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Forecast Period
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2024-2028
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Market Size (2022)
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USD 937.41 Million
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CAGR (2023-2028)
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3.56%
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Fastest Growing Segment
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Concrete Admixtures
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Largest Market
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Western Cape
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Market Overview
South Africa Construction
Chemicals Market has valued at USD 937.41 million in 2022 and is anticipated to
project robust growth in the forecast period with a CAGR of 3.56% through 2028.
South Africa Construction Chemicals Market is anticipated to grow significantly
rate in the projected period of 2028 which is driven by the increasing demand
from the end-user sector. In 2022, the South African construction sector
contributed approximately USD 5.9 billion to the country's gross domestic
product (GDP). South Africa Construction Chemicals Market is expected to expand
during the projected period due to increasing demand from the end-user industry
as construction chemicals play a crucial role in enhancing the durability,
strength, and performance of construction materials.
Key Market Drivers
Rising Urbanization Trend
Urbanization is a global
phenomenon that has a profound impact on the construction industry, and South
Africa is no exception. As urban areas continue to expand and evolve, the
demand for construction chemicals has seen a significant surge. Urbanization
brings about a pressing need for infrastructure development in South Africa's
growing cities. As more people move to urban areas, there is a demand for
housing, transportation networks, utilities, commercial buildings, and public
amenities. Construction chemicals play a crucial role in enhancing the quality
and durability of infrastructure projects. Waterproofing solutions, concrete additives,
adhesives, sealants, and protective coatings are vital in ensuring the
longevity and performance of structures. The demand for construction chemicals
to support urban infrastructure development has witnessed a steady rise in
South Africa. In addition, as cities become more densely populated, there is an
increased focus on vertical growth, leading to the construction of high-rise
buildings and skyscrapers. These structures require specialized construction
chemicals to address unique challenges such as structural integrity, fire
resistance, and acoustics. Construction chemicals like concrete admixtures,
fireproofing coatings, and soundproofing materials are in high demand for the
construction of tall buildings. The rise of high-rise constructions in urban
areas has fueled the need for innovative construction chemicals that can meet
the specific requirements of these projects. In addition, Urbanization often
leads to the rehabilitation and renovation of existing infrastructure and
buildings to meet the evolving needs of urban dwellers. As older structures are
revitalized, construction chemicals play a vital role in the repair,
restoration, and protection of these assets. Repair mortars, waterproofing
systems, protective coatings, and sealants are essential for maintaining and
improving the condition of aging infrastructure. The demand for construction
chemicals for rehabilitation and renovation projects has increased as urban
areas strive to preserve and repurpose existing structures. For instance, in 2019,
Sika renovated Zeitz Museum located at the famous V&A Waterfront in Cape
Town, South Africa by using Sikagard-706 W Thixo that was applied to the old
concrete of the silos as a protective coating and water-repellent impregnation.
Growing Demand from Various
Industries
South Africa's diverse
industries, ranging from manufacturing to mining, rely heavily on robust
infrastructure and specialized facilities to drive economic growth.
Construction chemicals play a vital role in meeting the unique requirements of
these industries, ensuring the durability, safety, and efficiency of their
infrastructure. The manufacturing sector in South Africa encompasses a wide
range of industries, including automotive, food and beverage, pharmaceuticals,
and textiles. These industries require specialized manufacturing facilities
that adhere to strict quality and safety standards. Construction chemicals such
as industrial flooring systems, epoxy coatings, and chemical-resistant linings
are crucial for maintaining hygienic conditions, providing chemical protection,
and ensuring smooth operations. As the manufacturing sector continues to grow,
the demand for construction chemicals tailored to their specific needs
increases. Along with this, South Africa's rich mineral resources have made
mining and extraction a significant contributor to the country's economy. The
mining industry requires robust infrastructure, including processing plants,
storage facilities, and transport networks. Construction chemicals play a
crucial role in the mining sector, offering solutions for waterproofing,
corrosion protection, and ground stabilization. Additionally, mining operations
often involve the construction of tailings dams, where construction chemicals
such as geomembranes and erosion control products are essential. The mining
industry's demand for construction chemicals is driven by the need for
long-lasting and environmentally sound solutions. Moreover, the energy and
utilities sector in South Africa encompasses power generation, oil and gas, water
treatment, and renewable energy industries. These industries require durable
infrastructure and specialized facilities to ensure the efficient and safe
production, storage, and distribution of energy and resources. Construction
chemicals play a significant role in these sectors, providing insulation
materials, protective coatings for pipelines and tanks, and concrete repair
solutions. As South Africa continues to invest in renewable energy and upgrade
its utilities infrastructure, the demand for construction chemicals in these
sectors is poised to grow. For instance, Mapei South Africa Pty (Ltd) offered
EPORIP & EPOJET LV epoxy resin for repairing concrete and sealing joints in
the Banja Hydropower Plant. Hence, the increased use of construction chemicals in
the various industries fueling the South Africa Construction Chemicals Market
growth in the projected period.
