Sales of construction chemicals in India stood at USD 3,884 million in 2023. The country is projected to exhibit a y-o-y growth of 12.2% in 2024 and reach USD 4,350.8 million in the same year. Surging at a CAGR of 13.4% between 2024 and 2034, demand for these chemicals is estimated to reach USD 15,287.7 million by 2034.
Among various types of construction chemicals, plasters are set to be extensively used in residential, commercial, infrastructural, and industrial construction activities. As of 2024, these products currently hold a prominent share of about 33% in terms of volume.
Based on application, the infrastructure segment is projected to command a significant share in terms of consumption. The segment is likely to witness a CAGR of 10.9% over the forecast period. This growth is attributed to increasing government investments in the development of novel infrastructures.
| Attributes | Description |
|---|---|
| Estimated India Construction Chemical Industry Size (2024E) | USD 4,350.8 million |
| Projected India Construction Chemical Industry Value (2034F) | USD 15,287.7 million |
| Value-based CAGR (2024 to 2034) | 13.4% |
The demand for construction chemicals in India is projected to increase by 3.5 times by 2034. The country’s government, with its forward-thinking policies and infrastructure-enhancing initiatives, is planning to reach an economy of around USD 5 trillion by 2025.
The growth of India’s construction chemical industry will likely be boosted by a surging population and rapid economic progress that necessitate improved transportation infrastructures, such as roads, railways as well as air, sea, and inland waterways. Such plans are critical for cutting-edge chemical production.
Increasing investment is seen as a source of demand for construction chemicals. According to the Reserve Bank of India (RBI), Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have collectively combined around USD 15.6 billion in the last four years till March 2024. This investment in housing and infrastructure projects is anticipated to create more opportunities in the next ten years.
New policies greatly support the demand for chemicals in India. For instance, an extra amount of USD 16 billion has been made available on a 50-year interest-free loan for states to promote infrastructure development in Budget 2023 to 2024. This leads to surging demand for building materials due to the National Infrastructure Pipeline (NIP), which aggregates USD 1.3 trillion worth of projects at different stages.
Launched in November 2022 is the National Investment and Infrastructure Fund (NIIF). It is a multi-partner investment platform with global and local investors that focuses on various sectors like construction among others. These measures altogether are anticipated to broaden the consumption of building materials and foster significant growth in India.
Innovations, such as self-healing concrete, high-performance polymers, and eco-friendly admixtures have revolutionized India. These are designed for better strength, energy conservation, and reduced pollution. Hence, the use of more specialized additives in their manufacturing process has surged.
Owing to the convergence of various factors, there will likely be steady growth in the local construction chemical industry. The trend for unique home designs and preference for aesthetics have also been a driving force behind the need for quality chemicals.
The chemicals are needed to enhance durability, sustainability, and visual appeal. In addition, as one of the key emerging economies, India’s strong economic growth and extensive labor force have broadened its real estate industry, which will likely bolster sales.
Modern and sustainable homes are becoming increasingly common in India with building materials being used extensively. Different types of waterproofing, insulation as well as finishing chemicals are necessary for such development projects. These collectively spur the consumption of construction chemicals, positioning the industry for considerable expansion.
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Annual growth rates of India’s construction chemical industry from 2024 to 2034 are illustrated in the table below. Starting with the base year 2023 and going up to the present year 2024, the report examines how the growth trajectory changes from the first half of the year, i.e. January through June (H1) to the second half consisting of July through December (H2).
Figures provided show the growth rate for each half-year between 2023 and 2024. The industry was projected to increase at a CAGR of 13.5% in the first half (H1) of 2023. However, in the second half (H2), there was a slight drop of 13.1% CAGR.
| Particulars | Value CAGR |
|---|---|
| H1 | 13.5% (2023 to 2033) |
| H2 | 13.1% (2023 to 2033) |
| H1 | 13.9% (2024 to 2034) |
| H2 | 12.9% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2024, the CAGR is projected to surge to 13.9% in the first half and relatively decline to 12.9% in the second half. In the first half (H1), India saw a decrease of 30 BPS while in the second half (H2), there was a slight increase of 20 BPS.
