A niche segment of the construction industry, construction chemicals are specialty products that optimize the performance of concrete, increase the life of structures, and impart additional protection from environmental hazards.
The global market is forecast to reach $40.15bn by 2022, registering a compound annual growth rate (CAGR) of 5.6% during the period 2016 to 2022, according to a recent report by Allied Market Research.
The report states: “The Asia Pacific, and Latin America, Middle East, and Africa (LAMEA) construction chemicals [markets are] expected to offer lucrative growth opportunities, during the forecast period, with CAGRs of 5.8% and 6.1%, respectively.”
It continues: “Key elements driving the construction chemicals market growth include [a] rise in [the] construction industry, [an] increase in urbanization, and [growing] conformity with [the] latest manufacturing standards. However, change in [the] regulatory environment and low consumer awareness inhibit the market growth.”
The trend of growing urbanization is also spurring growth in the Asia Pacific segment of the global construction chemicals market, as it fuels the growth of infrastructure projects, thereby leading to the consumption of 65% of the world’s cement production, according to another report, this time by Future Market Insight. The Construction Chemicals Market: Global Industry Analysis and Opportunity Assessment 2014 – 2020 goes on to say that manufacturers of construction chemicals might see a 3% to 4% rise in current prices, due to changes in raw material prices and increased demand for new products.
Similarly, the growth of infrastructure developments in the Middle East and Africa (MEA) means it is also projected to be a key market for construction chemicals, according to Grand View Research. The analyst stated, in a report published in April 2016, that the infrastructure segment was expected to grow rapidly, with a CAGR of 7.7% to 2024.
However, while Grand’s report, stated that the non-residential and infrastructure sector collectively accounted for over 60% of the global revenue share in 2015 in the construction chemicals market, Allied Market Research’s study contends that it is actually the residential and infrastructure end-user segments that together accounted for 60% of the market share, in terms of volume, in 2015.
While concrete admixtures, together with waterproofing and roofing chemical segments, dominated the construction chemicals market in 2015 – accounting for around 66% of the market share collectively – according to the Allied report, it is the concrete admixtures segment that currently leads the construction chemicals market, with more than 33% of the market share during the forecast period.
Grand View Research agrees that construction admixtures is a crucial segment within the construction chemicals market, stating that, in 2015, the concrete admixtures market was estimated at $17.35bn. The Grand report concludes that by 2024, the global construction chemicals market can be expected to reach $67.61bn.
Construction Week
19 December
