Construction Additives Market Research Report—Global Forecast till 2030

Construction Additives Market Report by Type (Chemical (Plasticizers, Air-entraining, Waterproofing, Retarding agent), Mineral, Fiber), by End-use (Residential, Commercial, Infrastructure) Forecast 2030

ID: MRFR/CnM/3732-CR | October 2022 | Region: Global | 110 Pages         

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Construction Additives Market Overview


The Construction Additives market size is projected to be worth USD 38.96 billion by 2030, registering a CAGR of 7.76% during the forecast period (2022–2030). The market was valued at USD 20.39 billion in 2021.


Additives used in construction are chemical compounds and mineral powders that improve the performance of building supplies. Additives in the construction industry are commonly used to improve the strength and longevity of cement, mortar, and other building materials. Cement additives are compounds used to increase the durability and performance of concrete. As an example, some construction additives reduce the amount of water used for cement, helping to preserve natural resources. As a result of this improvement, the product can withstand a greater range of environmental conditions, is more resistant to external damage, and can better repel water, allowing for the construction of more robust and expansive buildings. The need for higher-quality building supplies is driving growth in the construction additives industry. The construction sector is expanding rapidly to keep up with the needs of a rapidly expanding population, and this, in turn, is driving up demand for construction additives. The need for construction additives is anticipated to expand as a result of the increasing sophistication of construction technology.


COVID-19 Impact on the Construction Additives Market:


The outbreak of the COVID-19 pandemic has adversely affected the global construction additive market due to the disruption in the supply chain and the non-availability of labour to carry out construction activities. Limited or full-fledged lockdown strategies were implemented across the globe in order to contain the spread of the virus. However, with the rapid pace of vaccination in the US coupled with the prudent monetary stance taken by the US Treasury, the North American economy is coming on track. With safety measures in place, the construction activities within the US and Canada have more or less returned to the pracademic levels. Moreover, the pent-up demand caused due to implementation of lockdowns is expected to fall over the subsequent year, driving the product demand in the current scenario.


Disruption of global shipping networks and implementation of strict lockdown strategies across China and North America led to an acute shortage of raw materials. Consequently, this supply squeeze led to a short-term rise in raw material prices. However, the normalization of supply chain networks and reopening of production facilities have restored the supply of key additive in the market. Disruption in construction activities caused due to the outbreak of the COVID-19 pandemic led to a drastic decrease in demand for various types of construction materials such as waterproofing material, concrete, sand, and stones. As a result, key construction additive manufacturers decreased their production capacities owing to overcoming the significant fall in demand. Moreover, an acute shortage of labor and raw material also contributed to the reduced production capacities of the key players operating in the Global construction additive market.


Market Dynamics


Drivers

  • Growth Of The Construction Industry In North America


There are four construction types: residential buildings, institutional and commercial buildings, industrial construction, and infrastructure and heavy construction. Population growth and rapid urbanization are driving the growth of the construction industry across North America, which is majorly increasing residential and commercial construction. According to the UN Department of Economic and Social Affairs (UNDESA), in 2019, 82.46% of the population lives in the urban areas of the US. The urban population of the US increased from 73.6% in 1971 to 82.46% in 2019, growing at an average annual rate of 0.24%. The increase in residential construction is associated with the growing need for single-family dwellings in North America. Therefore, the increasing construction of residential, commercial, and industrial facilities across the region is driving the demand for construction additives in the construction industry. Though the US is the manufacturing powerhouse in many sectors, the need to import basic products during the pandemic has led to calls from political leaders for US manufacturers to start producing critical supplies domestically. This will further boost the demand for construction additives in industrial applications in the region.


Restraints

  • Fluctuating Raw Material Prices


Plasticizers are made from raw materials such as oil, natural gas, and coal. The first step in making plastics is the polymerization of the raw materials, resulting in a product called a monomer. Chemicals such as benzene and xylenes are isolated from petroleum and are reacted with others to form the monomers for plastics. Thus, the fluctuations in crude oil prices will likely impact the price of plasticizers made by the extrusion process. In addition, the prices of raw materials are highly volatile. They can be influenced by many other factors such as climatic conditions, policy changes in North America who are the major consumers, fluctuations in currency exchange rates, and supply and consumption. The outbreak of COVID-19 has reduced global demand for oil by about 29 million barrels a day from about 100 million a year ago, resulting in a negative impact on the North American market. OPEC and other producers agreed to cut production by 9.7 million barrels a day, far less than the reduced demand, resulting in an oversupplied market with no buyers. The pandemic also resulted in a global oil price crash, wherein oil price went negative, reaching USD 37/barrel. These untimely variations in crude oil prices directly impact plastic prices, which is likely to hamper the global construction additives market growth in the coming years.


