Under the National Infrastructure Pipeline launched in 2019, India has earmarked a total investment of $1.4 trillion (INR 102 lakh crore) on infrastructure development. Moreover, by 2025, the construction sector of India will be the third-largest in the world, behind that of the U.S. and China. Naturally, the two most-populated countries in the world account for the largest construction sectors in the world. Moreover, the government of these nations is extending its support for the real estate and infra sector.
Due to the rampant growth of this industry, P&S Intelligence predicts the Asia-Pacific construction chemicals market revenue to rise from $19,754.8 million in 2017 to $29,686.2 million by 2023, at a 7.1% CAGR between 2018 and 2023. This will essentially be due to the burgeoning population of the region, which is already the highest on earth. More people means a requirement for more houses, roads & highways, transportation facilities, schools, office complexes, hospitals, retail spaces, hotels, factories, and all other kinds of infrastructure imaginable.
Presently, the highest demand for all such construction chemicals, not just in APAC, but the entire world, is generated in China, which is home to the largest construction sector globally. In 2019, 26 construction projects, with a total investment of $142 billion, were sanctioned in the country, as per the South China Morning Post. The largest and most-expensive construction project underway in China right now is the South–North Water Transfer Project, under which three systems of canals are being built to divert 44.8 billion cubic meters of water from the Yangtse River in southern China to the north of the country each year.
In the coming years though, India’s contribution to the APAC construction chemicals market will grow at the highest pace. As per the India Brand Equity Foundation (IBEF), between April 2000 and December 2020, the country’s construction sector received a total foreign direct investment (FDI) of almost $50 billion. Moreover, in the 2021 Union Budget, the government allocated $32.02 billion (INR 233,083 crore) for transportation infrastructure alone! Under this, over 600 railway stations have been identified for redevelopment, the entire broad-gauge network of Indian Railways is being electrified, and all routes are being double-tracked.
Thus, with governments pushing for infrastructure development in APAC, the demand for construction chemicals will boom in the coming years.
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