02 June 2020

Table of Contents for Construction Chemical

Construction Chemical

Good times in sight



A new research report presents an overall analysis of India’s construction chemicals market. The general observation of the market shows that India is progressing rapidly in every industry sector. With rapid advancements taking place in every sphere, an exponential growth is foreseen in India’s construction and construction chemicals market writes R KASHYAP.




As the two basic demand drivers for construction chemicals – real estate and infrastructure –register a turnaround on the back of government initiatives of affordable housing and a trillion dollar budget to modernizing India’s creaking infrastructure to global norms,  there’s a concomitant rise in the demand for construction chemicals (CC) across the spectrum. While the fast track rollout of projects is generating demand, there’s also a qualitative transition in the build quality as end users turn more demanding, which is forcing contractors to use CC to ensure high quality structures.



 This latent demand has also been catalyzed in a major way by adoption of modern construction materials, especially RMC (ready mixed concrete), which is generating demand for CC products across the concrete spectrum for niche applications. These modern concrete varieties and other construction materials are demanding a high level of quality in CC products to impart the materials with required properties to the materials, ranging from plasticizers to emulsifiers, to quick forming properties. For the first time the CC market in India is maturing and demanding high end products required for hi-tech construction methods.



Changing consumer lifestyles, especially of the country’s robustly expanding middle class population, is driving demand for quality construction of residential structures, thereby augmenting demand for construction chemicals in India. The real estate sector accounted for the largest share in India construction chemicals market in 2014, on account of rising disposable income, increasing number of nuclear families and rising investments in both residential and corporate structures. This sector is expected to maintain its dominance in India construction chemicals market in the coming years, due to implementation of government policies such as 100 per cent FDI in real estate business and ‘Housing for All by 2020’.



Experts also state that with the growing adoption of the green building concept and various proposed smart city projects will fuel demand for construction chemicals market in India. In August 2015, Government of India had released a list of 98 smart city projects, which was expected to generate strong growth opportunities in India construction chemicals market in the coming years. The trend in India’s construction industry is gradually changing, with the interest of public and private investors gradually shifting towards high quality construction. Rising adoption of advanced construction technologies, raw materials and chemicals is anticipated to drive the country’s construction chemicals market




Market analysis



Future Market Insights (FMI), in its recent report titled, “Construction Chemical Market: India Industry Analysis and Opportunity Assessment 2014 – 2020”, projects that the Indian construction chemical market will exhibit a CAGR of 17.2 per cent during 2014 - 2020. The market is projected to reach US$ 1,890 million by 2020. Utilisation of construction chemicals has witnessed significant growth over the past decade due to increasing infrastructure development activities in developing economies.




India Focus



The report analyses the Indian construction chemicals market in terms of market value (US$ Mn), segment, end user, and regions, providing information regarding market dynamics, competitive landscape, current trends, market estimations and forecast.Government regulations based on the concept of ‘Green Revolution’, increase in foreign investment activities, urbanisation, and growing preference for utilisation of ready-mix concrete (RMC) are some of the prominent factors that are driving the growth of the construction chemicals market in India. A few challenges faced by this market are low availability of skilled manpower, volatility in raw material prices, and lack of interestfor implementation of quality standards by infrastructure developers.



Some major trends in Indian construction chemical market are increase in investment in R&D, entry of new players, adoption of sustainable products and technological advancements. Asian region is turning out to be focus point for most of the major construction chemicals companies for investment in R&D. Rising construction of new buildings and renovation activities across India is expected to boost the overall demand for construction chemicals in the near future.


India construction chemicals market on the basis of types is segmented as admixtures, flooring chemicals, water proofing compounds, adhesives & sealants, repair and rehabilitation & others. Adhesives & sealants and admixtures segment is expected to collectively account for 61.2 per cent share of the India construction chemicals market by 2020. It is anticipated that there will be a decline in the growth of the repair, rehabilitation & others segment from 12.7 per cent in 2014 to 11.9 per cent in 2020, indicating a lack of inspection and maintenance in the construction industry in India.



On the basis of end use sectors, Indian construction chemical market is segmented as infrastructure sector and residential & commercial sector. Infrastructure sector is likely to grow at a CAGR of 18.3 per cent. The residential and commercial segment has a share of 34 per cent in overall Indian construction chemical market with a steady Y-o-Y growth of 16 per cent in 2020.




Regional advantage


From regional perspective, Indian construction chemical market is segmented into northern region, eastern region, western region and southern region. Currently, northern region is expected to experience highest CAGR of 17.8% as compared to other regions. Southern region is likely to create an opportunity which is three times the value in 2013. The southern region comprises the states of Tamil Nadu, Andhra Pradesh, Karnataka and Kerala. This region realises the potential of IT services and hence are able to attract significant investment from these service and manufacturing companies. Chemical and engineering industries are the main drivers of growth in western region particularly in Maharashtra and Gujarat.




