Forecast Period | 2026-2030 |
Market Size (2024) | USD 3.76 Billion |
CAGR (2025-2030) | 5.64% |
Fastest Growing Segment | Waterproof Chemicals |
Largest Market | North India |
Market Size (2030) | USD 5.17 Billion |
Market Overview
India Construction Chemicals Market was valued at USD 3.76 Billion in 2024
and is expected to
reach USD 5.17 Billion by 2030 with a CAGR of 5.64% during the forecast period.
Construction chemicals are essential for improving both the performance and
durability of building materials and structures. This category encompasses
various products, including adhesives and sealants, which are used for bonding
and sealing applications within construction. Concrete admixtures are another
critical component, as they modify the properties of concrete through additives
like water reducers, retarders, and accelerators. Additionally, protective
coatings play a significant role in shielding surfaces from environmental
damage and wear. Repair and maintenance chemicals, such as epoxy resins and
grouts, are crucial for restoring and maintaining the integrity of construction
structures.
The demand for construction chemicals is
driven by several factors. Government projects, such as the Pradhan Mantri Awas
Yojana (PMAY) and infrastructure development initiatives under schemes like the
PM Gatishakti National Master Plan (NMP), are significantly boosting the need
for these products. The emphasis on smart cities and modern infrastructure is
further accelerating the demand for high-performance construction chemicals.
Market dynamics are affected by
fluctuations in raw material prices, including polymers and additives, which
can impact profit margins. A notable trend is the growing emphasis on
eco-friendly and sustainable construction chemicals. Green building materials
and low-VOC products are increasingly gaining traction, reflecting a broader
commitment to environmental sustainability. Innovations such as smart or
responsive chemicals that adapt to environmental conditions are becoming more
prevalent, alongside the increased use of digital tools in manufacturing and
application processes.
The
influx of foreign direct investment (FDI) into the Indian construction sector
is also contributing to the growth of the market for construction chemicals.
The development and use of nanomaterials are enhancing key properties like
durability, strength, and resistance to environmental factors. These materials
also feature self-repairing capabilities, reducing maintenance needs and
extending the lifespan of structures. The rise of digital platforms for
marketing, customer engagement, and education is improving product awareness
and driving adoption. Companies that focus on sustainability, innovation, and
customer-centric approaches are likely to excel in this evolving landscape.
Key Market Drivers
Rapid Urbanization and
Infrastructure Development
As
cities grow and new urban areas are developed, there is an increasing demand
for residential, commercial, and industrial buildings. This rise in
construction activity necessitates the use of construction chemicals to ensure
the quality and longevity of structures. Major infrastructure projects,
including roads, bridges, airports, and public transit systems, require a
variety of construction chemicals to enhance material performance, ensure
durability, and address complex construction challenges.
Construction
chemicals improve the durability of infrastructure projects, making them more
resistant to environmental factors such as weathering and chemical exposure,
which is essential for maintaining long-lasting urban infrastructure.
Urbanization drives a real estate boom, with new residential and commercial
projects demanding a range of construction chemicals to meet modern standards
and consumer expectations. According to the Reserve Bank of India (RBI),
Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts
(InvITs) have accumulated USD 15.60 billion over the past four years ending
March 2024.
The
adoption of new construction techniques and technologies, such as precast
concrete and modular construction, relies on specialized construction chemicals
for optimal performance. The government's dedication is demonstrated by its
allocation of 3.3% of GDP to the infrastructure sector in fiscal year 2024,
with a special focus on transport and logistics. Government initiatives
like the Smart Cities Mission and various infrastructure development schemes,
such as Housing for All, are boosting investment in urban projects and driving
demand for construction chemicals. The National Infrastructure Pipeline
(NIP) includes projects worth USD 1.3 trillion currently in various stages of
implementation.
The
construction of high-rise buildings and skyscrapers due to urbanization
necessitates specialized construction chemicals, such as high-performance
concrete admixtures, waterproofing solutions, and sealants, to ensure
structural integrity and safety. As infrastructure ages, urban areas frequently
require maintenance and rehabilitation, with construction chemicals playing a
crucial role in repairing and restoring existing structures to meet current
safety and performance standards.
Rising Demand for
High-Performance Building Materials
High-performance
building materials, such as advanced concrete mixes and high-strength
adhesives, enhance durability and structural integrity, necessitating the use
of specialized construction chemicals to further optimize these properties. In
2023, Pidilite Industries partnered with Jowat SE, a German supplier of
industrial adhesives, to offer locally manufactured thermoplastic hot melt
adhesives under the Fevicol Jowat brand for various industrial applications. These
advanced materials often require specific additives and treatments to extend
their lifespan and improve their resistance to wear, thus driving demand for
specialized construction chemicals.
