Construction Chemicals Market (Updated Version Available)

Key Market Overview:

The construction chemicals market is expected to reach USD 65.13 billion by 2030, with a CAGR of 6.20% between 2023 and 2030. In 2022, the market value is projected to be USD 40.25 billion. This growth is driven by increased demand for construction projects and the need for specialized chemicals to improve the durability and performance of building materials.

Construction chemicals are chemical formulations that are added to construction materials such as concrete, mortar, and plaster to enhance their performance and durability. Construction chemicals are used by the civil repair and construction industry. These chemicals help improve concrete quality and strength, offer water tightness, and protect concrete structures from atmospheric degradation.

The market for construction chemicals has been experiencing steady growth in recent years and is estimated to continue to grow over the forecast period. One of the key drivers of market growth is the increasing demand for durable and sustainable construction materials.
As the construction industry continues to focus on sustainable building practices and green construction, there is a growing need for construction chemicals that help in improving the durability and longevity of buildings while reducing their environmental impact.

For instance, according to U.S. Green Building Council, around 20% of green building projects are planned over the next three years from 2022 in the United States and Canada. Thus, the growing adoption of green buildings in several regions is projected to create profitable avenues for the construction chemicals market.
Additionally, the market is also benefiting from advances in technology and innovations. New formulations and products are constantly being developed to meet the evolving needs of the construction industry, from high-strength concrete additives to waterproofing agents and fire retardants. Hence, the aforementioned factors are expected to create lucrative opportunities for key players such as BASF SE, Sika AG, and Dow Chemical Company operating in the construction chemicals market.

Construction Chemicals Report Coverage:

Report Attributes	Report Details
Study Timeline	2017-2030
Market Size in 2030 (USD Billion)	65.13 Billion
CAGR (2023-2030)	6.20 %
Base Year	2022
By Product Type	Concrete Admixture, Waterproofing Chemicals, Repair and Rehabilitation, Protective Coatings, Adhesives and Sealants, Grout and Anchor, Flooring Compounds and Others
By End Use	Residential, Commercial (Hospitals, Offices and Others) Industrial and Infrastructural
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, GCP Applied Technologies Inc., MUHU (China) Construction Materials Co., Ltd., Sika AG, The Dow Chemical Company, Clariant International Ltd., Fosroc International Limited, Arkema, Aquaquim SA de CV, DuPont de Nemours, Inc., Holcim Ltd.

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Market Dynamics:

Driver:

Growing awareness of climate change

The increased awareness of climate change drives the demand for energy-saving materials and chemicals that help increase the performance of construction materials. For instance, according to the UN environment program, investments in more robust infrastructure could help in saving humanity around USD 4.2 trillion from climate change damages. Thus, the rise in investments for infrastructure development using sustainable construction chemicals is proliferating market growth.

Favorable government initiatives for reduced carbon emissions

Rising adoption of environment-friendly construction chemicals to decrease the negative impact on nature is boosting the demand for construction chemicals. These chemicals help in improving the efficiency and quality of construction materials, resulting in reduced carbon emissions. For instance, according to the World Green Building Council, the building sector is currently accountable for 39% of the worlds carbon emissions related to energy. Hence, the growing focus of carbon emissions in the building and construction sector is propelling the demand for construction chemicals.

Rapid infrastructural development in the building and construction industry:

Several major government authorities have allotted high expenditures for the construction of new buildings and renovation projects. For instance, as per the U.S. Census Bureau, approximately USD 1,844.1 billion were spent on the construction of new infrastructural development as well as renovations in the U.S. in February 2023. Thus, the rising expenditures on new infrastructural construction is creating a positive outlook for the construction chemicals market.

Restraints:

• Various construction chemicals contain harmful chemicals that could pose a threat to the environment and human health. Furthermore, the increasing awareness of environmental issues and regulations surrounding hazardous chemicals restrict the growth of the construction chemicals market.

• The volatile cost of raw materials used in the production of construction chemicals could limit the product demand from manufacturers to maintain stable pricing and margins of end-product.

Opportunities:

• The scope of creating new formulations through research and development is expected to create profitable avenues for several market players to introduce new product innovations in the construction chemicals market.

• Favorable adoption of green building is anticipated to promote sustainable construction practices, thereby offering lucrative opportunities for the construction chemicals market.