Trends and key drivers of the industry



The utilisation and subsequent demand for construction chemicals in India has witnessed a significant growth in recent years, owing to the increase in infrastructural developments. The chemicals are mostly needed for enhancing the workability, performance, functionality, chemical resistance and durability of the construction materials. Construction chemicals are used not only to add life to the structures but also to aid in minimising quantities of cement and water required during construction. There are many buildings in India which are over 40 to 50 years old and need extensive renovation work. Therefore, the demand for such chemicals has been on the rise. Being a competitive and fragmented market, the construction chemicals industry is mostly dominated by several small and specialised suppliers.


The major factors that are driving the market are the increase in foreign investment activities, government regulations that are based on concepts of ‘Green Revolution’, urbanisation and rise in housing demand, as well as the growing preference for ready-mix concrete (RMC). Moreover, renovation and repairs of older structures also contribute to the substantial demand for construction chemicals. Increased preference for green buildings among property buyers, has also led to the development of the global construction chemicals industry.


The use of right construction chemicals enhances the capabilities, performance, functionality, chemical resistance and longevity of the construction materials. It minimises the project completion time and the need for regular repair, thereby reducing the overall average project and repair cost in the longer run. They also add value by augmenting the look and feel of the building.



There are many structures that are old or built using sub-standard construction materials. These buildings face the danger of collapse. Furthermore, the climatic conditions in certain parts of India cause serious damage to buildings, which can be eradicated by the use of construction chemicals.



A few trends that have been observed in the construction chemicals sector in India, include:


•             Increased investments in research and development (R&D), especially in Asian regions, and the entry of new players.

•             Use of sustainable products and technological advancements.

•             Overall demand for construction chemicals in India is expected to rise further due to the increase in the construction of new buildings as well as renovation activities.

•             In the Asia Pacific region, India and China together, contribute over 50 per cent of the total regional market size.



Benefits of construction chemicals


Construction chemicals commonly fall under the following category:


•             Concrete and Mortar (Grout) Admixture

•             Waterproofing Compounds

•             Floor Hardeners and Floor Topping

•             Protective Coatings and Surface Treatment

•             Adhesives and Sealants



These chemical substances facilitate the reduction of abrasions and increase in bond strength, thus, increasing the life of buildings. They add value to the structures by making them dust-proof and augment the look and feel of the structure. Buildings that are older or built using sub-standard construction materials face the danger of collapse. Besides, the climatic conditions of the country cause serious damage to the structures, which can be eliminated by the use of such chemicals.



Challenges and growth potential


Some roadblocks in the growth of the segment are:


•             Construction chemicals increase the overall costs to the developers, by about two to five per cent.


•             The sector is not much explored and is presently in the nascent stage. There is a lack of awareness among end-users about the benefits of construction chemical usage. Close to 85 per cent of the construction industry personnel, are not aware of the concept and the value addition made to construction works, if used in the right way, at the right time.


•             Application of chemicals involves excellent technical guidance which is presently lacking in the industry.


•             Skilled labour for executing the industry processes, is also difficult to obtain.



The crucial link between the use of construction chemical products and growth of the construction sector must be understood. A booming economy, increased investments from the government as well as participation by domestic and overseas investors, can greatly boost the growth of the industry.



Going forward


The Indian market for construction chemicals (CC) is expected to reach a valuation of over US$ 2,600 Mn by the end of 2025, growing at a robust CAGR of 13.7 per cent during the forecast period of 2017-25. This is due to the tremendous project rollout in the urban infra, construction, and EPC segment, powered by a trillion dollar push from the government to modernise India’s real estate and  infra sectors. The  CC market is dominated by Indian and global players  all competing on a cost v/s quality basis across the wide spectrum of CC types -- ranging from plasticizers to elastomers to  concrete additives, grouts, sealants etc and repair kits.


It would be interesting to see what market strategy is followed by all players across different product verticals, and competition between the organized and unorganized sectors. In such a scenario product positioning and service strategies which offer additional value can help secure business advantage. It would be instructive to know what some of the major players in the business are doing.


A new research report presents an overall analysis of India’s construction chemicals market. The general observation of the market shows that India is progressing rapidly in every industry sector.


With rapid advancements taking place in every sphere, an exponential growth is foreseen in India’s construction and construction chemicals market. This research report titled ‘Construction Chemicals Market: India Industry Analysis 2012 – 2016 and Forecast 2017 – 2025’ reveals that the market.


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