Global Construction Chemical Market Outlook To 2020: Ken Research
Posted on 09 November 2016 by KenResearch Manufacturing And Construction,
What is the Potential of Global Construction chemical Market?
Construction chemical are those chemical compounds which are used in construction activities to provide added features and to meet latest technological demand for modern design and requirements. They are used primarily for residential, commercial building, and infrastructure construction. Globally construction chemical generated revenue of USD ~ billion in 2015 registering a CAGR of ~% in 2010-2015. Demand for construction chemical was mainly driven by increased investment in developing infrastructure and real estate for rising urban population. Market is largely driven by institutional sales which consumes majority of construction chemical produced.
Construction of new infrastructure in developing economies, repair and rehabilitation and upgradation of existing infrastructure in developed economies were the key growth drivers for demand of construction chemical. Based on our estimates market is expected to generate revenue of USD ~ billion in 2020 growing at CAGR of ~% in 2016-2020. Increased demand from emerging economies and reviving western economies will drive the market in future. Companies will increase their global presence to gain larger market share in emerging economies by developing market which is either underdeveloped or still in its infancy. Middle East, Africa, South East, South Asia, Poland and Brazil are emerging markets.
Which Product Category has Dominated Global Construction Chemical market?
Concrete admixture is the most consumed construction chemical on the basis of revenue in USD. In 2015 it accounted for ~% of entire construction chemical market. Increased focus on precast technology. Increased use of Ready Mix Concrete (RMC) is other reason which has enlarged the usage of concrete admixture in the global market. It is mandatory to use admixture with RMC to retain fluidity and desired characteristic of concrete. BASF, Sika, W.R Grace, Mapei are some important concrete admixture compound in the world. ~ is leading producer in concrete admixture with an estimated market share of ~%. PCE based concrete admixtures are third generation admixtures which have recently developed as a new admixture category. Their usage is found where high water reduction capability is required to provide ultimate strength to concrete structure.
Water proofing compounds were ~ most used construction chemical compound in the global construction chemical market. In 2015 it accounted for ~% of revenue generated by sale of construction chemicals. Rising demand from end user segment such as housing, commercial construction, bridges, tunnels, dams and other infrastructure projects were responsible for the growth of water proofing compounds.
Flooring compounds of epoxy and polyurethane type together constitute ~% of market in terms of revenue in USD. Market was estimated at USD ~ billion in 2015. Market for flooring compounds is governed by demand from industrial segments especially airports, offices, retail spaces, manufacturing floors, hospitals, pharmaceutical companies, food and beverages industry, chemical industry, education and hospital buildings, car parking and others.
Repair and rehabilitation market was majorly dominated by demand from developed economies and account for ~% revenue generated from sale of construction chemical. Revenue generation from this segment was estimated at USD ~ billion.
Protective coating compounds have market share of ~% in 2015. Advantage to provide stability and structural integrity has made grouting an essential component of construction chemical market, generating revenue share of ~%. Market for adhesives and resins was estimated at USD ~ billion in 2015.
Regional Demand and Their Contribution to the Global Construction chemical Market
Asia Pacific was the largest consumer of construction chemicals in the world. Countries in Asia Pacific region together consume more than ~% of total construction chemical produced in the world. Major countries include China, Japan, Indonesia, South Korea, and India in terms of consumption of construction chemicals. These five countries together consume more than ~% construction chemical demand in the region. Market in China and Japan was dominated by domestic companies. Market in other region was dominated by both domestic and international players like Sika, BASF, Fosroc, Mapei and others. Regional players also play a very dominant role in all the regions of Asia Pacific.
Americas were the ~ largest region in terms of consumption of construction chemical in the world. Majority of the construction chemical was consumed by ~ which is also the largest economy in the region. Demand in other countries like Brazil, Mexico and other emerging economies was on account of increased investment in developing public infrastructure. Major companies of the region include RPM Inc International, W.R.Grace, Ashland Inc and others.
Demand for construction chemical in Europe was mainly driven by construction of new infrastructure in emerging East European economies and repair, refurbishment and new construction in Western Europe.
What Have been the Major Trend in Indian Market?
Construction sector in India is a major growth driver for construction chemical market in India with majority of the demand coming from large housing project, infrastructure development and setting up of new manufacturing units. Construction chemicals accounts for nearly ~% of the project cost but the benefits realized are far more than the increase in the cost of the project. Cement consumption, growing investment in infrastructure and real estate, it is expected that the usage of construction chemical will increase. With global construction and manufacturing players entering the market, the awareness and the demand for internationally proven products and solutions are set to increase.
Anticipated Future Outlook For Indian Construction Chemical Market
The market for construction chemicals is likely to grow at a CAGR of ~% during the period 2016-2020 with expected revenues been posted at USD ~ million by 2020 Concrete admixture will continue to dominate the market in the coming years due to continuous surge in cement consumption.
Market Share and Competition in Global Construction Chemical Market
Market for construction chemical is dominated by Sika with Market share of ~% in 2015. BASF, Mapei, RPM International Inc, WR Grace were other major companies competing to the gain the larger market share in global construction chemical. Most of the major countries have domestic companies who enjoy a good market share. Different companies dominate the market with different products for example BASF is leader in concrete admixture market with share of ~% in 2015. Companies are trying to maximize their share by consolidating their business segments by merger acquisition and expansion. Different players are dominant in different regions. Domestic companies lead the market in developed economies and whereas foreign firms have major share in emerging economies. Market competition in China is totally different and is very fragmented market with no major domestic or international players.
Anticipated Future Outlook For Global Construction Chemical MArket
Based on our estimates market is expected to generate revenue of USD ~ billion in 2020 growing at CAGR of ~% in 2016-2020. Increased demand from emerging economies and reviving western economies will drive the market in future. Market may be negatively impacted by reduced government expenditure in China which is the largest market for construction chemicals. Companies will increase their global presence to gain larger market share in emerging economies by developing market which is either underdeveloped or still in its infancy. Rising Consumer awareness about the usage of construction chemicals and focus on retail sales by the companies can pose bright opportunity to the demand for construction chemicals globally.
Key Factors Considered in the Report
- Comprehensive analysis of Global Construction Chemicals Market and its segments
- Listed major players and their positioning in the market
- Identified major industry developments in last few years and assessed the future growth of the industry
- Construction Chemicals Market of Global Market with their Products
For more information about the Publication, refer to below link:
Ankur Gupta, Head Marketing & Communications