Global Construction Chemicals Market Outlook, 2028

The construction industry plays a vital role in the development of infrastructure and the built environment. Over the years, the construction chemicals industry has emerged as an essential and dynamic component within this sector. These chemicals are crucial in enhancing the durability, strength, and overall performance of construction materials and structures. As urbanization and construction projects continue to grow, the construction chemicals industry has also witnessed significant transformation and innovation. Construction chemicals, also known as specialty chemicals, are a diverse group of chemicals used to improve the quality and performance of construction materials and structures. They are designed to address various challenges in the construction process, such as increasing the lifespan of buildings, protecting them from environmental factors, and improving the aesthetics of the finished product. These chemicals encompass a wide range of products, including admixtures, sealants, adhesives, protective coatings, waterproofing agents, and more. These substances have a number of uses, including enhancing the toughness and longevity of concrete, keeping metal building structures from corroding, waterproofing, and fire safety. Concrete, masonry, steel, and wood are just a few examples of the materials that can have their qualities improved by the employment of construction chemicals. Concrete admixtures, for instance, can be added to concrete to improve its workability, toughness, and durability. To stop water from penetrating and harming surfaces made of steel, concrete, or masonry, waterproofing chemicals can be used. The adoption of construction chemicals has seen a rise in the popularity of strategic partnerships. Major players in the construction chemicals industry are concentrating on forming alliances to improve their position. For instance, in January 2021, Choksey Chemicals, an Indian producer of construction chemicals, collaborated with Nippon Paint, a paint manufacturer with headquarters in Japan. Choksey Chemicals produces and provides Nippon Paint with waterproofing and sealant grades in India thanks to this agreement. Additionally, in February 2019, CFI World, a Polish manufacturer of construction chemicals, and JELU-WERK, a German manufacturer of goods manufactured from plant fibers, partnered. The companies collaborate on the development and creation of construction chemicals through this relationship.

According to the research report, “Global Construction Chemicals Market Outlook, 2028” the market is anticipated to cross USD 120 Billion by 2028, increasing from USD 83.59 Billion in 2022. The market is expected to grow with 6.58% CAGR by 2023-28. The global market for construction chemicals is being driven by the quickly rising demand for public, commercial, and residential structures as well as the technologically sophisticated construction sector. The industry is also being driven by demand for structures including dams, highways, bridges, and tunnels to improve the nation's infrastructure. 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. High demand for residential and non-residential structures in China, India, and South Korea due to a high population growth rate shall drive industry growth. This demand has also increased the consumption rate of cement, which in turn, have caused a high demand for various construction chemicals such as concrete admixtures, cement additives, and adhesives & sealants. Introduction to better product offerings for improving performances is anticipated to drive the growth of the global market during the forecast period. These products include specialty cement additives, silicone caulks, polymer-based grouts and mortars, and others. The construction chemicals also provide the technological advantage that enhances the performance and endurance of structures while reducing corrosion. Corrosion prevention is also a driving factor for the market for construction chemicals, where chemicals comprising of floorings, surface coatings, corrosion inhibitors, concrete admixtures, repair mortars, and grouts & sealants are used to protect the surface from corrosion.

Asia-Pacific held the highest market share in terms of revenue in 2022, and is projected to register the highest CAGR of 7.66% during the forecast period.

Asia-Pacific now has a monopoly on the market for construction chemicals as a result of the region's strong expansion in construction and government incentives to boost the infrastructure sector. A growing residential sector fueled by the area's rising middle class has also contributed to the region's market expansion. The region has grown significantly as a result of the rise in demand for luxury residences, the expansion of construction projects, and the best acceptance of product development in the construction sector, notably in Asian countries like India, China, and Southeast Asia. The fact that Asian countries like China and India have one of the highest rates of urbanization in the entire globe is ultimately what drives the need for building chemicals. Fast-growing economies in South East Asian nations like Indonesia, the Philippines, and Malaysia are projected to have a beneficial effect on the construction sector. Infrastructure projects are in high demand in these nations, which will fuel the demand for construction chemicals in Asia Pacific and drive the regional market. The regions continued and concentrated focus on infrastructure development and initiatives for low-cost housing developments are likely to raise demand for construction chemicals. The Chinese government has long understood how crucial infrastructure spending is to sustaining the nation's brisk economic expansion. The result has been a period of the construction industry's tremendous development in China. In addition to expanding their global reach, important players are pursuing a number of different tactics. For instance, the Construction Chemicals Division (CCD) of Pidilite Industries is focusing the expansion of its presence in the rapidly growing African and Asian markets. In Thailand, Singapore, and the United Arab Emirates, Pidilite Industries has fully owned subsidiaries. Construction chemicals are predicted to increase more quickly on the global market as a result of these important considerations.

