The Europe construction chemicals market is estimated to witness a healthy growth, at an estimated CAGR of over 5%, over the forecast period. Major factors driving the market studied are the growing construction industry in Germany and France, and increased adoption of innovative construction procedures. Regulations for VOC emissions is expected to majorly hinder the growth of the market studied.
- By product type, the concrete admixture segment dominated the market and is expected to grow during the forecast period. However, grouts and anchors segment are expected to witness the fastest CAGR during the forecast period.
- Increasing focus on sustainable materials is likely to act as opportunities in the future.
Key Market Trends
Residential Sector to Dominate the Market
- The residential segment primarily includes elite housing, middle-class housing, and low-cost housing.
- The elite class is synonymous to luxury, and housing is no exception. The demand for apartments, penthouses, villas, and bungalows in gated communities, with world-class designs and amenities, is expanding rapidly. The developers are launching projects to cater to such demands.
- The rising middle-class population, coupled with increasing disposable incomes, has facilitated expansion in the middle-class housing segment, thereby, increasing the use of construction chemicals in the segment, during the forecast period.
- The low-cost housing segment is rising at a steady rate, primarily owing to the various government initiatives to provide affordable housing to the urban and rural poor.
- All the aforementioned factors help in the growth of the construction industry in the region. This, in turn, increases the demand for the construction chemicals in the residential sector in Europe, during the forecast period.
Germany to Dominate the Market in European Region
- Germany had the largest market for construction chemicals in Europe, which is expected to increase during the forecast period. Germany has the largest construction industry in Europe.
- Under the 2030 FTIP (Federal Transport Infrastructure Plan), the federal government announced that it will invest USD 147.6 billion in Germany's roads for the period 2016 to 2030, where USD 74.4 billion will be allocated for structural maintenance and replacement infrastructure.
- According to industry experts, the demand for new houses is estimated to be around 350,000 per year until 2020, which is expected to boost the construction sector.
- The non-residential and commercial buildings in the country are expected to witness significant growth prospects in the coming years. The growth is supported by lower interest rates, an increase in real disposable incomes, and numerous investments by the EU and the German governments.
- The short-term and mid-term outlook for the German construction market forecasts a strong demand for infrastructure and housing investments. The construction sector in the country shows a high degree of capacity utilization, with increased competition for sub-suppliers and faces workforce shortness.
- Currently, apart from the few very large constructions groups, internationalization does not seem to be a major driver, as most players show a quite high degree of capacity utilization resulting from domestic demand.
- The factors are estimated to boost the demand for construction chemicals in Germany during the forecast period.
The market for construction chemicals in the region is consolidated in nature as the top five producers accounts for around 50% share of the total European market. The major companies include RPM International Inc., Sika AG, BASF SE, LafargeHolcim, and MAPEI SpA, among others.
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