Cement and Concrete Additives Market

The global demand for cement and concrete additives is driven by the expanding construction industry in the developing markets of Asia-Pacific and the Middle East & Africa with the rise in residential and commercial construction. Moreover, increasing spending on the renovation of houses due to the rise in demand for modern architecture in the developed markets, mainly North America and Eastern Europe, are driving the market growth. Additionally, a surge in demand for construction materials with improved benefits, such as lightweight, waterproof, fire retardant, and durability, is also fueling the demand for cement and concrete additives with different attributes.

Increasing use of ready-mix concrete in the developing markets due to superior benefits such as convenience, and reduced time and manpower requirement is likely to offer significant growth opportunities to the manufacturers of cement and concrete additives. Furthermore, increasing demand for green/sustainable cement products due to shift in focus from traditionally constructed building to green and energy-efficient building using lightweight construction materials is one of the growing trends noticed in the construction industry, which is likely to result in growth in the demand for high performance cement and concrete additives during the review period.

However, sluggish growth of the construction industry in Western and Northern European countries such as the UK, France, Spain, Italy, Germany, Belgium, and the Netherlands is likely to lead to decline in the demand for cement and concrete additives and thereby, is likely to hamper the market growth during the review period.

Cement and concrete additives are being increasingly used in cement and concrete mixes to improve the performance and strengthen the chemical and physical properties of the mixes. Expanding construction industry in the developing markets of Asia-Pacific and the Middle East & Africa with the rise in residential and commercial construction has fueled the demand for concrete and cement, and thereby, cement and concrete additives. Growing urbanization with rising per capita disposable income and improving living standards is another important factor driving the construction industry in the developing markets.

Additionally, investment in commercial construction activities by the government for infrastructural development is fueling the demand for cement and concrete additives. For instance, initiatives taken by the Indian government such as Smart Cities Mission, Green Corridor, the building of ports and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) for infrastructure development have led to a rapid increase in construction activities. In December 2016, the Thailand government approved around USD 25.2 billion for infrastructure plan for 2017, which includes railways, roads, and ports. Furthermore, the rise in commercial construction because of increasing construction of commercial buildings such as warehouses, departmental stores, malls, and hospitals, is also supporting the growth of the construction industry in the developing markets. The rapidly growing construction industry in the markets in the Middle East & Africa due to the shift from oil-based economy to industrial development together with increasing investment in big infrastructure projects, mainly transport, is likely to drive the demand for cement and concrete additives in the coming years.

The booming construction industry in the developed markets with increasing spending on the renovation of houses due to the rise in demand for modern architecture is driving the market growth. Additionally, increasing investment in infrastructure projects such as transportation, water management, and energy sectors is likely to support the growth of cement and concrete additives. In the US, revenue from the construction industry crossed USD 1 trillion in 2016–17 and is expected to reach USD 1.7 trillion by 2020. This market growth can be attributed to the increase in residential construction with the growing need for single-family dwellings coupled with the prevalence of low mortgages in the country. Moreover, with European construction companies focusing on vertical integration to gain a competitive edge and expanding their presence in other regions, the construction industry is expected to grow at a significant rate during the review period.

Hence, the rapid increase in construction activities in both developed and developing markets is driving the demand for concrete and cement mixes, which is expected to fuel the growth of the cement and concrete additives market.

The rapidly growing era of digitalization has resulted in development and implementation of new technologies in the construction sector especially in the developed markets such as Computer Aided Design (CAD) and Computer Aided Manufacturing (CAM) techniques to print concrete structure components and buildings. Fiber additives are being used in manufacturing high-performance tools for 3D construction printing as they improve the mechanical performance and reduces the drying shrinkage of printing concrete due to a low water/cement ratio. The emerging concept of 3D construction printing coupled with growing digitalization is likely to drive the demand for fiber concrete additives. For instance, in April 2016, Sika AG, one of the key players operating in the global cement and concrete additives market, introduced 3D concrete printing technology using concrete additives mainly fiber in printing tool.

Furthermore, with the increase in construction of complex building structures and smart buildings in the developed markets together with growing digitalization globally is likely to offer lucrative growth opportunities to the manufacturer of cement and concrete additives mainly fiber additives.

The construction industry in Western and Northern countries of Europe, such as the UK, France, Spain, Italy, Germany, Belgium, and the Netherlands is growing at a very sluggish rate due to certain political and economic issues. Some of the major factors affecting the growth of the construction industry in these markets include increase in labor cost, increasing trade credit, and rising margins of sub-contractors resulting in declining operating margins of the construction companies. Additionally, ongoing negotiations of the UK government on its exit from the European Union has impacted the growth of construction industry in the UK. Also, curbs on the measures taken by the government to support the growth of construction industry by investing in infrastructure development in France and Italy has further resulted in adverse impact on the construction industry growth in the region.

Furthermore, the increase in margins of sub-contractors and properties has led to insolvencies in big construction companies. For instance, in January 2018, Carillion, UK’s second-largest construction company, and Moonen, a Netherlands-based construction company filed for bankruptcy due to payment delays and overreaching on unprofitable projects in 2017.

Hence, sluggish growth of the construction industry in Western and Northern European countries is likely to cause decline in demand for cement and concrete additives and thereby, is likely to hamper the market growth during the review period.