Based on the product type, the concrete admixtures category is to show dominance in the market due to the development of new and advanced concrete admixtures with improved properties.

The construction chemicals market has also been segmented on the basis of product into Concrete admixture, waterproofing chemicals, repair and rehabilitation, adhesives and sealants, industrial flooring, surface treatment, cement grinding aids, protective coatings and grout and anchor. Sand, water, and crushed rock are combined with precisely calibrated proportions of cement to create concrete. The inclusion of concrete admixtures then improves the properties of concrete. They have benefits such a low cement-water ratio, quick setting time, less segregation, and higher permeability. The growth of the building industries in China, India, the United Kingdom, and Germany is a factor in the increasing use of concrete admixtures, which is fuelling the market for construction chemicals. Water intrusion is something that waterproofing chemicals are designed to stop. Concrete is treated with waterproofing chemicals at the building stage as a maintenance and preventative waterproofing aspect. Repair and rehabilitation are the terms used to describe the reconstruction of the compromised structural elements. These products include rust removers, corrosion inhibitors, and epoxy-based repair mortars. However, waterproofing chemicals have experienced significant growth within the construction chemicals market due to various compelling reasons. These chemicals are essential for ensuring the longevity and structural integrity of buildings and infrastructure. As construction projects become more substantial and costly, there is a growing emphasis on ensuring the longevity and durability of structures. Waterproofing chemicals protect buildings from water infiltration, which can lead to corrosion, deterioration, and structural damage. This is especially important in regions prone to heavy rainfall, high humidity, or flooding. The adverse effects of climate change, including more frequent and intense rainfall, have made waterproofing an imperative part of construction. Extreme weather events, such as storms and hurricanes, underscore the need for waterproofing to protect buildings from water damage. Builders, architects, and property owners have become aware of the importance of waterproofing to protect their investments.

Residential end user segment accounted for the largest market share as the demand for villas, apartments, penthouses, and bungalows in gated communities, with the best designs and amenities, is growing rapidly.

Luxury is the hallmark of elite class, and elite housing refers to opulent homes. Developers are building projects to meet the rising demand for apartments, penthouses, villas, and bungalows in gated communities with top-notch architecture and facilities. For comfort, prestige, and seclusion, a lot of people have been expressing a lot of interest in purchasing luxury residences around the world. As a result, there are now more upscale home developments around the world. The demand for luxury residences is anticipated to rise in areas of the United States, Canada, Germany, the United Kingdom, India, and Japan due to the expanding economic strength and significant investments made by the high-income group. Therefore, the market for building chemicals is probably to gain from it. The Sao Paulo State Housing Union (Secovi-SP) reported that 5,555 brand-new homes were sold in Sao Paulo in October 2021. Due to consumer expenditure on residential housing, the number is more likely to rise. Additionally, the sector for residential construction is anticipated to be supported in the near future by Brazil's expanding single-family home trend. The residential market is incredibly fragmented, and rising urbanization has led a significant portion of consumers to move into metropolitan areas. This market's expansion is anticipated to be fuelled by shifting lifestyles, fast urbanization, rising living standards, and a rising desire for attractive residential constructions. Also, rising demand for single-family housing projects coupled with growing spending capacity of consumers in developing markets including Nigeria, Mozambique, and Zimbabwe would propel construction chemicals demand over the coming years.

Market Drivers

• Infrastructure Development and Urbanization: The rapid growth of urbanization and the need for modern infrastructure in emerging economies is a significant driver for the construction chemicals industry. As cities expand, there is a growing demand for durable and sustainable construction materials that can withstand the challenges of urban environments. This has led to increased use of construction chemicals to enhance the strength, durability, and longevity of structures.
• Environmental Regulations and Sustainability: Environmental concerns and stricter regulations have driven the construction industry to adopt more sustainable and eco-friendly construction practices. Construction chemicals that can reduce the carbon footprint, improve energy efficiency, and enhance the sustainability of buildings and infrastructure is in high demand. This includes products like low-VOC (volatile organic compound) coatings, green concrete additives, and materials for waterproofing and insulation.

Market Challenges

• Regulatory Compliance: Compliance with various local, national, and international regulations and standards can be a significant challenge for the construction chemicals industry. Different regions have different rules governing the use of certain chemicals, and manufacturers must navigate a complex landscape of regulations, certifications, and approvals.
• Cost and Pricing Pressures: The construction chemicals industry faces cost and pricing pressures from multiple angles. The cost of raw materials can fluctuate, impacting product costs. Moreover, there is often intense competition, which can lead to pricing pressures. Balancing product quality, performance, and cost-effectiveness is a constant challenge.

