Urbanization and Globalization to Propel Growth in the Global Construction Chemicals Market, According to New Report by Global Industry Analysts, Inc.

San Jose, California (PRWEB) November 16, 2012

Follow us on LinkedIn Reflecting the declining trend in larger construction markets worldwide, the construction chemicals market witnessed a decline in consumption in 2009, on account of the global economic recession. The market however recovered in 2010 driven mainly by increasing construction activity in the developing countries of Asia-Pacific. Developing nations emerged as bright spots for construction chemicals demand growth and, in line with the increasing consumption, a major portion of global production activity has also shifted to these regions. The US construction chemicals industry witnessed acceleration of this trend during recession, as many US producers increasingly shifted their facilities to China and other developing countries due to low sourcing costs and high growth potential in these markets. The US has already ceded its position to China in terms of value sales of construction chemicals effective 2011. Subsequently, several new construction chemicals companies mushroomed. A major portion of the global demand for construction chemicals is currently being generated from these new markets.

Asia-Pacific represents the most vibrant region in terms of demand growth, where developing countries such as China, India, Taiwan and Vietnam are witnessing impressive growth owing to rapid urbanization. A similar trend can be observed in few East European nations including Poland, Russia and Hungary. Future growth in the West European market however will largely depend on the effective management of the debt crisis in countries such as Spain, Greece, Italy and Ireland, since the developed Western countries constitute large export markets for the construction chemicals produced in these countries. Brazil, Chile, Colombia and Argentina are also emerging as promising markets for construction chemicals.

Construction megatrends including urbanization and popularity of green building constructions have been the two major growth propellants for the construction chemicals market besides increased usage of latest construction equipment and high acceptance of ready mix concrete. Green buildings and urbanization would drive market growth over the coming years. Several construction chemical manufacturing plants are currently under construction in the developing regions due to an increase in the portion of global production activities being shifted to these sites. The urbanization trend is more pronounced in the developing world where population movement from rural areas to urban increases at a much higher rate. Urbanization drives demand for infrastructure both in the commercial and residential sectors, ultimately creating growth opportunities for building materials and construction chemicals. As a result of mass migration of people from rural areas to developed urban economic zones, demand for housing and infrastructure is rapidly surging. A case in point is China, where such population movement was most visible especially in the recent years. Urbanization in China has reached a level of 40% and is more likely to increase to 60% in the near future similar to many developed nations. Such population movements require improvements in infrastructure such as adequate housing, highways, roads, water and sewage facilities and commercial and retail development. Urbanization also demands increased investments in industrial structures and factories, thereby stimulating demand for construction materials and chemicals.

The global construction chemicals industry is witnessing continuous technological innovations and developments. Construction chemical manufacturers embracing nanotechnology for developing sophisticated formulations has been a hot trend in the market lately. Although research in this area is still nascent, major companies have already developed quite a few formulations based on nanotechnology and are in the process of demonstrating practical benefits of products to end-users. A key demand gaining strength in the market is the development of durable, long-lasting products including high performance sealants and moisture curing polyurethane adhesives. In view of the extreme environmental conditions and the spate of natural disasters, construction techniques are being evolved and upgraded constantly. New product developments are also focused on addressing the issue of mold growth. Currently, use of antimicrobial ingredients is being favored as a potential solution for preventing formation of mildew and mold on the surface of adhesive, sealants, and other types of building materials.

As stated by the new market research report on Construction Chemicals, Asia-Pacific represents the largest regional market. Growth in the Asia-Pacific region can be attributed to rising levels of urbanization and globalization. Asia-Pacific is also the fastest growing region registering a CAGR of 7.5% over the analysis period. Within the construction chemicals market, Non-Residential Construction constitutes the largest end-use segment. Protective Coatings & Sealers constitutes the largest product segment. These chemicals are widely used in nonresidential building segment especially in industrial and commercial buildings. Cement & Asphalt Additives forms the fastest growing product segment of the construction chemicals market.

Key players profiled in the report include BASF SE, Elotex AG, Grace Construction Products, Henkel KGaA, Illinois Tool Works, Mapei SpA, PPG Industries, Selena Group, Sika AG, and The Dow Chemical Company, among others.

The research report titled Construction Chemicals: A Global Strategic Business Report announced by Global Industry Analysts, Inc. provides a comprehensive review of market trends, product profile, product developments, mergers & acquisitions and other strategic industry activities. The report provides annual sales estimates and projections for the years 2010 through 2018 in value (US$ ) for geographic markets including the United States, Canada, Japan, Europe, Asia-Pacific, Latin America and Rest of World. Key product segments analyzed include Protective Coatings & Sealers, Caulks & Adhesives, Cement & Asphalt Additives, Grouts & Mortars, and Polymer Flooring & Others. Key end-use segments analyzed include Residential Construction, Nonresidential Construction, and Non-Building Construction. The study also provides historic data for an insight into market evolution over the period 2004 through 2009.

For more details about this comprehensive market research report, please visit


About Global Industry Analysts, Inc.

Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world’s largest and reputed market research firms.

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Global Industry Analysts, Inc.

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