Leading Manufacturers Aim for Profits with New Product Launches
India-based manufacturers of construction chemicals are increasingly investing in broadening their production capacity and enriching their range in different areas. This enlargement entails starting new factories, modernizing the old ones, and incorporating innovative technologies that can address the increasing need for building chemicals.
These companies have expanded their businesses by launching new product lines, engaging in strategic partnerships or acquisitions, and providing full-service solutions based on the specific needs of various segments found within the building sector.
Government Investments to Fuel Infrastructure Development Projects Bolster Demand
Government expenditure has surged, nearly doubling during this fiscal year. It was driven by initiatives like the ‘Make in India,’ which are meant to accelerate the development of infrastructure and boost industrialization.
The government’s plan to allocate infrastructure worth USD 1.4 trillion through the National Infrastructure Pipeline (NIP) project and Make in India campaign is set to significantly boost demand for construction chemicals. The construction industry contributes around 9% of the GDP.
Apart from several other projects, the government’s massive project called ‘Delhi-Mumbai Industrial Corridor’ is anticipated to bolster the development of an economic corridor connecting Mumbai and Delhi by a 1,483 km stretch. It also involves nine mega-industrial zones.
The Gujarat International Finance Tec-City (GIFT), on the other hand, is set to become one of the world’s most prominent central business districts once the construction is finished. GIFT is located between Ahmedabad and Gandhinagar, where the area of the city is 8.5 crore sq. meters. Such projects are anticipated to accelerate demand.
National Highway Development Projects to Surge Sales in India
Ongoing national highway development projects in India are likely to significantly boost the growth of the country’s construction chemical industry. The government is making substantial investments in the development and construction of national highways as part of projects, such as Bharatmala Pariyojana and the National Highways Development Project (NHDP).
In the period from fiscal year 2014 to 2023, the development of national highways in India displayed remarkable growth, achieving a CAGR of 5.3%. In the fiscal year 2022, despite the pandemic and the subsequent lockdowns, India was able to construct about 10,457 km of national highways.
High Dependency on Imports Limits Growth
India mainly depends on imports for several cutting-edge construction chemicals that are developed with unique technology or specialized formulations. As these complex products are typically unavailable on a domestic level due to a lack of sophisticated research and development facilities, international manufacturers are the predominant source of high-performance chemicals.
A significant proportion of the raw materials needed to make construction chemicals are imported. The industry does not have most of the necessary basic additives to produce chemicals domestically. Hence, imported materials are mandatory to meet production requirements. The reliance on raw imported materials correlates directly to the dependence on foreign suppliers.
Foreign chemicals are mostly preferred, as customers assume they are of superior quality and likely to perform better than their local alternatives. Customers also believe that international brands are likely to have higher and more resilient quality.
Hence, imported chemicals are the preferred choice for predictable quality and performance for significant construction projects. More efforts are now in place to reduce this dependency by increasing local manufacturing capability, which is projected to help ensure self-reliance in the foreseeable future.
Principal Consultant
The industry witnessed a CAGR of 5.4% between 2019 and 2023. Total revenue reached about USD 3,884 million in 2023. During the forecast period, sales are projected to fetch a CAGR of 13.4%.
From 2019 to 2021, the COVID-19 pandemic significantly impacted the construction chemical industry. Lockdowns, supply chain disruptions, and delays in construction projects led to reduced demand for these chemicals.
The pandemic further resulted in delays in raw material procurement and hindered manufacturing processes, affecting overall growth. However, it also accelerated the adoption of new health and safety standards in construction, boosting demand for innovative and more durable chemicals in the long term.
After the pandemic's impact, infrastructure development continued to drive the industry. Government initiatives for infrastructure improvement and ongoing real estate projects fueled demand. Investments in residential, commercial, and industrial construction projects increased, leading to a high need for cutting-edge materials and chemicals to enhance structural integrity and sustainability.
During the forecast period, the rise of smart building technologies and automation in construction will likely drive demand for construction chemicals. Innovations, such as smart coatings, energy-efficient insulation materials, and self-healing concrete are becoming increasingly prevalent.
Programs promoting green buildings, energy-efficient structures, and low-carbon construction materials are also gaining traction. These initiatives require the use of environmentally friendly and high-performance construction chemicals, such as low-VOC paints, eco-friendly adhesives, and innovative waterproofing solutions.
