Construction chemical market to witness accelerated growth in 2023

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In 2023, a combination of factors is expected to drive the growth of the global construction chemical market. One of the key drivers of this growth is the increasing demand for infrastructure development worldwide. Governments around the world are investing heavily in infrastructure projects, such as highways, bridges, airports, and railways, to support economic growth and development.

The growing trend of urbanization is also contributing to the growth of the construction chemicals industry. As more people move from rural areas to cities, there is an increasing demand for new housing and infrastructure. To meet the growing demand, government organizations have increased their spending on the residential construction sector.

• In the United States, several initiatives have been announced by central and state governments to address the growing demand for affordable houses. This includes the proposed US$175 billion budget by the Biden administration for developing affordable housing units.
• In India as well, the government has increased its investment towards the development of the affordable housing segment. Under the Union Budget 2023 - 24, the Indian government has proposed to increase its allocation by 66% towards the Pradhan Mantri Awas Yojana.
• In the Chinese market, the government has also announced several policy measures to revive the growth of the struggling real estate market. These measures are also focused on driving the sales of housing units in urban areas. With sales growing, developers are expected to undertake more projects from the short to medium-term perspective.

This is expected to lead to a surge in housing construction activities, which in turn will drive the demand for construction chemicals in 2023. Apart from higher infrastructure and residential construction activities, the construction chemical industry growth will be also driven by the growing innovation and competitive landscape in the global market.

• Buildrite, a leading player in the construction chemicals industry, is set to launch new products at the Worldbex 2023, which will spearhead innovations in the industry. The company is committed to developing new and innovative solutions that enhance the durability, performance, and sustainability of buildings and structures.

One of the key areas of innovation for Buildrite is the development of eco-friendly construction chemicals. The company is focused on creating products that are safe for the environment and that minimize the impact of construction on the planet. For example, Buildrite has developed a range of waterproofing chemicals that are free from harmful chemicals and that are biodegradable.

Another area of innovation for Buildrite is in the development of products that improve the energy efficiency of buildings. The company has developed a range of insulation products that help to reduce energy consumption and that improve the comfort of buildings. These products are designed to help buildings meet the growing demand for sustainable and energy-efficient construction.

Alongside innovation and projected market growth, the competitive landscape has also surged significantly in the global construction chemicals space over the last few years. Consequently, firms are seeking to expand their production capacity to garner more market share.

• In March 2023, Wacker Chemie AG, a leading manufacturer of construction chemicals, announced that it is expanding its production of silicone sealants at its Nünchritz site in Germany. The expansion is aimed at meeting the growing demand for silicone sealants in the construction industry, driven by the increasing focus on energy efficiency and sustainability in building design.

The expansion of Wacker's production capacity is in response to the growing demand for high-quality silicone sealants that provide excellent adhesion, flexibility, and durability. The expansion project will involve the construction of a new production facility that will have state-of-the-art equipment and technology, enabling Wacker to produce a wider range of silicone sealants to meet the evolving needs of the construction industry. The new facility will also help the company to improve its production efficiency, reduce lead times, and enhance its ability to meet the growing demand for its products.

The expansion of production capacity by Wacker and other construction chemicals firms is indicative of the industry's growth potential. The increasing demand for sustainable and energy-efficient construction materials is driving the growth of the construction chemicals market, and companies are investing in expanding their production capacity to meet this demand. As the industry continues to evolve, ConsTrack360 expects to see further investments in innovation and production capacity from construction chemicals firms looking to tap into the growing market size.