CONSTRUCTION CHEMICALS SECTOR OVERVIEW
The modern building structures necessitate an ever-increasing supply of high-quality construction materials. Many of these structures need the application of construction chemicals, both in the pre and post construction stage. As the demand for safe, modern and sustainable building structures grows, the demand for construction chemicals is on the rise. Now, it is less about the awareness of the use of construction chemicals, and more about it being used as an integral part of the construction process. These chemicals are necessary for the construction of complex structures and have brought a paradigm shift in the way the construction industry operates. These chemicals have been used in a variety of construction projects to improve the quality of construction materials and increase the project’s long-term viability. Construction chemicals are in high demand due to a significant increase in urbanisation and advanced construction activities around the world. Sandeep Sharma examines the growth and opportunities in the Construction Chemical industry.
BRIEF OVERVIEW
Construction chemicals are compounds that are mixed into concrete and mortar to improve structural compatibility. These chemicals are predicted to drive industry growth by improving qualities such as durability, surface finish, compressive strength, and resistance to unfavourable working circumstances and climatic conditions. Furthermore, the ability of these chemicals to reduce the amount of water and cement required during building is expected to raise demand for this product in the coming years.
TYPES OF CONSTRUCTION CHEMICALS
Construction chemicals are available in a wide range of variations from a number of manufacturers throughout the world. The global construction chemical industry is being driven by rising demand for public, commercial, and residential buildings, as well as an increasing urban population. Buildings, roads, bridges, tunnels, and dams are all moving the market forward. The different types of construction chemicals used on hardened concrete either as surface application, coating or as repair materials include the following: Concrete curing compounds, Polymer bonding agents, Mould releasing agents, Form release agents, Protective and decorative coatings, Concrete floor hardeners, Non-shrink High Strength Grout, Surface retarders, Bond-aid for plastering, Ready-mix plaster, Polymer modified mortar for repair and maintenance, Tile fixers and tile adhesives, Water repellents, Swelling water stops, Guniting aid, Waterproofing chemicals, Adhesives, Rebar coating, Epoxy grouts, Epoxy coatings, Chemical for high performance concrete, etc.
COST AND BENEFITS
The cost of construction chemicals is between 2 to 5 percent of the total construction cost, but the advantages are numerous. The use of good quality construction chemicals are mandatory in many of the projects funded by Asian Development Bank (ADB) and the World Bank. Construction chemicals are required because they provide strength to the structure. These compounds change and improve the characteristics of fresh and hardened concrete. Protecting slabs and basements from water and humidity, providing corrosion protection, preventing fungi, moulds, and mildew, preserving concrete by neutralising lime, eliminating or reducing cracking, hardening concrete surfaces, and reducing abrasion and dusting are all advantages of using construction chemicals.
GROWTH DRIVERS AND MARKET SIZE
According to Persistence Market Research, the construction chemicals market in India will touch a market value of US$ 21.6 billion in 2031, growing at a CAGR of almost 14% over the forecast period of 2021-2031. According to the report, the share of waterproofing chemicals and plaster is higher in India compared to the developed world, while the market share of concrete repair mortar, protective coatings, and asphalt additives is low. Demand for construction chemicals, particularly concrete admixtures, is expected to rise due to increased government spending on building infrastructure and housing. The developmental projects such as Smart Cities, Make in India, Bharatmala Pariyojna are likely to push the demand for Construction chemicals in India. Concrete admixtures are predicted to have a market value of over US$ 1,200 Mn by the end of 2025, according to the research report. Waterproofing chemicals, on the other hand, dominate the market in terms of growth rate, with a CAGR of 14.4 percent projected during the forecast period.
CHALLENGES & INDUSTRY TREND
The manufacturing and handling of these chemicals poses serious safety concerns for both the manufacturers and infrastructure developers at large. The key challenges before the construction chemical industry is low availability of skilled manpower, volatility in raw material prices, and non-adherence to set quality standards by some of the infrastructure developers. The construction chemicals market in India is witnessing an increased investment in R&D, the adoption of sustainable construction material, the entry of new companies, and technological development and upgradation.
