The global Construction Chemicals Market is estimated to be valued at US$ 79.81 billion in 2023 and is expected to exhibit a CAGR of 5.74% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Construction chemicals are specialty chemicals used in the construction industry to enhance the performance of building materials and protect infrastructure from environmental factors. These chemicals improve the strength, durability, workability, and performance of concrete, cement, and other construction materials. The increasing demand for sustainable and energy-efficient infrastructure is driving the market for construction chemicals. These chemicals provide various advantages such as improved workability, reduced water consumption, increased durability, and resistance to chemicals and environmental factors. With the growing need for advanced construction materials, the construction chemicals market is expected to witness significant growth.
Market Key Trends:
One key trend in the construction chemicals market is the increasing adoption of eco-friendly construction chemicals. With the focus on sustainable construction practices, there is a rising demand for construction chemicals that have minimal impact on the environment. Eco-friendly construction chemicals offer various benefits such as low emissions, reduced energy consumption, and improved indoor air quality. These chemicals are derived from renewable sources and are biodegradable, making them environmentally friendly. The growing awareness about the environmental impact of construction activities and the need for sustainable construction solutions are driving the demand for eco-friendly construction chemicals.
Overall, the construction chemicals market is expected to witness significant growth due to the increasing infrastructure development and the adoption of sustainable construction practices. The market is likely to be driven by the demand for advanced construction materials that offer improved performance and durability.
The threat of new entrants: The construction chemicals market has a moderate threat of new entrants. Although there are low barriers to entry in terms of capital, there are high barriers in terms of regulations and quality standards. The existing players have established brand recognition and strong distribution networks, making it difficult for new entrants to compete.
Bargaining power of buyers: The bargaining power of buyers in the construction chemicals market is moderate to high. Buyers have the ability to switch suppliers easily and demand competitive pricing and high-quality products. However, the market is dominated by a few major players who have significant control over pricing and supply.
Bargaining power of suppliers: The bargaining power of suppliers in the construction chemicals market is moderate. Suppliers of raw materials such as cement, aggregates, and chemicals have moderate control over pricing and supply. However, the market is highly fragmented, giving buyers some leverage to negotiate pricing and terms.
Threat of new substitutes: The threat of new substitutes in the construction chemicals market is low. Construction chemicals play a crucial role in enhancing the durability, strength, and performance of construction materials. There are limited alternatives that can provide the same level of protection and performance.
Competitive rivalry: The competitive rivalry in the construction chemicals market is high. There are several key players operating in the market, each with a significant market share. The market is characterized by intense competition, where players compete on factors such as product quality, brand reputation, and pricing.
The global construction chemicals market is expected to witness high growth, exhibiting a CAGR of 5.74% over the forecast period, due to increasing construction activities in emerging economies. Rising urbanization, infrastructural development, and the need for superior construction materials are driving the demand for construction chemicals.
In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the construction chemicals market. Rapid urbanization, increasing disposable income, and government initiatives to boost infrastructure development are the key factors contributing to the growth of the market in this region.
Key players operating in the construction chemicals market are Pidilite Industries, BASF SE, RPM International Inc., Sika A.G., The Dow Chemical Company, Fosroc International, Arkema S.A., Ashland Inc., Mapei S.p.A, and W.R. Grace. These players have established themselves as industry leaders through product innovation, strategic partnerships, and mergers and acquisitions.
In conclusion, the construction chemicals market is poised for significant growth in the coming years, driven by increasing construction activities and the demand for high-performance construction materials. The market is competitive, with key players dominating the market and focusing on product innovation to gain a competitive edge. Asia Pacific is expected to be the fastest-growing region, presenting lucrative opportunities for market players.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it