Market Overview
Construction chemicals are chemical formulations used with cement, concrete, or other construction materials at the time of construction to hold the construction material together. The quality of cement has improved extensively with the utilization of the development of synthetic substances. Construction chemicals have become an important component of the chemical industry, playing an important role in global infrastructure development. Improved development prospects in the construction business imply that numerous global organizations have begun contributing to creating advanced chemical product development.
Market Dynamics
Drivers
- Growth in the sustainable construction industry
- Civil engineering industry backlog to support the market growth
Restraints
- Economic slowdown due to pandemic outbreak
Growth in the sustainable construction industry
The companies in Europe and CIS region are investing heavily on sustainable building materials, thereby giving rise to altogether construction chemicals market during the forecast period. For instance, on October 2, 2020, European Union (EU) member states agreed on a commission proposal to invest US$ 1,171.82 million (€998 million) in key European energy infrastructure projects under the Connecting Europe Facility (CEF). The announcement declared financial aid for works and studies for ten projects.
These project includes:
Baltic Synchronization Project with an investment of US$ 845.40 million (€720 million), to better integrate the electricity markets of Estonia, Latvia, Lithuania and Poland. Smart electricity grid linking Hungary and Slovakia worth US$ 119.7 million (€102 million). The first-ever CEF grant for works on a CO2 transport project for Belgian and Dutch ports worth US$ 209.0 million (€178 million). According to the Commissioner of EU Energy, these ten projects will contribute to a more modern, secure and smart energy infrastructure system, which is crucial for delivering the European Green Deal and meeting its ambitious 2030 climate targets. Furthermore, augmented demand by households for sustainable products due to new tax incentives to support green building renovation has also given a boost to construction chemicals market in the Europe and CIS region. These companies are investing heavily on the production of innovative green construction materials in order to create as well as cater the demand of the construction industry. Countries in CIS region are also inviting huge investments across the globe in order to develop sustainable construction activities. For instance, Russia commenced an event on investment projects on construction and modernization of greenhouse complexes which took place at the 5th Anniversary of International Forum and Exhibition Greenhouse Complexes Russia & CIS 2020 to unites investors from Europe and the CIS, initiators of greenhouse projects for from all regions of Russia, senior executives from federal and regional agricultural holdings, representatives of Russian regulating agencies, heads of the regions, top managers from retail chains and service companies, presidents of national unions and associations as well as investors from Asia.
Regional Analysis
Major factors driving the market studied are the growing construction industry in Germany and France, and increased adoption of innovative construction procedures. Germany's construction chemicals market was valued at USD 1,043.80 million in 2019 and is expected to reach USD **** million by 2027 with a CAGR of 4.82% during the forecast period 2020 to 2027. Growing construction activities in the country are expected to drive the market for construction chemicals in the country during the forecast period. The factors such as German economy, recovery from the slump of the corona crisis in the 3rd quarter. For instance, Verband der Chemischen Industrie e. V. (the German chemical industry association) (VCI) plans for railway expansion, freight transport must be given equal consideration. VCI is currently planning new and expansion projects are primarily assessed according to their benefit for passenger transport. Make waterways fit for the future. Engineering works must be realized much more quickly than planned, so that the chemical industry can reliably use waterways such as the river Rhine even at low water flow. Faster planning and approval of construction projects. The duration of planning and approval procedures often exceeds the duration of construction work many times over. Therefore, further measures to simplify and accelerate the procedures are needed. Enough positions must be created and filled at public authorities to ensure timely planning and approval of the transport infrastructure. Germany has the largest construction industry in Europe. The residential construction segment is expected to witness a moderately high growth rate. According to industry experts, the recent migration of people into the country is stimulating the demand for new residential construction. The German construction chemicals market will increase on account of infrastructure and transportation projects announced during the post-COVID-19 era and plans to recover at the level of 2019 by 2022. For instance, Under the 2030 FTIP (Federal Transport Infrastructure Plan), the federal government announced that it will invest USD 147.6 billion in Germany’s highways for the period 2016 to 2030, where USD 74.4 billion will be allocated for structural maintenance and replacement infrastructure.
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