The global construction chemicals market was estimated at USD 19,416.37 million in 2017. The market is expected to register a CAGR of 6.06% during the forecast period, 2018 to 2023. The residential sector dominated the global construction chemicals market with nearly 29% share globally, while the industrial segment is estimated to register the fastest CAGR through the forecast period.
The construction sector in Asia-Pacific is the largest in the world. The increasing infrastructural construction activities are the major drivers for the Asia-Pacific construction industry. In addition, the entry of major construction players from the EU into the lucrative markets in countries, like China, has further fueled the industry’s growth. Owing to their business potential, countries, such as Indonesia, China, Malaysia, Singapore, and South Korea have become hosts to numerous national and international events. The move has accelerated the demand for hotels, shopping malls, high-rise buildings, arenas, and stadiums (both outdoor and indoor), thereby, boosting the construction industry in the respective regions. Concrete admixture dominates the global construction chemicals market by product type. The segment is expected to register the highest growth over the forecast period at a CAGR of 6.73%.
Concrete admixtures reduce the concrete construction cost by modifying the properties of hardened concrete, ensuring better quality during mixing, transporting, placing, and curing, and thus, overcoming the most emergencies during concrete operations. Asia-Pacific has the largest market for concrete admixture, owing to the massive growth in the construction markets of India, China, and various Southeast Asian countries. Various incentives by the governments of respective nations to promote the infrastructural sector, coupled with the blooming residential sector (owing to the rising middleclass population), have largely facilitated the growth of the construction market in Asia-Pacific over the years.
Asia-Pacific has the largest share in the market, accounting for nearly 46% of the global market in 2017. The market for Asia-Pacific is driven majorly by the increasing construction activities coupled with supportive government regulations. A huge consumer base and cheaper manufacturing costs in Asia-Pacific are drawing-in high FDIs, with India and China being the major countries.
The Chinese construction market is the largest in the world and is demonstrating a slower growth rate of 10.16% since 2015. Increasing government investments in transport infrastructure and the water conversation sector are expected to maintain the growth rates of the construction sector in the country. In addition to all this, the approval of “green building evaluation standard” by the government is likely to boost the green building market. Additionally, there have been investments of CNY 823.8 billion and CNY 801.5 billion in China’s rail infrastructure in 2015 & 2016, respectively.
Major Players: MAPEI INC., SIKA AG, BASF SE, W.R. GRACE & CO., and RPM INTERNATIONAL INC amongst others
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