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Key Market Challenges
Fluctuation in Prices of Raw
Material
Currency fluctuations may have a
significant impact on the cost of importing raw materials, particularly when
these materials are sourced from international markets. The variability in the
exchange rate between the South African Rand and other currencies can result in
unforeseen changes in procurement costs. The construction chemicals industry
often relies on commodities such as oil, polymers, and metals. Speculative
activities in commodity markets, influenced by factors like geopolitical
tensions or speculative trading, can result in sudden and unpredictable price
changes. The transportation and handling expenses of raw materials can have a
substantial impact on their ultimate pricing. Variations in fuel prices,
shipping rates, and transportation infrastructure can result in alterations to
the overall cost structure.
Shortage of Skilled Labor
The scarcity of skilled labor in
the construction chemicals market of South Africa poses a multifaceted
challenge influenced by various interconnected factors. The evolving nature of
the construction chemicals industry demands a specialized skill set, including
expertise in chemical formulations, application techniques, and safety
protocols. The availability of comprehensive educational and training programs
tailored to the specific needs of the construction chemicals sector is currently
limited. Consequently, there is a scarcity of opportunities for individuals to
acquire the requisite knowledge and skills to excel in this field.
Key Market Trends
Advancements in Waterproofing
Solutions
The construction chemicals market
in South Africa is undergoing a transformative evolution, driven by a pressing
need for innovative and reliable waterproofing solutions. Waterproofing
solutions are crucial in protecting structures from water ingress, moisture
damage, and the deterioration of building materials. With the increasing
complexity of infrastructure projects, there is a growing demand for advanced
waterproofing technologies, resulting in significant transformative trends.
Self-adhesive membranes, liquid-applied membranes, and pre-applied membranes
provide seamless and durable waterproofing barriers that adapt to various
construction requirements. Nanotechnology has brought about a groundbreaking
transformation in the construction chemicals market through the introduction of
nano-scale additives and coatings. These remarkable nanoparticles enhance the
water-repellent characteristics of materials, creating a hydrophobic barrier
that effectively safeguards against water infiltration while preserving the
breathability of the building envelope.
Regulatory Compliance and
Quality Standards
The construction chemicals market
in South Africa is experiencing a growing focus on health, safety, and
environmental regulations. Government agencies are progressively implementing
and enforcing standards to protect workers, communities, and ecosystems from
the potential risks associated with construction chemicals. Adhering to these
regulations not only prevents harm but also enhances the reputation of industry
participants as responsible environmental stewards. Regulations and
certifications, such as those set by the Green Building Council of South Africa
(GBCSA), are driving the adoption of eco-friendly construction chemicals that
minimize environmental impact and promote resource efficiency. Regulatory agencies
are promoting the importance of transparent product labeling and providing
comprehensive information about the chemical composition of construction
products. This level of transparency empowers various stakeholders, including
contractors, architects, and consumers, to make well-informed decisions based
on the potential impact of construction chemicals on health, safety, and the
environment. The construction chemicals market in South Africa is adopting
globally recognized quality standards, exemplified by the International
Organization for Standardization (ISO). Manufacturers are actively seeking ISO
certification to showcase their dedication to delivering products that adhere
to consistent and dependable quality benchmarks. Construction chemicals companies
are placing greater importance on conducting supplier audits and ensuring
traceability throughout the supply chain. By ensuring that raw materials and
components meet stringent quality standards, manufacturers can uphold the
integrity of their end products and mitigate the risk of defects or failures.
Segmental Insights
Product Type Insights
In 2022, the construction
chemicals market was dominated by the concrete admixtures and is predicted to
continue expanding over the coming years. The demand for concrete
admixtures in the country is increasing significantly as this chemical is a
prerequisite for almost all construction activities. Furthermore, due to the
growing number of infrastructural development projects, such as Nedbank &
DBSA Green Housing, Balwin Properties, Transcend Project, and others, the
infrastructure segment has become the dominant player in the construction
chemicals market in South Africa. By altering the characteristics of hardened
concrete, concrete admixtures lower the cost of building with concrete by
assuring greater quality while being mixed, transported, placed, and cured.
