Southeast Asia Construction Chemicals Market - Growth, Trends, and Forecast (2020 - 2025)
The Southeast Asian construction chemicals market is likely to witness a healthy growth, at an estimated CAGR of over 6%, over the forecast period. The construction industry is reflecting huge demand in Southeast Asia, owing to more spending on infrastructure and population growth. The middle-class segment has grown and is expected to grow further during the forecast period. The growth has boosted lifestyle trends and new housing and construction activities in the country.
Several government regulations are expected to hamper the construction chemicals market in the Southeast Asia region, during the forecast period. The manufacturers of construction chemicals in the region are gradually realizing the importance of globally harmonized system of classification and labeling of chemicals (GHS) regulations.
By product type, the concrete admixture segment is expected to dominate the market studied, with the highest CAGR of over 7% during the forecast period.
Key Market Trends
Residential Sector - A Huge Market Potential
The residential segment primarily includes elite housing, middle-class housing, and low-cost housing.
The elite class is synonymous to luxury, and housing is no exception. The demand for apartments, penthouses, villas, and bungalows in gated communities, with world-class designs and amenities, is expanding rapidly. The developers are launching projects to cater to such demands.
The rising middle-class population, coupled with increasing disposable incomes, has facilitated expansion in the middle-class housing segment, thereby increasing the use of construction chemicals in the segment, during the forecast period.
The low-cost housing segment is rising at a steady rate, primarily owing to the various government initiatives to provide affordable housing to the urban and rural poor.
Indonesia is one of the largest and fastest-growing markets. The Indonesian government has also started a program to build around 1 million housing units across Indonesia, for which the government has already set aside around USD 1 billion from the budget.
All the aforementioned factors, in turn, are expected to increase the demand for the construction chemicals market in the region.
Indonesia to Dominate the Market
Indonesia, one of the largest economies in Southeast Asia, is witnessing considerable growth, owing to the rise in income levels of the people, as well as urbanization.
The construction sector in Indonesia is witnessing huge demand, owing to more spending on infrastructure and population growth.
The middle-class segment has witnessed growth, and is expected to grow further, during the forecast period. The growth has boosted lifestyle trends, and new housing and construction activities in the country.
Increasing repair and renovation activities in the country is another factor boosting the demand for construction chemicals. For instance, the Ministry of Public Works and Public Housing is carrying out repair activities on Cengkareng B Flyover, in Jakarta.
The investments are expected to add value to the market for various construction chemicals, including adhesives and sealants, protective coatings, cement, etc., during the forecast period.
The Southeast Asian construction chemicals market is fragmented in nature. Major players in the market include Sika AG, BASF SE, Arkema Group, Dow, and Fosroc Inc., among others.
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