As
building standards evolve, there is an increasing need for innovative
construction chemicals that support new high-performance materials, including
advanced admixtures, coatings, and sealants that improve material properties.
Stringent building codes and standards necessitate the use of these
high-performance materials and accompanying construction chemicals to meet
safety, efficiency, and environmental regulations.
In
2023, JK Lakshmi Cement Ltd began commercial production of Portland calcined
clay limestone cement (IS 18189:2023), also known as LC3, in India. This
cement, produced with a mix design of 50% clinker, 32% calcined clay, 12%
non-commercial grade limestone, and 6% gypsum, adheres to the Indian Standard
for Portland Calcined Clay Limestone Cement and will be supplied to Noida
International Airport (NIA).
Modern
construction techniques and materials, such as high-performance insulation and
energy-efficient glazing, frequently rely on advanced construction chemicals to
achieve optimal results. In 2023, Sika AG opened a new facility in
Kharagpur, eastern India, to produce mortar products, concrete admixtures, and
shotcrete accelerators for the West Bengal region. Builders and developers
use high-performance materials to stand out in a competitive market, which
drives the demand for innovative construction chemicals that complement these
materials.
In
January 2024, Magma launched MagFix, a new high polymer modified, cement-based
tile adhesive designed to meet the evolving needs of the construction industry.
MagFix features two specialized grades, MagFix Ultra and MagFix Supreme. Additionally, in 2023, Hindware Tiles
expanded its product lineup with new tile ranges, including GSVT Tiles in
600×1200 mm dimensions with matte gloss and veneer finishes, GVT Elevation
tiles in 300×600 mm for interior and exterior cladding, and high-depth
elevation tiles for various projects.
Investing
in high-performance materials and construction chemicals not only enhances
construction efficiency but also reduces long-term maintenance costs by
decreasing the frequency and extent of repairs and replacements.
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Key Market Challenges
Raw Material Price Volatility
Fluctuations
in the prices of essential raw materials such as cement, polymers, resins, and
additives can result in unpredictable production costs, making it difficult for
manufacturers to maintain consistent pricing for their products. This
volatility can erode profit margins, particularly if manufacturers cannot pass
these increased costs onto customers, thereby affecting financial stability and
profitability. The challenge of setting competitive and sustainable pricing
strategies is compounded by the volatility of raw material costs, leading to
frequent price adjustments that can cause customer dissatisfaction and market
instability. Additionally, the unpredictability of raw material prices
complicates budgeting and financial forecasting, impacting long-term planning
and investment decisions. Negotiating with suppliers becomes increasingly
complex amid fluctuating prices, prompting companies to secure long-term
contracts or seek alternative sourcing strategies to mitigate price risks.
The
volatility of raw material prices can also restrict resources available for
research and development, as more funds are diverted to managing these costs,
thus limiting investment in new product development. Companies that struggle to
manage these price fluctuations effectively may find it difficult to compete
with those that can better absorb or mitigate these costs, affecting market
share and overall competitiveness. To manage raw material price volatility,
companies might adopt strategies such as diversifying suppliers, entering
long-term supply agreements, investing in alternative materials, and utilizing
advanced forecasting and risk management techniques.
Regulatory Compliance
Navigating
the intricate array of regulations and standards across different regions and
countries can be challenging for manufacturers. They must comply with a variety
of local, national, and international regulations, which can be both
time-consuming and expensive. For instance, the National Building Code of India
(NBC) serves as a comprehensive guide for regulating construction activities
nationwide, outlining the necessary processes and standards for building
construction. It covers guidelines for institutional, commercial, and
residential buildings, ensuring structural integrity and enhancing safety by
reducing the use of hazardous materials.
Meeting
regulatory requirements often entails substantial costs for testing,
certification, and documentation, impacting the overall profitability of
companies in the construction chemicals sector. The rigorous testing and
certification needed to comply with these standards can be both lengthy and
complex, potentially delaying product launches and extending time-to-market.
Additionally, adhering to strict environmental and safety regulations requires
investments in cleaner technologies and safer chemical formulations, which can
be both costly and technically demanding. Maintaining accurate records and
thorough documentation to demonstrate compliance with these regulations adds to
the bureaucratic burden, necessitating detailed reports and submissions to regulatory
bodies.
