Construction Chemicals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The Construction Chemicals Market size was estimated at USD 71,460 million in 2020, and the market is projected to register a CAGR of over 5. 5% during the forecast period (2021-2026). The market was negatively impacted by COVID-19 in 2020.
New York, Oct. 22, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Construction Chemicals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06177316/?utm_source=GNW
With the beginning of the COVID-19 pandemic, though, construction work stopped all across the world, especially in major construction hubs, like China, India, United States, and European nations. For instance, in South Korea, the construction industry is contracted by about 3% in 2020 due to the coronavirus outbreak and slower economic growth. Loss of investment plans and termination of planned projects might be experienced in the market after the lockdown and normalization of business operations, further affecting building and construction across the region.
Over the short term, growing construction activities in the Asia-Pacific region, especially in ASEAN countries, increased adoption of new technology, and innovative construction procedures are some of the factors driving the growth of the market studied.
Increasing environmental regulations regarding VOC emissions remains a constraint for the growth of the market studied.
The concrete admixture segment dominated the market by product type. Moreover, it is expected to witness the highest CAGR during the forecast period.
The residential segment dominated the market. However, the industrial segment is expected to witness the highest CAGR during the forecast period.
Key Market Trends
Increasing Demand for Concrete Admixtures
Concrete admixtures are ingredients that are added to the concrete mixture before or during mixing. Concrete admixtures reduce concrete construction costs by modifying the properties of hardened concrete, thereby ensuring better quality during mixing, transporting, placing, and curing. This allows users to overcome emergencies during concrete operations.
According to the European Standard EN 206-1, the permitted dosage of admixtures to concrete should be less than or equal to 5% by weight of the cement. However, in conditions of low dosage, the admixture quantities should be less than 0.2% of the cement.
The admixture is generally added in a relatively small quantity, ranging from 0.005% to 2%, by the weight of cement. However, overuse of admixtures has detrimental effects on the quality and properties of concrete.
Based on function, admixtures are categorized into several types, which include air-entraining, retarding, accelerating, plasticizing, and water reducing, among others. The special category admixtures have various functions, including shrinkage reduction, corrosion inhibition, workability enhancement, alkali-silica reactivity reduction, bonding, coloring, and damp proofing.
Asia-Pacific has the largest market for concrete admixture, owing to the massive growth in construction in India, China, and various Southeast Asian countries. Various incentives by the governments of the respective countries to promote the infrastructure sector, coupled with the booming residential sector (owing to the burgeoning middle-class population), have largely facilitated the growth of the construction sector in Asia-Pacific over the recent years.
Demand for concrete admixture is increasing at a rapid rate. Manufacturers are responding to this demand and have started taking action. For example, BASF launched Master X-Seed STE admixture for the concrete industry in March 2019. The product was introduced specifically for the Asia-Pacific region, as it enhances concrete strength’s development and performance characteristics.
Asia-Pacific Region to Dominate the Market
The Asia-Pacific construction sector is the largest in the world and is growing at a healthy rate, owing to the rising population, increase in middle-class incomes, and urbanization.
Increasing infrastructure construction activities and the entry of major players from the European Union into the lucrative market of China have further fueled the industry’s expansion.
China’s 13th Five Year Plan started in 2016, as it was an important year for the country’s engineering, procurement, and construction (EPC) industry. In addition, the country ventured into new business models domestically and internationally during the year. Although the construction sector slowed down after 2013, it is still a major contributor to the GDP of the country. China’s construction industry developed rapidly in the recent past, due to the central government’s push for infrastructure investment, as a means to sustain economic growth.
The construction industry is the second-largest industry in India with a GDP contribution of about 9% and has shown promising growth in 2019 with a re-energized output of around 8%. It is predicted that India’s construction industry is set to emerge as the third-largest market in the world, with a size of almost USD 1 trillion by the end of forecast period.
The construction industry is expected to slowdown in 2020-2021 financial year due to COVID-19 but share of projects in commercial space are likely to continue even during this period, as they are either in public, private partnership (like smart city) or public projects, which are already budgeted. But in the long run the sector is expected to grow with high growth rate.
Although the construction industry in Australia has been negatively impacted by COVID-19, it is also likely to be one of the key industries to kick start the economy when the country begins to emerge from the impacts of COVID-19.
New petrochemical facilities development boosted the private sector demand, while industrial and building projects in the Punggol Digital District contributed to the public sector demand in Singapore. The infrastructure sector is also expected to post relatively healthy growth, mainly driven by the efforts to upgrade the country’s road, rail, and other public transport infrastructure and investment in energy and utilities construction projects. The government had been planning to invest SGD 28 billion (USD 20.9 billion) in the expansion and upgrading of the transport system by 2022.
The above-mentioned factors are likely to drive the demand for construction chemicals over the forecast period.
The construction chemicals market is fragmented in nature, as the top 10 players account for a share of less than 40% in the market studied. Major players in the market include Sika AG, MBCC Group, RPM International Inc., MAPEI, and Dow.
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