Market Trends

• Green and Sustainable Solutions: The industry is experiencing a strong trend towards environmentally friendly and sustainable construction chemicals. This includes the use of recycled and renewable materials, as well as products that reduce energy consumption and promote green building practices. Examples include low-carbon concrete admixtures, sustainable waterproofing solutions, and environmentally friendly coatings.
• Advanced Technology and Innovation: Innovations in materials science and technology are driving the development of high-performance construction chemicals. Nanotechnology is being used to create advanced additives that can improve the strength and durability of concrete and other construction materials. Additionally, smart coatings and materials with self-healing properties are gaining traction, reducing the maintenance and repair costs of structures.
• Digitalization and Data-Driven Solutions: The construction chemicals industry is increasingly adopting digital technologies for product development, distribution, and monitoring. This includes the use of data analytics, sensors, and IoT devices to track the performance of construction materials and structures in real time, enabling predictive maintenance and more efficient resource management.

Covid-19 Impacts

The pandemic caused disruptions in global supply chains, affecting the availability of raw materials and chemicals necessary for manufacturing construction chemical products. Many manufacturers faced delays and increased costs in sourcing these materials. During lockdowns and restrictions, many construction projects were delayed, put on hold, or cancelled. This reduction in construction activity directly impacted the demand for construction chemicals. The pandemic prompted a heightened focus on health and safety in the construction industry. This translated into increased demand for construction chemicals that support hygiene and sanitization, such as antimicrobial coatings and materials for healthcare facilities. The need for remote work and monitoring of construction sites led to acceleration in digitalization within the construction chemicals sector. Companies began using digital tools for product development, marketing, and supply chain management. Some construction chemical products experienced a change in demand due to the pandemic. For instance, demand for solutions that enhance indoor air quality, like low-VOC products and materials for air filtration, increased. The uncertainty caused by the pandemic led to delays in project approvals and financing, making construction companies more cautious about new investments. This, in turn, affected the demand for construction chemicals. The construction chemicals industry, like many others, faced workforce challenges due to safety concerns and restrictions. Some manufacturers had to adjust their operations and implement new safety protocols to protect their employees. The pandemic renewed interest in sustainability and green building practices. This trend affected the development and adoption of construction chemicals that reduce the environmental impact of construction and improve indoor environmental quality.

Competitive Landscape

The global construction chemicals market share is competitive with major players including 3M Company, BASF SE, H.B. Fuller, Mapei S.p.A, The Dow Chemical Company, Sika AG, Pidilite Industries Limited, RPM International Inc, Henkel AG & Co. KGaA, Akzo Nobel N.V., Wacker Chemie AG, Covestro AG, Thermax Ltd, Compagnie de Saint-Gobain S.A., Jotun Group, Ashland Inc, Fosroc International Ltd., Bostik, Axalta Coating Systems Ltd and The Sherwin Williams Company. Industrial participants are focusing mainly on acquisitions and strategic partnership to increase their overall market share. Also, most of the manufacturers are spending in the new and novel product innovation to gain a competitive edge within the international and domestic market. Also, companies offer a wide range of construction chemicals for new and existing infrastructure applications. For instance, Sika AG provides a wide range of construction chemical products which are used in cement, repair & rehabilitation, insulation, waterproofing, flooring, and others.

Key Developments

• In August 2023, Henkel launched a new line of construction chemicals for the residential market.
• In August 2023, PPG Industries announced the opening of a new research and development center for construction chemicals in China.
• In July 2023, BASF acquired Construction Chemicals from Lone Star Funds.
• In July 2023, Saint-Gobain acquired Promat, a manufacturer of fire protection products for the construction industry.
• In June 2023, Sika announced the opening of a new manufacturing facility in Tanzania, East Africa. The facility will produce mortars and concrete admixtures.
• In June 2023, RPM International acquired the assets of American Sealants, a manufacturer of sealants and coatings for the construction industry.
• In June 2023, Fosroc collaborated with Chemtech, a leading construction chemicals company. The collaboration helped to manufacture and distribute Fosroc’s varied range of constructionchemicals.
• In February 2023, Sika acquired MBBC Group. This acquisition strengthened Sikha’s product availability and services globally and accelerated the sustainable transformation of the construction industry.

Considered in this report:

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• Global Construction Chemicals market Outlook with its value and forecast along with its segments
• Region & Country-wise Construction Chemicals market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report

• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa

By Product Type:

• Concrete Admixture
• Waterproofing Chemicals
• Repair and Rehabilitation
• Adhesives and Sealants
• Industrial Flooring
• Surface Treatment
• Cement Grinding Aids
• Protective Coatings
• Grout and Anchor

By End-User Industry:

• Commercial
• Residential
• Industrial
• Infrastructure

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Construction Chemicals industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.