India Construction Chemicals Market Outlook-2032
The India construction chemicals market was valued at $2.4 billion in 2022 and is projected to reach $4.3 billion by 2032, growing at a CAGR of 6.2% from 2023 to 2032.
Report key highlighters:
- The report outlines the current India construction chemicals market trends and future scenario of the market from 2022 to 2032 to understand the prevailing opportunities and potential investment pockets.
- The India construction chemicals market has been analyzed in terms of value ($ Billion) and volume (tons). The analysis in the report is provided on the basis of product type and end-use industry across the country.
- The India construction chemicals market is fragmented in nature with many players such as ACC Limited, Akzo Nobel N.V., Cera-Chem Pvt. Ltd., Chembond Chemicals Limited, Dow Inc, which hold significant share of the market.
- The report provides strategy planning and industry dynamics to enhance decision making for existing market players and new entrants entering the India construction chemicals market.
Construction chemicals are a range of chemicals used in the construction industry to enhance the performance of building materials and structures. These chemicals are used for a variety of purposes, such as improving the strength & durability of concrete, preventing corrosion of metal structures, waterproofing, and providing fire protection. Construction chemicals are used to improve the properties of construction materials such as concrete, masonry, steel, and wood. For example, concrete admixtures are added to concrete to enhance its workability, durability, and strength. Waterproofing compounds are applied to concrete, masonry, or steel surfaces to prevent water penetration and damage.
The common types of construction chemicals include admixtures, waterproofing agents, corrosion inhibitors, fire protection chemicals, and sealants & coatings. Admixtures are chemical additives that are added to concrete, mortar, or grout to improve their workability, strength, and durability. Waterproofing agents are chemicals used to prevent water from penetrating building materials such as concrete, masonry, and wood. In addition, sealants and coatings are chemical products that are used to seal gaps and joints in buildings, as well as to protect surfaces from damage and weathering. Overall, the use of construction chemicals helps to improve the performance and durability of buildings and structures, making them more resistant to various types of damage and wear over time.
The construction industry's steady rise driven by population growth, urbanization, infrastructure demands, and technological advancements, is expected to continue during the forecast period. Indian government’s focus on initiatives such as smart cities, amplifies the need for construction chemicals. In addition, technological innovations enable stronger, taller, and more efficient structures, with tools such as building information modeling (BIM) and virtual reality (VR) arc designs. All these factors drive the growth of construction chemicals in India.
However, the production costs of construction chemicals are influenced by the price volatility of raw materials such as polymers and specialty chemicals, which impacts profit margins. Fluctuating raw material prices pose challenges in maintaining competitive pricing. In addition, these chemicals have a limited shelf life susceptible to improper storage & handling, exposure to extreme temperature that reduces efficacy and causes wastage. All these factors hamper market growth.
Indian government initiatives such as Housing for All and Smart Cities Mission drive significant construction. The Atmanirbhar Bharat campaign emphasizes self-reliance, promoting domestic manufacturing of construction materials and chemicals. Encouraging indigenous production and ease of doing business incentivize manufacturers to invest in R&D, boosting the growth of the domestic construction chemical industry. All these factors are anticipated to offer new growth opportunities for construction chemicals during the forecast period.
The construction industry has been on a steady rise over the past few years, and this trend is expected to continue during the forecast period. The growth in construction activity is attributed to several factors such as population growth, urbanization, surge in demand for infrastructure, and technological advancements. Population growth has been a major driver for construction activity, as it has led to an increased demand for housing and other types of buildings.
The trend toward urbanization has played a role, as more people move to cities in search of better job opportunities and improved living standards. Another key factor driving the growth of the construction industry is the surge in demand for infrastructure. In addition, India's ongoing focus on infrastructure development such as roads, bridges, railways, airports, and urban infrastructure projects such as smart cities, drives the demand for construction chemicals. Technological advancements have played a significant role in the growth of the construction industry. New construction materials and methods have made it possible to build taller, stronger, and more efficient buildings, while innovations such as building information modeling (BIM) and virtual reality (VR) have transformed the way architects and engineers design buildings. All these factors drive the growth of construction chemicals in India.
The major players operating in the India construction chemicals industry are ACC Limited, Akzo Nobel N.V., Cera-Chem Pvt. Ltd., Chembond Chemicals Limited, Dow Inc., Magicrete Building Solutions Pvt Ltd., MAPEI S.p.A., Pidilite Industries Ltd., Saint-Gobain, and Sika AG. The companies adopted key strategies such as product launch and business expansion to increase their market share.
India construction chemicals market, by product type
By product type, the market is classified into concrete admixtures, surface treatment, repair & rehabilitation, water proofing, flooring, adhesives & sealants, coatings, and others. The concrete admixtures segment accounted for 47.4% in India construction chemical market share in 2022 and is expected to maintain its dominance during the forecast period. Concrete admixtures are extremely beneficial in large-scale construction projects where efficient and smooth placement of concrete is essential. In addition, it is used for corrosion protection, shrinkage reduction, air entrainment for freeze-thaw resistance, setting time control, and strength & durability improvement. All these factors increase the demand for concrete admixtures during the forecast period.
By Product Type
Concrete Admixtures is projected as the most lucrative segment.
