The construction chemical industry in India is projected to be expanded from USD 4.88 billion in 2025 to USD 17.33 billion by 2035, reflecting a robust CAGR of 13.4%. This expansion is being driven by urbanization, infrastructure programs, and the modernization of construction standards.
Products such as waterproofing compounds, adhesives, and concrete admixtures are being increasingly adopted in both public and private sector projects. Under national schemes like PMAY and the Smart Cities Mission, structural resilience and longevity have been prioritized, thereby increasing the reliance on advanced chemical products.
Sustainable and high-performance solutions are being favored in recent developments. Low-VOC, bio-based, and water-based construction chemicals are being introduced in response to stricter environmental standards. Nano-additive compounds are being applied to improve performance under challenging conditions.
Premixed product formats are being increasingly deployed to improve efficiency on-site and minimize waste. Real-time formulation customizations are being facilitated through digital interfaces, and supply chains are being digitized to optimize procurement and reduce lead times.
The market landscape is being actively influenced by several leading players. Pidilite Industries is being recognized for its Dr. Fixit range, which has been widely adopted in residential and infrastructure projects. Sika India’s solutions are being integrated into large-scale concrete infrastructure systems.
Under the Master Builders Solutions brand, BASF India has been providing customized admixtures and waterproofing products tailored for complex structures such as metro tunnels and bridges. Products for industrial flooring, grouts, and concrete repairs are being supplied by Fosroc. Protective coatings and heavy-duty enhancers are being offered by Chembond Chemicals. Urban housing developers are being supported by Ardex Endura’s adhesive and grout systems.
Market growth is being further supported through training programs, which are being conducted by manufacturers to promote the correct use of their products. Online platforms are being utilized to extend reach into emerging markets. Partnerships with local contractors and real estate developers are being formed to expand presence in tier-2 and tier-3 regions.
As the Indian construction sector continues to evolve, chemical innovations are being embedded into project specifications to deliver performance, speed, and environmental compliance. The long-term demand for construction chemicals is expected to be sustained by both public infrastructure and private sector investment.
| Attributes | Description |
|---|---|
| Estimated Industry Size (2025E) | USD 4.88 billion |
| Projected Industry Value (2035F) | USD 17.33 billion |
| Value-based CAGR (2025 to 2035) | 13.4% |
Annual growth rates of India’s construction chemical industry from 2025 to 2035 are illustrated in the table below. Starting with the base year 2024 and going up to the present year 2025, the report examines how the growth trajectory changes from the first half of the year, i.e. January through June (H1) to the second half consisting of July through December (H2).
Figures provided show the growth rate for each half-year between 2024 and 2025. The industry was projected to increase at a CAGR of 13.5% in the first half (H1) of 2024. However, in the second half (H2), there was a slight drop of 13.1% CAGR.
| Particulars | Value CAGR |
|---|---|
| H1 | 13.5% (2024 to 2034) |
| H2 | 13.1% (2024 to 2034) |
| H1 | 13.9% (2025 to 2035) |
| H2 | 12.9% (2025 to 2035) |
Moving into the subsequent period, from H1 2024 to H2 2024, the CAGR is projected to surge to 13.9% in the first half and relatively decline to 12.9% in the second half. In the first half (H1), India saw a decrease of 30 BPS while in the second half (H2), there was a slight increase of 20 BPS.
In 2025, the plaster segment is projected to account for approximately 33.9% of the total market share by product type within India’s construction chemical industry. This dominance is expected to be driven by the widespread adoption of plaster for interior wall finishing, surface preparation, and decorative applications across residential and commercial sectors.
Its ability to deliver smooth and crack-free surfaces has been recognized as a core requirement in both new construction and renovation projects. The increasing uptake of polymer-modified and high-durability plasters by construction firms has been noted, with companies such as JK Cement and UltraTech Cement continuing to supply to large-scale township and smart housing developments.
The continued momentum in real estate, fueled by schemes like Pradhan Mantri Awas Yojana, is likely to further strengthen demand. Moreover, the need for faster project execution and improved finish quality has been addressed effectively by modern plaster formulations, reinforcing its position as the preferred product among contractors and developers.
In terms of application, the infrastructure segment is forecasted to command a significant 64.1% market share in 2025. This large share has been attributed to major national initiatives such as Bharatmala Pariyojana and the Sagarmala Project, which have required vast quantities of high-performance construction chemicals for durability and extended service life.
The increased use of admixtures, waterproofing compounds, and protective coatings has been supported by specifications set by regulatory agencies and project developers. Companies including Pidilite Industries and Sika AG have been actively supplying custom-engineered chemical solutions for metro rail expansions in cities like Bangalore and Pune and for mega industrial corridors such as the Delhi-Mumbai Industrial Corridor (DMIC).
