Construction Chemicals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Construction Chemicals Market is segmented by Product Type (Concrete Admixture and Cement Grinding Aids, Surface Treatment, Repair and Rehabilitation, Protective Coatings, Industrial Flooring, Waterproofing, Adhesive and Sealants, and Grout and Anchor), Application (Commercial, Industrial, Infrastructure and Public Spaces, and Residential), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for construction chemicals in terms of revenue (USD million) for all the above segments.

Market Snapshot

construction chemicals market
Study Period: 2016-2026
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >5.5 %
construction chemicals market share

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Market Overview

The Construction Chemicals Market size was estimated at USD 71,460 million in 2020, and the market is projected to register a CAGR of over 5.5% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. With the beginning of the COVID-19 pandemic, though, construction work stopped all across the world, especially in major construction hubs, like China, India, United States, and European nations. For instance, in South Korea, the construction industry is contracted by about 3% in 2020 due to the coronavirus outbreak and slower economic growth. Loss of investment plans and termination of planned projects might be experienced in the market after the lockdown and normalization of business operations, further affecting building and construction across the region.

  • Over the short term, growing construction activities in the Asia-Pacific region, especially in ASEAN countries, increased adoption of new technology, and innovative construction procedures are some of the factors driving the growth of the market studied.
  • Increasing environmental regulations regarding VOC emissions remains a constraint for the growth of the market studied.
  • The concrete admixture and cement grinding aids segment dominated the market by product type. Moreover, it is expected to witness the highest CAGR during the forecast period.
  • The residential segment dominated the market. However, the industrial segment is expected to witness the highest CAGR during the forecast period.

Scope of the Report

Chemicals that are mixed with cement, concrete, and other construction materials to produce excellent construction material are termed construction chemicals. The market is segmented on the basis of product, end-user industry, and geography. By product, the market is segmented into concrete admixture and cement grinding aids, surface treatment, repair and rehabilitation, protective coatings, industrial flooring, waterproofing, adhesive and sealants, and grout and anchor. By end-user industry, the market is segmented into commercial, industrial, infrastructure and public space, residential. The report also covers the market size and forecasts for the construction chemicals market in 20 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).

Product Type
Concrete Admixture and Cement Grinding Aids
Surface Treatment
Repair and Rehabilitation
Protective Coatings
Industrial Flooring
Waterproofing
Adhesive and Sealants
Grout and Anchor
End-use Sector
Commercial
Office Space
Retails
Education Institutes
Hospitals
Hotels
Other Commercials
Industrial
Cement
Iron and Steel
Capital Goods
Automobile
Pharmaceutical
Paper
Petrochemical (Including Fertilizers)
Food and Beverage
Other Industrials
Infrastructure and Public Places
Roads and Bridges
Railways
Metros
Airports
Water
Energy
Government Buildings
Statues and Monuments
Residential
Elite Housing
Middle-class Housing
Low-cost Housing
Public Space
Government Buildings
Statues and Monuments
Geography
Asia-Pacific
China
India
Japan
South Korea
ASEAN Countries
Australia and New Zealand
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
France
Italy
Russia
Rest of Europe
South America
Brazil
Argentina
Rest of Latin America
Middle-East and Africa
Saudi Arabia
Qatar
United Arab Emirates
Rest of Middle-East and Africa

