Construction chemicals are additives that are used with concrete, cement, and other construction materials to provide additional durability and workability to various structures. The type of chemical to be used depends on the size and nature of the project. Construction chemicals are used to obtain certain desired characteristics in concrete such as high workability, high compressive strength, and high performance and durability parameters to meet the requirement of complexity of modern structures. Hardeners are used with structures to seal them against moisture and making them dustproof by bonding the crystalline structure of cement.
Construction chemicals provide structures with enhanced bond strength and moisture retention, increased crack resistance of mortar, increased yield with same quantity of construction materials, decreases drying time of mortar and improves appearance.
Construction chemicals Market Taxonomy
On the basis of type of product type, global market is classified into:
- Concrete admixtures
- Sealants & adhesives
- On the basis of application, the global market is segmented into:
The global construction chemicals market size is expected to reach USD 67.61 billion by 2024, according to a new report by Grand View Research, Inc. The global market is estimated to register a CAGR of 6.3% during the forecast period. Rising urbanization, coupled with various infrastructural developments are boosting market growth.
Construction chemicals are the chemical compounds used to modify the properties of the construction materials. These chemicals reduce the amount of water used in a construction. They play a crucial role in improving the overall performance of a building and non-building structures. These chemicals can be categorized into different product segments including concrete admixtures, construction adhesives, construction sealants, protective coatings, and waterproofing chemicals.
According to alliedmarketresearch .com, Construction Chemicals Market was valued at $27,162 million in 2015, and is expected to reach $40,154 million by 2022, supported by a CAGR of 5.6% during the forecast period 2016 – 2022. Construction chemicals are specialty products that are crucial for sustainable infrastructure and energy conservation in construction industry to increase durability of buildings, and to provide added fortification from environmental hazards.
Infrastructure is the most attractive segment in the world construction chemicals market. It would be the first preference for new entrants due to surge in population and urbanization that drives the need for sustainable infrastructure and environmental friendly products. Chemical products such as concrete admixtures similarly help in minimizing the quantities of cement and water generally required during the construction.
Infrastructure is the most attractive segment in the world construction chemicals market. Infrastructure would be the first preference for new entrants due to surging population and urbanization giving driving the need for sustainable infrastructure and environmental friendly products. The infrastructure market was valued at $7,415 million in 2015 and is expected to grow at a CAGR of 7.7% during 2016-2022. Residential is the second most attractive segment for new entrants in construction chemicals market. This segment was the highest revenue generating in 2015 valued at $12,361 million representing nearly half of the global market.
According to mordorintelligence.com, the global construction chemicals market is expected to be valued at USD 43,873.68 million in 2018 and is anticipated to reach USD 59,350.07 million by 2023, at an estimated CAGR of 6.23% over the forecast period, 2018-2023. Increasing demand from construction in various countries of Asia-Pacific is driving the demand for construction chemicals market. However, shortage of skilled labor across the industry is set to stunt the growth of the market during the forecast period.
Asia Pacific Zone
Rapid increase in population in regions of China and India is expected to give a rise in construction activity. The key areas of expected growth are social infrastructure, schools, hospitals, government accommodation, water, defense infrastructure, and water resources. In Asia, infrastructure accounted for 37%, residential for 34% and non-residential for 29% share of the construction spending. Singapore has mandated elements of prefabricated, pre-finished, and volumetric construction (PPVC) for all projects on government land. The government backs this with subsidies for companies that participate with the aim of increasing and standardizing modern methods of construction (MMC) in the country. All such factors are increasing the demand for construction chemicals in the Asia-pacific region.
According to mordorintelligence.com the Asia-Pacific construction sector is the largest in the world and is growing at a healthy rate, owing to the rising population, the increase in middle-class incomes, and urbanization. Increasing infrastructure construction activities and the entry of major players from the EU into the lucrative market of China has further fueled the industry’s expansion. Huge consumer base and cheaper manufacturing costs in the Asia-Pacific region are drawing in high FDIs, with India and China being the major beneficiaries. In the FY2016-17, India had a total FDI investment of USD 60.08 billion, which was 8% higher than the previous year, with large investments in real estate and infrastructure. Construction activities have been growing in Asia-Pacific. This, in turn, is driving the demand for construction chemicals in the region.
According to.marketsandmarkets.com, the construction chemicals market witnessed a high growth in the past few years which is estimated to increase in the coming years. This growth is largely fueled by the growth of the construction industry, technological advancements, and growing demand in the Asia-Pacific region.
Asia-Pacific is the biggest and the fastest-growing region due to the growing demand for construction chemicals in India, China, Japan, and South Korea. North America and Europe are matured markets and are expected to grow at a low CAGR in comparison with Asia-Pacific till 2020.
The construction chemicals market is estimated to reach USD 33.98 Billion in terms of volume by 2020, signifying a high CAGR of over 7.62% between 2015 and 2020.
The construction chemicals market registered a high growth in the past few years which is estimated to continue in the coming years supported by growing construction industry in Asia-pacific and RoW regions. The demand for construction chemicals depends on new construction and its maintenance and repair activities. The demand for these chemicals is mainly driven by growing requirements for housing and infrastructure. It is also influenced by consumer awareness, need for durable and aesthetic civil structure, and other benefits achieved in making construction structure more economical for contractors and other interest holders.
The demand for construction chemicals depends upon concrete consumption and extent of construction development activities occurring in a particular region. As per the trends in the construction sector, slow growth is expected in European and North American regions, whereas promising growth is expected in developing regions of the world in the construction chemicals market due to stable economic conditions and increasing demand for residential units and infrastructure development activities.
Currently, the Asia-Pacific region is the largest market of construction chemicals and is estimated to register the highest CAGR. Countries such as China, Japan, and India are expected to lead the Asia-Pacific construction chemicals market, with China accounting for the largest share in the regional demand of construction chemicals. The market size, in terms of volume, of construction chemicals is comparatively low in the RoW region, but the estimated growth of the region is the second highest after Asia-Pacific.
The Asia-Pacific and RoW regions are the most active markets in terms of strategic initiatives, owing to their market demands. The construction industry has led the rapid growth in the construction chemicals market.
The significant construction chemicals manufacturers include BASF SE (Germany), W.R. Grace (U.S.), RPM International (U.S.), Sika A.G. (Switzerland), Fosroc International (U.K.), The Dow Chemical Company (U.S.), Arkema S.A. (France), Ashland Inc. (U.S.), MapeiS.p.A (Italy), Pidilite Industries (India), and other local players.
Segments and popular mode of chemical construction:
Construction chemicals are crucial for sustainable infrastructure and energy conservation in construction industry. The global construction chemicals market is segmented based on type as concrete admixtures, waterproofing & roofing, repair, flooring, sealants & adhesives, and others. In 2015, the concrete admixtures segment occupied highest share of 38% in the construction chemicals market. Admixtures are used during the first stage of construction. Ligno-based, SNF (Sulfonated Naphthalene Formaldehyde) & SMF (Sulfonated Melamine Formaldehyde)-based and PCE-based are the three types of admixtures mostly prevalent in the market. Ligno-based admixtures were the first generation admixtures with lower performance as compared to SNF & SMF- and PCE-based admixtures. PCE-based admixtures are the third-generation admixtures and are usually 3-4 times more expensive than SNF & SMF-/Ligno-based admixtures. The Asia-Pacific region has the highest consumption rate for admixtures owing to the huge number of infrastructure projects undertaken.
By end user, the market is divided into residential, industrial/commercial, infrastructure, and repair structures. Construction chemicals are required to meet the requirements of the burgeoning world population and the incumbent urbanization. In industries, construction chemicals are necessary for stability and durability of the structures. Infrastructure is crucial to any economy, particularly emerging markets, as their growth rate is high. Construction chemicals are widely used in residential infrastructure, owing to the rise in demand for housing and domiciliary buildings in urban areas. The repair segment is relatively less explored in this market, though this end-use of construction chemicals is critical towards the maintenance of structures globally. Residential and infrastructure end-use segments collectively accounted for nearly 60% of the market share, in volume, for the year 2015.
According to TechSci Research report, “India Construction Chemicals Market By Type, By Application and Competition Forecast and Opportunities, 2010 – 2020”, construction chemical market in India is projected to grow at a CAGR of over 15% during 2015-2020, due to increasing construction activities and rising government and private investments in infrastructure and real estate sectors. In addition, 100% FDI policy of the government in real estate industry is further anticipated to boost growth in India construction chemicals market during 2015 – 2020. The 12th Five Year Plan is also expected to have a positive impact on the country’s construction chemicals market, as the Government of India plans to make infrastructure investments amounting to USD1.025 trillion by 2017.
Changing consumer lifestyles, especially of the country’s robustly expanding middle class population, is driving demand for quality construction of residential structures, thereby augmenting demand for construction chemicals in India. The real estate sector accounted for the largest share in India construction chemicals market in 2014, on account of rising disposable income, increasing number of nuclear families and rising investments in both residential and corporate structures. This sector is expected to maintain its dominance in India construction chemicals market in the coming years, due to implementation of government policies such as 100% FDI in real estate business and ‘Housing for All by 2020’.
Concrete admixtures reduce concrete construction cost 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. 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. Sika AG opened a new concrete admixture production plant in 2017 in Addis Ababa, Ethiopia, and a motor factory near Athens, Greece.
Strategic Relevant market
India construction chemicals market has been experiencing significant growth; however, it is still at growing phase when compared to other regional and domestic markets. Indian Construction Chemical with Strategic Relevant market is they key opinies industry experts.
Construction chemicals are added with construction materials in order to improve its workability, enhance performance, add functionality, improve chemical resistance or enhance durability of civil structures. Apart from materials like concrete and steel, various construction chemicals also play a vital role in the process of developing projects, both commercial and residential. These chemicals are specialty products, being used extensively during the ‘pre-construction’ or ‘post-construction stages, to give special properties to the concrete structure, thus, providing additional stability and protection to new structures. These chemicals are even used for renovation and reinforcement of older structures. Over past few years, increasing infrastructure development activities, investment in commercial and residential housing and renovation activities of historical monuments, water retention structure, bridges and other civil structures have led to significant consumption of construction chemicals across India.
Construction chemicals are used not only to add life to the structures but also to aid in minimising quantities of cement and water required during construction. There are many buildings in India which are over 40 to 50 years old and need extensive renovation work. Therefore, the demand for such chemicals has been on the rise. Being a competitive and fragmented market, the construction chemicals industry is mostly dominated by several small and specialised suppliers.
India’s construction chemicals market is experiencing significant growth mainly owing to the country’s industrial boom. Huge investments are taking place in India’s infrastructure market, which is giving a push to the construction and construction chemicals market. Large-scale construction activities are currently ongoing in the country. The three major categories in which construction activities find application include infrastructural, industrial and commercial, and residential. Among these segments, infrastructure is projected to continue its dominance in the upcoming years and hold a market value of over US$ 1,500 Mn by the end of 2025. However, an increase in the government’s focus on vigorous development has resulted in various initiatives like “Make in India”, which has triggered the growth of construction in the commercial and industrial segment, which is expected to register a CAGR of over 17% during the forecast period. The rise in construction activities is expected to take place mostly in Western India predominantly in Maharashtra, Gujarat and Madhya Pradesh. Gujarat and Maharashtra are the hub of production activities for many industries, thus driving the growth of the construction market, and thereby boosting the demand for construction chemicals.
Some major trends in India construction chemicals market are the increase in investment in R&D, entry of new players, adoption of sustainable products and technological advancements. Asian region is turning out to be focus point for most of the major construction chemicals companies for investment in R&D. Rising construction of new buildings and renovation activities across India is expected to boost the overall demand for construction chemicals in the near future.
On the basis of end use sectors, India construction chemicals market is segmented as infrastructure sector and residential & commercial sector. Infrastructure sector is likely to grow at a CAGR of 18.3%. The residential and commercial segment has a share of 34% in overall India construction chemical market with a steady Y-o-Y growth of 16% in 2020.
From regional perspective, India construction chemicals market is segmented into northern region, eastern region, western region and southern region. Currently, northern region is expected to experience highest CAGR of 17.8% as compared to other regions. Southern region is likely to create an opportunity which is three times the value in 2013. The southern region comprises the states of Tamil Nadu, Andhra Pradesh, Karnataka and Kerala. This region realizes the potential of IT services and hence are able to attract significant investment from these service and manufacturing companies. Chemical and engineering industries are the main drivers of growth in western region particularly in Maharashtra and Gujarat.
India construction chemicals market is segmented as admixtures, flooring chemicals, water proofing compounds, adhesives & sealants and repair, rehabilitation & others. Adhesives & sealants and admixtures market is expected to contribute collectively 61.2% share by 2020. It is anticipated that there will be a decline in the growth of the repair, rehabilitation & others segment from 12.7% in 2014 to 11.9% in 2020, indicating a lack of inspection and maintenance in the construction industry in India
Construction of Entertainment Centers in Emerging Economies Fuels Demand
Majorly fueling the construction chemicals market is steady investment for infrastructural development in BRICS nations. Developing countries in Asia Pacific are witnessing a boom in the construction of commercial complexes, shopping malls, and multiplexes to serve changing entertainment needs of millennials. This has led to new construction of residential complexes, entertainment centers, commercial buildings that display a steady demand for construction chemicals. Furthermore, increasing demand for green buildings to abide by environment conservation regulations are stoking demand for low-emission construction chemicals.
Construction chemicals are used to provide an additional protective layer for buildings to safeguard from weathering and changing climates. In recent years, the demand for construction chemicals has been high as they add aesthetic and functional value to the architecture of a structure.
In developing countries, several governments have been taking initiatives for the construction of housing for low-income families. The use of various types of construction chemicals enables designers and builders to come up with sustainable building structures that pose minimum hazard to the environment.
India’s construction boom is mainly contributed by strong infrastructural growth in the country
India’s construction chemicals market is experiencing significant growth mainly owing to the country’s industrial boom. Huge investments are taking place in India’s infrastructure market, which is giving a push to the construction and construction chemicals market. Large-scale construction activities are currently ongoing in the country. The three major categories in which construction activities find application include infrastructural, industrial and commercial, and residential. Among these segments, infrastructure is projected to continue its dominance in the upcoming years and hold a market value of over US$ 1,500 Mn by the end of 2025. However, an increase in the government’s focus on vigorous development has resulted in various initiatives like “Make in India”, which has triggered the growth of construction in the commercial and industrial segment, which is expected to register a CAGR of over 17% during the forecast period. The rise in construction activities is expected to take place mostly in Western India predominantly in Maharashtra, Gujarat and Madhya Pradesh. Gujarat and Maharashtra are the hub of production activities for many industries, thus driving the growth of the construction market, and thereby boosting the demand for construction chemicals
Need for Durable and Lightweight Materials Expected to Boost Demand
Rapidly increasing growing construction industry coupled with complex modern infrastructural needs fuels growth of construction chemicals market. Asia Pacific is one of the major contributors to the construction chemicals market. This is owing to constantly growing construction industry in emerging economies such as India and China. According to India Brand Equity Foundation (IBEF)—part of the Department of Commerce, Ministry of Commerce and Industry, Government of India—the Indian construction industry is expected to grow to a value of US$ 5 billion by 2020. Also, various government schemes and foreign investments have augmented the growth of construction chemicals market in the region. Growing infrastructural needs in India has attracted various investors such as Silver Spring Capital Management, Altico Capital, The Construction Industry Development Board of Malaysia, and many more. This in turn creates a conducive environment for market growth.
Chemical solutions for tall structures
The changing needs of concrete, coupled with construction schedules and varied availability of raw materials, puts tremendous stress on ensuring production, durability and the sustainability of the concrete produced. The Construction of Tall Buildings is becoming more and more common as the available land bank shrinks and the expansion needs to be solely vertical. Concrete is the material of choice today owing to the moldability, economy, speed and durability aspects it provides to the structures. Handling concrete is as much of a skill as it is a science. In terms of concrete, engineers bring together over 2500 kg of varied raw materials (binders, aggregates, sand, water and additives) per cubic meter, to cast a homogenous material that is expected to last in excess of 50 to 100 years.