Key Market Trends
Increased Demand for
Sustainable Solutions
There
is a growing demand for construction chemicals with low or zero volatile
organic compounds (VOCs) due to their benefits for indoor air quality and
environmental impact. Products that achieve green building certifications, such
as LEED (Leadership in Energy and Environmental Design) or GRIHA (Green Rating
for Integrated Habitat Assessment), are increasingly sought after. For example,
The Welcomhotel by ITC Hotels on Cathedral Road in Chennai has achieved a
Platinum Rating under the Leadership in Energy and Environmental Design (LEED)
certification for the Existing Building: Operations & Maintenance category
from the U.S. Green Building Council. This recognition highlights the hotel’s
commitment to sustainability through its use of low VOC paints and sealants,
which help minimize toxic emissions.
Manufacturers
are also turning to recycled or sustainably sourced raw materials, which help
lower the environmental footprint of their products. In May 2024, Gyproc
India announced the production of low-carbon plasters at its Tiruvallur
facility, achieving a significant 40-50 percent reduction in carbon footprint
compared to previous Gyproc plasters, marking a milestone in sustainable
construction.
There
is also a move towards bio-based construction chemicals made from renewable
resources, such as plant-based polymers and natural fibers. In 2023, a team
from IIT Guwahati developed a 3D-printed security post using a special M40
grade sustainable concrete that incorporates industrial wastes, fibers, and
chemical admixtures to enhance its properties.
Sustainable
construction chemicals are designed for greater durability and longevity,
reducing the need for frequent maintenance and replacements, which supports
overall sustainability. In 2024, Nuvoco Vistas Corp. Ltd., launched Concreto
Uno – Hydrophobic Concrete. This innovative concrete, featuring a unique blend
of admixtures and a specialized mix design, reduces permeability and enhances
strength and durability, extending the lifespan of structures. Products
that improve thermal insulation, like energy-efficient coatings and sealants,
are becoming more popular for their role in reducing energy consumption in
buildings. Reflective and cool coatings that lower heat absorption is also
gaining traction. Offering sustainable construction chemicals allows companies
to stand out in the market by appealing to environmentally conscious consumers
and differentiating themselves from competitors. The growing emphasis on
sustainable solutions in the construction chemicals market signifies a broader
shift towards environmentally responsible practices.
Segmental Insights
Product Type Insights
Based
on Product type, the Concrete Admixtures emerged as the
dominating segment in the Indian market for Construction Chemicals in 2024. Concrete admixtures significantly
improve the properties of concrete, including its workability, setting time,
and strength. They enable customization of concrete mixes to meet specific
environmental conditions or performance requirements, such as enhancing
durability, weather resistance, or speeding up curing times. The increasing
demand for concrete admixtures is driven by the growth in residential,
commercial, and infrastructure construction projects, including roads, bridges,
and high-rise buildings. Admixtures help lower material costs by reducing the
amount of cement needed and can decrease long-term maintenance and repair
expenses by enhancing concrete's strength and durability.
In
2023, Nippon Paints announced its strategic entry into the construction
chemicals market. The company plans to introduce products across various
categories, including dry mix, repair and maintenance, construction chemicals,
and waterproofing. Their offerings will focus on three main areas which include concrete
admixtures and membranes for use during construction, concrete repair and
waterproofing for new buildings, and repair and maintenance solutions such as
protective coatings, sealants, and adhesives. Concrete admixtures are essential
across a broad range of applications, from residential projects to specialized
high-performance structures, making them a fundamental component in the
construction industry.
End Use Insights
Based
on End Use, Commercial & Industrial emerged as the dominating segment in
the Indian market for Construction Chemicals in 2024. Commercial and industrial
projects involve larger-scale structures and greater quantities of construction
materials, resulting in a higher demand for construction chemicals. Office
buildings, factories, and major infrastructure projects, such as roads, bridges,
and airports, require substantial amounts of concrete admixtures, waterproofing
agents, and protective coatings. These chemicals are essential for enhancing
the durability and longevity of materials to withstand intensive use and
challenging environmental conditions.
With
the Interim Budget 2024-25 increasing capital investment for infrastructure by
11.1% to USD 133.86 billion (3.4% of GDP), the focus on major infrastructure
projects underscores the need for high-quality construction chemicals that
ensure long-term performance and maintenance. These projects often have complex
requirements that demand advanced solutions, such as high-performance concrete
admixtures for heavy-load support or extreme weather resistance. Commercial
and industrial projects typically have larger budgets compared to residential
projects, enabling the investment in specialized construction chemicals.
