Waterproofing Chemicals - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)

Rising investment in infrastructure construction projects is likely to boost the demand for waterproofing chemicals

• The global consumption of waterproofing chemicals grew by 4.65% in value in 2022, driven by rising demand from the infrastructure and commercial construction sectors. The market studied was projected to make up approximately 26.43% of the global waterproofing solutions market in 2023.
• The infrastructure sector stands as the largest consumer, accounting for about 31.05% in 2023. Global infrastructure spending is set to rise by USD 367 billion from 2023 to 2030, fueled by increased investments in construction projects. For instance, the Government of the United Kingdom has allocated USD 191 million to its Wireless Infrastructure Strategy, targeting enhanced 5G telecommunication infrastructure by 2030. In addition, India plans to invest around USD 4.5 trillion in infrastructure development by 2030. Consequently, the global waterproofing chemicals market for the infrastructure sector is forecasted to reach USD 662 million by 2030.
• The commercial sector is poised to be the fastest-growing consumer in the market studied, with a projected CAGR of 6.13% during the forecast period. The expanding economy has heightened the demand for commercial spaces, including offices, hotels, and retail malls. Moreover, the United States alone is expected to require 4.61 billion square feet of office space by the end of the forecast period. As a result, the global market for waterproofing chemicals in the commercial sector is anticipated to surge from USD 1.7 billion in 2023 to USD 2.6 billion in 2030.

Fast-paced construction activities in the Asia-Pacific and North America predicted to bolster the demand for waterproofing chemicals, globally

• Waterproofing chemicals are essential to all aspects of building design and construction and find applications where a need to prevent water ingress is required. In 2022, the global waterproofing chemicals market witnessed a growth of 4.65% in value compared to 2021. The Middle East & African market for waterproofing chemicals recorded the highest growth of 5.91% in value from 2021 to 2022, followed by North America, which grew by 5.83% in value during the same period. Furthermore, in 2023, the global waterproofing chemicals market was expected to grow by 5.13% in volume compared to 2022.
• In 2022, the Asia-Pacific region significantly dominated the market, accounting for 45% of the market share by value. Countries like China, Japan, and India had an assertive influence over the demand for waterproofing chemicals in the region. China's public expenditure on transport infrastructure reached USD 165.6 billion in 2022 compared to USD 157.6 billion in 2021. Similarly, the rising construction of manufacturing facilities in Japan, along with India's vision to increase its connectivity through roads, railways, and highways, propelled the growth of the construction sector in the region. Such developments are boosting the consumption of waterproofing chemicals for building and construction.
• The waterproofing chemicals market in North America is expected to register the fastest CAGR of 5.96% in value, followed by Asia-Pacific, with a CAGR of 5.47% in value, during the forecast period. High-investment projects supported by government funds and foreign direct investments are expected to raise residential, infrastructure, and commercial construction activities in the regions. As a result, the demand for waterproofing chemicals is projected to rise.

Global Waterproofing Chemicals Market Trends

Asia-Pacific's surge in large-scale office building projects is set to elevate the global floor area dedicated to commercial construction

• In 2022, the global new floor area for commercial construction witnessed a modest growth of 0.15% from the previous year. Europe stood out with a significant surge of 12.70%, driven by a push for high-energy-efficient office buildings to align with its 2030 carbon emission targets. As employees returned to offices, European companies, resuming lease decisions, spurred the construction of 4.5 million square feet of new office space in 2022. This momentum is poised to persist in 2023, with a projected global growth rate of 4.26%.
• The COVID-19 pandemic caused labor and material shortages, leading to cancellations and delays in commercial construction projects. However, as lockdowns eased and construction activities resumed, the global new floor area for commercial construction surged by 11.11% in 2021, with Asia-Pacific taking the lead with a growth rate of 20.98%.
• Looking ahead, the global new floor area for commercial construction is set to achieve a CAGR of 4.56%. Asia-Pacific is anticipated to outpace other regions, with a projected CAGR of 5.16%. This growth is fueled by a flurry of commercial construction projects in China, India, South Korea, and Japan. Notably, major Chinese cities like Beijing, Shanghai, Hong Kong, and Taipei are gearing up for an uptick in Grade A office space construction. Additionally, India is set to witness the opening of approximately 60 shopping malls, spanning 23.25 million square feet, in its top seven cities between 2023 and 2025. Collectively, these endeavors across Asia-Pacific are expected to add a staggering 1.56 billion square feet to the new floor area for commercial construction by 2030, compared to 2022.

South America's estimated fastest growth in residential constructions due to increasing government investments in schemes for affordable housing to boost the global residential sector

• In 2022, the global new floor area for residential construction declined by around 289 million square feet compared to 2021. This can be attributed to the housing crisis generated due to the shortage of land, labor, and unsustainably high construction materials prices. This crisis severely impacted Asia-Pacific, where the new floor area declined 5.39% in 2022 compared to 2021. However, a more positive outlook is expected in 2023 as the global new floor area is predicted to grow by 3.31% compared to 2022, owing to government investments that can finance the construction of new affordable homes capable of accommodating 3 billion people by 2030.
• The COVID-19 pandemic caused an economic slowdown, due to which many residential construction projects got canceled or delayed, and the global new floor area declined by 4.79% in 2020 compared to 2019. As the restrictions were lifted in 2021 and pent-up demand for housing projects was released, new floor area grew 11.22% compared to 2020, with Europe having the highest growth of 18.28%, followed by South America, which rose 17.36% in 2021 compared to 2020.
• The global new floor area for residential construction is expected to register a CAGR of 3.81% during the forecast period, with South America predicted to develop at the fastest CAGR of 4.05%. Schemes and initiatives like the Minha Casa Minha Vida in Brazil announced in 2023 with a few regulatory changes, for which the government plans an investment of USD 1.98 billion to provide affordable housing units for low-income families, and the FOGAES in Chile also publicized in 2023, with an initial investment of USD 50 million, are aimed at providing mortgage loans to families for affordable housing and will encourage the construction of new residential units.

Waterproofing Chemicals Industry Overview

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