Construction chemicals refer to the chemical compounds that are combined with building materials, such as concrete and mortar. These chemicals improve the compatibility of these materials with the building structures they are used with. They also help to improve the overall building performance and protect the structures that they are used in.
The size of the global construction chemicals market is expected to experience substantial growth between 2013 and 2024. The growth will largely be due to the increased demand from several end-user industries, including both residential and residential sectors, as well as infrastructure.
An increased interest on infrastructure development in emerging economies and a rapid change toward urbanization in these countries is expected to drive the expansion of the global construction chemicals market during the forecasted period.
An increase in stringent environmental regulations has also sparked the growth of this market, and is expected to continue contributing to its growth for the foreseeable future. As a result of these strict regulations, key players in the global construction chemicals market are keenly focused on research and development that will enable the creation and launch of new products that abide with the guidelines that are set forth by the entities that are enforcing environmental policies.
The increased interest in using biochemicals as construction chemicals is currently in the introductory phase; however, in the forecasted time period, it is expected that this will become a breakthrough technology that will further drive the growth of the construction chemicals market worldwide.
Moreover, the arrangements and partnerships that are being created amongst key players in this industry are anticipated to stimulate the growth of the global market. Furthermore, advances in technology have lead to increased use of additional specialty chemicals, such as structure adhesives, surface coating chemicals, chemical flooring compounds and grouting compounds; all products that are expected to fuel the growth of the global construction chemicals market.
A variety of products are utilized in the construction chemicals market; however, specific products are expected to contribute to the growth of the market more than other.
Concrete admixtures, for example, are widely applied to concrete in order to improve both its physical and chemical properties. The primary admixtures used in concrete include plasticizers and super plasticizers. Most super plasticizers are free of chloride, making them suitable for use in pre-stressed concrete. When chloride comes into contact with metals, it creates an oxidation reaction, which results in corrosion, making the structure of a building weaker. These specific products offer exceptional value for the construction sector, and as such, they have accounted for 64.7 percent of the volume share in the global construction chemicals market in 2015. They are expected to continue holding a large volume share during the forecast period.
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In 2015, more than 60 percent of the market revenue share of the global construction chemicals market was related to non-residential and infrastructure industries. In regard to the non-residential segment, construction chemicals are primarily utilized in the building of warehouses, hotels, office spaces, and retail and industrial buildings.
In China, Mexico, Brazil and India, initiatives made by the government are contributing to the increased growth of infrastructure activities, which, in turn, is contributing to the growth of the global construction chemicals market. Additionally, the increasing trend of urbanization in these areas has lead to an increased need for more residential buildings. This is expected to further fuel the growth of the market.
An increase in the per capita income, combined with strengthened economic policies in developing economies in leading to the expansion of both residential and non-residential sectors. In Asia pacific, foreign investments have grown over the past few years, which is also aiding in the growth of the market.
In 2015, the largest market for the construction chemicals market worldwide was Asia Pacific. During this year, the market share in this region exceeded 45 percent in regard to value. India and China are the major contributors in the growth of the market in this region, accounting for more than 50 percent of the market size.
Several European-based construction companies have shown a considerable growth in profits in 2015. The growth of the construction chemicals market is largely owed to the expansion of the construction industry in this region.
By the year 2020, it is projected that Asia will experience the most significant growth in the construction chemicals market, as an estimated $8 trillion US dollars are expected to be invested in the market. The ever-increasing trend in urbanization and the expansion of disposable incomes of the populations of India, China, Vietnam and Indonesia has lead to the demand for better infrastructure, including transportation systems, buildings and facilities that provide water and sanitation. Additionally, a great deal of global investors are showing keen interest in re-allocating their share of capital in the Asian Pacific region.
The introduction of the 2011-20 Economic Transformation Program by the Malaysian government has allows for rapid growth in both construction and infrastructure, giving rise to the increase of the global construction chemicals market in this region. In 2012, the construction market in Vietnam was valued at an estimated $24 billion US dollars. By 2024, the industry is expected to reach an estimated $25 billion US dollars.
All of these components combined are expected to allow for the healthy growth of the construction sector in the Asian Pacific region. This, in turn, will allow for considerable growth of the construction chemicals market on a global scale.
There are several companies that are contributing to the growth of the global construction chemicals market. The largest players in this market include BASF SE, FOSROC Chemical India Private Limited, Pidilite Industries Limited, Dow Chemical Company and Arkema S.A, among others.