Key factors such as the rapid industrialization and urbanization and surging awareness regarding green buildings will drive the construction chemicals market at a CAGR of 6.5% during the forecast period. At this rate, the market value will rise from $55,111.6 million in 2017 to $80,025.4 million by 2023. A range of chemicals are added to concrete, cement, and other construction materials to increase the strength of the final mixture and keep everything intact in the fact of strong winds and earthquakes. Due to these features, high volumes of specialty chemicals are used in infrastructure repair activities
Construction activities are rising in urban areas due to the continuous migration of the rural population, primarily in developing countries. People from rural areas are moving to urban areas in search of better employment opportunities and improved standard of life. This is driving the need for state-of-the-art infrastructure, which has led to the construction of commercial units, airports, railway stations, stadia, and hotels in several countries. For instance, the Saudi Vision 2030 project, Abu Dhabi 2030 plan, and the Smart City Initiative of India will propel the demand for construction chemicals in the coming years.
Moreover, the growing focus on green buildings will fuel the demand for construction chemicals. The increasing consciousness regarding energy conservation is primarily driving the consumption of eco-friendly variants of construction chemicals. For example, the Qatar Green Building Council (QGBC) is focused on promoting green buildings and sustainability in Qatar. Green construction chemicals are being applied to protect buildings against environmental hazards and improve their overall durability, while having a lower negative impact on the environment. For instance, these chemicals reduce the requirement for water and cement, which can improve the environmental prospects significantly.
The categories under the type segment of the construction chemicals market are concrete admixtures, protective coatings, sealants, asphalt modifiers, and others, which includes flame retardants and flooring chemicals. Under this segment, the concrete admixtures category held the largest market share in 2017, as this chemical helps in curtailing the overall construction cost by altering the characteristics of the hardened concrete. Moreover, the concrete admixtures category is expected to exhibit the fastest growth in the forecast period. This would be due to the widespread usage of admixtures in concrete to construct complex modern structures that require a high compressive strength, high workability, wear resistance, and durability.
In the past, the Asia-Pacific (APAC) region utilized the highest quantity of construction chemicals due to a significant surge in the construction activities in Japan, India, and China. The rapid expansion of the residential real estate sector, on account of the booming population of the middle-class people, has augmented the demand for these chemicals in the region. Besides, the growing focus of governments on infrastructure development has boosted the application of construction chemicals in the APAC region.
Furthermore, the APAC construction chemicals market will exhibit the fastest growth during the forecast period, driven by the escalating need for construction chemicals in the emerging economies of India and China. China has emerged as the construction capital of the world due to urban development in numerous major clusters, including the Pearl River Delta, Yangtze River Delta, and Beijing–Tianjin–Hebei. Moreover, the heavy government investments for such large-scale infrastructure development, including of establishment smart cities, in China will fuel the demand for construction chemicals in the foreseeable future.
Thus, the expansion of the residential real estate sector and heavy investments in infrastructure development are leading to the high-volume consumption of construction chemicals.