Frequent renovations and upgrades of commercial and industrial facilities
further drive the need for repair and maintenance chemicals to ensure ongoing
performance and safety.
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Regional Insights
Based
on Region, North India emerged as the dominant region in the Indian market for Construction
Chemicals in 2024. North India, home to major urban centers like Delhi NCR,
sees a high volume of residential, commercial, and infrastructure projects.
Rapid urbanization and expansion in these areas drive significant demand for
construction chemicals. The region is marked by substantial infrastructure
projects, such as highways, metro systems, and major commercial developments,
which increases the need for a variety of construction chemicals. Numerous
government initiatives and investments in infrastructure development support
projects like new metro lines, expressways, and smart city initiatives, all of
which require diverse construction chemicals. North India's higher budget
allocations for infrastructure contribute to increased spending on these
chemicals. Additionally, the region’s rapid economic growth and significant
commercial investments further drive the need for construction chemicals in
office buildings, shopping malls, and other commercial spaces. In 2023, Xypex
Chemical Corporation, a Vancouver-based company known for its crystalline
concrete waterproofing solutions, announced a significant expansion in the
Asian market with the launch of a new production facility in Greater Noida,
Uttar Pradesh. The ongoing urbanization and population growth in North Indian
cities generate strong demand for new residential construction and related
construction chemicals. Efforts to develop smart cities in the region also
heighten the need for advanced construction chemicals that support innovative
and sustainable building practices. The prevalence of large-scale projects,
including new transportation networks and extensive residential complexes,
amplifies the demand for construction chemicals.
Recent Development
- In
June 2024, Saint-Gobain acquired FOSROC for $1 billion. FOSROC provides various
technical solutions for the construction sector, including admixtures and
additives for concrete and cement, adhesives and sealants, waterproofing
products, concrete repair solutions, and flooring. The company operates 20
manufacturing facilities and employs 3,000 people globally, with significant
market presence in India, the Middle East, and the Asia-Pacific region.
- In
May 2024, JSW Cement announced its intention to invest approximately USD 357.92
Million in a greenfield cement manufacturing plant in Nagaur district,
Rajasthan. The investment will fund the construction of a clinkerization unit
with a capacity of up to 3.30 million tonnes per annum, a grinding unit with a
capacity of up to 2.50 million tonnes per annum, and an 18 MW waste heat
recovery power plant.
- In
May 2024, Fosroc India launched its new Integrated Construction Chemicals Plant
in Hyderabad. This state-of-the-art facility will improve Fosroc's regional
reach and service quality, especially for clients in South and Central India.
- In
February 2024, the Odisha Industrial Infrastructure Development Corporation
allocated approximately 80 acres of land in Mouza Kalibeti, Khordha District,
Odisha, for Berger Paints India Limited to establish a manufacturing facility.
This plant will produce paints, intermediates, and related products with an
annual capacity of around 410,000 KL/MT. Berger intends to develop a modern,
environmentally sustainable unit on this site, focusing on paints, coatings,
construction chemicals, and intermediates such as emulsions and resins.
Key Market Players
- Sika India Pvt. Ltd.
- Pidilite Industries Ltd.
- MAPEI Construction Products India Pvt.
Ltd.
- Tremco CPG (India) Private Limited
- Polygon Chemicals Private Limited
- Ruia Chemicals Pvt. Ltd.
- Chembond Chemicals Limited
- Cera-Chem Private Limited
- Choksey Chemicals Pvt. Ltd.
- CICO Group
|
By
Product Type
|
By
End Use
|
By Region
|
- Concrete
Admixtures
- Waterproof
Chemicals
- Flooring Resins
- Protective
Coatings
- Adhesives
- Sealants
- Others
|
- Commercial &
Industrial
- Residential
|
- West India
- North India
- South India
- East India
|
Report Scope:
In this report, the India Construction Chemicals
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- India Construction Chemicals Market, By Product Type:
o Concrete Admixtures
o Waterproof Chemicals
o Flooring Resins
o Protective Coatings
o Adhesives
o Sealants
o Others
·
India Construction
Chemicals Market, By End
Use:
o Commercial & Industrial
o Residential
- India Construction Chemicals Market, By
Region:
o West India
o North India
o South India
o East India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the India Construction
Chemicals Market.
Available Customizations:
India Construction Chemicals Market report with the
given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
India Construction Chemicals Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]