The waterproofing chemicals market is expected to record a CAGR of around 6% during the forecast period. The major factor driving the market studied is the growing demand for rising infrastructure activities in Asia-Pacific and the Middle East.
- Asia-Pacific dominated the market across the world, with the largest consumption from countries, such as China and India.
Key Market Trends
Residential Segment to Dominate the Market
- The residential segment includes various types, such as elite housing, middle-class housing, and low-cost housing.
- Elite class is synonymous with luxury, and elite housing refers to the luxurious residence. The demand for apartments, penthouses, villas, and bungalows in gated communities, with world-class designs and amenities, is increasing rapidly, and the developers are launching projects to cater to such demands.
- Architects are coming up with new innovative elite housing ideas, in order to cater to such demands. To overcome the challenges in the new and innovative elite housing projects, construction chemicals are used in a huge quantity.
- Elite housing are also evolved with emerging technologies in construction. Dubai (the United Arab Emirates) constructed three artificial islands in its coastal areas that look like palm trees and have a rough shape of the world map.
- Each island hosts a large number of residential, leisure, and entertainment centers. The basement for these constructions is under the water. The major challenge in such kinds of constructions is erosion caused by wind and water currents. Concrete structures designed by engineers have made this possible. Followed by the United Arab Emirates, many countries are constructing artificial islands in coastal areas. Such coastal building constructions consume a lot of construction chemicals, in order to reduce erosion and overcome other challenges.
- The highest growth is expected to be registered in the Asia-Pacific region, owing to the expanding housing construction markets in China and India. The Government of India reduced the GST taxes for housing from 12% to 5%. This tax redemption may increase the construction market for middle-class housing.
- thus from the above-mentioned points, the market for waterproofing chemicals is likely to surge over the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific dominated the global market share. China is one of the major countries in Asia-Pacific, with ample construction activities being supported by the growing economy.
- Despite volatile growth in the real estate sector, significant development of the rail and road infrastructure by the Chinese government (in order to withstand the demand from the growing industrial and service sectors) has resulted in the robust growth of the Chinese construction industry, in the recent years.
- As the construction industry is dominated by state-owned and private enterprises, the increased government and private expenditures in this regard are pushing the industry toward global primacy. In recent years, the entry of major construction players (from the European Union) in China has further boosted the growth of this industry.
- China is among the global drivers in the consumption of waterproofing products owing to the huge infrastructure and residential growth taking place in the country.
- The Chinese government has rolled out massive construction plans, including making provision for the movement of 250 million people to its new megacities over the next 10 years, despite efforts to rebalance its economy to a more service-oriented form.
- Furthermore, as India is still a developing economy, the construction sector is one of the booming industries in the country. The infrastructure sector is an important pillar for the growth of the Indian economy. The government is taking various initiatives to ensure time-bound creation of excellent infrastructure in the country.
- Also, the increasing investments in the infrastructure sector and other strategic initiatives of the government are expected to boost the construction sector in the country.
- India is likely to register an investment of about USD 1.3 trillion in housing over the next seven years, as the country is poised to witness the construction of 60 million new homes. The availability of affordable housing is expected to rise by around 70%, by 2024, in India.
- The booming new constructions across the region, in turn, is boosting the growth of the market studied, during the forecast period.
The waterproofing chemicals market is fragmented in nature. Some of the major players are BASF SE, Dow, Pidilite Industries Ltd., Sika AG, and Fosroc Inc. among others.
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