US demand to reach $2.8 billion by 2014
US demand for cement and concrete additives is forecast to increase at nearly
double-digit rates through 2014 to $2.8 billion. A rebound in the housing
market will promote growth, as will solid levels of highway and street
spending. Demand will also benefit from a rising utilization of industrial
byproducts in concrete for economic and environmental reasons, as well as a
greater focus on the production of durable concrete structures through the use
of chemical and fiber additives.
Chemical additive products to remain largest segment
Chemical additives will remain the largest product segment, comprising 46
percent of total market value. Growth will be supported by overall increases
in the use of chemical additives per ton of concrete, as users more frequently
turn to high performance, easy-to-place concrete made possible by chemical
augmentation. Superplasticizers are finding additional use in concrete
production based on their ability to provide more workable concrete with
uncompromised performance standards. Gains will also be boosted by a shift in
the product mix favoring higher value formulations at the expense of commodity
products such as lignosulfonates, calcium chloride and vinsol resins.
Mineral additives will benefit as waste materials -- such as coal fly ash and
blast furnace slag -- are increasingly used as a partial replacement for
portland cement in concrete. Demand will be boosted by the positive
environmental profile of these types of additives, both as recycled materials
and through their ability to reduce pollution and energy consumption
associated with cement production.
Demand for fiber additives will be driven by a greater acceptance of these
products among concrete producers. Synthetic fibers, for instance, will
benefit from their expanded use as secondary reinforcement, as these are used
in much higher dosages per cubic yard of concrete. Synthetic fibers are being
promoted for their ability to combat shrinkage-induced cracking in concrete.
Residential building market to exhibit strongest growth
Highways and streets were the largest outlet for cement and concrete additives
in 2009, consuming about one-third of total demand. Gains will benefit as it
is expected that federal funding for transportation projects will remain
strong through 2014. In the short term, for instance, some road construction
will be funded via the American Recovery and Reinvestment Act of 2009.
The residential building market will offer the strongest opportunities for
growth. Cement and concrete additives will see increases as new residential
construction expenditures come off of a depressed 2009 base and new
single-family homes experience a rebound through 2014. Nonetheless, additive
use in the residential market will remain less widespread than in other
markets, as concrete is subjected to less demanding environments than in
bridges, roads and nonresidential applications.
Growth in the nonresidential building market will achieve the slowest growth
through 2014. Demand gains will be checked by lower construction spending in
the industrial sector and a slowdown in the lodging sector, including such
cement and concrete-intensive businesses as manufacturing plants, warehouses,
refineries and hotels. However, solid construction spending in the
institutional sector will offset declines, as more hospitals, nursing homes
and schools are built.
Cement & Concrete Additives is a new Freedonia industry study presents
historical demand data (1999, 2004 and 2009) plus forecasts for 2014 and 2019
by product and market. The study also considers market environment factors,
evaluates company market share and profiles 38 US industry competitors.