Tier 1 companies include leaders with annual revenues exceeding USD 45 million. These companies are currently capturing a significant share of 40% to 50% in India. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographic reach, underpinned by a robust consumer base. These firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within Tier 1 include Pidilite Industries Ltd., Dow Inc., Asian Paints Ltd., Fosroc Chemicals India Pvt. Ltd., Berger Paints India Ltd., and BASF India Ltd.
Tier 2 companies encompass mid-sized participants with revenues ranging from USD 5 to 45 million, holding a presence in specific regions and exerting significant influence in local economies. These firms are distinguished by their robust presence overseas and in-depth product expertise.
They possess strong technology capabilities and adhere strictly to regulatory requirements. However, these firms may not wield cutting-edge technology or maintain an extensive reach. Noteworthy entities in Tier 2 include Thermax Ltd., Akzo Nobel N.V., Cera-Chem India Private Ltd., MYK LATICRETE India, Somany Ceramics, Mapei SpA, and Chembond Chemicals Ltd.
Tier 3 encompasses most of the small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues below USD 5 million. These businesses are notably focused on meeting local demands and are hence categorized within the Tier 3 segment.
They are small-scale participants with limited geographical presence. In this context, Tier 3 is acknowledged as an informal sector, which is distinguished by a lack of extensive organization and formal structure in comparison to the structured one.
Tier 3 includes Indo Construction Chemicals Escon Chemical Company, Madhur Construction Chemicals, Ruia Chemicals, Tilebond Construction Chemicals, Armstrong Chemicals, Capa-IC, Durabild, Kryton-India, and Selsil.
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The section covers assessments of construction chemical sales across key regions. Regions such as East India is anticipated to exhibit a promising 14.2% CAGR during the forecast period. All the below-listed regions are collectively set to reflect a CAGR of around 13%.
| Region | CAGR 2024 to 2034 |
|---|---|
| East India | 14.2% |
| South India | 13.6% |
| North India | 13.4% |
| West India | 12.9% |
West India, including Maharashtra and Gujarat, is home to leading economic and industrial centers, such as Mumbai, Pune, and Ahmedabad. These cities experience a high demand for construction chemicals due to their extensive real estate and infrastructure projects.
Mumbai’s ongoing high-rise developments, commercial spaces, and industrial expansions require unique chemicals for concrete, waterproofing, and finishing, thereby boosting regional consumption.
West India is experiencing large-scale infrastructure developments, including metro networks, highways, and port projects. Initiatives like the Mumbai Metro and coastal road projects are projected to significantly surge demand for construction chemicals, such as durable coatings and high-performance admixtures.
The continuous growth in residential and commercial real estate further amplifies the need for specialized chemicals, solidifying West India's leading position through 2034.
In the forecast period, North India’s construction chemical industry is predicted to rise steadily at a CAGR of 13.4% and attain a total worth of USD 4,705.4 million by 2034.
Urban sprawl is taking place at an alarming rate coupled with infrastructure development projects in key cities, such as Delhi, Noida, and Gurgaon. Demand for unique chemicals is set to be augmented by new residential neighborhoods, commercial spaces, and industrial zones among others.
For instance, the use of high-performance concrete chemicals is essential in projects such as the Delhi-Mumbai Expressway or new residential townships that involve waterproofing and surface treatment. North India has also benefited from several government initiatives targeting affordable housing projects, including Pradhan Mantri Awas Yojana.
East India is projected to surge at a CAGR of 14.2% from 2024 to 2034, with sales set to reach USD 1,516.4 million by 2034. Even though the consumption of construction chemicals is lower in the eastern parts of India than in the other areas, huge investments in infrastructure are set to change this picture.
Initiatives, such as the Bharatmala Pariyojana, the Sagarmala Project, and the Railways Network Upgrade project are anticipated to boost investments. Their success is estimated to directly affect the enhancement of roads, bridges, and ports, which will likely be more durable owing to the use of construction chemicals.
East India possesses abundant coal, iron ore, and bauxite deposits. The opening development of new plants and mines in Odisha and Jharkhand is likely to augment demand for these chemicals. Besides, sustainable energy sources like hydroelectric projects in the northeast are also contributing to the rising demand for special construction materials.