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Key Market Trends

Increasing Demand for Concrete Admixtures and Cement Grinding Aids

  • Concrete admixtures are ingredients that are added to the concrete mixture before or during mixing. Concrete admixtures reduce concrete construction costs by modifying the properties of hardened concrete, thereby ensuring better quality during mixing, transporting, placing, and curing. This allows users to overcome emergencies during concrete operations.
  • According to the European Standard EN 206-1, the permitted dosage of admixtures to concrete should be less than or equal to 5% by weight of the cement. However, in conditions of low dosage, the admixture quantities should be less than 0.2% of the cement.
  • The admixture is generally added in a relatively small quantity, ranging from 0.005% to 2%, by the weight of cement. However, overuse of admixtures has detrimental effects on the quality and properties of concrete.
  • Based on function, admixtures are categorized into several types, which include air-entraining, retarding, accelerating, plasticizing, and water reducing, among others. The special category admixtures have various functions, including shrinkage reduction, corrosion inhibition, workability enhancement, alkali-silica reactivity reduction, bonding, coloring, and damp proofing.
  • Asia-Pacific has the largest market for concrete admixture, owing to the massive growth in construction in India, China, and various Southeast Asian countries. Various incentives by the governments of the respective countries to promote the infrastructure sector, coupled with the booming residential sector (owing to the burgeoning middle-class population), have largely facilitated the growth of the construction sector in Asia-Pacific over the recent years.
  • Demand for concrete admixture is increasing at a rapid rate. Manufacturers are responding to this demand and have started taking action. For example, BASF launched Master X-Seed STE admixture for the concrete industry in March 2019. The product was introduced specifically for the Asia-Pacific region, as it enhances concrete strength’s development and performance characteristics.
construction chemicals market growth

Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific construction sector is the largest in the world and is growing at a healthy rate, owing to the rising population, increase in middle-class incomes, and urbanization.
  • Increasing infrastructure construction activities and the entry of major players from the European Union into the lucrative market of China have further fueled the industry’s expansion.
  • China’s 13th Five Year Plan started in 2016, as it was an important year for the country’s engineering, procurement, and construction (EPC) industry. In addition, the country ventured into new business models domestically and internationally during the year. Although the construction sector slowed down after 2013, it is still a major contributor to the GDP of the country. China’s construction industry developed rapidly in the recent past, due to the central government’s push for infrastructure investment, as a means to sustain economic growth.
  • The construction industry is the second-largest industry in India with a GDP contribution of about 9% and has shown promising growth in 2019 with a re-energized output of around 8%. It is predicted that India’s construction industry is set to emerge as the third-largest market in the world, with a size of almost USD 1 trillion by the end of forecast period.
  • The construction industry is expected to slowdown in 2020-2021 financial year due to COVID-19 but share of projects in commercial space are likely to continue even during this period, as they are either in public, private partnership (like smart city) or public projects, which are already budgeted. But in the long run the sector is expected to grow with high growth rate.
  • Although the construction industry in Australia has been negatively impacted by COVID-19, it is also likely to be one of the key industries to kick start the economy when the country begins to emerge from the impacts of COVID-19.
  • New petrochemical facilities development boosted the private sector demand, while industrial and building projects in the Punggol Digital District contributed to the public sector demand in Singapore. The infrastructure sector is also expected to post relatively healthy growth, mainly driven by the efforts to upgrade the country’s road, rail, and other public transport infrastructure and investment in energy and utilities construction projects. The government had been planning to invest SGD 28 billion (USD 20.9 billion) in the expansion and upgrading of the transport system by 2022.
  • The above-mentioned factors are likely to drive the demand for construction chemicals over the forecast period.
construction additives market share

Competitive Landscape

The construction chemicals market is fragmented in nature, as the top 10 players account for a share of less than 40% in the market studied. Major players in the market include Sika AG, MBCC Group, RPM International Inc., MAPEI, and Dow.

Recent Developments

  • In June 2021, RPM International Inc. announced that its Carboline subsidiary acquired the Dudick Inc. business. A provider of high-performance coatings, flooring systems and tank linings, Dudick is headquartered in Streetsboro, Ohio, and has annual net sales of approximately USD 10 million. The terms of the transaction were not disclosed.
  • In September 2020, BASF closed the divestiture of its Construction Chemicals business to an affiliate of Lone Star, a global private equity firm. The Construction Chemicals business now forms the newly founded MBCC Group, headquartered in Mannheim, Germany.
  • In June 2020, Sika AG acquired Modern Waterproofing Group, a leading manufacturer of roofing and waterproofing systems in Egypt. The new boost growth for Sika in the Egyptian construction market.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Rising Residential and Commercial Construction Activities in the Asia-Pacific Region

