Paint and Construction Chemicals Market

The global Paint and Construction Chemicals Market is valued at USD 55.7 Billion in 2023 and is projected to reach a value of USD 97.8 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 6.5% between 2024 and 2032.

Key Highlights of Paint and Construction Chemicals Market

• Asia Pacific predominantly led the Paint and Construction Chemicals market in 2023, with 42.5% of the total market share
• In 2023, the Concrete Admixtures segment took the lead in the market, contributing a 69.5% substantial revenue share
• The Industrial/Commercial segment significantly contributed to the market’s expansion, constituting over 70.2% of the overall revenue share in 2023
• The construction industry has started to focus more on its chemical segment, which has shifted the focus from repairs and maintenance to other stages in the building, such as preconstruction or during construction. In comparison to 2020, Indian housing sales increased by more than 51 % in 2023. Even though the awareness of this massive market segment remains very weak, research studies project a compound annual growth rate of more than 10.4 % over the next three years. This is expected to increase the current yearly consumption by 2X

Paint and Construction Chemicals Market: Regional Overview

The Asia Pacific Paint and Construction Chemicals market exhibited significant dominance in 2023, with 42.5% of revenue share. Central to this growth is the rapid urbanization occurring across various countries in the region. With more than half of the world's urban population residing in Asia, the demand for infrastructure development is unprecedented. Governments in countries like China and India have launched projects such as Belt and Road Initiative and the Smart Cities Mission, which entail significant investments in the construction sector, further projected to drive the market growth.

China is the largest market for construction chemicals globally, accounting for the majority of the market. Construction of new housing buildings increased as developers started projects to increase their revenues. In particular, many of these new buildings are move-in ready units that do not require any refurbishment or renovation. The trend has been gaining momentum since a 2017 policy was introduced by China's Ministry of Housing and Urban-Rural Development that requires 30% of all newly built residential properties to be completely renovated by 2020. At the same time, opportunities are emerging across the country from a large number of existing housing estates. Massive demand for home renovation products and services has arisen as a result of recent government initiatives encouraging the refurbishment of these properties.

U.S. Paint and Construction Chemicals Market Overview

The Paint and Construction Chemicals market in the United States, with a valuation of USD 25.1 Billion in 2023, is projected to reach around USD 32.2 Billion by 2032. This forecast indicates a substantial Compound Annual Growth Rate (CAGR) of 2.8% from 2024 to 2032. The U.S. Paint and Construction Chemicals market is driven by the increased construction activities and infrastructure projects. Rising demand for eco-friendly and sustainable solutions and technological advancements contribute to market expansion. Key players focus on innovation, aligning with the nation's evolving environmental and regulatory landscape, further fueling market growth.

The global Paint and Construction Chemicals market can be categorized as Product, Application, and Region.

Paint and Construction Chemicals Market: Product Overview

In 2023, substantial expansion was observed in the Global Paint and Construction Chemicals market within the Concrete Admixtures category, commanding a revenue share of 69.5%. The Product segment is divided into Paints, Concrete Admixtures, Adhesives and Sealants, and Others. The Concrete Admixtures segment within the Global market has witnessed substantial growth driven by increasing construction activities worldwide and a growing emphasis on enhancing concrete performance. Admixtures are additives that improve concrete's durability and strength, addressing specific project requirements. The demand for high-performance concrete in infrastructure projects has boosted the adoption of advanced admixtures. For instance, polycarboxylate-based superplasticizers have gained prominence due to their ability to improve concrete flow without compromising strength.

Paint and Construction Chemicals Market: Application Overview

In 2023, there was significant growth in the Industrial/Commercial segment, over 70.2% of the market share. Based on the Application, the Paint and Construction Chemicals market is divided into Residential, Industrial/Commercial, and Infrastructure. The Industrial/Commercial segment in the Global market has experienced significant growth owing to robust industrialization, commercial development, and infrastructure projects globally. An increasing focus on protective coatings, specialized formulations, and sustainable building solutions in these sectors drives this surge. For instance, the demand for high-performance coatings with corrosion resistance and fire retardancy has propelled growth in the industrial/commercial segment. The use of epoxy paints in industrial facilities, warehouses, and commercial premises is one of the most notable examples. Epoxy coatings are ideal for protecting concrete floors in production plants or creating high gloss finishes in commercial premises due to their durable and chemically resistant surface. As industries and businesses prioritize longevity and safety in their infrastructure, the Industrial/Commercial segment is expected to maintain its upward trajectory in the global Paint and Construction Chemicals market.

