Global additives market to grow at 6.6pc
01 September 2019
The market for construction additives such as superplasticisers and iron-oxide pigments is expected to expand at a CAGR (compound annual growth rate) of 6.6 per cent from 2018–2025, says growth partnership company Frost & Sullivan in a new report.
A global uptick in construction activities, stringent building codes and environmental standards, and increasing usage of concrete admixtures are key factors driving the global construction additives market revenues towards $16.97 billion by 2025, it adds.
“With a constantly evolving regulatory landscape, manufacturers should look towards adopting more environmentally sustainable and regulatory-compliant additive solutions and manufacturing processes,” says Prathmesh Limaye, senior analyst, Chemicals & Materials in Infrastructure & Mobility. “This will enable participants to attract customers that are focused on high durability and environmental sustainability as well as harness lucrative revenues in the more mature markets of Western Europe and North America.”
From a regional perspective, Asia-Pacific is expected to be the biggest market for construction additives and the fastest growing sector due to industrialisation, urbanisation, and high economic growth. These factors are also expected to boost growth in Latin America.
Europe will witness robust demand for construction additives due to new construction activities within Eastern Europe and remodelled construction in Western Europe. Furthermore, the Summer Olympics in Paris in 2024 are expected to expand France’s infrastructure prospects.
“North America will witness the slowest growth among the regions, as the construction activity is still affected by the 2008 recession; however, it is slowly picking up,” notes Limaye. “The Middle East is anticipated to witness strong growth with the Dubai World Expo in 2020 and Qatar Fifa World Cup in 2022 acting as key enablers.”
Limaye recommends participants look towards the development and supply of products that can be manufactured with locally sourced raw materials to enable the supply of price-competitive products.
This will avoid dependency on traditional manufacturing practices, which have the potential to be restricted in the future by regulatory authorities. They should also aim to strengthen relationships with major applicators and distribution networks by offering training and collaborative product development.
Frost & Sullivan’s recent analysis titled “Global Construction Additives Market, Forecast to 2025” explores the factors and trends that have shaped the global rare earth materials landscape, the challenges that lie ahead, and the opportunities that can be tapped.
