Global Construction Chemical Market Expecetd to Reach US$ 1,890 Mn by 2020
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India construction chemicals market has been experiencing significant growth; however, it is still at growing phase when compared to other regional and domestic markets. Construction chemicals are added with construction materials in order to improve its workability, enhance performance, add functionality, improve chemical resistance or enhance durability of civil structures. Over past few years, increasing infrastructure development activities, investment in commercial and residential housing and renovation activities of historical monuments, water retention structure, bridges and other civil structures have led to significant consumption of construction chemicals across India.
The market for construction chemicals in India is projected to exhibit a promising CAGR of 17.2% between 2014 and 2020. The India Construction Chemicals market is estimated to reach a market value of US$1,890 million by 2020. The India construction chemicals market is at a nascent stage and is attracting a lot of attention from foreign as well as domestic market participants including infrastructure developers, chemical manufacturers and institutional investors regarding set up of construction chemicals production facilities making foray into manufacturing operations in India.
India Construction Chemicals Market: Drivers and Trends
Government regulations formulated for promoting the concept of ‘Green Revolution’, increase in foreign investment, urbanization and growing preference for utilization of ready-mix concrete (RMC) are some of the prominent factors driving growth in the construction chemicals market in India. However, some of the challenges in this market are low availability of skilled man-power, volatility in raw material prices and lack of interest for implementation of quality standards by infrastructure developers.
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Some major trends in India construction chemicals market are the increase in investment in R&D, entry of new players, adoption of sustainable products and technological advancements. Asian region is turning out to be focus point for most of the major construction chemicals companies for investment in R&D. Rising construction of new buildings and renovation activities across India is expected to boost the overall demand for construction chemicals in the near future.
India Construction Chemicals Market: End Use Sector Overview
On the basis of end use sectors, India construction chemicals market is segmented as infrastructure sector and residential & commercial sector. Infrastructure sector is likely to grow at a CAGR of 18.3%. The residential and commercial segment has a share of 34% in overall India construction chemical market with a steady Y-o-Y growth of 16% in 2020.
Regional Overview of the India Construction Chemicals Market
From regional perspective, India construction chemicals market is segmented into northern region, eastern region, western region and southern region. Currently, northern region is expected to experience highest CAGR of 17.8% as compared to other regions. Southern region is likely to create an opportunity which is three times the value in 2013. The southern region comprises the states of Tamil Nadu, Andhra Pradesh, Karnataka and Kerala. This region realizes the potential of IT services and hence are able to attract significant investment from these service and manufacturing companies. Chemical and engineering industries are the main drivers of growth in western region particularly in Maharashtra and Gujarat.
Product Segment Overview
India construction chemicals market is segmented as admixtures, flooring chemicals, water proofing compounds, adhesives & sealants and repair, rehabilitation & others. Adhesives & sealants and admixtures market is expected to contribute collectively 61.2% share by 2020. It is anticipated that there will be a decline in the growth of the repair, rehabilitation & others segment from 12.7% in 2014 to 11.9% in 2020, indicating a lack of inspection and maintenance in the construction industry in India.
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