Waterproofing Chemicals Market

Market Overview

The global waterproofing chemicals market size was valued at USD 29.19 billion in 2022. It is estimated to reach USD 70.59 billion by 2031, growing at a CAGR of 10.31% during the forecast period (2023–2031). Due to a surge in urbanization, the growing construction industry is driving the demand for waterproofing chemicals as they are extensively used to enhance the longevity and durability of buildings and other structures. Moreover, the prominent players in the market are strategizing on several initiatives to enhance their market share, which are expected to create opportunities for market expansion.

Waterproofing chemicals refer to substances or compounds that confer resistance against water or moisture infiltration to surfaces or materials. The principal objective of waterproofing is to safeguard buildings, structures, and diverse materials against the detrimental effects of water, including degradation, the proliferation of mold, and related complications. Various varieties of waterproofing chemicals exist, each specifically formulated for certain applications and surfaces.

The selection of a waterproofing chemical depends upon various criteria, including the nature of the surface, prevailing environmental conditions, and the project's specific demands. The correct utilization and upkeep of waterproofing materials are imperative to guarantee durable safeguarding against water infiltration. The implementation of waterproofing measures is of utmost importance in diverse construction endeavors, encompassing basements, roofs, foundations, and other vulnerable regions susceptible to water infiltration, which might result in detrimental consequences.

Market Dynamics

Global Waterproofing Chemicals Market Drivers

Growing Construction Industry

The surge in construction activities, particularly in developing areas, has significantly propelled the need for waterproofing compounds. Waterproofing chemicals are indispensable for safeguarding structures against water damage, guaranteeing their longevity and durability. This is particularly critical in areas prone to heavy precipitation or water exposure. Therefore, the demand for durable and long-lasting structures, like those found in residential, commercial, and industrial areas, drives the market.

The growth of the construction industry was prominent through 2021 in regions like Asia-Pacific, North America, and the Middle East and Africa. For instance, in December 2021, the US Census Bureau estimated construction spending at a seasonally adjusted annual rate of USD 1,639.9 billion, 0.2% higher than the revised November projection of USD 1,636.5 billion. Moreover, in 2021, construction spending amounted to USD 1,589.0 billion, 8.2% above USD 1,469.2 billion in 2020, thus increasing the consumption of waterproofing chemicals in construction applications. Thus, growth in the construction industry is expected to spur global market growth.

Increasing Demand from Textile Industry

The textile sector has a significant requirement for waterproofing chemicals. A limited selection of specialized clothes and tents is designed to enhance water safety. Protective textiles comprise a diverse range of articles of clothing, such as jackets, raincoats, and trekking attire. The hydrophobic characteristics of these garments are generally acknowledged.

The waterproof fabric possesses a hydrophobic coating that is a barrier against water infiltration because the seams are sealed, unlike water-resistant apparel. Waterproof textiles exhibit wind resistance due to their intended application in inclement weather environments. Coated membranes composed of polyurethane and Teflon have been recognized for their ability to impede the passage of liquid water through the fabric. Thus, the textile industry's surging demand for waterproofing chemicals drives the market expansion.

Global Waterproofing Chemicals Market Restraint

Volatility in Raw Material Prices

The cost and accessibility of raw materials are significant determinants in influencing the final product price. The most significant obstacle for the global market for waterproofing compounds is the fluctuating price trends of raw materials, which are caused by the volatile energy cost and the fact that most of these materials are derived from petroleum. The annual average price of OPEC oil in 2022 was recorded at 100.08 U.S. dollars per barrel. This represents a revaluation from 69.89 U.S. dollars in the prior year and is a consequence of the Russia-Ukraine conflict-induced energy supply shortage and sanctions against Russia. As a result, the volatility in oil prices has an adverse impact on the expansion of the waterproofing compounds market.

Furthermore, when applying bitumen and other waterproofing compounds, employees may be exposed to volatile fumes. Extended exposure to these pollutants may cause bronchitis and nasal irritation, among other health complications. This factor may also impact the expansion of the waterproofing chemical market.

Global Waterproofing Chemicals Market Opportunities

Strategic Initiatives by Key Players

The key players in the market are taking up initiatives like mergers and acquisitions, collaboration, product launches, and expansion, among others, to strengthen their market share. For instance, in June 2021, JSW Cement announced its entry into the construction chemical industry by introducing a green product line in this category. It was stated in a statement that the range includes "Duraflor" floorhardener, "Krysta Leakproof" integral crystalline waterproofing compound, and "Enduro Plast" readymix gypsum.

