Construction chemicals market was $27,162 million in 2015 and is expected to reach $40,154 million by 2022 at a CAGR of 5.6% during the forecast period. Construction chemicals are specialty products that are crucial for sustainable infrastructure and energy conservation in construction industry to increase durability of buildings, and to provide added fortification from environmental hazards. Infrastructure is the most attractive segment in the world construction chemicals market. It would be the first preference for new entrants due to surge in population and urbanization that drives the need for sustainable infrastructure and environmental friendly products. Chemical products such as concrete admixtures similarly help in minimizing the quantities of cement and water generally required during the construction.

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The construction industry accounted for $8.7 trillion in 2013, 10% of the global GDP. The essential dynamic here is that while global GDP is expected to grow by an average of 3.5% per year for the next 12 years, construction output will increase by 4.3% per year. Hence, the construction industry is expected to represent a much bigger part of the global economy by 2022. The global GDP is expected to achieve $83 trillion mark by 2022, and the construction industry can be projected to reach $12.7 trillion.

Top investment pockets

Infrastructure is the most attractive segment in the world construction chemicals market. Infrastructure would be the first preference for new entrants due to surging population and urbanization giving driving the need for sustainable infrastructure and environmental friendly products. The infrastructure market was valued at $7,415 million in 2015 and is expected to grow at a CAGR of 7.7% during 2016-2022. Residential is the second most attractive segment for new entrants in construction chemicals market. This segment was the highest revenue generating in 2015 valued at $12,361 million representing nearly half of the global market.

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Segment Review:

Construction chemicals are crucial for sustainable infrastructure and energy conservation in construction industry. The global construction chemicals market is segmented based on type as concrete admixtures, waterproofing & roofing, repair, flooring, sealants & adhesives, and others. In 2015, the concrete admixtures segment occupied highest share of 38% in the market. Admixtures are used during the first stage of construction. Ligno-based, SNF (Sulfonated Naphthalene Formaldehyde) & SMF (Sulfonated Melamine Formaldehyde)-based and PCE-based are the three types of admixtures mostly prevalent in the market. Ligno-based admixtures were the first generation admixtures with lower performance as compared to SNF & SMF- and PCE-based admixtures. PCE-based admixtures are the third-generation admixtures and are usually 3-4 times more expensive than SNF & SMF-/Ligno-based admixtures. The Asia-Pacific region has the highest consumption rate for admixtures owing to the huge number of infrastructure projects undertaken.

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