The global construction chemicals market was valued at USD 117.5 billion in 2023, which is further projected to grow at a CAGR of 5.0% to reach USD 179.5 billion USD by 2032. Construction chemicals are specialized chemical compounds used in various construction activities, including residential, non-residential, and infrastructure projects. These chemicals play a crucial role in both new and ongoing construction, enhancing efficiency, durability, and structural strength. Construction chemicals are widely used in various applications, including as Residential, Industrial, Infrastructure and Repair Structures.
By types, the construction chemicals market is segmented into Concrete Admixtures, Mineral & Chemical, Adhesive, Sealant, Protective Coatings, Flame Retardant, Others. Globally, Adhesives & Sealants are projected to remain the largest construction chemical segments, currently valued at USD 24 billion, the Adhesives & Sealants application is projected to register a healthy CAGR of 5.8% between 2024 and 2032, to reach 38.7 billion USD. Water proofing is the second largest application in the construction chemicals market, valued at USD 18 billion in 2023. Water proofing helps in protecting infrastructure assets from water damage and corrosion risks, ensuring their longevity and safety.
The construction industry can be divided into four key segments: infrastructure, industrial, residential, and repair structures. Of these, the infrastructure segment is expected to be the most attractive, followed by the residential sector. Infrastructure development is important to the growth of economies. Infrastructure mainly includes: bridges, roads, airports, tunnels, power plants and several other facilities that help in improving the economic activity as well as enhance the quality of life. The construction chemical industry plays a critical role in the development of infrastructure by providing products that ensure the safety, durability, and longevity of these structures.
Over time, infrastructure assets like bridges and buildings may undergo structural damage or deterioration. Construction materials such as fiber-reinforced polymers (FRPs) and carbon fiber reinforcements can be applied to repair and strengthen these structures, helping to prolong their lifespan and maintain their safety.
Asia Pacific holds the largest share of global construction chemical consumption, followed North America (30%) and Western Europe (20%). Although the use of construction chemicals in Western Europe has been mainly limited to the maintenance and renovation of older buildings due to the economic downturn in recent years, growth is expected to pick up at a moderate pace as the economy stabilizes.
In Asia-Pacific, China is the largest consumer of construction chemicals, followed by Japan and India. China by far consumes the most concrete admixtures of any region, and will continue to do so, as almost half of all planned global new buildings are scheduled to be built in mainland China through 2025. China alone represents about 35% of the global market for construction chemicals, followed by Western Europe and North America. These tall buildings are almost always made of concrete. Overall, the growth rate for construction chemicals is projected to be strongest in developing economies such as China and India.
The growth of construction chemicals is mainly driven by growth in the construction industry. Rapid developments in emerging countries and use of innovative products and materials in construction activities have supported the growth of construction chemicals markets. Construction activities are driven by constant urbanization and industrialization. Increasing construction costs in new construction and for the improvement & repair of older projects will drive the demand for construction chemicals in the upcoming years.
The construction industry accounts for around 13% of global GDP, making it a vital sector in every economy. While global construction industry growth averaged less than 2% annually from 2017 to 2022, it is expected to rise to around 3% between 2022 and 2027. Specialty construction chemicals, which enhance manufacturing processes or improve the performance of existing materials, will see similar growth rates in terms of consumption, though their sales value will increase at a faster pace.
Construction chemicals used in building activities can release VOCs which are harmful to health. These VOCs can cause a range of issues, including skin irritation, asthma, nausea, headaches, confusion, and eye irritation. Many chemicals used in residential construction, such as formaldehyde, acetone, and butanol, are emitted from materials like acoustic ceiling tiles, solid wood, caulking sealants, and floor waxes. Government regulations limiting the use of construction chemicals due to VOC emissions act as a significant constraint on the growth of the construction chemicals market.
BASF SE, Sika A.G., Arkema S.A., W.R. Grace, Dow, Pidilite Industries, RPM International, Ashland Inc, Mapei S.p.A, Saint-Gobain (FOSROC),, AkzoNobel, Huntsman, Evonik are the some of key manufacturers of construction chemicals globally.
• In August 2024, Sika acquired leading construction chemicals company, Vinaldom, S.A.S in the Dominican Republic
• FOSROC India, opened a new integrated construction chemicals plant on May 25, 2024, which is located in Bengaluru. In July 2024, Saint Gobain announced that they will acquire FORSOC to expand their presence in Middle East and India.
The construction chemicals market in India stood at USD 2.5 billion in 2023, and it poised to register double digit growth in the forecast period on the back of strong growth in the construction industry in the country. India's journey towards becoming a developed nation by 2047 centers significantly on improving its infrastructure which will help in driving the economic growth. The government has allocated 3.3% of GDP to the infrastructure industry in the fiscal year 2024.
India Construction Chemicals market is relatively consolidated, though product types and application areas remain quite fragmented. Numerous global construction companies have established local manufacturing operations in India. Currently, the top 10 companies account for over 50% of the market, the next 40 companies hold 20-23%, and the remaining share is held by small and unorganized players. In recent years, there has been a noticeable shift in market share, with medium-sized and regional manufacturers gaining significant ground. Based on revenue, the top five companies are Pidilite Industries, Sika India, BASF, Saint-Gobain (FOSROC), and Asian paints. Additionally, an estimated 250+ companies operate in this segment, including many small and regional manufacturers.
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