The section explains the growth trajectories of the leading segments. In terms of product type, the plaster category will likely dominate and generate a share of around 32.7% in 2024.
Based on application, the infrastructure segment is projected to hold a share of 62.6% in 2024. This analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | Plaster (Product Type) |
|---|---|
| Value Share (2024) | 32.7% |
The plaster segment is predicted to experience a decent CAGR of 12% from 2024 to 2034. Plaster is a fundamental material in the construction industry, utilized extensively in residential, commercial, and industrial projects.
Its primary roles in wall finishing, surface preparation, and decorative applications make it indispensable. The necessity of plaster in creating smooth, durable, and aesthetically pleasing surfaces ensures its consistent demand across diverse construction activities. This widespread use in both new constructions and renovations contributes significantly to its high consumption in India.
The rapid expansion of the real estate industry in India is a key driver of plaster consumption. Government initiatives like affordable housing projects under the Pradhan Mantri Awas Yojana have accelerated residential construction, increasing the need for plaster.
The ongoing development of commercial spaces and infrastructure projects further boosts demand. Innovations in plaster formulations, offering enhanced durability and improved workability, also contribute to its popularity, making these a preferred choice for modern construction needs.
| Segment | Infrastructure (Application) |
|---|---|
| Value Share (2024) | 62.6% |
The infrastructure segment is leading in terms of application due to the extensive range of projects underway. Key initiatives like the Bharatmala Pariyojana, aimed at developing highways as well as the Sagarmala Project, focused on port modernization, require vast amounts of construction chemicals for durability and performance.
These projects use concrete admixtures, waterproofing solutions, and protective coatings to enhance the longevity and resilience of infrastructure.
Significant government investments in infrastructure to boost economic growth further drive high consumption. Urban development projects, including the Smart Cities Mission and metro rail expansions in cities like Delhi, Mumbai, and Bangalore, necessitate unique chemicals to meet modern engineering standards.
For instance, the Delhi-Mumbai Industrial Corridor (DMIC) involves creating new cities and industrial zones, demanding large quantities of high-performance chemicals for constructing robust and sustainable infrastructure.
India’s construction chemical industry is highly competitive with the presence of several renowned manufacturers. Most of these manufacturers are focusing on acquiring small-scale players to gain the latter’s expertise for launching novel chemicals. A few are also aiming to develop cutting-edge production facilities in India owing to the easy availability of low-cost labor and raw materials.
A handful of companies are focusing on investing huge sums in research and development activities to provide innovative chemicals. Several international brands are also joining hands with India-based construction companies to provide them with their in-house chemicals to gain profit.
Industry Updates
On 25 May 2024, Bengaluru-based Fosroc India inaugurated its new integrated construction chemicals plant in Hyderabad. This latest manufacturing facility will boost Fosroc's geographical reach and service capabilities, especially for customers in South and Central India.
On 8 March 2023, paint producer Nippon Paint (India) announced its entry into the construction chemical industry as part of its efforts to expand its product portfolio.
On June 22, 2023, Pidilite Industries Ltd, a producer of construction and specialty chemicals, inaugurated its novel production facilities in Gujarat. It was done with the help of its two joint ventures, namely, Tenax Pidilite Pvt Ltd (TPPL) and Pidilite Litokol Pvt Ltd (PLPL), for the construction industry.
On 7 December 2023, Saint-Gobain acquired Menkol Industries Private Limited, a prominent manufacturer specializing in high-value waterproofing systems. This strategic move helped boost the former’s position in construction chemicals, particularly in India.
A few product types included in the study are concrete admixture, waterproofing chemicals, adhesives and grouts, sealants, repair and rehabilitation, flooring compounds, protective coatings, plaster, and asphalt additives. Concrete admixtures are further segregated into plasticizer, accelerator, retarder, and air entrained.
Waterproofing chemicals are divided into bitumen, polyurea, self-leveling system (cementitious and epoxy), PVC, EPDM, TPO, PTFE, silicon, acrylic polymer, styrene-butadiene, cementitious membrane, PU membrane (liquid-applied membrane), crystalline, and additives. Adhesives and grouts cover tile adhesive (cementitious and dispersion and resin), tile grouts (cementitious and epoxy), and masonry mortar and plaster.
