Construction Additives Market

Construction Additives Market

The global construction additives market is valued at USD 35.3 billion in 2024 and is projected to reach USD 49 billion by 2029, growing at 7.0% cagr from 2024 to 2029.

The construction industry is undergoing continuous evolution, fuelled by technological advancements and an increased emphasis on sustainability. The growing demand for enhanced aesthetics in both residential and infrastructure projects has led architects and engineers to innovate concrete designs for various uses. Construction additives, including chemical, mineral, and fibre types are now widely accepted in the industry which allows designers to modify and improve the physical and chemical properties of concrete. These additives enhance key characteristics such as compressive strength, durability, surface finish, and resistance to adverse weather conditions without compromising the quality of concrete structures.

Attractive Opportunities in the Construction Additives Market

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Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis

Construction Additives Market Dynamics

Driver: Rapid urbanization and infrastructure development

The global trend of rapid urbanization has led to a significant increase in construction activities, particularly in developing countries. In 2022, G20 central governments allocated nearly USD 1 trillion for infrastructure investment, equivalent to around 1% of total G20 GDP or 4.6% of total G20 central government budget expenditure. This urban growth necessitates the construction of residential, commercial, and infrastructure projects, which in turn increases the demand for construction additives.

Governments worldwide are heavily investing in infrastructure development, including roads, bridges, and public transport systems, which require high-quality materials enhanced by additives. Additionally, according to Oxford Economics/Haver Analytics, there will be a rise in CAGR growth in the construction industry across the globe.

Restraint: Price Volatility of Raw Materials

The construction additives market is heavily influenced by the volatility of raw material prices. Changes in costs directly impact production expenses, making it challenging for manufacturers to maintain consistent pricing for their products. Material price fluctuations have led to significant delays in construction projects, as contractors struggle to obtain necessary materials at stable prices. Many construction professionals entered contracts without anticipating the extent of these variations, resulting in disputes and potential project halts. This uncertainty has prompted some developers to postpone or suspend planned projects, further affecting the demand for construction additives.

Opportunity: Development of new products & services

The construction additives market is shifting towards innovative solutions that enhance performance and sustainability. Recent developments include eco-friendly additives made from recycled and biobased materials, which reduce environmental impact while improving concrete's durability and strength. For instance, AlterBiota's hydrous bio-graphene oxide (hBGO) enhances concrete performance and lowers carbon footprints without requiring changes to existing practices. Also, the use of nanomaterials is increasing, as they improve mechanical and thermal properties, enabling self-healing and self-cleaning capabilities. These advancements offer significant opportunities for companies to differentiate themselves and meet the rising demand for sustainable building solutions.

Challenge: Established Infrastructure in Developed Countries

In developed regions, the focus has shifted from new construction to maintenance and upgrades of existing infrastructure due to well-established capacity. The OECD has highlighted diminishing returns on new investments in these countries, particularly in North America and Europe. The emphasis on maintaining older infrastructure often involves using traditional materials and methods, limiting the adoption of new additives that could enhance performance and sustainability. This reliance on established infrastructure creates challenges for the growth of the construction industry, affecting the demand for construction additives and restricting opportunities for manufacturers to introduce innovative solutions in developed countries.

Construction Additives Market Ecosystem

By Type, chemical additives has the largest market share in the forecast period

In 2023, the chemical additives segment captured the largest share (62%) of the global concrete admixtures market by value. These additives are widely utilized in the construction industry for their ability to enhance properties of concrete and mortar, such as workability, setting time, and durability. Their versatility allows them to be customized for specific project needs, making them essential in modern construction practices. The growing demand for high-performance concrete in infrastructure projects, along with an increasing focus on sustainability and cost-effectiveness, has further driven the growth of the chemical additives segment.

Residential accounts for largest segment in the construction additives market

In 2023, the residential sector emerged as the largest end-use industry in the construction additives market, accounting for 44.3% of the market share by value. This prominence is driven by a rise in housing development projects, spurred by urbanization and the demand for affordable housing solutions. As builders and homeowners prioritize energy efficiency, and durability, construction additives are essential in meeting these needs. The focus on high-quality living spaces has increased interest in additives that enhance concrete strength, lower maintenance costs, and support eco-friendly building practices, positioning the residential sector as a key driver of innovation in the construction additives market.

Asia Pacific dominated the market in 2023

In 2023, Asia Pacific was the largest construction additives market by value and is projected to be the fastest growing from 2024 to 2029. This is driven by high economic development, rising population, rapid urbanization, and significant investments across residential, commercial, and infrastructure sectors. Government initiatives aimed at improving infrastructure and housing quality further stimulate the market. As the region evolves economically the demand for innovative construction solutions supporting large-scale projects and meeting modern building standards is expected to remain strong, cementing Asia Pacific's position as the leading construction additives market.

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Construction Additives Market Players

The construction additives market comprises key manufacturers such as Sika AG (Switzerland), Saint-Gobain S.A. (France), MAPEI S.p.A. (Italy), Dow (US), and BASF (Germany), RPM International (US), Evonik Industries (Germany), W. R. Grace and Co. (US), CICO Group (India) and others. Expansions, collaborations, and acquisitions were some of the major strategies adopted by these key players to enhance their positions in the Construction additives market. A major focus was given to expansions.

Construction Additives Market Scope

Construction Additives Market, By Type

• Chemical Additives
• Mineral Additives
• Fiber Additives

Construction Additives Market, By End-Use Industry

• Residential
• Commercial
• Infrastructure

Construction Additives Market, By Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Recent Developments

• In March 2024, Sika acquired Kwik Bond Polymers, LLC (KBP) (US), a manufacturer of polymer systems for concrete infrastructure refurbishment.
• In February 2024, Sika has acquired Vinaldom, S.A.S in the Dominican Republic, a company known for providing high-quality concrete construction products for decades.
• In March 2022, Dow announced a new product extension of VORASURF Silicone Surfactants with a specific focus on spray and construction applications.
• In March 2023, RPM International Inc. announced that its RPM Performance Coatings Group acquired certain assets of Southwest Fireproofing Products Co. (Mexico).
• In June 2022, RPM International Inc. announced that its subsidiary Tremco CPG Europe acquired Colux GmbH (Germany), a developer and producer of innovative pigments and colorants.
• In February 2021, W. R. Grace & Co. acquired the Fine Chemistry Services business, which was previously Albemarle.
• In September 2023, Mapei S.p.A. launched new UltraCare range dedicated to protecting, maintaining and caring for surfaces.
• In February 2024, Mapei S.p.A. announced acquisition of Profilpas Group which manufactures in Italy and Poland at its two sites in Cadoneghe and Kutno.

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