This enables users to handle crises when working with concrete. This trend is
expected to continue in the coming years.
Application Insights
In 2022, the construction
chemicals market was dominated by commercial segment and is predicted to
continue expanding over the coming years. This can be attributed to the
expansion of the retail sector and the establishment of contemporary shopping
centers are notable characteristics of South Africa's commercial landscape. The
construction and upkeep of these facilities necessitate a diverse array of
construction chemicals, encompassing flooring solutions, sealants, adhesives,
and waterproofing materials. Construction chemicals are essential for various
applications in office buildings, from concrete repair and protection to
interior finishing and aesthetics. Commercial real estate investments,
encompassing office spaces, retail properties, and mixed-use developments,
garner significant investments from both domestic and global investors. This
influx of capital fuels construction and renovation projects that heavily rely
on construction chemicals.
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Regional Insights
The Western Cape has established
itself as the leader in the South Africa Construction Chemicals Market. As
urbanization continues to shape the Western Cape, there is an increasing demand
for residential and commercial real estate. Construction chemicals play a vital
role in ensuring the quality and durability of buildings, which aligns with the
region's urban development objectives. The Western Cape has been a focal point
for infrastructure development projects, including transportation, commercial
spaces, and public facilities. The construction chemicals market plays a vital
role in supporting these projects by providing products that enhance the
durability, performance, and sustainability of structures.
Recent Developments
- South Africa has initiated Project SONA 2021, a
substantial infrastructure plan worth USD 58.38 million, encompassing
various sectors such as telecommunications, water, energy, and
transportation. The project aims to construct 68,000 homes in the Gauteng
province, along with the Student Housing Infrastructure Program, which
endeavors to provide 300,000 student beds. Likewise, the SONA 2022 budget
allocates a total of USD 5.61 billion for various initiatives,
encompassing student housing, social housing, telecommunications, water,
and sanitation, as well as transportation projects. Notably, multiple
projects valued at USD 1.23 billion have commenced in 2022, with the
government contributing USD 0.15 billion while the private sector and
development finance institutions collectively fund the remainder.
- In 2023, Penetron provides PENETRON ADMIX, a
crystalline waterproofing admixture, was used to protect the Sierra Gorda
Sociedad Contractual Minera (SCM) mine concrete structures from the toxic
copper tailings.
- In 2023, Multi Construction Chemicals launched
HYREZ a Polyurethane Floor Screed for heavy duty industrial use.
- In 2022, a.b.e. launched a wide range of quality
waterproofing membranes developed and tested for the South Africa market.
- In 2021, Saint-Gobain acquired Chryso, to expand
the company's construction chemicals business.
Key Market Players
- Sika South Africa Pvt. Ltd.
- BASF Construction Chemicals South Africa (Pty.)
Ltd.
- StonCor Africa (Pty) Ltd.
- Technical Finishes SA (Pty) Ltd.
- b.e. Construction Chemicals (Pty) Ltd.
- AShakConstruction Chemicals Pty Ltd.
- Multi Construction Chemicals (Pty) Ltd.
- Verni Speciality Construction Products (Pty) Ltd.
- MAPEI South Africa (Pty) Ltd.
- Penetron Africa (Pty) Ltd.
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By Product Type
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By Application
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By Region
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|
•
Concrete Admixtures
•
Waterproof Chemicals
•
Construction Adhesives & Sealants
•
Protective Coatings
•
Others
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•
Residential
•
Industrial/Commercial
•
Infrastructure
•
Repair Structures
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• Gauteng
• Western Cape
• Northern Cape
• KwaZulu-Natal
• Eastern Cape
• Free State
• Northwest
• Mpumalanga
• Limpopo
|
Report Scope:
In this report, the South Africa
Construction Chemicals Market has been segmented into the following categories,
in addition to the industry trends which have also been detailed below:
- South Africa Construction Chemicals Market, By
Product Type:
- Concrete Admixtures
- Waterproof Chemicals
- Construction Adhesives & Sealants
- Protective Coatings
- Others
- South Africa Construction Chemicals Market, By
Application:
- Residential
- Industrial/Commercial
- Infrastructure
- Repair Structures
- South Africa Construction Chemicals Market, By
Region:
- Gauteng
- Western Cape
- Northern Cape
- KwaZulu-Natal
- Eastern Cape
- Free State
- Northwest
- Mpumalanga
- Limpopo
Competitive Landscape
Company Profiles: Detailed
analysis of the major companies present in the South Africa Construction
Chemicals Market.
Available Customizations:
South Africa Construction
Chemicals Market report with the given market data, TechSci 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).
South Africa 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]