The Indian government’s emphasis on infrastructure-led economic development has ensured that large-scale civil works continue to consume specialty chemicals that offer enhanced mechanical strength and weather resistance. This trend is expected to keep the infrastructure segment at the forefront of construction chemical consumption in the country.
Leading Manufacturers Aim for Profits with New Product Launches
India-based manufacturers of construction chemicals are increasingly investing in broadening their production capacity and enriching their range in different areas. This enlargement entails starting new factories, modernizing the old ones, and incorporating innovative technologies that can address the increasing need for building chemicals.
These companies have expanded their businesses by launching new product lines, engaging in strategic partnerships or acquisitions, and providing full-service solutions based on the specific needs of various segments found within the building sector.
Government Investments to Fuel Infrastructure Development Projects Bolster Demand
Government expenditure has surged, nearly doubling during this fiscal year. It was driven by initiatives like the ‘Make in India,’ which are meant to accelerate the development of infrastructure and boost industrialization.
The government’s plan to allocate infrastructure worth USD 1.4 trillion through the National Infrastructure Pipeline (NIP) project and Make in India campaign is set to significantly boost demand for construction chemicals. The construction industry contributes around 9% of the GDP.
Apart from several other projects, the government’s massive project called ‘Delhi-Mumbai Industrial Corridor’ is anticipated to bolster the development of an economic corridor connecting Mumbai and Delhi by a 1,483 km stretch. It also involves nine mega-industrial zones.
The Gujarat International Finance Tec-City (GIFT), on the other hand, is set to become one of the world’s most prominent central business districts once the construction is finished. GIFT is located between Ahmedabad and Gandhinagar, where the area of the city is 8.5 crore sq. meters. Such projects are anticipated to accelerate demand.
National Highway Development Projects to Surge Sales in India
Ongoing national highway development projects in India are likely to significantly boost the growth of the country’s construction chemical industry. The government is making substantial investments in the development and construction of national highways as part of projects, such as Bharatmala Pariyojana and the National Highways Development Project (NHDP).
In the period from fiscal year 2014 to 2023, the development of national highways in India displayed remarkable growth, achieving a CAGR of 5.3%. In the fiscal year 2022, despite the pandemic and the subsequent lockdowns, India was able to construct about 10,457 km of national highways.
High Dependency on Imports Limits Growth
India mainly depends on imports for several cutting-edge construction chemicals that are developed with unique technology or specialized formulations. As these complex products are typically unavailable on a domestic level due to a lack of sophisticated research and development facilities, international manufacturers are the predominant source of high-performance chemicals.
A significant proportion of the raw materials needed to make construction chemicals are imported. The industry does not have most of the necessary basic additives to produce chemicals domestically. Hence, imported materials are mandatory to meet production requirements. The reliance on raw imported materials correlates directly to the dependence on foreign suppliers.
Foreign chemicals are mostly preferred, as customers assume they are of superior quality and likely to perform better than their local alternatives. Customers also believe that international brands are likely to have higher and more resilient quality.
Hence, imported chemicals are the preferred choice for predictable quality and performance for significant construction projects. More efforts are now in place to reduce this dependency by increasing local manufacturing capability, which is projected to help ensure self-reliance in the foreseeable future.
The industry witnessed a CAGR of 5.4% between 2020 and 2024. Total revenue reached about 4.3 billion in 2024. During the forecast period, sales are projected to fetch a CAGR of 13.4%.
From 2020 to 2022, the COVID-19 pandemic significantly impacted the construction chemical industry. Lockdowns, supply chain disruptions, and delays in construction projects led to reduced demand for these chemicals.
The pandemic further resulted in delays in raw material procurement and hindered manufacturing processes, affecting overall growth. However, it also accelerated the adoption of new health and safety standards in construction, boosting demand for innovative and more durable chemicals in the long term.
After the pandemic's impact, infrastructure development continued to drive the industry. Government initiatives for infrastructure improvement and ongoing real estate projects fueled demand. Investments in residential, commercial, and industrial construction projects increased, leading to a high need for cutting-edge materials and chemicals to enhance structural integrity and sustainability.
During the forecast period, the rise of smart building technologies and automation in construction will likely drive demand for construction chemicals. Innovations, such as smart coatings, energy-efficient insulation materials, and self-healing concrete are becoming increasingly prevalent.
Programs promoting green buildings, energy-efficient structures, and low-carbon construction materials are also gaining traction. These initiatives require the use of environmentally friendly and high-performance construction chemicals, such as low-VOC paints, eco-friendly adhesives, and innovative waterproofing solutions.
Tier 1 companies include leaders with annual revenues exceeding USD 45 million. These companies are currently capturing a significant share of 40% to 50% in India. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographic reach, underpinned by a robust consumer base. These firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within Tier 1 include Pidilite Industries Ltd., Dow Inc., Asian Paints Ltd., Fosroc Chemicals India Pvt. Ltd., Berger Paints India Ltd., and BASF India Ltd.
