Germany Construction Chemical Market Forecast To 2020: Ken Research
How the Germany Construction chemicals Market Is Positioned?
Construction chemical market in
Germany has the largest share among all European nations accounting for nearly
~% of the entire European market in terms of revenues. Growth in construction
sector, robust economic policies and moreover, Germany being regarded as
manufacturing hub of Europe along with its central location has supported the
economic development. Sale of construction chemical in Germany was reportedly
driven by necessity of the usage of construction chemicals in construction of
certain type of building and manufacturing unit. For instance, it was required
by regulation to waterproof all areas where there are chances of spillage of
hazardous chemicals as well as to water proof areas of hazardous garbage
disposal areas in Germany.
Real estate construction was the major
growth driver for sale of construction chemical in German market as investment
in public infrastructure has observed a decline in last few years
Growth prospects for construction
chemical market in Germany is bright and is expected to record positive growth
in future as construction activities picks up pace along with government
investment in infrastructure. Repair and rehabilitation of existing
infrastructure and existing buildings will also create huge potential demand
for construction chemicals in future.
The market for construction chemical
in Germany is very
well organized and is majorly
dominated by BASF and SIKA. These two companies has comprehended almost ~%
share of the market in terms of revenues. The market for construction chemicals
is concentrated by almost 70 players which is quite limited compared to other
countries.
The market for construction chemicals
in Germany has grown at a CAGR of ~% during the period 2010-2015 with revenues
being registered at USD ~ million during 2015.
What have been the Major Segments that has Driven
Change
Concrete admixture has accounted for a
revenues share of ~% in the overall India construction chemical market. Concrete
admixture market in Germany was observed to be majorly governed by cement
companies as concrete admixture is provided along with cement. Major concrete
admixture manufacturing companies have B2B tie up with these cement companies
for the sale of concrete admixture in German market.
Water proofing becomes more important
in areas with underground construction and areas receiving heavy rain and
snowfall. Germany construction standards are among best in world requiring
strict compliance which drives the sale of all type of construction chemical.
Market for sheet membrane is high in
Germany because they are easy to manufacture and have long shelf life. They are
also easy to apply in already constructed houses. Water proofing market in
Germany is mainly dominated by SIKA which is also the major construction
chemical company.
Flooring compounds market was observed
to have smaller share in 2015 on account of low investment in construction of
new malls, parking spaces, sports complexes and other areas of application.
Majority of demand comes from renovation and modernization of existing
structures.
Flooring material demand mainly comes
from the construction of new parking lots, hospitals, indoor playgrounds and
manufacturing units. Polyurethane flooring was mainly preferred in Germany as
it is more human friendly and is less reactive compared to epoxy flooring. Epoxy
flooring is preferred in closed areas of manufacturing floors, commercial
kitchens, shopping complexes and other areas.
Germany is in developed stage of
economic growth and hence demand for basic infrastructure is observed to be
lower and thus majority of demand as observed was created to improve existing
quality and facilities. Germany is the manufacturing hub of Europe and
manufacturing floors require coating based on product being manufactured. Based
on quality requirement demand for type of flooring compound, epoxy polyurethane
or cementitious or their combination is required.
Repair and rehabilitation of many
old buildings was adopted to accommodate refugees coming in different part of
Germany, earlier they were staying in makeshift tents. Major investment were
made in these chemical due to large amount of work going on to make building
apartments more energy efficient. Buildings in Germany have to comply with
German regulation on energy efficiency.
Aging infrastructure in Germany
creates high demand for repair and refurbishment chemicals especially epoxy
based repair as they give better finish to the infrastructure.
What Have been the Major Trend in the
Market
Construction of new residential
buildings recorded constant growth during the period 2010-2015 whereas repair
and construction of existing residential buildings recorded a constant decline
in its share. It was observed that majority of the amount spent on construction
was has been made to refurbish the old structures in Germany. Growth in
construction of residential sector was mainly driven by internal migration and
influx of refugees in Germany.
Influx of refugees has created
additional demand for infrastructure development in Germany as it was major
receiver of refugees among all European nations. Net migration of foreign
people amounted to 1.14 million in 2015 (Based on data from 1st January 2015 to
31st August 2015 and estimate for four months) which was 49.0% higher compared
to 2014 when Germany witnessed net migration of 577,000 foreigners as per data
reported by statistics office of Germany.
The raw materials mix of the
German construction chemical industry will is biased in favor of the renewable
raw materials. Today, the German construction chemical industry uses slightly
less than 19 million tonnes of fossil raw materials (petroleum products,
natural gas and coal), 2.7 million tonnes of renewable raw materials and
approximately 20 million tonnes of mineral raw materials.
The chemical industry is one of the
most innovative sectors of the German economy. In Germany the research
intensity, or the ratio of R&D expenditures to the production value, is
slightly less than 5.8 per cent.
How
is the Competition Concentrated in the Market
Germany is regarded as the hub for few
major leading constructions chemical companies namely BASF and several others.
Moreover, achieving economy of scale in operations is important in chemical
industry which is highly evident amongst the companies operating in this sector
in Germany. There are certain advantages in setting up a construction chemical
industry in Germany such as stable supply of raw materials, increasing number
of applications of downstream industries, superior management and technology,
relative superiority in base environment and others.
The market for construction chemicals
in Germany is highly organized with the presence of few major international
players in the space such as BASF and SIKA Chemicals. These two companies have
dominated the market space with an approximate share of 50% in terms of
revenues during 2015. These international players are consistently enhancing
their production capacity in the domestic market by acquiring local companies.
This trend has been leading the industry to become more integrated in terms of
technology and the market is becoming more concentrated.
In addition to this, there are certain
government regulations such as initiatives from State Council on accelerating
the development of strategically rising industries, regulations related to
environmental concerns and others which have been acting as one of the major
barriers in the industry. These factors are restraining newer small companies
to enter into the market.
Companies
Cited in the Report
List of Companies Companies
Covered in the Report
·
MC Bauchemie Major Players
·
SIKA Germany
·
BASF Germany
·
Quick Mix
Group
·
Widopan
·
HASIT
Key Factors Considered in the Report
§
Comprehensive analysis of Germany Construction Chemicals Market and its
segments
§
Listed major players and their positioning in the market
§
Identified major industry developments in last few years and assessed
the future growth of the industry
§
Construction Chemicals Market of Germany with their Products
For
more information about the publication, refer to below link:
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204
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