Construction Chemical Market

Market Overview

The Total Addressable Market (TAM) for construction chemical was valued at USD 39.15 billion in 2022. It is projected to reach USD 63.39 billion by 2031, growing at a CAGR of 5.5% during the forecast period (2023–2031).

Most commonly used in conjunction with cement, concrete, and other building materials, construction chemicals are additives that increase the longevity and usefulness of many structures. For concrete to have the necessary qualities to support the complexity of modern buildings, products are typically applied to improve the concrete's compressive strength, workability, performance, and endurance. Additives modify a material's properties, such as its heat of hydration, water reduction, dispersion, and air entrainment, setting time acceleration or retardation, permeability, and durability. In contrast, hardeners are applied to buildings to prevent water and dust infiltration. As a result of using these chemicals, the same quantity of building materials can be used to achieve better appearance and yield, as well as more excellent moisture retention, increased bond strength, increased crack resistance, and a shortened drying time for mortar.

Market Dynamics

What are the Primary Factors driving the Market for Construction Chemicals?

Growing Urbanization Trend in the Construction Industry

The rapid growth of cities in many developing economies has led to a high rate of urbanization. An increase in disposable income per capita and an enhanced standard of living will stimulate overall market demand. Builders will put up new homes and businesses to meet the surging demand brought on by urbanization. The residential building and other structures include movie theatres, shopping malls, hospitals, and restaurants. As a result, this market's expansion will be boosted. Globally, the construction of new apartment buildings and other forms of permanent urbanization is at an all-time high. The development of the construction chemical market will be driven by an increase in the number of residential construction projects initiated by companies using high-quality construction materials to improve structural integrity and sustainability.

What are the Main Factors that will slow down the Market for Construction Chemicals?

Governmental Regulations over VOC Emissions

Many people experience skin irritation, asthma, nausea, confusion, headaches, and eye irritation after exposure to VOCs produced by construction chemicals used in building activities. Formaldehyde, acetone, and butanol are harmful VOCs that can seep out of an acoustic ceiling tile. Solid wood, caulking sealant, or floor wax are commonly used in residential construction. The expansion of the construction chemicals market is hindered by regulatory constraints on using construction chemicals brought about by concerns over VOC emissions. The conflict between Russia and Ukraine temporarily derailed recovery prospects for the global economy after the COVID-19 pandemic. Many international markets have felt the effects of economic sanctions on multiple countries, a rise in commodity prices, and disruptions to supply chains caused by the conflict between these two powers.

What are the Future Opportunities for Construction Chemicals?

Changing Dynamics of the Construction Industry

New construction and repair & rehabilitation are the primary growth drivers for the construction chemicals market, which is expected to benefit from the expanding construction industry in developing economies. Rapid urbanization in China, India, and South Korea will increase residential and commercial construction demand. As a result, there has been a surge in need for construction chemicals like concrete admixtures, cement additives, adhesives & sealants, etc. Over the forecast period, the expansion of the global market is expected to be fueled by the introduction of better product offerings for improving performance. Construction chemicals provide the technological advantage of improved performance and durability of structures with less corrosion.

Segmental Analysis

The global construction chemical market is segmented by type and application.

Based on type, the global construction chemical market is bifurcated into concrete admixtures, adhesives & sealants, waterproofing chemicals, flooring chemicals, repair & rehabilitation, others.

The waterproofing chemicals segment is the highest contributor to the market and is expected to grow during the forecast period. Increased property value, reduced maintenance costs, a healthier environment, and safer indoor air quality are why waterproofing chemicals are expected to dominate the global construction market. Several opportunities exist for market players to strengthen their position due to the rising demand for Ready-To-Mix Concrete (RMC) in emerging economies and the introduction of novel products and services. China, India, and the United States play essential roles in this expansion. With more buildings being done, the demand for construction chemicals is likely to rise.

Based on application, the global construction chemical market is bifurcated into residential, commercial, industrial, and others.

The residential segment is the highest contributor to the market and is expected to grow during the forecast period. Rising concerns about building quality, increasing urban populations, and the emergence of new cities in developing nations all point to a bright future for the residential sector of the global chemical market. Individuals' rising purchasing power has also encouraged them to increase their home improvement spending. There is a lot of competition in the residential real estate market because people are moving to cities to take advantage of the benefits of urbanization. The market is expected to grow during the forecast period due to changing lifestyles, rapid urbanization, improving living standards, and rising demand for aesthetically designed residential structures.

Regional Analysis

The global construction chemical market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific is the most significant shareholder in the global construction chemical market and is expected to grow during the forecast period. As a result of massive infrastructure projects in emerging economies like China and India, Asia Pacific is projected to be the largest market for construction chemicals during the forecast period. Demand for construction chemicals is expected to increase in the region due to governments' persistent and intense focus on infrastructural development and initiatives towards affordable housing projects. The Chinese government has long recognized the importance of investing in infrastructure to maintain the country's rapid economic growth. It has led to a period of rapid development in China's construction industry.

North America is expected to grow during the forecast period. Due to the rapid expansion of the construction industry in the United States and Canada, North America is the third-largest market for concrete admixture worldwide. The construction industry in the region has increased in recent years, thanks in large part to the various incentives offered by the respective governments to promote the infrastructure sector and the booming residential sector. Strong economic growth, rising demand for commercial real estate, and increasing government spending on infrastructure projects contributed to the construction industry's sustained growth in the United States. The residential sector in the United States is growing at a lower rate than the business sector. The rising national population is forecast to drive up housing demand.

As more and more projects are undertaken to upgrade and renovate existing structures, Europe is projected to become the second-largest market for construction chemicals over the forecast period. The construction industry is vital to the expansion of the European Union's (EU) economy, making a 9% contribution to GDP. Europe's construction chemical market is driven by the continent's massive construction industry and rising product adoption. Germany had the most significant demand for construction chemicals in Europe, and that market is projected to expand over the coming years. The nation has made massive investments in top-notch infrastructure and now has one of the world's finest systems in place. When we talk about housing for the elite, we're talking about mansions and mansions worth a million dollars. High-end apartments, penthouses, villas, and bungalows in gated communities with resort-style services are in high demand.

The increasing demand for specialty chemicals in construction activities and the rising number of construction projects are expected to drive substantial growth for the construction chemical market in Latin America, the Middle East & Africa during the forecast period. Demand for construction chemicals is rising as governments in Latin America begin residential construction projects to meet the growing need for affordable housing. The demand for construction chemicals in Latin America is rising due to rising construction activity and consumer spending on home improvements. The increasing emphasis on green infrastructure drives the need for construction chemicals in Latin America. It is especially true for solar and wind power plants.

Recent Developments

• July 2022- Scatec and its partners have started work on the 531MW Mendubim solar project in Rio Grande do Norte, Brazil.
• May 2022- Sika has opened a new facility in Santa Cruz de la Sierra, Bolivia. The investment would allow the company to double output of mortar and concrete admixtures and solidify its position in the Bolivian construction market.

Construction Chemical Market Segmentation

By Type

• Concrete Admixtures
• Adhesives & Sealants
• Waterproofing Chemicals
• Flooring Chemicals
• Repair & Rehabilitation
• Others

By Applications

• Residential
• Commercial
• Industrial
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA