The global market for Construction Chemicals is forecast to reach US$48.8 billion by 2022, driven by the resurgence in construction activity in developed countries, significant investments in infrastructure projects in emerging markets and growing demand for high performance and environmental friendly construction chemicals.
Construction chemicals are specialty chemical formulations added in specific proportions to construction materials to address the functional, design and aesthetic requirements of residential, commercial, industrial, and infrastructure structures. These chemicals improve the workability and performance of the material, while protecting and holding construction materials and finished structures together. The growth in global construction activity at higher than GDP growth rates, low raw material costs and a continued demand for greener, sustainable technologies are driving growth prospects in construction chemicals market. Other factors driving demand include growing focus on short completion times, enhanced construction economics, and demand for long lasting constructions that do not require frequent repair and renovation. At the same time, increasing need for better infrastructure in developing economies as well as rapid urbanization and industrialization continues to spur new opportunities. Repair and maintenance of existing structures is also expected to be a major revenue generator in the construction chemicals market, driven by the revival of consumer spending on home repair, renovation and remodeling in developed markets.
The market is witnessing increased manufacturer focus on product improvement owing to the adoption of new and better technologies and materials in the construction industry. Building constructors globally are shifting attention towards innovative construction chemicals to ensure quality, durability and extended service life of structures. Changing government regulations further encourage the development of "smart' or 'green' buildings, thereby bolstering demand for eco-friendly, sustainable and non-hazardous specialty chemicals. The recent years witnessed notable development of innovative admixtures to improve the functionality of materials such as concrete. While increasing consumption in the building and construction industry remains a major driver for waterproofing admixtures, ongoing advancements in construction industry continue to boost demand for improving texture and quality of construction.
Protective Coatings & Sealers constitutes the largest segment, while Caulks & Adhesives ranks as the fastest-growing market over the analysis period. Demand for concrete admixtures is spurred by infrastructure development and building activity, while protective chemicals demand is linked with trends in maintenance requirements. Non-Residential Construction constitutes the largest end-use market for construction chemicals, while Non-Building Construction segment is projected to record the fastest growth.
Asia-Pacific represents the largest and the fastest growing market worldwide with a CAGR of 6.3% over the analysis period. The growth in the region is led by encouraging GDP forecasts and a parallel expansion of opportunities in residential, commercial, industrial, and infrastructure construction; launch of government funded fully integrated chemical research projects aimed at improving the competitiveness of the domestic chemicals industry and its ability to meet high performance needs of the construction industry; growing international pressure to curb emissions and the resulting tightening of regulatory restrictions that encourage demand for environment friendly chemical systems and formulations.
Major players in the market include Akzo Nobel Chemicals AG, Antas Chemical Co., Ltd., Ashland Inc., BASF SE, Bostik Inc., Franklin International Inc., GCP Applied Technologies, H.B. Fuller Company, Henkel AG & Co. KGaA, Mapei S.p.A., RPM International Inc., DAP Products Inc., Tremco Incorporated, Sika AG, The Dow Chemical Company.