Opportunity

  • Mergers & Acquisitions Create Growth Opportunities Along With Increasing Civil Engineering Construction


Increasing mergers & acquisitions are witnessed in the global construction additives for the construction market, which is further expected to continue throughout the forecast period. A large number of key players operating in construction additives in North America, Asia-Pacific, and Europe, with nominal underlying growth. They have a limited mechanism for growth and meeting investors' expectations; thus, acquisitions become an important factor for growth. Strategic mergers & acquisitions can gain significant synergies, such as saving on raw material costs due to high pricing power and reduced operational expenses. To accelerate its growth strategy and strengthen its position as a sustainability leader in the global construction industry, Sika purchased MBCC Group in November 2021. Additionally, Sika increased the size of its production facility in Tanzania and the Ivory Coast in February 2022. In addition to concrete admixtures, these facilities also make mortars. Additionally, the location provides room for business operations to expand. Sable Marco Inc., a Pont Rouge, Canada-based manufacturer of cement goods and mortars, was purchased by Sika in March. With this transaction, Sika will have additional chances in Canada's Eastern area. Thus, the increase in civil engineering construction in Eastern Europe is likely to create immense growth opportunities for the market players in the region


Threat

  • Environmental Concerns


Nowadays, there are increasing concerns over the environmental pollution caused due to various factors such as improper disposal of plastic waste and increasing consumption of plastics. Some additives are non-biodegradable and difficult to recycle or reuse due to their complex composites with varying contamination levels. This non-biodegradable additive can create the disposal of plastic waste, resulting in improper disposal, which can cause negative consequences for the environment. Moreover, PVC plastics are also hard to recover through recycling because pure PVC must be combined with a wide variety of additives during its production to make it into a substance that is useful for manufacturing. Henceforth, these various factors can create environmental pollution. Some result in improper disposal of plastic waste caused due to plastic additives and is expected to hamper the market growth during the forthcoming years. The construction additives market for the construction industry is affected by the potential changes in the regulations, as it creates uncertainty throughout the entire value chain. Raw material producers, formulators, channel partners, and end users are proportionately affected by different regulatory changes in different countries and their operations in different regions. These changes have led to a tremendous shift from alternative products and have resulted in increased capital costs for upgrading technologies, leading to high-cost products.


Segmentation


By Type



  • Chemical

    • Plasticizers

    • Air-entraining

    • Waterproofing

    • Retarding Agent

    • Others



  • Mineral

  • Fiber


By End-use Industry



  • Residential

  • Commercial

  • Infrastructure


Regional Analysis


The global market for Construction Additives is segmented into the following regions: Asia Pacific, Europe, North America, Latin America, and the Middle East and Africa.


The worldwide construction additives market has been segmented by region into Asia-Pacific, Europe, North America, Latin America, and the Middle East and Africa. In 2021, the Asia-Pacific region held the biggest market share of 38.25%. In the same year, North America had the second-largest market share (25.19%). In 2021, Asia-Pacific will hold the greatest market share. One of the primary factors driving the construction additives market is the increasing growth in the construction sector. The region's high demand for residential and non-residential structures has a considerable impact on the demand for construction additives, as they are used in the floors and walls of buildings.


The expanding residential development in Europe is predicted to have a favourable impact on the European construction additives market during the forecast period. Architects and developers in the region are creating unique, fresh, luxury ideas for end consumers, which is contributing to market growth. In 2021, North America has a 25.2% market share. The expansion in this region is mostly attributed to increased incomes from economic growth, which have helped the housing and building markets in numerous countries, and this trend is expected to continue in the projection years. The construction of green buildings in Latin America is expected to increase demand for construction chemicals with improved durability, increased energy efficiency, and other features while lowering repair and maintenance costs. Growth in the Middle East and Africa has stalled over the evaluation period, likely because the region is developing slowly due to the prevalence of small economies.


Competitive Landscape


The global Construction Additives market is expected to showcase healthy growth throughout the forecast period. The global market represents strong numbers in terms of consumption and is expected to grow year on year. The global Construction Additives market is fragmented in nature with several organized and unorganized players operating in the market. The construction additives market's top competitors are focused on boosting profitability and margins, extending their product portfolios, and acquiring a competitive edge through organic and inorganic growth methods such as expansions, acquisitions, and new launches.


According to MRFR study, tier-1 and small domestic manufacturers of building additives compete fiercely. The expansion of the worldwide construction sector as a result of fast industrialization and urbanisation in Asia-Pacific emerging nations is also predicted to boost the market growth. Another element driving demand for construction additives is the growing desire for high-performance materials that improve material qualities. However, rising raw material and energy prices would most certainly stifle worldwide industry expansion.


Sika Group (Switzerland), The Dow Chemical Co. (US), W. R. Grace and Company (US), RPM International Inc (US), CHRYSO Group (France), Mapei S.p.A (Italy), Evonik Industries AG (Germany), Fosroc (UK), Cico Group (India), and BASF SE (Germany) are the prominent players operating in the construction additives market. The construction additives market is highly fragmented, and the prominent players are expanding their presence to other developing economies such as India, China, and other countries.


Some of the key developments include:



  • In June 2022, Sika AG expanded its production by bringing a new manufacturing plant for concrete admixtures on stream in Stafford, Virginia.

  • In May 2022, Sika opened a new plant in Santa Cruz de la Sierra to double its production capacity for mortar and concrete admixtures in Bolivia.

  • In March 2022, Sika acquired Sable Marco Inc., a manufacturer of cement products and mortars in Canada. Headquartered in Pont Rouge. This acquisition will open up new opportunities for Sika in the Eastern region of Canada.

  • In February 2022, Sika Expanded its production site in Africa and in Tanzania and Ivory Coast. This plant produces mortars in addition to concrete admixtures. The site also offers space for further growth in operations.


Report Overview:


The Construction Additives market is segmented by type, end-use industry, and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global Construction Additives emerging and fast-growing segments, regions, and countries.


Objectives of the Study



  • To get a comprehensive overview of the global Construction Additives market

  • To get wide-ranging information about the key factors driving the market and market opportunities

  • To gain information regarding the key players in the industry, their product portfolio, strategies, and key developments

  • To gain insights into the key country/region in which the market is growing


Intended Audience



  • Building & Construction Companies

  • Additive Manufacturers

  • Construction Chemical Companies

  • Chemical Companies

  • Research Institutes

  • Academic Institutes

  • Government Organizations



Report Scope:

Report Attribute/Metric Details
  Market Size    2030: USD 38.96 Billion
  CAGR    7.76% CAGR (2022-2030)
  Base Year    2021
  Forecast Period    2022-2030
  Historical Data    2019, 2020
  Forecast Units    Value (USD Million) & Volume (Kilotons)
  Report Coverage    Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, and End-use Industry
  Geographies Covered   North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa
  Key Vendors   Sika Group (Switzerland), The Dow Chemical Co. (US), W. R. Grace and Company (US), RPM International Inc (US), CHRYSO Group (France), Mapei S.p.A (Italy), Evonik Industries AG (Germany), Fosroc (UK), Cico Group (India), and BASF SE (Germany).
  Key Market Opportunities   Mergers & Acquisitions Create Growth Opportunities Along With Increasing Civil Engineering Construction
  Key Market Drivers   â€¢ Growth Of The Construction Industry In North America • Improved Economic Conditions Of Consumers Resulting In New And Renovation Construction Of Residential Places


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Frequently Asked Questions (FAQ) :

The global Construction Additives market would register a growth of 7.76%.

The construction industry will play a prominent role in taking the market forward.

Chemicals such as benzene and xylenes are isolated from petroleum and are reacted with others to form the monomers for plastics. Thus, the fluctuations in crude oil prices will likely impact the price of plasticizers made by the extrusion process.

Asia-Pacific would enjoy the upper hand in the Construction Additives market, and it is poised to grow at a rapid rate.

China is poised to set the trend for demand growth in the Construction Additives market.