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Increasing Green Construction Activities to Drive Demand for Construction Additives
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The construction additives market comprises the concrete admixtures, pigments, and dispersants segments. The major end-users are ready-mix and precast concrete manufacturers and paints and coatings manufacturers. Manufacturers are increasingly investing in product development to enhance environmental sustainability and product efficiency, as end users are increasingly looking for products that are durable, sustainable, and regulatory compliant.The Asia-Pacific market is the biggest regional market for construction additives and is also expected to be the fastest growing market on account of factors, such as industrialization and urbanization in the region. Additionally, the Summer Olympics of 2020 is expected to be a key growth driver for Japan. Initiatives such as the One Belt One Road Initiative of China and smart city initiatives in India will boost infrastructure construction initiatives in Asia-Pacific.The European market is witnessing economic green shoots in the region of Eastern Europe, which is expected to drive demand for new homes leading to growth in the new construction industry in Eastern Europe. Western Europe will be driven by the renovation of existing buildings for both residential and institutional buildings. The rest of the world (RoW) is expected to be driven by major trends in the Middle East, such as the Dubai Expo in 2020 and the FIFA World Cup in Qatar. Additionally, the Latin American region is expected to grow on the back of urbanization and industrialization.End users increasingly prefer sustainable and green building products and this preference has led to the development of green manufacturing processes for pigments and also in the development of admixtures for managing Co2 emissions while manufacturing concrete. This factor is expected to be a key growth driver for the construction additives market.The market faces regulatory pressures from organizations, such as the US Environmental Protection Agency and REACH, which mandate the use of products with lower volatile organic compound (VOC) emissions and the elimination of heavy metal usage. There is an increasing trend of customers moving to water-based dispersants instead of using solvent-borne products for want of lower VOC emissions, better specifications, and durability.The construction additives market will gain from the high growth of super-plasticizers in the commercial and residential construction segments, and for iron-oxide pigments in infrastructure applications. This robust growth will create product development opportunities, which will boost both the volume and revenue growth of the market.The additives market is highly competitive among large, global manufacturers that are primarily established in the developed markets of North America and Europe. Large market participants increasingly engage in mergers and acquisitions and joint ventures among themselves and with smaller companies to acquire new products, technologies, and market shares. As a result, the market points towards further consolidation in the coming years.
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