Construction Chemicals Market Expected to Reach $88.1 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Construction Chemicals Market," The construction chemicals market was valued at $49.9 billion in 2022, and is estimated to reach $88.1 billion by 2032, growing at a CAGR of 6% from 2023 to 2032.

Construction chemicals are compounds that help optimize the performance of concrete. These addendums provide further value for end users by reducing labor cost and minimizing wastage. The key elements that drive the construction chemicals market growth are rise in construction industry, urbanization, and conformity with the latest manufacturing standards. However, the change in regulatory environment, low consumer awareness, and availability of low-cost chemical solutions inhibit the market growth.

Construction chemicals are a broad category of chemical compounds that are used in the construction industry to improve the performance, durability, and functionality of construction materials and structures. These chemicals include a wide range of products such as adhesives, sealants, waterproofing compounds, concrete admixtures, and protective coatings.

 Construction chemicals are added to building materials such as concrete, masonry, steel, and wood to enhance their properties. For example, concrete admixtures can be added to concrete to improve its workability, strength, and durability. Waterproofing compounds can be applied to surfaces to prevent water penetration and damage, while protective coatings can be used to protect surfaces from weathering, UV radiation, and chemical attack.

The surge in demand for construction chemicals from emerging economies

Emerging economies have experienced rapid urbanization and industrialization, which drive demand for construction chemicals. Construction chemicals are specialty chemicals that are used in construction activities to enhance the performance of construction materials and ensure their longevity. The demand for construction chemicals from emerging economies is on the rise due to a variety of factors, including urbanization, infrastructure development, and economic growth. Emerging economies such as China, India, Brazil, and Southeast Asian countries are expected to drive the demand for construction chemicals in the coming years.

The economic development in emerging economies is responsible for the rapid growth in the number of industries. The mining industry grows rapidly in the African market, whereas many foreign countries invest in Asia-Pacific in the industrial sector. The increase in industrialization demands for construction, as it is the major ingredient for infrastructure development. Growing urbanization and population in the developing countries create the basic requirement for sustainable and eco-friendly infrastructure. The demand for construction chemicals continues to increase in emerging economies and the impact of these factors is expected to create significant opportunities in the market during the forecast period.

The construction chemical market is segmented on the basis of type, application, and region. By type, the market is classified into concrete admixtures, water proofing & roofing, repair and rehabilitation, industrial flooring, sealants & adhesives, cement grinding aids, and others. By application, the market is fragmented into residential, industrial/commercial, infrastructure, and repair. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

By type, Based on type, the concrete admixtures segment accounted for the largest share in 2022 in the global construction chemical market revenue, and is projected to register the highest CAGR of 6.3% during the forecast period owing to growing trend towards sustainable construction practices, and concrete admixtures can help in achieving this goal by reducing the carbon footprint of concrete production. This has led to an increased demand for environmentally friendly and energy-efficient concrete admixtures. 

By application, the industrial/commercial segment is anticipated to gain a dominant share in the global construction chemicals market in terms of revenue as well as volume. Rapid developments in developing countries and the utilization of innovative products & materials in construction activities have fueled the growth of market. However, infrastructure is anticipated to register the highest CAGR of 6.4% during the forecast period.

By region, Based on region, Asia-Pacific held the highest market share in terms of revenue in 2022 in the global construction chemical market and is projected to register the highest CAGR of 6.2% during the forecast period. This is attributed to numerous factors such as the flourishing construction industry, consistently developing economic status, and strengthening industrialization linked, which drive the growth of the Asia-Pacific market.

The major players operating in the industry include 3M, MAPEI S.p.A., Fosroc, Inc., Sika AG, Evonik, Chembond Chemicals Limited, ACC Limited, Flowcrete Group Ltd., SWC Brother Company Limited, and Cera-Chem Pvt. Ltd. These players have adopted product launch as their key strategy to increase their market shares.

Key findings

• By type, the concrete admixtures segment was the largest revenue contributor in 2022, and it is anticipated to register the highest CAGR of 6.3% during the forecast period.
• By end-use industry, the industrial/commercial segment was the largest revenue contributor in 2022, while infrastructure is anticipated to register the highest CAGR of 6.4% during the forecast period.
• By region, the Asia-Pacific region segment was the largest revenue contributor in 2022 and is anticipated to register the highest CAGR of 6.2% during the forecast period.

COVID-19 Impact Analysis

• The COVID-19 outbreak had a significant impact on the construction chemical market. The pandemic disrupted supply chains, slowed down construction activities, and led to a decline in demand for construction chemicals.
• The pandemic caused delays in construction projects due to lockdowns, social distancing measures, and labor shortages. This resulted in a decrease in demand for construction chemicals.
• The COVID-19 outbreak led to a shift toward more eco-friendly construction chemicals. The pandemic highlighted the importance of sustainability, and there is a surge in demand for chemicals that are less harmful to the environment and human health.
• However, as the world recovers from the pandemic and construction activities resume, the demand for construction chemicals is expected to rebound. In addition, the pandemic has highlighted the need for greater sustainability in the construction industry, which could lead to opportunities for manufacturers of eco-friendly chemicals.