The global construction chemicals
market size is anticipated to reach USD 50.6 billion by 2026, at a significant growth rate of 5.9 percent. Construction products - the specialty products used to increase the durability of buildings and provide added fortification from environmental hazards crucial for sustainable infrastructure and energy conservation in the construction industry.
The Construction chemical market is segmented into residential, industrial, infrastructure, and repair structures, based on the end-users. Construction chemicals are mainly required to meet the major requirements of the increasing world population and rapid urbanization and in the industrial sector, construction chemicals are highly imperative for both stability and durability of the structures.
One of the most attractive segments in the Global Construction chemicals market is Infrastructure. This is owing to the surge in population & urbanization which drives the need for sustainable infrastructure and environmental-friendly products. Also, Infrastructure is most essential to any economy and its development, specifically in developing nations. Furthermore, the chemical products that include concrete admixtures also facilitate using less amount of the cement and water generally required during the construction phase.
While most private organizations in the infrastructure landscape are raising demand for a renegotiation of EPC contracts amid the rise in input costs, the World Bank as well as the State Bank of India have given voice to disapproval.
Private companies specifically in the EPC landscape are requesting their government counterparts to revise their existing contracts. This is owing to input prices such as steel and cement rose precipitously following the disruptions led by the COVID-19 pandemic.
“A contract cannot willy-nilly be negotiated,” said Junaid Ahmad, World Bank country director India, even as he recognized the importance of the need for the review of the project terms and conditions in a new-normal world after the pandemic and the World Bank supports infrastructure development in states by way of finance and advisory.
He also stated that “any contract should have a mechanism and condition under which re-contracting can be possible during shocks such as a pandemic. We are in a world of shocks. So, if we want to create a corporate structure of service delivery, the ability to renegotiate a contract because the world has changed unexpectedly, has to be put in there. But it has to be absolutely institutionalized and not ad hoc.”
Acquisition and expansion - the leading strategies to widen market reach
While construction chemicals are largely used in the residential infrastructure due to the increase in demand for housing and domiciliary buildings in urban areas, the repair sector is relatively less explored in this market.
The key players in the Global Construction chemicals market are adopting various key business strategies that include acquisition, expansion, and product launch to withstand in the global competitive market and of these, Acquisition and expansion are the leading strategies adopted by the key players in this market to widen their market reach in the construction chemicals market.