Waterproofing Membranes Market Trends

Growth Drivers

• Strict building regulations and government policy fuel the demand: One of the key forces driving the waterproofing membranes market is the rising stringency of government building regulations and codes globally, demanding buildings to be stronger and more resistant to severe weather. These new regulations often mandate the use of advanced waterproofing systems for new buildings and building refurbishment, directly driving demand for the market. For example, in December 2024, the Canada government updated its National Building Code to mandate the use of high-performance waterproofing membranes on all new public infrastructure developments, designed to increase resilience and enable the implementation of advanced membrane technology, supported by national training programs for installers.
• Increased focus on green building and green building certifications: The increasing global focus on sustainable construction practices and green building certification is propelling demand for green waterproofing membranes robustly. Low VOC content, recyclable materials, and energy efficiency benefits, such as cool roof waterproofing membranes, are gaining more visibility. Trends such as these are supported by initiatives like the U.S. Green Building Council's December 2023 update of LEED certification requirements, which awarded an additional points credit to projects with waterproofing membranes containing recycled content and low global warming potential, thereby pushing manufacturers to create more environmentally friendly chemistries and promoting more extensive applications.
• Accelerated urbanization and infrastructure development fuel market growth: Rapid urbanization and mass-scale infrastructure development proposals, particularly in emerging economies, are a major growth driver for the waterproofing membranes market. Construction of new residential and commercial buildings and essential infrastructure like tunnels, bridges, and subways inherently requires effective waterproofing to provide longevity and security. China's infrastructural modernization is one such case, with the Ministry of Housing and Urban-Rural Development releasing new guidelines in November 2023 to require waterproofing membranes in all new subway and tunnel construction projects, setting minimum requirements and compelling manufacturers to raise production.

Producers and Benchmarking Operations

Adding capacity for operations is necessary to address the growing global demand for waterproofing membranes and supply chain stability. Recent industry and government statistics reveal that capacity additions in the Asia-Pacific region have significantly removed supply bottlenecks and stabilized prices. The top manufacturers are investing in automation, sustainability programs, and global manufacturing locations to remain competitive in the dispersed market. The manufacturers, such as BASF, Sika AG, GCP Applied Tech, Dow Chemical, and Mapei, are using technological innovation and strategic plant locations to maximize efficiency. The manufacturers are also emphasizing high utilization levels, which balance operational expenses and provide a consistent supply. Their initiative indicates the need for scalability and flexibility in a trend-based waterproofing membranes market for construction, infrastructure, and regulations.

Production Volume Trends (2019–2024)

Global volumes of waterproofing membranes grew consistently from 2019 to 2024, with year-by-year average annual gains of around 6%. Dow Chemical's production grew 7% in 2022, while BASF's Asia-Pacific production grew 8%. Largest regional growth came in Southeast Asia and the Middle East, where new investment and changing trade flows encouraged increasing production. The trends are indicative of the sector's responsiveness to changing demand and regional capacity additions' strategic value. The figures also indicate how global producers are responding to infrastructure booms and changing regulatory demands by streamlining their operating networks.

Key Trade Routes & Values (2019–2024)

Waterproofing membrane trade recovered strongly after the pandemic, and international trade was at $3.6 trillion in 2022. Asia Pacific to EU trade route is also the largest, at 33% of international trade and valued at $460 billion in 2024. Furthermore, U.S. exports to Europe rose 8% annually from 2018 to 2023, fueled by high-tech membrane demand for infrastructure development. Trade dipped 10% in 2020 with the pandemic but rebounded strongly, fueled by specialty chemicals and growth in construction. These trade trends mean that top producers require strong supply chains and diversified export waterproofing membranes markets.

Regional Price & Sales Trends (2019–2024)

Between 2019 and 2024, waterproofing membrane prices were regionally but moderately volatile. North America price increased by 13% in 2021 due to raw material shortage, while that of Europe increased by 16% in 2022, mainly due to the Russia-Ukraine war's impact on energy prices. Asia Pacific prices increased by 11% in 2023 due to robust demand as well as ongoing supply chain pressures. The strongest drivers of pricing were raw material prices, geopolitical interruptions, and regulatory changes. These drivers continue to affect regional sales volumes and pricing strategies for global as well as regional producers.

Composition of Waterproofing Membranes Products Exported: Japan (2019–2023)

The waterproofing membranes exported in Japan have been changing gradually over the last five years, with a clear trend towards polymer-based and hybrid/specialty products away from bituminous membranes. Although bituminous membranes continue to have a significant market share, polymer-based products now make up the majority, with hybrid/specialty membranes making further inroads. The end-use applications, such as infrastructure and electronics, have been consistent in terms of presence, meaning that the industry is responsive to changing waterproofing membranes market trends. The value of shipments has also increased year by year, demonstrating the industry's strength and ability to innovate.

Value of Waterproofing Membranes Shipments by Manufacturing Industry (2019–2023)

R&D Expenses and Capital Investment Trends (2019–2023)

Japan waterproofing membranes market has been witnessing steady growth in terms of R&D and capital investment, with leading producers focusing on smart, green, and climate-resistance products. R&D and new facility investments have increased steadily over the last five years, which has facilitated polymer technology, automation, and digital technology development. Self-healing membrane technology, recyclability, and integration of IoT sensors for real-time monitoring have been the areas of focus. These investments have positioned players as waterproofing membranes market leaders, with quality, durability, and environmental standards being set by them.

Leading Japan Waterproofing Membrane Companies: Financial Performance (2023)

Leading waterproofing membrane companies in Japan have been recording steadily strong financials, with strong profit margins and stable year-to-year expansion. Their market dominance is built on an emphasis on innovation, operational excellence, and the ability to see and respond to market trends. The following table outlines the 2023 financials of the market leaders, their good profitability, and continued investment in leading-edge membrane technology.

Challenges

• Supplying trained staff for the successful installation of advanced systems: One of the biggest challenges to the waterproofing membranes industry is developing a ready supply of skilled labor to install developing membrane systems properly. Inadequate application can result in early failure, depriving advanced materials of their value and even incurring expensive damages, necessitating ongoing installers' training and certification programs.  Ensuring proper installation through robust training programs is crucial for the long-term performance and cost-effectiveness of these advanced waterproofing solutions. Investing in skilled labor will safeguard the integrity of buildings and infrastructure.
• Adapting to shifting environmental regulations and demands for transparency: The players in the sector are facing difficulty keeping pace with and meeting a changing environment of green regulations and increased product transparency demands, including Environmental Product Declarations (EPDs). Meeting them involves high levels of R&D expenditure, reformulation of products, and intricate certification processes, which might be challenging for manufacturers. The U.S. Department of Transportation's September 2024 new procurement regulations, favoring waterproofing membranes with EPDs and lesser embodied carbon, are a classic case of this trend, forcing manufacturers to speed up third-party certification in a move to remain competitive in government projects.