Construction Chemicals Market to Grow 8%
The construction chemicals market is estimated at $19.9 billion in 2015 and forecasted to be $21.4 billion in 2016.
The construction chemicals market is estimated at $19.9 billion in 2015 and forecasted to be $21.4 billion in 2016. The market is expected to maintain a compound annual growth rate (CAGR) of 7.9% between 2016 and 2022, and reach a projected $33.7 billion by 2022. The highest demand is reportedly for concrete admixtures, and also the fastest growing on a global basis, projected to reach $12.4 billion by 2022, with a 2016-2022 CAGR of 8.9%.
Global demand for construction chemicals has witnessed above average growth in recent years, a trend that is likely to sustain at least over the medium term. Consumption of construction chemicals has a direct correlation with the level of ongoing construction activities. This further depends on the existing status of the construction market, urbanization, and the degree of industrialization in a specific region.
Developing economies of Asia-Pacific, the Middle East and Africa and South America regions are the primary construction markets that have been growing and would continue to grow rapidly, leading to a corresponding increase in consumption of construction chemicals. The populations in these regions, too, tend to grow at a much faster rate than that of developed economies, reportedly signifying a constant need for construction activity to be maintained. In addition, huge spending by governments for housing and boosting infrastructure is likely to bolster demand for construction chemicals in these sectors. Existing trends in the construction market indicate an increased use of ready-mix concrete and wider demand for non-hazardous and sustainable construction chemicals. Another trend that has been gaining in traction is the use of carbon nanotubes in flame retardant materials that are employed in construction.
In terms of end-use, the global market for construction chemicals relies heavily on the infrastructure and real estate sectors, generating a substantial amount of revenue from them, according to the report. Favorable initiatives by several governments aimed at improving infrastructure and overcoming housing deficit have led to increased investments in infrastructure and affordable housing, which has had a favorable impact on construction chemicals. Over the years, this demand would be driven by more investments in new construction and also in projects involving maintenance and repairs.
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