All You Need To Know About Construction Chemicals Sector In India
Apart from materials like concrete and steel, various construction chemicals also play a vital role in the process of developing projects, both commercial and residential. These chemicals are specialty products, added during the 'pre' or 'post' construction stages, to give special properties to the concrete structure, thus, providing additional stability and protection to new structures. These chemicals are even used for renovation and reinforcement of older structures.
According to a report by a leading market intelligence and consulting firm, Future Market Insights, India's construction chemical market is expected to reach $1,890 million by 2020, with a CAGR (Compound Annual Growth Rate) of 17.2 per cent during the 2014-2020 period.
Here are more insights on the role of construction chemicals in India:
Trends and key drivers of the construction chemicals industry
The utilisation and subsequent demand for construction chemicals in India has witnessed a significant growth in recent years, owing to the increase in infrastructural developments. The chemicals are mostly needed for enhancing the workability, performance, functionality, chemical resistance and durability of the construction materials.
Construction chemicals are used not only to add life to the structures but also to aid in minimising quantities of cement and water required during construction. There are many buildings in India which are over 40 to 50 years old and need extensive renovation work. Therefore, the demand for such chemicals has been on the rise. Being a competitive and fragmented market, the construction chemicals industry is mostly dominated by several small and specialised suppliers.
The major factors that are driving the market are the increase in foreign investment activities, government regulations that are based on concepts of 'Green Revolution', urbanisation and rise in housing demand, as well as the growing preference for ready-mix concrete (RMC). Moreover, renovation and repairs of older structures also contribute to the substantial demand for construction chemicals. Increased preference for green buildings among property buyers, has also led to the development of the global construction chemicals industry.
A few trends that has been observed in the construction chemicals sector in India, include:
- Increased investments in research and development (R&D), especially in Asian regions, and the entry of new players.
- Use of sustainable products and technological advancements.
- Overall demand for construction chemicals in India is expected to rise further due to the increase in the construction of new buildings as well as renovation activities.
- In the Asia Pacific region, India and China together, contribute over 50 per cent of the total regional market size.
Benefits of construction chemicals
Construction chemicals commonly fall under the following category:
- Concrete and Mortar (Grout) Admixture
- Waterproofing Compounds
- Floor Hardeners and Floor Topping
- Protective Coatings and Surface Treatment
- Adhesives and Sealants
These chemical substances facilitate the reduction of abrasions and increase in bond strength, thus, increasing the life of buildings. They add value to the structures by making them dust-proof and augment the look and feel of the structure. Buildings that are older or built using sub-standard construction materials face the danger of collapse. Besides, the climatic conditions of the country cause serious damage to the structures, which can be eliminated by the use of such chemicals.
Challenges and growth potential of the construction chemicals industry
Some roadblocks in the growth of the segment are:
- Construction chemicals increase the overall costs to the developers, by about two to five per cent.
- The sector is not much explored and is presently in the nascent stage. There is a lack of awareness among end-users about the benefits of construction chemical usage. Close to 85 per cent of the construction industry personnel, are not aware of the concept and the value addition made to construction works, if used in the right way, at the right time.
- Application of chemicals involves excellent technical guidance which is presently lacking in the industry.
- Skilled labour for executing the industry processes, is also difficult to obtain.
The construction chemical industry possesses huge scope for growth and is presently growing at a rate of 15 per cent. The crucial link between the use of construction chemical products and growth of the construction sector must be understood. A booming economy, increased investments from the government as well as participation by domestic and overseas investors, can greatly boost the growth of the industry.