In addition, in October 2023, Beacon declared today the completion of the acquisition of Garvin Construction Products, a distributor of waterproofing products headquartered in Medford, MA, with four additional locations in Long Island City, NY, Beltsville, MD, North Haven, CT, and Carlstadt, NJ. For over seven decades, Garvin has provided owners, contractors, and design professionals with comprehensive building envelope solutions. These solutions include waterproofing, restoration, glass, tinting, and glazing. Such initiatives create opportunities for waterproofing chemicals market growth.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global waterproofing chemicals market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant global waterproofing chemicals market shareholder and is expected to expand substantially during the forecast period. The Asia-Pacific region's production and consumption of waterproofing chemicals are stimulated by growing growth and investments in the chemical and materials sector and the expansion of end-user industries. Asia is by far the world's greatest regional market for chemicals. Asia constituted 59.2 percent of the worldwide chemical industry's revenue in 2021. This, in turn, boosts the waterproofing chemicals market. Certain Asia-Pacific nations possess manufacturing capabilities that are both cost-effective and economically viable, thereby contributing to the increased availability and utilization of waterproofing chemicals. The region's convenient and affordable access to labor and raw materials contributes to the market expansion for waterproofing chemicals.

Additionally, the rising population and disposable income in China, India, and Indonesia have fueled residential housing growth in the Asia-Pacific region, further fueling the demand for waterproofing chemicals in the construction industry. The construction industry in China is expected to grow by 4.21% through 2021 due to multiple mega infrastructure projects coupled with 2,991 hotel construction projects in the pipeline. Therefore, with the rise in the construction industry, the demand for waterproofing chemicals will also grow during the forecast period.

Moreover, new players are entering the regional waterproofing chemicals market. For instance, in September 2021, Asian Paints Ltd, a prominent player in the decorative paints industry, is expanding its presence in the waterproofing segment. Based on the analysis conducted by researchers at Credit Suisse, Pidilite Industries Ltd emerges as the dominant player in India's waterproofing industry, with an estimated market share of approximately 50%. However, the international brokerage house reported that paint companies had made substantial gains in this industry. These factors boost the market expansion in Asia-Pacific.

North America is estimated to expand at a significant pace. Infrastructural development in the US and Canada will lead to the demand for waterproofing chemicals in the region. For instance, the Canadian government has pledged to invest in and maintain infrastructure nationwide. The government has put aside about USD 180 billion to invest over 15 years in vital infrastructure over the next decade as part of the 'Investing in Canada Plan.' In addition, key market players are involved in initiatives like joint ventures, acquisitions, and expansion. For instance, in January 2023, Beacon finalized the acquisition of Whitney Building Solutions, LLC (referred to as "Whitney"), a company based in Boston, Massachusetts.

Similarly, in April 2022, Pidilite Industries experienced a 1.59% increase, reaching Rs 2,453, after it collaborated with GCP Applied Technologies, USA. This partnership aims to provide waterproofing solutions, namely under the brand Dr Fixit, for locations that encounter significant fluctuations in temperature and water table levels. Pidilite Industries, a renowned company, provides waterproofing solutions under Dr.Fixit. These solutions cater to various structures, encompassing commercial and residential buildings and critical infrastructure such as tunnels, bridges, and major government buildings. Such factors expedite the market expansion.

Segmental Analysis

The global waterproofing chemicals market is segmented by product and application.

Based on product, the global waterproofing chemicals market is divided into polymers, bitumen, and others. 

Bitumen, a type of petroleum, is a viscous, dense, black, or dark brown liquid that is adhesive. It is a substance that is present in crude hydrocarbon deposits by nature. Although bitumen and mineral aggregates are combined to form asphalt, the two substances are not interchangeable in road construction. Bitumen is a multifaceted assemblage of hydrocarbons that exhibits a wide range of viscosities, from nearly solid to liquid.

Bitumen's distinct characteristics are influenced by its origin, processing, and the existence of impurities. Bitumen refining and extraction are critical operations within the petroleum industry. Bitumen is renowned for its adhesive and impermeable characteristics. Road construction, roofing and waterproofing, paving, waterproofing membranes, industrial coatings, adhesives, and more are among its many applications.

Based on application, the global waterproofing chemicals market is segmented into roofing and wall, floor and basement, water and waste management, tunnel and landfills, bridges and highways, and others.

The floors and basements category is expected to have the highest CAGR in revenue over the forecast period. The increasing need for waterproofing chemicals within the construction sector is a key driver behind the growth of this particular market segment. Applying waterproofing chemicals is essential for preserving the lifetime and durability of basements and floors due to their susceptibility to water damage from their proximity to the ground. Waterproofing chemicals in flooring and basements mitigate structural deterioration, reduce the likelihood of mold proliferation, and augment the overall safety and welfare of individuals inhabiting the structure.

Recent Developments

• April 2023- Indigo Paints disclosed its entry into the waterproofing and construction chemicals sectors by purchasing a 51 percent stake in Apple Chemie India Private Ltd (ACIPL). In response, the company's stock increased by more than 2 percent.
• October 2023-Berger Paints India Limited unveiled Berger DAMPSTOP, an innovative line of waterproofing products. These products, composed strategically, are capable of effortlessly carrying out various treatments related to waterproofing, such as silane, salt leaching, and moist treatments.