Waterproofing Membranes Market size is forecast to reach $55.37 billion by 2025, after growing at a CAGR of 7.82% during 2020-2025. Growing demand for residential and commercial spaces coupled with increasing investment in water conservation and wastewater treatment infrastructure development is expected to have a positive effect on growth. Waterproofing membranes ensure longer durability of the structure, hence reduces maintenance cost. Increasing government investments on infrastructure developments and increasing usage of waterproofing membranes in the mining industry will boost the waterproofing membranes industry.
The rise in demand for finished goods and the overall growth of end-use industries in the Asia Pacific region is expected to fuel the waterproofing membranes market during the forecast period.
Increasing demand for liquid waterproofing membrane owing to its UV absorption properties as it prevents damage to concrete bridges under high or low-temperature conditions is expected to drive industry growth.
Due to COVID-19 palindrome, the construction industry is expected to take a major hit due to labor shortages and the lockdown imposed by the government during COVID-19, which is expected to be aggravated by the resulting supply chain issues and financing pressures due to the non-adherence to the completion times.
Type- Segment Analysis
Liquid Applied Waterproofing Membranes is widely used in Waterproofing Membranes Market. Due to the liquid form, it is simple to apply by using a spray or brush or by roller to the concrete surface which forms a thick joint-free membrane in contact with air. Liquid applied waterproofing membrane has elongation properties, durability, flexibility, abrasion, chemical resistance which provides successful installation. Also, the liquid waterproofing membrane provides longevity and optimized performance. Owing to which it is used in concrete bridges and metal deck sheets. Since liquid applied waterproofing membrane is a time-saving process it is usually preferred over other types and hence it is anticipated to grow in the forecast period.
Material Type- Segment Analysis
Thermoplastic olefin (TPO) held the largest share in Waterproofing Membranes Market in 2019. TPO waterproofing membrane is the fastest-growing commercial roofing membranes and has gained wide acceptance in different industries for its performance and installation advantages at a competitive cost. Some other benefits of TPO include its eco-friendly chemistry, recyclability, durability, flexibility, low installation cost, reduced labor requirement, and exceptional heat-resistant properties suitable for energy-efficient roofing systems. Since TPO membranes do not contain toxic or hazardous ingredients and are fully recyclable it will further lead towards the growth of the market in the forecast period.
Application – Segment Analysis
Roofing & Walls held the largest share in Waterproofing Membranes Market in 2019 and is projected to grow at a CAGR of 6.44% during the forecast period 2020-2025. Waterproofing Membranes offer ideal roofing solutions about their elongation, tear strength, resistance to heat aging, weathering, UV radiation, ozone, solvents, acids & alkalis, and excellent tensile strength. It adheres firmly to various building materials such as brick & concrete and bridges cracks that are driving the market size. Waterproofing membranes form a shield against the seepage of water on the roof and wall, thus forming the main component of roofing systems. They protect the roofing and walls from the adverse effects of water seepage such as differential movement caused by thermal differences between wet & dry areas, and acid damage from evaporating rainwater. Also, waterproofing membranes are superior to conventional flat roofing methods based on gravel & asphalt. Thus, owing to such properties the demand for waterproofing membranes is anticipated to grow in the forecast period.
Geography- Segment Analysis
Asia-Pacific held the largest share of 38% in 2019 in Waterproofing Membranes Market. China is the key consumer of waterproofing membranes in Asia-Pacific. The region’s demand is powered by growing roofing, waste, and water management industries. In turn, numerous mergers and acquisitions, innovation, and expansion in various industries have made the area a potential market for waterproofing membranes to expand. According to the International Trade Administration (ITA), the construction industry in China was worth $893.58 billion in 2018 and is expected to reach $1117.42 billion in 2021. The expenditure of the Chinese government in the construction sector is expected to increase in both residential and non-residential sectors during the forecast period, which in turn is expected to drive the demand for waterproofing membranes. Also, according to India Brand Equity Foundation, the IT-BPM sector in India stood at US$ 177 billion in 2019, with a rise of 6.1 percent year-on-year, and the size of the industry is expected to grow to US$ 350 billion by 2025.
Drivers – Waterproofing Membranes Market
Increasing demand for waterproofing membranes from water & wastewater management systems
Owing to the property such as flexibility, ease of application and cost-effectiveness there is growth in water & wastewater management system. High growth is due to the rising population, urbanization, and industrialization, as a result of which water management activity is increasingly required to maximize water use in both developing and developed countries. Apart from these, water contamination by heavy metals, cyanides, and dyes is increasing globally and needs to be addressed as this will lead to water scarcity as well as water quality. Hence, to avoid negative effects on the environment, and human health from contaminants, the increasing use of water & wastewater management systems will drive the waterproofing membranes market in the forecast period.
Increasing use of waterproofing membranes in mining
Owing to the high resilience in exhaustive environments, the waterproofing membrane is suitable for mining applications. Waterproofing membrane is used in structures such as tunnels, lines for the mine shaft and walls for dams. Metal mining, such as gold, copper, nickel, salt, cobalt, molybdenum and others, brings enormous opportunities to the waterproofing membrane market. Mining operations are often conducted in remote regions but also in fragile ecosystems. Waterproofing membranes can very easily take on these situations and can perform under the toughest conditions. The key applications of waterproofing solutions in the mining industry are prevention of mine explosives and fuse damaging from exposure to elements such as water and moisture. Also, for electrical substations in underground mines, waterproofing membranes are important since it keeps electrical equipment dry and free from corrosion.
Challenges – Waterproofing Membranes Market
Price Fluctuation of raw materials
The price and availability of raw materials is a major factor that affects the end-product prices. The global market for waterproofing membranes has seen oscillating raw material price trends which are fluctuating because of volatile energy prices. The manufacturer of the waterproofing membrane is targeted by price-sensitive customers. Most of the raw materials are petroleum-based and are vulnerable to commodity price fluctuations. This is a major challenge for the waterproofing membranes industry to predict the future price, leading to low investment in projects related to waterproofing membranes. According to BP statistics, in 2018, the average oil price increased to $71/ bbl from $54/bbl in 2017. Therefore, the fluctuation in oil prices is negatively affecting waterproofing membrane market growth.
Health hazards from exposure to volatile fumes
Workers can be exposed to toxic fumes during the application of the bitumen-based membranes. Extended exposure to these fumes can cause health problems, such as nasal irritation and bronchitis. Furthermore, workers with extended working lengths demonstrate more nasal, pharyngeal symptoms. While the trend toward synthetic membranes is changing, bitumen still accounts for the largest portion of the waterproofing membrane market. Owing to which it means a large section of workers in the roofing industries is vulnerable to this, particularly in emerging economies. However, this factor can create hurdles for the waterproofing membranes market in the forecast period.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Waterproofing Membranes Market. In 2019, the market of Waterproofing Membranes has been consolidated by the top five players accounting for xx% of the share. Major players in the Waterproofing Membranes Market are Carlisle Companies Inc., Firestone Building Products Company, LLV, Soprema Group, GSE Environmental, BASF SE, The Dow Chemical Company, Johns Manville, Sika AG, and GAF Materials Corporation among others.
In December 2018, Sika AG acquired Arcon Membrane Srl, a leading manufacturer of roofing and waterproofing systems in Romania.
In August 2018, SOPREMA, Inc., a leading manufacturer of waterproofing solutions for roofing, waterproofing, and civil engineering, acquired DERBIGUM Americas Inc., a US subsidiary of DERBIGUM and a Belgian supplier of roofing solutions.