Market Definition
Construction chemicals are compounds added to construction materials such as concrete, cement, coatings, etc., to deliver high strength & durability and provide extra protection from environmental hazards. Additionally, these chemicals possess benefits like less water & cement usage during construction activities. The massive investments in construction projects across GCC nations have surged the demand & supply of these chemicals in recent years.
Market Insights
The GCC Construction Chemicals Market is projected to grow at a CAGR of around 15% during the forecast period, i.e., 2021-26. The market is driven primarily by the rising investment in numerous construction activities by the governments of GCC countries to build smart cities with green buildings. Besides, the governments are also focusing on economic diversification away from the oil sector and investing substantially across other industry verticals, including the construction sector.
In addition, the swiftly increasing awareness about the environmental effects caused by conventional buildings is further generating growth opportunities for the leading market players to introduce new products & improve existing chemicals, build green buildings, and encourage sustainability.
Moreover, some players in the construction industry are focusing on underground structure protection using sustainable materials to enhance thermal insulation & building protection and enable cool-roof treatments. Similarly, with the expanding infrastructure sector, the demand for building repairs & rehabilitation is also increasing and necessitating the use of construction chemicals in construction activities to add more strength & corrosion resistance while reducing the use of water & cement.
Also, the growing trend of building modern residential complexes & commercial structures is boosting the demand for construction chemicals across the GCC. Furthermore, GCC countries are also observing an increasing number of joint ventures among prominent domestic & international players in their construction industry, which is anticipated to further contribute to the overall market growth in the coming years.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 15% |
| Countries Covered | UAE, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain |
| Key Companies Profiled | BASF Middle East LLC, Middle East Fosroc, Sika GCC, DOW Menat, Chryso Gulf, Saudi Basic Industries Corporation (SABIC), GCP Applied Technologies Inc., Henkel Arabia, Jotun Saudia Co. Ltd., DOW Menat |
| Unit Denominations | USD Million/Billion |
Impact of Covid-19 on the GCC Construction Chemicals Market
With the Covid-19 pandemic in 2020, most industries across the GCC region observed a decelerating effect where the Construction Chemicals Market was no exception. In response to curb the spread of this dreadful disease, governments across the region imposed stringent movement restrictions & lockdowns, which, in turn, led to the shutdown of most industries and a halt in construction activities.
The market witnessed several challenges like unavailability of labor, disrupted supply chain, and reduced investments. Yet, with the gradual improvement in the pandemic situation since 2021 and the resumption of business operations, including construction activities, the market is anticipated to gain its usual momentum & regain from lossed in the coming years while creating growth opportunities for the leading players.
Market Segmentation
Based on the Type, the GCC Construction Chemicals Market segments into:
Of them all, Concrete Admixtures dominated the market with the largest share in recent years. It owes principally to the growing demand for concrete admixtures to enhance the binding properties of concrete. Additionally, advantages like low water & cement consumption, better setting time, reduced segregation, etc., of concrete admixtures are also well-contributing to their demand across GCC.
On the other hand, Flooring chemicals are used increasingly for applications like aesthetic appeal, better load impact, abrasion, chemicals attack, moisture penetration, adding strength to the floors, etc. Nonetheless, waterproofing chemicals are also observing increasing demand to avoid water infiltrations and waterproof the concrete during the construction process. This construction chemical is considered a preventive ingredient for maintenance.
Based on the End User:
Here, the infrastructure sector held the largest share in recent years. With the swiftly rising focus on infrastructural developments across the GCC, the increasing number of buildings, roads, bridges, highways, and tunnels, among others, are propelling the demand for construction chemicals across the region. Furthermore, substantial investments in such development projects for better structures for public use shall further lead the segment to dominate the market in the coming years.
On the other hand, the demand for construction chemicals across the residential sector is projected to witness significant growth in the coming years. It owes to the rapid shift of people to cities due to changing lifestyles, urbanizations, better facilities & improving living standards, and growing preference toward residential buildings with modern designs.
Country Landscape
On the geographical front, the GCC Construction Chemicals Market expands across:
Of them all, Saudi Arabia acquired a prominent market share owing to the increasing number of projects associated with infrastructure development across the country. Besides, Saudi Arabia's increasing focus on minimizing its economic reliance on the oil sector is leading to increasing investments in other projects, including the construction sector, which has further led to the development of smart cities & green buildings, thereby propelling the demand for construction chemicals.
Moreover, a mega pipeline of projects like the construction of highways, airports, roads, bridges, tunnels, etc., in the country also displays a plethora of growth opportunities for the market. Furthermore, the country's NEOM projects shall also boost construction activities and generate profitable opportunities for the leading players in the market.
Market Dynamics:
Key Drivers
New Constructions & Repairs of Existing Structures to Drive the GCC Construction Chemicals Market
The burgeoning number of construction activities under the prime focus on infrastructure development across the GCC region is anticipated to display an increasing demand for construction chemicals in the coming years to suffice the requirements at these projects & also for the repairs & rehabilitation of existing structures. This rising number of construction activities is propelling the demand for cement & directly impacting the need for chemicals like adhesives & sealants, concrete admixtures, cement additives, etc.
Moreover, with the introduction of new products & improvements in the existing construction chemicals, with benefits like performance & endurance of structures, reducing corrosion, etc., the market shall further observe growth.
Growth Restraints
Government Norms on the Volatile Organic Compounds (VOC) Emissions by the Construction Industry Might Restrain the Market Growth
Construction chemicals used in building activities can cause health problems like skin & eye irritation, nausea, asthma, headaches, etc., by the emission of Volatile Organic Compounds (VOC). Hence, the government norms restricting the overuse of these chemicals might hinder the growth of the GCC Construction Chemicals Market.
Competitive Landscape
According to MarkNtel Advisors, the major leading players in the GCC Construction Chemicals market are BASF Middle East LLC, Middle East Fosroc, Sika GCC, DOW Menat, Chryso Gulf, Saudi Basic Industries Corporation (SABIC), GCP Applied Technologies Inc., Henkel Arabia, Jotun Saudia Co. Ltd., and DOW Menat.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The GCC Construction Chemicals Market is projected to grow at a CAGR of around 15% during 2021-26.
A. The booming demand for Concrete Admixtures across the GCC region is anticipated to emerge as an area of lucrative opportunities for the leading players in the Construction Chemicals Market during 2021-26.
A. The accelerating number of construction activities with a prime focus on infrastructure developments and increasing repairs & rehabilitation of existing structures across the GCC region shall drive the construction chemicals market in the coming years.
A. With the gradual upliftment of restrictions, the supply chains have revived & constructions activities are recommencing, owing to which the market is swiftly regaining its usual tractions. In the forecast period, the leading players are anticipated to develop new construction chemicals & bring improvements in the existing products, which shall create remunerative growth opportunities for the market.