      2. 4.1.2 Strengthening Demand for Water-based Products

    2. 4.2 Restraints

      1. 4.2.1 Regulations for VOC Emissions and Inadequacy of Skilled Labor

      2. 4.2.2 Unfavorable Conditions Arising Due to the COVID-19 Impact

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Concrete Admixture and Cement Grinding Aids

      2. 5.1.2 Surface Treatment

      3. 5.1.3 Repair and Rehabilitation

      4. 5.1.4 Protective Coatings

      5. 5.1.5 Industrial Flooring

      6. 5.1.6 Waterproofing

      7. 5.1.7 Adhesive and Sealants

      8. 5.1.8 Grout and Anchor

    2. 5.2 End-use Sector

      1. 5.2.1 Commercial

        1. 5.2.1.1 Office Space

        2. 5.2.1.2 Retails

        3. 5.2.1.3 Education Institutes

        4. 5.2.1.4 Hospitals

        5. 5.2.1.5 Hotels

        6. 5.2.1.6 Other Commercials

      2. 5.2.2 Industrial

        1. 5.2.2.1 Cement

        2. 5.2.2.2 Iron and Steel

        3. 5.2.2.3 Capital Goods

        4. 5.2.2.4 Automobile

        5. 5.2.2.5 Pharmaceutical

        6. 5.2.2.6 Paper

        7. 5.2.2.7 Petrochemical (Including Fertilizers)

        8. 5.2.2.8 Food and Beverage

        9. 5.2.2.9 Other Industrials

      3. 5.2.3 Infrastructure and Public Places

        1. 5.2.3.1 Roads and Bridges

        2. 5.2.3.2 Railways

        3. 5.2.3.3 Metros

        4. 5.2.3.4 Airports

        5. 5.2.3.5 Water

        6. 5.2.3.6 Energy

        7. 5.2.3.7 Government Buildings

        8. 5.2.3.8 Statues and Monuments

      4. 5.2.4 Residential

        1. 5.2.4.1 Elite Housing

        2. 5.2.4.2 Middle-class Housing

        3. 5.2.4.3 Low-cost Housing

      5. 5.2.5 Public Space

        1. 5.2.5.1 Government Buildings

        2. 5.2.5.2 Statues and Monuments

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 ASEAN Countries

        6. 5.3.1.6 Australia and New Zealand

        7. 5.3.1.7 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

        4. 5.3.2.4 Rest of North America

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 France

        4. 5.3.3.4 Italy

        5. 5.3.3.5 Russia

        6. 5.3.3.6 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of Latin America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 Qatar

        3. 5.3.5.3 United Arab Emirates

        4. 5.3.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 3M

      2. 6.4.2 Arkema Group

      3. 6.4.3 Ashland

      4. 6.4.4 MBCC Group (BASF SE)

      5. 6.4.5 Bolton Group

      6. 6.4.6 Cementaid International Ltd

      7. 6.4.7 CHRYSO GROUP

      8. 6.4.8 CICO Group

      9. 6.4.9 Conmix Ltd

      10. 6.4.10 Dow

      11. 6.4.11 Fosroc Inc.

      12. 6.4.12 Franklin International

      13. 6.4.13 GCP Applied Technologies Inc.

      14. 6.4.14 Henkel AG & Co. KGaA

      15. 6.4.15 LafargeHolcim

      16. 6.4.16 MAPEI S.p.A

      17. 6.4.17 MUHU (China) Construction Materials Co. Ltd

      18. 6.4.18 Nouryon

      19. 6.4.19 Pidilite Industries Ltd

      20. 6.4.20 RPM International Inc.

      21. 6.4.21 Selena Group

      22. 6.4.22 Sika AG

      23. 6.4.23 Thermax Limited

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Upcoming Construction Projects in the United States

    2. 7.2 Increasing Focus on Sustainable Materials

**Subject to Availability

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Frequently Asked Questions

The Construction Chemicals Market market is studied from 2016 - 2026.

The Construction Chemicals Market is growing at a CAGR of >5.5% over the next 5 years.

The Construction Chemicals Market is valued at 71460 Million USD in 2016.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

MAPEI, RPM International Inc., Sika AG, Dow, MBCC Group are the major companies operating in Construction Chemicals Market.

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