Key regional trends observed in the global construction chemicals market
North America- Demand for higher value product offerings
Demand for construction chemicals is pre-dominantly higher in North America over the past decade. The penetration of concrete admixtures is significantly higher in the U.S. and Canada as compared to that in countries such as in Asia Pacific and Middle East & Africa regions. Over the recent past, the demand for higher value products or value-added offerings including protective coatings, and concrete admixtures have witnessed a steady growth in the region as compared to that for some of the other commodity products. This is due to the fact that construction industry in the region needs to adhere to ever-stringent standards, environmental regulations and codes governing construction activities in the region.
Latin America- Capacity additions: Acquisition of local players
Over the recent past, leading construction chemicals manufacturers have focused on strengthening their presence in Latin American countries so that they can address the demand for construction chemicals especially from mining industry and from infrastructure sector in the region. Such acquisitions help gain in accessing the established customer base and moreover, strengthen the product portfolio.
Western Europe- Regulations driving innovations
Strict environmental regulations imposed in major markets such as North America and Europe limits the amount of VOC content in coating products. This has forced coating manufacturers to go green and adopt sustainability as their agenda. Manufacturers are infusing high investments in research aimed at developing new and innovative products to be offered at a reduced cost, while adhering to regulatory guidelines.
APEJ- Capacity expansion and new capacity additions
In order to cater to the increasing demand for construction chemicals and to strengthen their footprints, especially in developing countries in Asia Pacific region, namely, Cambodia, Vietnam, and Indonesia, among others, major global construction chemicals manufacturers have channelized efforts towards capacity expansions and new capacity additions in above mentioned countries.
Residential segment by application is expected to represent significant growth throughout the forecast period
The residential segment is expected to dominate the demand for construction chemicals throughout the forecast period. The segment is estimated to account for a share of more than 40% in both 2017 and in 2027. The commercial & industrial segment is expected to be the next in line, with an estimated share of more than 35% in 2017. On the other hand increasing investment in infrastructure development in developing & developed region, helps to drive the demand for construction chemicals in infrastructure application. The infrastructure segment accounted for low market value share by the end of 2017. The segment is projected to incline towards steady growth in terms of volume and value between 2017 & 2027.
The overview of the global construction industry
The construction industry is projected to register steady growth due to high rate of urbanization in emerging countries of Asia Pacific, coupled with increasing population. Rapid growth in the residential sector in urban as well as semi-urban areas in this region contributes significantly to the market growth. The global construction industry is expected to expand at a robust CAGR over the forecast period. Substantial growth in the service and manufacturing sector has led to an exponential growth in GDP worldwide. This, in turn, is having a positive impact on global construction spending, thereby leading to increased demand for construction aggregates.
The global construction chemicals market is highly fragmented and various market players in several developing countries are focussing on strengthening their partnership with local companies and are strategically deploying prime distributors in local regions. The key players are also involved in marking their direct presence in the local markets through mergers and acquisitions with regional players. A new report by Future Market Insights titled “Construction Chemicals Market: Global Industry Analysis (2012-2016) and Opportunity Assessment (2017-2027)” discusses the approach taken by key players in the global construction chemicals market to achieve consistent growth by expanding their footprint in regions with high construction activities and also through tie-ups with local construction industries. Global major suppliers of construction chemicals are channelizing efforts towards developing partnerships with end users in order to better address the demand and specific requirements. In an in-depth analysis of key regions, the analysts have observed that ongoing infrastructure development projects coupled with strong emphasis of the government to improve service life of various public utilities are expected to be the key factors driving demand for construction chemicals especially in emerging economies.
In order to provide a comprehensive view of the market, a detailed competitiveness analysis and key players’ information along with their unique selling propositions is mentioned in the report. The dashboard provides a detailed comparison of construction chemical manufacturers on parameters such as operating margins, unique selling propositions, collective market share and geographic concentration. The study encompasses market attractiveness analysis of various segments of the global construction chemicals market.
The report highlights revenue generated from the sales of construction chemicals such as concrete admixture, waterproofing chemicals, and protective coatings across various regions and important countries within these regions. Apart from this, the global construction chemicals market value chain analysis, profitability margins, cost influencing factors, pricing trends and factors influencing the sales of construction chemicals are also included in the report. Macroeconomic indicators such as GDP, per capita income, per capita construction expenditure, construction industry growth and cement consumption have been considered.
By Product Type
A number of primary and secondary sources have been consulted during the course of this study. Secondary sources include Factiva, GBI, Genios, and Meltwater. Companies’ annual reports and publications have also been examined while drafting this report. Market size and forecast for each market segment have been provided in the context of global and regional markets. The global construction chemicals market has been analysed based on anticipated demand in the market. Prices considered for the calculation of revenue include average regional prices obtained through primary quotes from numerous regional construction chemicals manufacturers, suppliers, and distributors.
All key end users have been considered and potential applications have been estimated on the basis of secondary sources and feedback from primary respondents. Regional demand patterns have been considered while estimating the market for various end users of construction chemicals in different regions. Top-down approach has been used to estimate the forecast for the global construction chemicals market by region. Market numbers for individual segments have been derived using the bottom-up approach, which is cumulative of each region’s demand. The company-level market share has been derived on the basis of revenues reported by key manufacturers. The market has been forecast based on constant currency rates.