Sealants encompass silicon, MS hybrid, polyurethane, weatherproof silicon, and polysulfide. Repair and rehabilitation products consist of cement-based, epoxy-based, micro concrete, composite carbon and glass fiber wrapping systems, and carbon laminates.
Flooring compounds include floor hardeners, epoxy- and PU-based floor coatings and toppings, and cementitious/epoxy/PU screeds. Protective coatings cover epoxy, polyurethane, bituminous, acrylic, alkyd, and polyester. Plaster is bifurcated into cement-based and gypsum-based.
Infrastructure, commercial and industrial, and residential are the key application areas.
Regions considered in the study include North India, West India, South India, and East India.
The country’s industry was valued at USD 3,884 million in 2023.
The industry is set to reach USD 4,350.8 million in 2024.
Demand is anticipated to rise at 13.4% CAGR through 2034.
The industry is projected to reach USD 15,287.7 million by 2034.
The plaster segment dominates in terms of share.
Sealants, flooring compounds, and protective coatings are a few chemicals.
Cement additives are considered ideal for construction.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-Economic Factors, Market Dynamics, and Recent Industry Developments 4. Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Product Type 6.2. Application 7. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type 7.1. Concrete Admixture 7.1.1. Plasticizer 7.1.2. Accelerator 7.1.3. Retarder 7.1.4. Air Entrained 7.1.5. Others 7.2. Water Proofing 7.2.1. Bitumen 7.2.2. Polyurea 7.2.3. Self Leveling System 7.2.3.1. Cementitious 7.2.3.2. Epoxy 7.2.4. PVC 7.2.5. EPDM 7.2.6. TPO 7.2.7. PTFE 7.2.8. Silicone 7.2.9. Acrylic Polymer 7.2.10. SBR - Styrene butadiene 7.3. Adhesives & Grouts 7.3.1. Tile Adhesive 7.3.1.1. Cementitious 7.3.1.2. Dispersion & Resin 7.3.2. Tile Grouts 7.3.2.1. Cementitious 7.3.2.2. Epoxy 7.3.3. Masonry Mortar and Plaster 7.4. Sealants 7.4.1. Silicone 7.4.2. MS Hybrid 7.4.3. Polyurethane (PU) 7.4.4. Weatherproof Silicone 7.4.5. Polysulfide 7.5. Repair & Rehabilitation 7.5.1. Cement Based 7.5.2. Epoxy Based 7.5.3. Micro Concrete 7.5.4. Composite Carbon and Glass Fibre Wrapping Systems 7.5.5. Carbon Laminates 7.6. Flooring Compounds 7.6.1. Floor Hardeners 7.6.2. Epoxy and PU Based Floor Coatings and Toppings 7.6.3. Cementitious/Epoxy/PU Screeds 7.7. Protective Coatings 7.7.1. Epoxy 7.7.2. Polyurethane 7.7.3. Bituminous 7.7.4. Acrylic 7.7.5. Alkyd 7.7.6. Polyester 7.7.7. Others 7.8. Plaster 7.8.1. Cement Based 7.8.2. Gypsum Based 7.9. Asphalt Additives 8. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 8.1. Infrastructures 8.2. Commercial & Industrial 8.3. Residential 9. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 9.1. West India 9.2. North India 9.3. South India 9.4. East India 10. West India Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 11. North India Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. South India Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. East India Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. Sales Forecast 2024 to 2034 by Product Type and Application for 30 Countries 15. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 16. Company Profile 16.1. Pidilite Industries Ltd. 16.2. Dow Inc. 16.3. Asian Paints Ltd. 16.4. Fosroc Chemicals India Pvt. Ltd. 16.5. Berger Paints India Ltd. 16.6. BASF SE 16.7. Saint-Gobain S.A. 16.8. ACC Ltd. 16.9. Sika AG 16.10. Ultratech Cement 16.11. Thermax Ltd. 16.12. Akzo Nobel N.V. 16.13. Cera-Chem India Private Ltd. 16.14. MYK LATICRETE India 16.15. Somany Ceramics 16.16. Mapei SpA 16.17. Chembond Chemicals Ltd. 16.18. Ardex Group 16.19. CICO Technologies Ltd. 16.20. KERAKOLL India Pvt. Ltd.
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Construction Chemical Industry Analysis in India
