Construction Chemicals: India Market Scenario, Trends, Opportunity, Growth and Forecast, 2019-2029

Market Definition

Construction chemicals are an important segment under speciality chemicals. These chemicals are produced by a complex process and used on the basis of their performance and functionality. Construction chemicals can be used as a single chemical entity or combined with other formulations for use in specific application areas. In general, construction chemicals are segmented into various categories, including admixtures, waterproofing chemicals, flooring chemicals, adhesives & sealants and repair & rehabilitation chemicals.

Market Insights

Rising adoption of the green building and smart cities concept is catalyzing demand for construction chemicals in India. The trend in India’s construction industry is gradually changing, with the interest of public and private investors gradually shifting toward high quality construction in less time. Government of India is undertaking various initiatives for infrastructure development in the country

The Government has launched various new policies such as demolition of old buildings and construction of new high-rise buildings, which is projected to fuel demand for construction chemicals in the country during the coming years. Growth in the construction industry is dependent on initiatives taken collectively by construction industry participants and the Government to increase awareness regarding benefits of using about construction chemicals. India construction chemicals market is forecast to grow at a CAGR of 12.7% in value terms, during 2022-2029. Rising awareness among consumers about eco-friendly chemicals such as Low Volatile Organic Compounds (VOC) used in paints and coatings has entirely changed the industry’s perspective, leading to increased usage of construction chemicals

The real estate sector accounted for the largest revenue share in India construction chemicals market in 2021, on account of high disposable income of consumers and increasing nuclear families, resulting in large investments in residential and corporate structures. This sector is expected to maintain its dominance in Indian construction chemicals market during the coming years

Western region accounted for the largest revenue share in India construction chemicals market, due to increasing number of Government initiatives aimed at addressing the ever-growing demand for houses and related infrastructure, coupled with growing number of Public Private Partnership (PPP) projects in Mumbai, Gujarat and Pune. Upcoming residential and infrastructure projects in Western region is also driving demand for construction chemicals in this region.

Market Dynamics: Drivers

Growing Construction Activities
There is a symbiotic relationship between construction chemicals and the construction industry. Growth in the construction sector directly affects the sales of construction chemicals market. In addition to this, there has been significant growth in number of high rise residential and commercial houses, IT/Business parks in both tier I as well as tier II cities. A similar trend is expected over next five, thus fuelling the demand for construction chemicals in the country. After the establishment of a new stable government in India, new public infrastructure and real estate projects have gained faster approvals from the government.

Market Dynamics: Challenges

Availability of Low-Cost Substitutes
One of the major challenges being faced by Indian construction chemical industry is lack of standard products, which results in unchecked use of inferior quality products in construction project. Moreover, construction chemicals cost 2-3% of the total construction cost. In order to minimize the cost and awareness level about the benefits of construction chemicals, most of the builders use low-cost substitutes. Thus, to tackle the counterfeiting problem, industry players are taking initiatives to raise the awareness level and shift the approach from cost-to-benefit ratio to on-cost benefits. One of the major initiatives taken by the industry players is the formation of CCMA (Construction Chemicals Manufacturers Association). The association acts as a representative body to communicate with the government, chambers of commerce and other regulatory governing bodies in order to enhance the use of construction chemicals in the Indian market.

Market Segmentation

• Based on Product Type, the India Construction Chemicals market is segmented into
  • Concrete and Mortar Admixtures
    • Plasticizers
    • Superplasticizers
    • Accelerators
    • Retarders
    • Air Entrainers
    • Others
  • Waterproofing Chemicals
    • Bituminous
    • Polymeric
    • Others
  • Adhesives & Sealants
    • Tile Adhesive
      • Cementitious
      • Dispersive
      • Reactive Resin
    • Cementitious
    • Epoxy
  • Grout and Concrete Repair
    • Repair mortar
    • Repair grout
  • Protective Coatings
    • Epoxy
    • Polyurethane
    • Acrylic
    • Alkyd
    • Polyester
    • Others
  • Flooring Chemicals
• Based on Application, the India Construction Chemicals market is segmented into
  • Residential
  • Commercial & Industrial
  • Infrastructure
• Based on Sales Channel, the India Construction Chemicals market is segmented into
  • Direct Online
  • Direct Offline
  • Online
  • Dealers
  • Others
• Based on Region, the India Construction Chemicals market is segmented into
  • East India
  • West India
  • North India
  • South India
• All market revenue has been given in US Dollar, while the market volumes are given in tons.

Historical Year: 2019-2020
Base Year: 2021
Estimated: 2022
Forecast- 2023-2029

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of India Construction Chemicals Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the India Construction Chemicals Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in India Construction Chemicals Market based on competitive benchmarking matrix?

What are the key results derived from the market surveys conducted during India Construction Chemicals Market study?