Construction Additives Market Size, Share & Trends Analysis By Type (Chemical, Mineral, Fiber), By End Use (Residential, Commercial, Infrastructure), By Region, Competitive Landscape, And Segment Forecasts, 2018 - 2025

Report Overview

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. 

Type Insights

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.

End-use Insights

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. 

Regional Insights

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.    

Key Companies & Market Share Insights

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.

Construction Additives Market Report Scope

Segments Covered in the Report

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)

  • Chemical

  • Mineral

  • Fiber

• End-use Outlook (Volume, Kilotons; Revenue, USD Billion, 2014 - 2025)

  • Residential

  • Commercial

  • Infrastructure

• Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • The U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia