Global majors identify significant growth opportunities in forging alliances with local players
Singapore, May 29, 2017 – Rising government and foreign investments in mega projects in Asia-Pacific are encouraging chemical manufacturers in the region to make a strong push toward incorporating sustainable and technologically advanced materials in concrete admixtures, waterproofing and industrial flooring.
The demand for construction chemicals will be intense in Southeast Asian countries such as the Philippines, Vietnam, Malaysia and Indonesia, which are enjoying high investments in large-scale infrastructure and commercial projects. Most players are leveraging these opportunities by offering bundled, sustainable solutions, which they promote aggressively.
“In several application segments, traditional solutions are gradually giving way to high-performance products such as polycarboxylate ether-based admixtures,” said Frost & Sullivan Visionary Science Senior Research Analyst Vinay Venkatesan.
“In developed markets like Australia, Singapore and New Zealand, stringent environmental regulations are creating a vast market for acrylic water-based adhesive technologies that result in low or zero volatile organic compound emissions,” he added.
Asia-Pacific Construction Chemicals Market, Forecast to 2023 is part of Frost & Sullivan’s Future of Chemicals & Materials in Infrastructure & Mobility Growth Partnership Subscription. The study covers the segments of concrete admixtures, waterproofing, industrial flooring, grouts and concrete repair mortars, as well as adhesives and sealants. It presents market drivers and restraints, competitive structure, market and revenue shares, regional construction outlooks, end industry growth trends, and product and technology trends from 2013 to 2023. At the sub-segment level, it focuses on the major technologies, product types and chemistries employed in products.
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Being a price-sensitive market that is also beset by a lack of skilled labor force, customers gravitate toward low-cost, easy-to-apply products. The competition from Chinese imports is further exacerbating the price wars, restricting margins and market growth. In this environment, manufacturers are fiercely marketing their existing products and systems instead of creating value-added solutions.
“The market is fragmented, with international majors jostling for space with local participants. While customers seek grouts and concrete repair products from global companies, waterproofing and flooring are the strongholds of local experts,” noted Venkatesan.
“Commoditized products will continue to occupy a major part of the market share, but will gradually decrease due to rising consumer awareness of specialty and sustainable products,” he explained.
Global companies that want to establish a foothold in the Asia-Pacific construction chemicals market will be looking to establish strategic alliances with regional players, distributors and application experts. Overall, the manufacturers that thrive in this challenging market will be the ones that are capable of offering innovative, cost-effective and green solutions to customers across the spectrum.
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Asia-Pacific Construction Chemicals Market, Forecast to 2023
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Media Contact:
Melissa Tan
Corporate Communications, Asia Pacific
P: +65 6890 0926
E: melissa.tan@frost.com
