Global Construction Chemical Market: Resilience, Growth, and Promising Future Outlook

The Global Construction Chemical market witnessed a steady growth of 2.2% CAGR from 2018 to 2022, with revenues increasing from USD 42,403 Million in 2018 to USD 45,255 Million in 2022. The market experienced positive expansion at an annual rate of 3.3% in 2019; however, it faced a setback in 2020 with a decline of -2.7% due to COVID-19 limitations. Nonetheless, despite the challenges posed by the pandemic and changes in global investment priorities, the construction sector exhibited overall stability in 2021, offering a promising outlook for the global construction industry's future.

According to Makreo Research, in 2022 demand for construction chemicals surged significantly, primarily driven by megaprojects such as The Great Man Made River Mega Project in Libya, Chuo Shinkansen High-Speed Railway Project in Japan, Jubail II in Saudi Arabia, Dubailand in Dubai, and others. These large-scale projects played a crucial role in driving the growth of the construction chemical market during the year, indicating positive prospects for the industry.

Despite challenges, the future outlook for the global construction industry remains bright. The economic prospects were temporarily slowed down by the resurgence of COVID-19 and Russia's invasion of Ukraine, but the industry's overall trajectory appears promising. With the construction sector showing resilience and adaptability, coupled with shifts towards sustainable practices, there are opportunities for continued growth in the coming years.

Driving Factors for Increased Demand in Construction Chemicals
The demand for construction chemicals is expected to witness a notable increase in the upcoming years, largely attributed to the growth in global building activity. Moreover, the rising focus on green buildings is expected to play a significant role in driving this demand. According to the International Finance Corporation (IFC), green buildings are projected to offer major global investment opportunities, with an estimated value of USD 24.7 trillion by 2030. This emphasizes the importance of sustainability practices in the construction industry's future.

Concrete Admixtures: Leading Market Share and Promising Growth
The concrete admixtures segment holds the largest market share due to its usage in the initial stages of construction. In 2022, concrete admixtures contributed to over two-fifths of the total revenue generated by the global Construction Chemicals market. Furthermore, this segment is expected to experience the highest growth rate during the forecast period. The increased demand for concrete admixtures can be attributed to the development of advanced, innovative, and sophisticated products with enhanced properties, making them increasingly valuable in the construction industry.

Rapid Expansion in Construction Market and Attractive Investment Environment
India is expected to spend a staggering USD13 trillion on building and infrastructure projects by 2030, making it the country with the fastest-growing construction sector in the Asia Pacific region (increasing at a rate almost twice that of China).A large housing demand is being created by the nation's enormous and quickly growing population. A staggering 31,000 homes need to be built every day, for the next 14 years, just to keep up.

Indonesia is one of the fastest expanding construction markets in Asia, with USD 68 billion invested in key infrastructure projects in 2019 alone. Midway through 2016, the government proposed a "tax amnesty" that brought USD 304 billion in foreign currency and increase building investment.

China's enormous building sector will have contributed USD 2.1 trillion to global construction production by 2030. Due to the ageing population, the government may need to build more healthcare facilities or increase the capacity of its infrastructure.

The United States of America (US) is anticipated to spend a staggering USD 30 trillion dollars on building construction in next 14 years.

London’s USD 20 billion Crossrail development is the largest project in Europe and the country is set to expand Heathrow Airport, construct a high speed railway, redevelop large portions of cities (such as the Nine Elms district in south-west London), and build a nuclear power station at Hinckley.

The Residential sector is on the rise
In the United States, the Residential sector is on the rise, followed by the Commercial sector. In 2020, According to the Federal National Mortgage Association (Fannie Mae), residential house construction jumped by 10%. The demand for construction chemicals increased during the projection period despite the fact that the US construction sector was in decline in 2020. However, by 2021, the sector had begun to recover. In 2020, Microsoft announced its plan to invest around USD 500 million in the Puget Sound region of the United States. This move is intended to encourage the construction of affordable homes for low- and middle-income households.

• In Stafford, Virginia, Sika is opening a new facility to produce concrete admixtures. With the establishment of the facility close to Washington, D.C., Sika is expanding its capacity for manufacturing in the significant American construction market.
• In March 2023, Euclid Chemical announced the launch of three new concrete admixtures to respond to the rapidly evolving needs of construction and concrete professionals. The new admixtures includes:
  • Eucoshield
  • Eucon Eco Strength
  • Eucon AM 10ML

India becomes the Fastest Growing Market
Due to the development boom in India and increased industry awareness of the need for higher-quality construction, the Indian market for construction chemicals has historically had a robust growth rate of 17% per annum. The construction sector in India, notably government-sponsored infrastructure projects, is projected to grow, fueling demand for construction chemicals in the years to come. New regulatory requirements and required certifications, such as the Green Building Code, the use of ready-mix concrete in projects for metro rail in more than 20 cities, and the certificate of product quality under the Real Estate Regulatory Authority (RERA), have increased the use of construction chemicals in India.

By 2030, the real estate market in India will reach a value of USD 1 trillion, or 18–20% of the country's GDP. Only about three new homes are constructed each year, as opposed to the minimum five homes per 1,000 population. As a result, these elements may contribute to the market's growth in the years to come.

Europe's Growing Construction Chemicals Market and Key Drivers
As per the study published by Makreo Research, in terms of the overall worldwide market share for building chemicals, Europe accounts for 28.7% of the total. The key market drivers of the construction chemical industry are the expanding development goals of the European government and the rising use of novel building techniques. Additionally during settling period of economy after the COVID-19 outburst is over there is a positive demand for residential and commercial projects.

Future Growth Prospects for Construction Chemical Market
The Global Construction Chemical Market is anticipated to increase at a 6.1% CAGR from 2023 to 2028. Construction is expanding quickly in Emerging Asia, with average annual growth exceeding 5% through 2030. Growth in the economies of China, India, and the ASEAN will all be major sources of support.

After recovering from the pandemic over the following few years, Western Europe will experience weak growth, it is predicted to decline to below 1% annually by 2030, resulting in a decline in Western Europe's share of the global construction market from 19% in 2020 to 16% in 2030, while Emerging Asia will experience an increase from 34% in 2020 to 40% in 2030.

To know more:- Construction Chemical Market Report and Forecast (2018-2028) 

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