Key Trends

1. Consumers and industry are increasingly seeking environmentally friendly and sustainable solutions for paints and building materials. Increasing awareness of the environmental impact and regulatory support for green building practices have contributed to this development.
2. As a result of continuous research and development, advanced formulations and technologies have been introduced into the sector. Attention has been paid to the performance-enhancing properties of smart coatings, self-healing materials, and nanotechnology applications.
3. Significant demand for paints and building chemicals has been driven by a worldwide trend of urbanization, particularly in emerging economies. The number of infrastructure projects has increased, contributing to an increase in the market.
4. The industry has moved to digital platforms for marketing, sales, and distribution. E-commerce channels have become more prominent, enabling manufacturers to reach a broader customer base and streamline their supply chain.
5. The demand for paints and coatings with insulating properties is increasing because of the rising emphasis on building energy efficiency. To reduce energy consumption, the use of cool roof coatings and thermal insulation paints is on the rise.
6. The health and safety aspects of paints and building chemicals have become increasingly important in the sector. Due to their positive impact on indoor air quality, low-VOC organic compounds and nontoxic formulations have become increasingly sought after.

Premium Insights

India's ambitious infrastructure investment plan of $1.35 trillion offers companies in the Paint and Construction Chemicals sector a good opportunity. This is a fortunate moment for MCON Rasayan, the leading producer and supplier of construction chemicals and building finishing products. Given the country's focus on big infrastructure projects, MCON Rasayan is positioned to play a vital role in this growth. The growing demand for construction chemicals is perfectly compatible with the company's expertise, which makes it an excellent fit to take advantage of India's expanding infrastructure opportunity.

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Market Dynamics

Nippon Paint is expanding into the Indian construction chemicals market with an amount of INR 12,500 crore. Nippon Paint India Ltd. (Decorative Division) has announced its strategic expansion into the construction chemical market. Nippon Paint India has expanded its portfolio beyond the range of paint and coating products, which aligns with its worldwide strategy. The brand is set to offer a wide range of products and solutions under categories such as Dry Mix, Repairs and Maintenance, Construction Chemicals, and Waterproofing in connection with its expansion plans. The products will be focusing on three key market segments - During construction: Concrete admixtures& Membranes; Post Construction (New buildings): Concrete repair, Water proofing, Hybrid sealants, and Adhesives; Repair & Maintenance: Protective Coating, Sealants, and Water proofing. This category is expected to be driven by the increasing number of housing and commercial constructions, innovation in architectural design & engineering, low-cost homes, and a growing trend towards urbanization.

The Chinese government estimates that by 2020, the construction sector will account for more than 30 % of total social energy consumption, which could make it a significant user. Investing in environmentally friendly buildings can effectively reduce this number. In May 2012, the Ministry of Finance and the Ministry of Housing and Urban-Rural Development set a target of 30 % of new building projects in China to be green buildings by 2020. In the event of implementation, this target would leverage a green market worth trillions of Yuan as new chemicals, specific polymers, construction materials, new energy, and related service sectors will also be strongly stimulated by developing energy-efficient buildings. Chemical companies are investing in emerging construction chemicals geared to sustainability.

Competitive Landscape

The Paint and Construction Chemicals market is diverse and highly competitive, with several key players dominating the industry. These companies operate globally and offer a wide range of products & solutions to cater to the construction and infrastructure development sectors. For instance, a German chemical company, BASF, is a significant player in the production of construction chemicals. To improve overall performance, the company offers the broadest range of products used directly on construction sites or integrated into other products, with more than 600 products serving 75 product categories. In addition, Dow Construction Chemicals supplies the market with regional laboratories, 13 strategically located production facilities, and around 100 dedicated sales, marketing, and research professionals in Europe, the Middle East, and African countries.

Recent Market Developments

• In December 2023, Arkema acquired Arc Building Products in Ireland, a company that specializes in adhesives and sealants for the construction industry. Through the planned acquisition, Arkema will strengthen its position in the growing Irish construction adhesives market with a broader range of solutions and a local production footprint.
• In June 2023, to meet the growing domestic demand for building materials and solutions, Fosroc Ltd, a joint venture between Berger Paints Bangladesh and Fosroc International Ltd, opened its construction chemical plant in Bangladesh.
• ​​​​​In May 2023, Sika finalized its acquisition of MBCC Group, following all required regulatory approvals. Through this highly synergistic transaction, Sika will enhance its position in all regions, reinforce its range of products and services throughout the whole construction life cycle, and contribute to a sustained transformation of the construction industry.
• In March 2023, in the Daya Bay Petrochemical Industrial Park of Guangdong, China, BASF plans to expand its production capacities for polymer dispersions by adding a 2nd distillation line. At the beginning of 2024, the new line is scheduled to start operations. As the world's largest producer of dispersions, BASF has continued investing in rapidly developing Asian markets.

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