Market Segmentation:



By Product Type

The product type segment is divided into concrete admixture, waterproofing chemicals, repair and rehabilitation, protective coatings, adhesives and sealants, grout and anchor, flooring compounds, and others. The concrete admixture segment accounted for the highest market share in 2022. Concrete admixtures, also known as additives, are used in construction to enhance the properties of concrete for specific applications. By adding these substances to the concrete mix, the final product can possess superior properties that meet the specific requirements of the construction project. Thus, the high demand for concrete admixtures to strengthen properties of concrete used in infrastructural development propels the demand for construction chemicals.

Moreover, the protective coatings segment is expected to register the fastest CAGR rate over the forecast period. The protective coatings are chemicals such as epoxies, polyurethanes, zinc-rich primers, and others that find major usage for reducing corrosion. These chemicals are expected to witness favorable demand to reduce the exposure of a material or product to its surrounding corrosive environment. Hence, the favorable adoption of protective coatings to protect materials from impairing and eroding is anticipated to create profitable avenues for the construction chemicals market.

By End Use Industry

The end-use segment is categorized into residential, commercial, industrial, and infrastructural. The infrastructural segment accounted for the highest market share in 2022. The major factor attributed to the segmental growth is growing approvals for new infrastructural projects by governments across regions. For instance, according to the World Bank, projects such as the Restoration Project of Winterization and Energy Resources in Ukraine, Cote d\'Ivoire Inclusive Connectivity, and Rural Infrastructure Project in Africa are major infrastructural projects with active government approval in 2023. Hence, the rise in government approvals for new infrastructural developments is propelling the demand for construction chemicals.

Furthermore, the industrial segment is anticipated to register the fastest CAGR rate during the forecast period. Industrial constructions such as warehouses and distribution, and manufacturing facilities are expected to witness an increase due to growing needs for consumer goods as well as services. Hence, the rise in industrial constructions of manufacturing facilities across regions is anticipated to boost the demand for construction chemicals.

By Region

The regional segment is categorized into North America, Europe, the Middle East and Africa, Asia Pacific, and Latin America. In 2022, Asia Pacific accounted for the highest market share over 36.60% in the construction chemicals market statistics. Rising numbers of infrastructural developments in the region due to urbanization as well as infrastructural investments boost the demand for construction chemicals. For instance, according to the report published by Oxford Economics, Asia-Pacific is projected to account for USD 7.4 trillion of the global construction output by 2030, out of which over 40% is accounted for by smart city projects. Hence, the rising contribution of the construction industry in the Asia Pacific region is expected to create favorable demand for construction chemicals.



However, North America is projected to register the fastest CAGR rate of over 11.89% during the forecast period. Growing focus on strengthening existing production capacity by various established market players supports the market growth in the North American region. For instance, in June 2022, Sika Corporation started its operations at a new manufacturing facility in Virginia, that specializes in producing concrete admixtures. By establishing this plant near Washington D.C., Sika aims to increase its production capacity in the crucial American construction market. Hence, the increased business expansions by established companies are expected to boost the demand for construction chemicals in the region.

Construction Chemicals Market Competitive Landscape:

The construction chemicals industry is characterized by intense competition, rapid technological innovation, and a focus on sustainability and environmental responsibility. As the construction industry continues to grow and evolve, the market for construction chemicals is estimated to remain highly competitive and dynamic. Following are key manufacturers that operate in the latest market circumstances–

• BASF SE
• GCP Applied Technologies Inc.
• MUHU (China) Construction Materials Co., Ltd.
• Sika AG
• The Dow Chemical Company
• Clariant International Ltd.
• Fosroc International Limited
• Arkema
• Aquaquim SA de CV
• DuPont de Nemours, Inc.
• Holcim Ltd

Recent Developments:

• In March 2022, BASF SE announced the expansion of its range of graphitic expandable polystyrene (EPS) granulate by introducing Neopor F 5 McycledTM. This new material comprises 10% recycled content and is well-suited for various building applications, especially for facade insulation.

• In May 2022, Sika AG inaugurated a new factory in Santa Cruz de la Sierra, which would help the company increase its production capacity for mortar and concrete admixtures in Bolivia. This move is expected to allow Sika to strengthen its presence in one of the countrys key industrial areas and capitalize on the thriving construction market in Bolivia. With the new facility, Sika is well-positioned to sustain its growth in the region.