Bringing homogeneity and imparting durability to a combination of these materials is the task of construction additives, which fall under the category of Construction Chemicals. As we see it, Concrete Construction without of the use of Construction Chemicals is not possible today. When addressing the concept of tall structures, construction chemicals can help address / enhance the following areas:
- Durability Enhancement for the Structure
- Load Reduction in the superstructure
- Minimizing Operational Maintenance,
- Fast Finishing Systems,
- Speed of Construction
- Some of the materials reviewed include:
- Additives for Floor Screeds,
- Curing Compounds
- Waterproofing Systems,
- Protection Systems
Speciality chemicals (also called specialties or effect chemicals) are particular chemical products which provide a wide variety of effects on which many other industry sectors rely. Some of the categories of speciality chemicals are adhesives, agrichemicals, cleaning materials, colors, cosmetic additives, construction chemicals, elastomers, flavors, food additives, fragrances, industrial gases, lubricants, paints, polymers, surfactants, and textile auxiliaries. Other industrial sectors such as automotive, aerospace, food, cosmetics, agriculture, manufacturing, and textiles are highly dependent on such products.
The specialty chemicals market is projected to expand at a CAGR of 4.72% over the forecast period of 2017-2023. The growth of specialty chemicals is driven by both domestic consumption and exports. Rising importance of specialty chemicals in a number of industries in emerging economies is the key driving factor that is boosting the specialty chemical market growth. Rapid urbanization, rising standard of living and burgeoning investments in the infrastructure are the drivers that are boosting the demand for specialty chemicals. Industries such as construction are increasingly using these chemicals so as to improve the durability of the structure. The market is expected to grow at a steady pace owing to the rising adoption of certain specialty chemicals in emerging economies such as India. However, fluctuating prices of raw materials can restrain the market growth.
Speciality chemicals are materials used on the basis of their performance or function. Consequently, in addition to “effect” chemicals they are sometimes referred to as “performance” chemicals or “formulation” chemicals. They can be unique molecules or mixtures of molecules known as formulations. The physical and chemical characteristics of the single molecules or the formulated mixtures of molecules and the composition of the mixtures influences the performance end product. In commercial applications the companies providing these products more often than not provide targeted customer service to innovative individual technical solutions for their customers. This is a differentiating component of the service provided by speciality chemical producers when they are compared to the other sub-sectors of the chemical industry such as fine chemicals, commodity chemicals, petrochemicals and pharmaceuticals.
Driving factors and moving forward
Construction chemicals are of increasing importance to the construction industry because they impart design flexibility through their ability to modify and enhance the physical and chemicals properties of structures, such as compressive strength, durability, the surface finish, and resistance to adverse climatic and working conditions, according to Markets and Markets. Many construction chemicals are also designed to improve workability, performance, and the compatibility of different construction materials, as well as protect construction materials and finished structures. “Depending on their intended use, construction chemicals can serve to increase the durability and improve the aesthetics of a building, reduce reliance on natural resources used in construction projects, and conserve time, money, and energy during construction and throughout a building’s lifespan,” adds Bill Wagner, global business director for Acrylics with Dow Construction Chemicals.
The biggest drivers of innovation in concrete admixtures relate to the desire of customers for lower job costs and reduced project timelines. In fact, green construction chemicals for concrete applications, even if they offer significant ecological advantages, do not sell if they do not offer cost and speed advantages.
It is important to note that new products that help lower overall job costs are not necessarily less costly themselves. “Cheaper doesn’t always mean a cheaper product; what customers are looking for is a lower overall cost for installation.
One of the biggest needs for construction chemical technologies that has been observed is the ability to provide functionality while still addressing insulation and/or aesthetic needs.
The Construction Chemicals are the vastly used product on account rapidly increasing construction activities around the globe. It is not only one of the major and necessary residential and non-residential building applications but also in mega and multi-purpose projected such as dam, Hydro Electric Power (HEP) plants, and road construction, among others. In addition to this with changing consumer trends and stricter regulations to meet safety standards of building construction almost over 75% of the commercial and residential buildings opt for the Construction Chemicals to avoid the leveraging cost of maintenance. During the last decade, the construction chemicals are gaining great attention owing to the rigorous environmental regulations, which are demanding greater safety of the structure.
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