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Construction chemicals Industry - Unseen opportunities ahead

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Construction chemicals Industry - Unseen opportunities ahead

Twitter Handle: @shuchi_nahar

Introduction
The global construction industry makes up about 12% of the world's GDP and construction is one of the main drivers of growth in almost every economy. The Global Construction & Building Materials Market size was estimated at USD 916.31 billion in 2019 and is expected to reach USD 946.26 billion in 2020, at a CAGR of 5.76% reaching USD 1,282.56 billion by 2025. 

A variety of chemicals and advanced materials (CAMs)— ranging from concrete admixtures to polymer composites— are increasingly being used in the buildings and construction industry. Construction CAMs include concrete admixtures, adhesives and sealants, protective coatings, insulation materials, and polymer composites.

As with other areas of the specialty chemicals sector, the construction chemicals industry is directly affected by increased globalization, consolidation, and significant consumption growth in rapidly developing markets. So, it is not surprising that the future growth rate for construction CAMs are expected to be more than 6-8% per annum, with the most incremental growth emanating from the Asia-Pacific region. An uptick in construction and building activity driven by rapid urbanization and a growing population is expected to be a major impetus behind this impressive growth.

Opportunities
The construction chemicals industry will see continued opportunities to address energy conservation and sustainability. Suppliers can benefit from government policies that require the use of specialty construction chemical products to aid in energy conservation.

The Indian construction chemicals market is estimated to witness healthy growth, at an estimated CAGR of over 8%, over the forecast period. The Indian construction chemicals market follows a slightly different trend than that of the global market. Due to the lack of awareness about the long-term benefits of construction chemicals, the demand for chemicals, such as concrete admixtures, adhesives, sealants, and waterproofing, which have immediate tangible effects, is high.

A booming market for construction chemicals and advanced materials
The global construction CAMs market is expected to grow from $57 billion in 2016 to $87 billion by 2023, clocking a CAGR of more than 6 percent. The highest contribution to the incremental growth from 2016 to 2023 will likely come from the Asia-Pacific region, specifically China, India, and Southeast Asia.

Global market size and growth of construction chemicals and advanced materials.
Few trends in buildings and construction that are shaping the future
1. Technology advances and integration
2. Sustainability and the circular economy
3. Trends in project completion timelines and overall costs
4. Skilled labor shortage

Building & construction chemicals market (USD Billion)
Investment policies
Target to increase the share of manufacturing in GDP to at least 25% by 2025 (from current 16%). Investments in manufacturing in the chemical sector are essential to ensure the growth of the Indian chemical industry Government’s proposal to set up a technology up-gradation fund of ~USD 80 Mn in the 12th plan for chemicals. 
Proposal to establish an autonomous USD 100 Mn chemical innovation fund by securing 10% of the total inclusive national innovation fund set up by the National Innovation Council to encourage commercialization efforts for innovations generating inclusive growth.
The governments of developed as well as developing countries are focusing highly on green building standards. The new policies are exerting more pressure on construction ventures to use chemicals that have the lowest carbon footprint and are less resource-intensive. The invention of the newest chemicals is becoming preferable in the construction industry. 

The infrastructure segment for the construction chemicals market shall experience significant growth in the global market and it is expected to register a revenue of $12.8 billion during the forecast period, increasing at a CAGR of 6.2%. Extensively growing urbanization and increasing population are the major reasons for the growth of infrastructure in the global market.



Twitter Handle: @shuchi_nahar

Disclaimer: The information provided on Shuchi Nahar’s Weekend Blog is for educational purposes only. The articles may contain external links, references, and a compilation of various publicly available articles. Hence all the authors are given due credit for the same. All copyrights and trademarks of images belong to their respective owners and are used for Fair Educational Purpose only.

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