made from renewable energy sources, such as plant-based materials or agricultural by-products can be used in a variety of construction materials, including concrete, mortar, and insulation. For example, some bio-based additives can be used to improve the strength and durability of concrete, while others can be used to enhance the insulation properties of building materials.
The type segment is categorized into chemicals, minerals, and fibers. In 2022, the chemicals additives segment accounted for the highest market share due to its widespread use in the construction industry to improve the strength, durability, and workability of concrete. They are essential in the production of high-performance concrete, which is increasingly used in the construction of modern infrastructure and buildings. Chemical additives include plasticizers, superplasticizers, accelerators, retarders, air-entraining agents, waterproofing agents, and others.
However, the mineral additives segment is expected to be the fastest-growing segment in the construction additives market as it offers various benefits, such as reducing the amount of cement used in concrete, reducing carbon emissions, and promoting sustainable construction practices. Mineral additives include fly ash, silica fume, ground granulated blast furnace slag, and others.
By Product Type
The product type segment is divided into liquid and powder. The liquid segment accounted for the highest share of the construction additives market. This is due to its ease of use, ability to improve the workability of concrete, and increasing demand for high-performance concrete in construction applications. However, the powder segment is expected to be the fastest-growing segment in the market during the forecast period owing to the increasing awareness of sustainable construction practices, the need to reduce carbon emissions, and the growing demand for eco-friendly construction materials. Powder additives are used as a partial replacement for cement in concrete, thereby reducing the amount of cement used and promoting sustainability.
By End Use
Based on the end-use segment, the market is segmented into infrastructure, commercial and residential. The infrastructure segment dominated the market in 2022 in terms of revenue attributed to the increasing investment in large-scale infrastructure projects worldwide, especially in emerging economies such as China and India. These projects require large quantities of concrete and construction additives to meet the high-performance requirements and ensure the durability and sustainability of the structures. However, the commercial construction segment is expected to register the fastest-growing CAGR over the forecast period due to the increasing demand for high-performance and eco-friendly construction materials in commercial building applications.
By region, the market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America accounted for the highest market share in 2022. This is due to the increasing investment in commercial and infrastructure projects. The use of advanced construction materials and additives, such as superplasticizers, water reducers, and fly ash, has increased in the U.S. to improve the durability, sustainability, and energy efficiency of buildings.
However, Asia Pacific is expected to be the fastest-growing region in the construction additives market during the forecast period. This is due to the increasing demand for affordable housing and sustainable construction practices. Moreover, several incentives by the governments of the respective countries to accelerate the growth of the infrastructure sector, coupled with the booming residential sector.
Construction Additives Market Competitive Landscape:
The market is highly competitive, with a large number of players operating at the global and regional levels. The players compete on various parameters such as price, quality, innovation, and customer service. They are constantly investing in research and development to improve their products and expand their market share. Mergers, acquisitions, and partnerships are also common strategies employed by companies to enhance their market position and expand their product portfolio. Key players in the market include-
• BASF SE
• Sika AG
• DOW Inc.
• W.R.Grace & Co.
• Chryso SAS
• RPM International Inc.
• Mapei S.P.A.
• Evonik Industries AG
• Fosroc International Limited
• CICO Technologies Ltd
• In June 2022, Sika AG commenced operations at a new manufacturing facility for concrete admixtures in Stafford, Virginia, to expand the production of concrete mixture in the U.S. The new plant is well positioned to support the additional needs of the announced infrastructure program of USD 200-250 billion in the aforementioned two regions.
• In May 2022, Sika AG opened a new plant in Santa Cruz de la Sierra, thus doubling its production capacity for mortar and concrete admixtures in Bolivia. This will help the company to position itself for continued growth in the dynamic Bolivian construction market.