Tier 2 companies encompass mid-sized participants with revenues ranging from USD 5 to 45 million, holding a presence in specific regions and exerting significant influence in local economies. These firms are distinguished by their robust presence overseas and in-depth product expertise.
They possess strong technology capabilities and adhere strictly to regulatory requirements. However, these firms may not wield cutting-edge technology or maintain an extensive reach. Noteworthy entities in Tier 2 include Thermax Ltd., Akzo Nobel N.V., Cera-Chem India Private Ltd., MYK LATICRETE India, Somany Ceramics, Mapei SpA, and Chembond Chemicals Ltd.
Tier 3 encompasses most of the small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues below USD 5 million. These businesses are notably focused on meeting local demands and are hence categorized within the Tier 3 segment.
They are small-scale participants with limited geographical presence. In this context, Tier 3 is acknowledged as an informal sector, which is distinguished by a lack of extensive organization and formal structure in comparison to the structured one.
Tier 3 includes Indo Construction Chemicals Escon Chemical Company, Madhur Construction Chemicals, Ruia Chemicals, Tilebond Construction Chemicals, Armstrong Chemicals, Capa-IC, Durabild, Kryton-India, and Selsil.
The section covers assessments of construction chemical sales across key regions. Regions such as East India is anticipated to exhibit a promising 14.2% CAGR during the forecast period. All the below-listed regions are collectively set to reflect a CAGR of around 13%.
| Region | CAGR 2025 to 2035 |
|---|---|
| East India | 14.2% |
| South India | 13.6% |
| North India | 13.4% |
| West India | 12.9% |
West India, including Maharashtra and Gujarat, is home to leading economic and industrial centers, such as Mumbai, Pune, and Ahmedabad. These cities experience a high demand for construction chemicals due to their extensive real estate and infrastructure projects.
Mumbai’s ongoing high-rise developments, commercial spaces, and industrial expansions require unique chemicals for concrete, waterproofing, and finishing, thereby boosting regional consumption.
West India is experiencing large-scale infrastructure developments, including metro networks, highways, and port projects. Initiatives like the Mumbai Metro and coastal road projects are projected to significantly surge demand for construction chemicals, such as durable coatings and high-performance admixtures.
The continuous growth in residential and commercial real estate further amplifies the need for specialized chemicals, solidifying West India's leading position through 2035.
In the forecast period, North India’s construction chemical industry is predicted to rise steadily at a CAGR of 13.4% and attain a total worth of USD 4,705.4 million by 2035.
Urban sprawl is taking place at an alarming rate coupled with infrastructure development projects in key cities, such as Delhi, Noida, and Gurgaon. Demand for unique chemicals is set to be augmented by new residential neighborhoods, commercial spaces, and industrial zones among others.
For instance, the use of high-performance concrete chemicals is essential in projects such as the Delhi-Mumbai Expressway or new residential townships that involve waterproofing and surface treatment. North India has also benefited from several government initiatives targeting affordable housing projects, including Pradhan Mantri Awas Yojana.
East India is projected to surge at a CAGR of 14.2% from 2025 to 2035, with sales set to reach USD 1,516.4 million by 2035. Even though the consumption of construction chemicals is lower in the eastern parts of India than in the other areas, huge investments in infrastructure are set to change this picture.
Initiatives, such as the Bharatmala Pariyojana, the Sagarmala Project, and the Railways Network Upgrade project are anticipated to boost investments. Their success is estimated to directly affect the enhancement of roads, bridges, and ports, which will likely be more durable owing to the use of construction chemicals.
East India possesses abundant coal, iron ore, and bauxite deposits. The opening development of new plants and mines in Odisha and Jharkhand is likely to augment demand for these chemicals. Besides, sustainable energy sources like hydroelectric projects in the northeast are also contributing to the rising demand for special construction materials.
India’s construction chemical industry is highly competitive with the presence of several renowned manufacturers. Most of these manufacturers are focusing on acquiring small-scale players to gain the latter’s expertise for launching novel chemicals. A few are also aiming to develop cutting-edge production facilities in India owing to the easy availability of low-cost labor and raw materials.
A handful of companies are focusing on investing huge sums in research and development activities to provide innovative chemicals. Several international brands are also joining hands with India-based construction companies to provide them with their in-house chemicals to gain profit.
Industry Updates
On 25 May 2024, Bengaluru-based Fosroc India inaugurated its new integrated construction chemicals plant in Hyderabad. This latest manufacturing facility will boost Fosroc's geographical reach and service capabilities, especially for customers in South and Central India.
On 8 March 2023, paint producer Nippon Paint (India) announced its entry into the construction chemical industry as part of its efforts to expand its product portfolio.
On June 22, 2023, Pidilite Industries Ltd, a producer of construction and specialty chemicals, inaugurated its novel production facilities in Gujarat. It was done with the help of its two joint ventures, namely, Tenax Pidilite Pvt Ltd (TPPL) and Pidilite Litokol Pvt Ltd (PLPL), for the construction industry.
On 7 December 2023, Saint-Gobain acquired Menkol Industries Private Limited, a prominent manufacturer specializing in high-value waterproofing systems. This strategic move helped boost the former’s position in construction chemicals, particularly in India.
| Report Attributes | Details |
|---|---|
| Current Total Market Size (2025) | USD 4.88 billion |
| Projected Market Size (2035) | USD 17.33 billion |
| CAGR (2025 to 2035) | 13.4% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Projections Period | 2025 to 2035 |
| Quantitative Units | USD billion for value and kilotons for volume |
| Product Types Analyzed (Segment 1) | Concrete Admixture (Plasticizer, Accelerator, Retarder, Air Entrained), Waterproofing Chemicals (Bitumen, Polyurea, PVC, EPDM, PTFE, Silicon, Acrylic Polymer, etc.), Adhesives and Grouts (Tile Adhesives, Grouts, Mortars), Sealants (Silicon, MS Hybrid, Polyurethane, Polysulfide), Repair and Rehabilitation (Epoxy-based, Fiber Wrapping), Flooring Compounds (Floor Hardeners, Epoxy/PU Coatings), Protective Coatings (Epoxy, PU, Bituminous, Acrylic), Plaster (Cement-based, Gypsum-based), Asphalt Additives |
| Applications Analyzed (Segment 2) | Infrastructure, Commercial & Industrial, Residential |
| Cities Covered | Delhi NCR (Delhi, Noida, Gurugram), Mumbai and Pune, Bengaluru, Chennai, Ahmedabad and Surat, Hyderabad, Kochi, Kolkata, Raipur |
| Key Players influencing the India Construction Chemicals Market | Pidilite Industries Ltd., Dow Inc., Asian Paints Ltd., Fosroc Chemicals India Pvt. Ltd., Berger Paints India Ltd., BASF SE, Saint-Gobain S.A., ACC Ltd., Sika AG, Ultratech Cement, Thermax Ltd., Akzo Nobel N.V., Cera-Chem India Private Ltd., MYK LATICRETE India, Somany Ceramics, Mapei SpA, Chembond Chemicals Ltd., Ardex Group, CICO Technologies Ltd., KERAKOLL India Pvt. Ltd. |
| Additional Attributes | Dollar sales by product category (plaster, admixture, waterproofing), Infrastructure-driven demand trends, Regional market performance (North, West, South, East India), Emerging technologies in cement chemistry, Role of construction chemicals in green building and smart infrastructure projects |
| Customization and Pricing | Customization and Pricing Available on Request |
A few product types included in the study are concrete admixture, waterproofing chemicals, adhesives and grouts, sealants, repair and rehabilitation, flooring compounds, protective coatings, plaster, and asphalt additives. Concrete admixtures are further segregated into plasticizer, accelerator, retarder, and air entrained.
Waterproofing chemicals are divided into bitumen, polyurea, self-leveling system (cementitious and epoxy), PVC, EPDM, TPO, PTFE, silicon, acrylic polymer, styrene-butadiene, cementitious membrane, PU membrane (liquid-applied membrane), crystalline, and additives. Adhesives and grouts cover tile adhesive (cementitious and dispersion and resin), tile grouts (cementitious and epoxy), and masonry mortar and plaster.
Sealants encompass silicon, MS hybrid, polyurethane, weatherproof silicon, and polysulfide. Repair and rehabilitation products consist of cement-based, epoxy-based, micro concrete, composite carbon and glass fiber wrapping systems, and carbon laminates.
Flooring compounds include floor hardeners, epoxy- and PU-based floor coatings and toppings, and cementitious/epoxy/PU screeds. Protective coatings cover epoxy, polyurethane, bituminous, acrylic, alkyd, and polyester. Plaster is bifurcated into cement-based and gypsum-based.
Infrastructure, commercial and industrial, and residential are the key application areas.
Regions considered in the study include North India, West India, South India, and East India.
The country’s industry was valued at USD 4.3 billion in 2024.
The industry is set to reach USD 4.88 billion in 2025.
Demand is anticipated to rise at 13.4% CAGR through 2035.
The industry is projected to reach USD 17.33 billion by 2035.
The plaster segment dominates in terms of share.
Sealants, flooring compounds, and protective coatings are a few chemicals.
Cement additives are considered ideal for construction.
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Construction Chemical Industry Analysis in India
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