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The India Construction Chemicals Market To Witness A Double-Digit CAGR From 2021-2031

Construction chemicals are usually added to construction materials in order to improve their strength, durability, workability, and other operational and functional properties, and encompass admixtures, water-proofing chemicals, adhesives and sealants, protective coatings, and asphalt additives. Increasing foreign direct investment in the country is expected to bolster the construction industry in India, especially infrastructure projects initiated by the government, thereby pushing demand for construction chemicals over the coming years.

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As per Persistence Market Research analysis, the India construction chemicals market is projected to reach a market value of US$ 21.6 Bn in 2031, expanding at an impressive CAGR of close to 14% over the forecast period of 2021-2031.

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Key Takeaways from India Construction Chemicals Market Study

  • In terms of regional growth, the north is expected to hold nearly one-third of market value share, and is expected to dominate over the coming assessment period as well. The southern and western regions do not lag far behind as far as demand is concerned.
  • Market share of waterproofing chemicals and plaster is high in the Indian market as compared to the developed world, while the share of concrete repair mortar, protective coatings, and asphalt additives is low.
  • Rising demand for infrastructure and development across states is projected to drive demand for construction chemicals, primarily for concrete admixtures.
  • Protective coating manufacturers are working on continuous cost-reduction initiatives in order to fuel adoption rates.
  • Increasing urbanization and government initiatives to develop rural areas, along with infrastructural development, are expected to drive demand for construction chemicals in the country over the coming years.
  • Global key players are strengthening their presence in India through regional expansions. A common trend seen is that they have set up production facilities and service footprints across India, especially in eastern and north-eastern parts of the country.
  • Infrastructure holds around 60% share in the market, when considering application areas.
  • Due to the COVID-19 outbreak, the construction industry in India came to a standstill. As such, the construction chemicals market in the country experienced a CAGR of -12.1% in 2020, with the growth rate set to get back to normal levels from 2021 onwards.

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