Construction Chemicals Market to Reach USD 83.2 billion by 2031 Driven by Urbanization and Sustainable Building Practices | DataM Intelligence

The global construction chemicals market is gearing up for significant expansion by 2025, spurred by rapid urbanization, advancements in construction materials, and an increased push for sustainability in building practices. With infrastructure projects booming and demand for durable, efficient construction solutions rising, the market is expected to reach USD 83.2 billion by 2031.

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Market Growth and Future Outlook

Construction chemicals have become indispensable in today's building environment, offering enhanced durability, faster project execution, and improved environmental compliance. These chemicals include admixtures, sealants, adhesives, protective coatings, and waterproofing agents, all crucial in boosting structural performance and longevity.

As nations invest heavily in infrastructure, particularly roads, bridges, housing, and commercial projects, the use of specialized construction chemicals is seeing unprecedented demand. With smart cities, green buildings, and resilient infrastructure at the forefront, the market is projected to witness a healthy CAGR 5.8% during 2024-2031 and beyond.

Key Market Drivers

Several core trends are propelling the growth of the construction chemicals market:

• Urban Expansion and Infrastructure Revitalization: Global cities are growing rapidly, with governments allocating substantial funds for residential and commercial expansion. Reconstruction of aging infrastructure in developed countries is also a major contributor.

• Sustainability and Green Building Practices: Environmental regulations are driving the use of eco-friendly and energy-efficient construction chemicals. Products that reduce carbon footprints, such as low-VOC sealants and recycled content admixtures, are gaining traction.

• Technological Innovation in Materials: Advancements in polymer chemistry and nanotechnology are giving rise to high-performance coatings, self-healing concrete, and fast-curing materials, enhancing structural resilience.

• Public and Private Sector Investments: Major PPP (Public-Private Partnership) projects, especially in developing economies, are encouraging widespread application of construction chemicals in large-scale builds.

Regional Market Insights

North America

North America holds a strong position in the global market, with the U.S. driving consistent demand through residential construction recovery and increasing investment in sustainable infrastructure. The region has also witnessed a significant shift toward green architecture, where low-emission construction chemicals are becoming the norm. Furthermore, the resurgence of the manufacturing and warehousing sectors post-pandemic is adding to market expansion.

Asia-Pacific

Asia-Pacific is currently the fastest-growing region in the construction chemicals sector. Countries such as China, India, Vietnam, and Indonesia are witnessing massive infrastructure development fueled by urban migration and population growth. Meanwhile, Japan and South Korea are focusing on earthquake-resistant structures and aging infrastructure restoration, which require high-performance chemical formulations. Government incentives, foreign investments, and public infrastructure budgets are further boosting growth in the region.

Europe

Europe's construction chemicals market remains robust, with a strong emphasis on energy efficiency and climate-conscious construction. The EU's Green Deal initiatives and renovation wave programs have encouraged the use of sustainable chemical products across the region.

Major Players Shaping the Market

Leading companies continue to play a central role in advancing the global construction chemicals industry. These include:

• Sika AG
• BASF SE
• Arkema
• Mapei S.p.A.
• Fosroc International
• Dow Inc.
• 3M
• Bolton Group
• Akzo Nobel N.V.
• Albemarle Corporatio
• DuPont, Fosroc, Inc.
• W. R. Grace & Co
• Henkel AG & Co. KGaA.

These industry players are heavily investing in R&D to improve the performance, durability, and sustainability of their product lines. Strategic collaborations, geographical expansions, and smart product launches have become the norm.

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Latest Industry Developments

• Bio-based Construction Solutions: Major companies are now developing plant-based sealants and biodegradable adhesives to align with sustainability trends.

• Smart Admixtures: Intelligent formulations that respond to humidity and temperature changes are being adopted to improve structural integrity under extreme conditions.

• Digital Integration in Product Development: Simulation tools and digital twins are increasingly used to predict material behavior and optimize chemical performance on site.

• Regional Production Hubs: Global manufacturers are localizing production to meet rising demand efficiently, reduce logistics costs, and maintain supply chain resilience.

Industry News:

Swiss construction chemicals giant Sika AG acquired Singapore-based Elmich Pte in February 2025. Elmich specializes in greening systems, and this acquisition is set to bolster Sika's footprint in the Asia-Pacific region, aligning with its strategy to offer sustainable and innovative solutions in urban construction.

In June 2024, French multinational Saint-Gobain announced its agreement to acquire Dubai-based construction chemicals company FOSROC for approximately $1.03 billion. This strategic move aims to strengthen Saint-Gobain's presence in high-growth markets such as India and the Middle East. The acquisition is expected to close in the first half of 2025, with anticipated synergies of $54 million by the third year post-acquisition.

Industry News from USA

In the United States, recent federal infrastructure spending packages have allocated billions toward modernizing transportation networks, bridges, and public buildings. This has directly translated to increased demand for concrete admixtures, corrosion inhibitors, and waterproofing systems.
Several states, including California and New York, have introduced updated green building codes encouraging the use of low-emission and energy-saving construction materials. Additionally, U.S.-based companies are forming alliances with construction tech firms to deliver AI-driven chemical solutions that optimize usage and reduce waste.

Industry News from Japan

Japan's construction chemicals market is gaining momentum amid a renewed focus on disaster-resilient infrastructure. Following the recent earthquakes, the Japanese government has launched new programs to strengthen public buildings using seismic-grade coatings and chemical reinforcements.
Japanese firms are also leading innovation in nanotechnology-based waterproofing and environmentally friendly chemical compounds tailored for urban applications. The Tokyo Metropolitan Government has pushed for large-scale public infrastructure renovations ahead of upcoming international events, with priority placed on long-lasting, non-toxic materials.

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Conclusion

The construction chemicals market is evolving rapidly, shaped by sustainability goals, technological breakthroughs, and a global push for smart infrastructure. With dynamic regional developments and innovative product pipelines, the market is well-positioned to support the future of resilient, eco-friendly, and efficient construction.

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