India construction chemicals market, by end-use industry
By end-use industry, the market is divided into residential, commercial, Infrastructure, and industrial. Residential segment accounted for 43.6% in India construction chemical market share in 2022 and is expected to maintain its dominance during the forecast period. Construction chemicals are applied to various areas such as roofs, basements, and bathrooms, ensuring a water-tight seal that safeguards the structure from leaks and dampness. In residential construction, grouts and anchoring systems are employed for various purposes such as anchoring structural elements, repairing cracks, and filling gaps.
By End-use Industry
Residential is projected as the most lucrative segment.
Key regulations analysis
Standards for construction chemicals in India are established and governed by the Bureau of Indian Standards (BIS) through various Indian Standards (IS) codes. These standards cover a wide range of construction chemical products and their respective applications.
Admixtures:
- IS 9103 (Specifications for Concrete Admixtures): This standard provides specifications for various types of concrete admixtures used in construction. It covers requirements for water-reducing admixtures, plasticizers, superplasticizers, and accelerators. These admixtures modify concrete properties, enhancing workability, strength, and durability.
- IS 2645 (Integral Waterproofing Compounds for Concrete Mixes): This standard specifies the requirements for integral waterproofing compounds added to concrete mixes. These compounds prevent water ingress, enhance the durability of concrete, and mitigate the risk of water-induced damage.
Sealants and Joint Fillers:
- IS 11993 (Sealants for Joints in Concrete Pavements, Airfields, and Industrial Floors): This standard outlines specifications for sealants used in various concrete joints to prevent water infiltration, protect against weathering, and accommodate joint movement without losing adhesion or cohesion.
- IS 1834 (Bituminous Emulsion for Construction of Sealing Coat): This standard covers bituminous emulsions used as sealing coats to provide waterproofing and protective layers in construction. These emulsions are applied to surfaces for sealing against moisture and environmental elements.
Recent Market Scenario
In June 2023, Sika AG opened a new plant in Kharagpur, eastern India, and continues to expand production capacity in the fast-growing Indian market. The plant manufactures mortar products, concrete admixtures, and shotcrete accelerators for customers in the West Bengal region.
In December 2022, Saint-Gobain expanded capacities in India in 2023. Saint-Gobain inaugurated its world’s biggest flat glass factory at Bhiwadi in Rajasthan in the second quarter of 2023. In addition, the company is expanding all its businesses, including glass, construction chemicals and ceramics.
In July 2022, MAPEI S.p.A. expanded its business by constructing a new factory in Kosi, Mathura, India. This new plant enables MAPEI S.p.A. to meet the rising demand for its products and services in Northern India and shorten the period before products reach the market. This expansion increases the production of construction chemicals leading to the growth of the market.
Key benefits for stakeholders
- The report includes in-depth analysis of different segments and provides India construction chemicals market estimation between 2023 and 2032.
- A comprehensive analysis of the factors that drive and restrict the growth of the India construction chemicals market is provided.
- Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the market players to adopt effective strategies.
- Estimations and forecast are based on factors impacting the India construction chemicals market growth, in terms of value.
- Key market players are profiled to gain an understanding of the strategies adopted by them.
- This report provides a detailed analysis of the current India construction chemicals market trends and future estimations from 2023 to 2032, which helps identify the prevailing market opportunities.
India Construction Chemicals Market Report Highlights
| Aspects | Details |
 By Product Type |
|
 By End-use Industry |
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 By Region |
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 Key Market Players | Chembond Chemicals Limited, Pidilite Industries Ltd., Dow Inc., Akzo Nobel N.V., Sika AG, Cera-Chem Pvt. Ltd., MAPEI S.p.A., ACC Limited, Magicrete Building Solutions Pvt Ltd., Saint-Gobain |
Analyst Review
According to the opinions of various CXOs, the main factors that drive the India construction chemicals market are a surge in demand from the construction industry and the need for sustainable & energy-conserving materials. On the other hand, low consumer awareness about the long-term benefits of using construction chemicals and changes in the regulatory environment of the construction industry have hampered the growth of this market. The use of construction chemicals is on the increase owing to urbanization and the need for sustainable infrastructure.
The industry is characterized by a high number of new market entrants that seek to tap lucrative opportunities in the market while existing players enter into strategic collaborations to increase capacities and expand their reach into emerging markets. The expansion, product launch, and acquisition activities in the industry have increased significantly over the past decade. Companies constantly seek to establish long-term contract agreements with trusted partners for sustainable business operations.
The market size for India construction chemicals market was $2.4 billion in 2022.
The emerging players in the India construction chemicals industry are ACC Limited, Akzo Nobel N.V., Cera-Chem Pvt. Ltd., Chembond Chemicals Limited, Dow Inc., Magicrete Building Solutions Pvt Ltd., MAPEI S.p.A., Pidilite Industries Ltd., Saint-Gobain, and Sika AG.
The major areas for development for India construction chemicals market are residential housing and infrastructure projects especially by boosted by government.
Residential housing industry is projected to increase the demand for India construction chemicals Market.
The emerging trends are increase in the construction activities and growth in conformity with the latest manufacturing standards.
The most influencing segment of the market is concrete admixtures.
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