Industry Insight Global Construction Chemicals Market Reached 39 Billion Dollars in 2020: FMI
According to a report by market research and consulting firm Future Market Insights, the global construction chemicals market is expected to increase at over 5 % CAGR in 2021. It further adds that the demand for construction chemicals will be dominant in the Asia Pacific region excluding Japan.
Dubai/UAE – The essential nature of construction chemicals in the construction and engineering sector is expected to support market growth for the duration of the assessment period from 2021 to 2031. In a new market report, an Esomar-certified market research and consulting firm has stated the valuation of the market at 39 billion dollars in 2020. Construction chemicals play critical roles in construction projects including coatings, additives, sealants and more. Affordable housing and smart city projects are major influencers of demand.
Strong demand for concrete admixtures, plasticizers in particular is driving the growth of the construction chemicals market. The high degree of workability in areas requiring high levels of reinforcement in high rise buildings and public infrastructure projects will support sales prospects in the coming years.
The Asia Pacific region excluding Japan is expected to remain dominant. Major urbanization projects and substantial manufacturing facilities in China are likely to aid expansion of the market through the projection period.
The ongoing Covid-19 pandemic impacted the global economy and the construction sector considerably, with project delays and cancellations causing substantial losses. This trend created a short-term decline in demand for construction chemicals in 2020, while a steady recovery is expected through 2021.
Key Takeaways of Construction Chemicals Market Report
· The global construction chemicals market reached 39 billion dollars in 2020, and is estimated to rise at over 5 % CAGR through the assessment period.
· China will continue to reflect strong growth, accounting for more than 66 % of the market in Asia Pacific excluding Japan.
· The United States will continue to rise strongly, exhibiting over 5 % CAGR in 2021.
· Within Western Europe, Germany and the U.K. will remain key markets, driven by urbanization and smart city infrastructure projects.
· Demand from China and India will continue to rise on account of government infrastructure and housing initiatives.
“The demand for construction chemicals can be largely attributed to rapid world population growth, and major investments into urbanization. The importance of infrastructure to global economy, especially for developing markets, and applications in residential projects, and affordable housing policies will influence the industry in the long-term,” said a lead analyst.
Who is Winning?
Major manufacturers are increasingly pushing for the expansion of production and distribution activities to emerging economies in Asia and Africa. This shift can be attributed to easier access and lower costs of manpower and raw materials. Also, relatively relaxed regulations associated to the chemicals sector will positively influence the market.
Market Landscape: Competitive
The global construction chemicals market is moderately consolidated, with the presence of varied regional players. Manufacturers are increasingly focused on the optimization of assets including expansions and divestitures to maximize profits and set up sustainable revenue streams.
Key market players including BASF, GCP Applied Technologies, Sika, The Dow Chemical Co., RPM International, Ashland, Mapei, Akzo Nobel, Arkema, Fosroc, Pidilite Industries, Covestro, Henkel & Co., HB Fuller Company, Lanxess, The 3M Company, Wacker Chemie, Huntsman Corporation, Momentive Performance Materials, and Guangzhou Jointas Chemical Co., are pushing for strategic acquisitions and collaborations with other participants to increase market share.
These insights are based on a report on Construction Chemicals Market by Future Market Insights.