The global construction additives market size was estimated at USD 17.96 billion in 2016. Construction additives are gaining greater significance owing to the revival of the construction industry after the economic crisis in 2008. The market is also growing with rising commercial and residential construction projects, fueled by rapid urbanization in developing countries such as China and India. In addition, increasing awareness regarding the advantages of using additives amongst builders, architects, and those involved in construction is likely to propel the market over the coming years.
The mechanical properties of construction materials with additives enable redesigning of connections such as bridges and roads. These properties also encourage the easy and fast formation of buildings and infrastructure. The desired properties of additive materials create strong bonds in infrastructure, which, in turn, provide prolonged performance. These trends are anticipated to drive market growth from 2017 to 2025.
Growth of the construction sector across the world, especially in Asia Pacific and North America, is expected to drive the market. Asia Pacific is the largest consumer of these materials. The outstanding economic performance of the region is expected to nurture the growth of the market for construction additives. Additionally, the massive construction industry in China and India is anticipated to provide tremendous opportunities for the use of these materials.
Manufacturing of construction additives requires advanced technology and highly skilled labor to handle the same. Moreover, expensive raw materials and the requirement of skilled personnel add to the cost of production. This increases initial investment, which is projected to hamper market growth.
Chemical construction additives are anticipated to form the largest segment by type over the forecast period. Chemical additives such as water-reducing, plasticizers, air-entering, accelerating, and retarding are used for specific purposes. Increasing use in multi-story residential and commercial buildings is expected to further this segment.
Minerals form the second most used additive type in the construction industry. However, increasing environmental restrictions in many developed countries are acting as a restraint on this segment. Fibers form one of the fastest-growing segments, with increasing use in major infrastructure projects all over the world. Fiber additives help contractors avoid cracks in structures, thus improving their lifespan.
The commercial sector is anticipated to emerge as the largest end-use segment in the market. The segment is also the fastest-growing end-use segment owing to the increasing use of construction additives in the construction of shopping centers, offices, malls, colleges, schools, universities, and hospitals. Expansion of the hospitality industry around the globe is expected to further spur market growth.
An increase in infrastructure spending, coupled with a rapidly growing population in the Asia Pacific, especially in China and India, is expected to drive the infrastructure and residential segments over the forecast period. Additionally, increasing disposable income and growing awareness is expected to propel market growth.
Asia Pacific is expected to be the largest regional construction additives market over the forecast period. Increasing infrastructure activities due to various government initiatives such as One Belt One Road (OBOR) and China Pakistan Economic Corridor (CPEC) in China and Bharat Mala project in India are likely to drive the regional market over the forecast period. Additionally, rapid growth in population in countries such as China and India is likely to increase the demand for residential construction.
A reviving housing sector and the increasing number of hospitals in the U.S. and Europe are major factors driving these regional markets. The Middle East and Africa are one of the fastest-growing markets, owing to their massive construction sector. The focus of Middle Eastern countries such as the United Arab Emirates, Qatar, and Saudi Arabia on transforming the petroleum-centric economy into a tourism and business focused will benefit the market for construction additives in MEA. Furthermore, the construction of artificial islands and skyscrapers in these countries is expected to drive the market from 2017 to 2025.
The market is oligopolistic in nature with the presence of both local and global players. Some of the major players in the industry are Sika AG, BASF SE, and Dow Chemicals. Market players have heavily invested in the research and development of high-performance products, strengthening the construction and rendering it durable for a longer time. Companies are setting up production facilities overseas, especially in Asian countries, to tap the growing market potential.
Market size value in 2019
USD 20.36 billion
Revenue forecast in 2025
USD 38.82 billion
CAGR of 8.8% from 2017 to 2025
Base year for estimation
2014 - 2015
2017 - 2025
Revenue in USD billion and CAGR from 2017 to 2025
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Type, end-use, region
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
U.S., Germany, U.K., France, China, India, Japan, Brazil,
Key companies profiled
Sika AG, BASF SE, and Dow Chemicals.
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global construction additives market report on the basis of type, end use, and region:
Type Outlook (Volume, Kilotons; Revenue, USD Billion, 2014 - 2025)
End-use Outlook (Volume, Kilotons; Revenue, USD Billion, 2014 - 2025)
Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2014 - 2025)
Central & South America
Middle East & Africa
b. The global construction additives market size was estimated at USD 20.36 billion in 2019 and is expected to reach USD 21.4 billion in 2020.
b. The global construction additives market is expected to grow at a compounded annual growth rate of 8.8% from 2017 to 2025 to reach USD 38.82 billion in 2025.
b. Asia Pacific dominated the construction additives market with a share of 48.6% in 2019. Increasing infrastructure activities due to various government initiatives such as One Belt One Road (OBOR) and China Pakistan Economic Corridor (CPEC) in China and Bharat Mala project in India are likely to drive the regional market over the forecast period.
b. Some key players operating in the construction additives market include Sika AG, BASF SE, and Dow Chemicals.
b. Key factors driving the construction additives market growth include rising commercial and residential construction projects, fueled by rapid urbanization in developing countries such as China and India.
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