- Share of waterproofing, and repair and rehabilitation type construction chemical is expected to increase in future as repair and maintenance if newly created infrastructure ages.
- Rising labor cost and customer willingness to pay premium for quality products will help in market consolidation and will attract leading global players which are staying away from Chinese market.
- Government keen interest to sustain the economic growth will lead to investment in construction sector. This will create growth opportunities for construction chemical market in China.
- Demand for real estate due to rising urban population is expected to increase the growth rate in construction Chemical market.
Ken Research announced its latest publication on “China Construction Chemical Market Outlook 2020- Increased Investment in Infrastructure Development and Rise in Demand for Real Estate” provides a comprehensive analysis of construction chemical market in China. The report focuses on overall market size of construction chemical in China, segmentation on the basis of type of construction chemical including concrete admixture (PCE Based, SNF Based and Ligno Based), waterproofing material, flooring compounds (Epoxy and Polyurethane based flooring), repair and rehabilitation and others. The report also covers list of major projects under construction, snapshot of market structure, future outlook, growth drivers, trends and developments, issues and challenges. The report concludes with market projection for future and analyst recommendation highlighting the major opportunities and cautions.
In 2015, market for construction chemical was very fragmented with the presence of several construction chemical companies in the country. Sales and distribution of construction chemical was mainly from direct project based sale. Sale in retail sector was done through building merchants. Massive construction investment plans envisaged under 12th five year plan was major growth driver for demand of construction in the period. China is developing and upgrading its rail network to improve internal freight and passenger movement. Projects like connecting Singapore to Kunning in South China. Projects like Beijing Daxing International airport which is still under construction and is expected to be completed by late 2019 will drive the demand for all type of construction chemical including flooring. It will also lead to development of huge residential and commercial real estate in the area that will further augment the demand for construction chemical.
Market for construction chemical in China is very fragmented which gives the opportunity to leading players to consolidate their market position by mergers and acquisitions. As growth in demand declines in future, smaller firms may not be very profitable as they lack economies of scale. This gives larger firm an opportunity to acquire the small firms and use the experienced manpower and established sales network to promote and expand their business. Investment in new construction sector is on decline in China however huge inventory of real estate and infrastructure that was developed in the past must be maintained and repaired. This creates huge market opportunity for repair and refurbishment business and sale of secondary construction chemicals like sealants, adhesives, resins and others.
Companies in construction chemicals market should focus on harnessing the potential in smaller cities where there are market opportunities. Moreover, Domestic companies have strong market presence in China but have failed to establish themselves outside Chinese territories and hence association with leading or emerging companies to launch in uncharted territory or collaborate with domestic companies in other countries makes market entry easy, according to Research Analyst, Ken Research
Key Topics Covered in the Report:
- China Construction Chemical Market Introduction
- China Construction Chemical Market Size by Revenues, 2010-2015
- China Construction Chemical Market Segmentation by Type of Construction Chemical, By Concrete Admixture, By Water Proofing Chemicals, By Flooring Compounds and By Repair and Rehabilitation, 2015
- Recent Trends and Developments in China Construction Chemicals Market
- Competitive Benchmarking of Major Players in China Construction Chemical Market, 2015
- Competitive Landscape of Major Players in China Construction Chemicals Market
- China Construction Chemical Market Future Outlook And Projections
- Future Outlook by Revenue, 2016-2020
- Future Outlook by Segments, 2020
- Analyst Recommendation
Products Covered in the Report
Water Proofing Chemicals
Repair and Rehabilitation Chemicals
Companies Covered in the Report
Beijing Oriental Yuhong
Jia hua Chemicals
Weifang Hongyuan Waterproof Materials
Ankur Gupta, Head Marketing & Communications