INDUSTRY PLAYERS
Some of the key players dominating the Indian Construction Chemicals segment include: Pidilite Industries, SIKA AG, Fosroc, Chembond Chemicals, Kerakoll India, Cera-Chem Private Limited, Saint-Gobain, Choksey Chemicals, CICO Technologies Limited, JSW Cement, Flowcrete India Limited, MAPEI Construction Products India Private Limited, MYK LATICRETE India, MC-Bauchemie (India) Private Limited, Sunanda Global, Magicrete, The Dow Chemical Company, and Apple Chemie, among others. Regional expansions are bolstering global players’ position in India. They have set up production facilities and have expanded their service footprints across India, particularly in the eastern and north-eastern regions.
INDUSTRY UPDATES
Some of the prominent announcements pertaining to the Construction Chemicals sector include:
In November 2021, Sika reached a definitive deal to buy MBCC Group, formerly BASF Construction Chemicals, for CHF 5.5 billion from a subsidiary of Lone Star Funds, a worldwide private equity group (EUR 5.2 billion). The MBCC Group is a global leader in construction chemicals. The acquisition will improve Sika’s regional footprint while complementing and broadening its product and solution offerings in four of five core technologies and seven of eight Sika Target Markets.
Pidilite Industries, a leading manufacturer of adhesives, sealants, and construction chemicals, has teamed up with GCP Applied Technologies Inc, a global leader in construction products, to provide high-performance waterproofing solutions for challenging sites with high temperature variation and water table under the Dr.Fixit brand.
Sunanda Global is associated with the Mumbai Metro project. The company’s offerings in the form of corrosion inhibiting admixtures, anti-carbonation coatings for concrete protection (piers, pier caps, viaducts, and stations), and anti-corrosive coatings for steel structures have been utilized to increase the service life of the Mumbai’s new Metros – Line 7 and Line 2A.
With the debut of a unique green product range in the category, JSW Cement, India’s premier green cement business, has entered the Construction Chemical market in June 2021. The company’s new product line uses less water throughout the application process. It uses screen slag instead of river sand in concrete, preserving natural resources and reducing the risk of landslides, floods, and air pollution.
Saint-Gobain, a French global corporation, has agreed to buy GCP Applied Technologies for $2.3 billion, establishing a world-leading position in the growing construction chemicals industry. The deal has been unanimously accepted by both boards of directors, and it is anticipated to close by the end of 2022. Earlier, in September 2021, Saint-Gobain finalized the acquisition of Chryso, a global leader in the construction chemicals sector. Chryso offers a wide range of sustainable construction additives that help to considerably minimise concrete’s carbon footprint.
MOVING FORWARD
Construction chemicals have long played a significant part in practically all types of construction projects, including industrial, residential, commercial, and other types of projects. These chemicals are applied in different aspects of projects to attain improved workability and durability. Construction Chemicals are no doubt an important component of the construction sector in India, and are playing an increasingly important role in nation building. The right usage of these chemicals not only improves the quality but also the durability of building structures. The construction chemicals market is projected to be highly impacted by the changing dynamics of the Indian construction sector in the future. The use of admixtures and related construction chemicals in concrete is being driven by the adoption of international standards and the rise in high-rise buildings in Tier I cities. Another area that is boosting the adoption of building chemicals is corrosion prevention and control. The use of Construction Chemicals is still lower compared to the advanced countries of the world. The awareness has increased significantly but is yet to reach the entire sector. With increase in awareness and mandatory government regulations, the usage will increase and thus contribute in a small but significant way to the Indian economy.
*Image used in this article is for illustration only
Note: The above-mentioned article covering India’s Construction Chemicals sector overview is taken from ProjectX India | 1st May 2022 edition. Each issue of ProjectX contains information on new projects, ongoing projects, contract award, commissioned projects, and e-procurement opportunities. Buy our latest or archival issues by clicking here…
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