Construction Chemicals Market Trends

Growth Drivers

• Growth in the Chemical Industry – Key vendors worldwide have established production bases in the expanding chemical industries around the world, especially in developing countries owing to the easy accessibility of cheap raw materials and labor, as well as government subsidies and favorable environmental norms. This is expected to accelerate the construction chemicals market growth over the course of the forecast period. For instance, owing to rising local demand and higher realization as a result of high chemical prices, small and medium-sized firms in the domestic chemicals sector have recorded revenue growth of more than 17% in FY22.
• Growing Urban Population - 68% of the world's population is anticipated to live in cities by the year 2050, up from 55% in 2018. More building work is planned as a result of the expected increase in the number of people living in metropolitan regions. Consequently, the industry should increase faster than anticipated.
• Rise in the Number of Residential Projects - Public residential construction investments in the US saw a considerable rise in value between 2002 and 2021. In 2021, the public sector invested about USD 10 billion in residential development projects.
• Rising Population - In the next 30 years, the global population is expected to increase by 2 billion, from 7.7 billion presently to 9.7 billion in 2050, with a potential peak of 11 billion people around the year 2100.
• Robust Growth in Remodeling - In research conducted in 2020, around 50% of participants said they had renovated their homes, and the median amount spent on renovations by a household rose to more than USD 13,000 in that year.

Challenges

• Adverse Effect of Chemicals on Health
• Dangerous volatile organic compounds (VOCs) such as formaldehyde, acetone, and butanol are released through solid wood, caulking sealant, floor wax, and many construction chemicals used in residential construction. Moreover, construction activities involve the use of chemicals that could produce dangerous VOCs, which can result in widespread health issues including skin irritation, asthma, nausea, dizziness, migraines, and eye irritation. Hence this factor is expected to hinder the growth of the construction chemicals market.
• Rise in Market Volatility
• Strict Government Regulations