The global market for polished concrete is estimated to experience a negative growth amid the COVID-19 pandemic. The growth is declining amidst the pandemic times due to shortage of labors, disruptions in supply chain, and lack of raw materials availability. This had led to suspension of new construction projects and existing projects are being postponed due to lockdown situations across many countries.
Certain key vendors operating in polished concrete market, such as Sika AG and PPG Industries, are adopting product launch and acquisition strategies for staying ahead in the competitive environment. For instance, in March 2021, Sika AG acquired flooring adhesive business of DriTac. DriTac is a US-based flooring adhesive company. This acquisition will increase Sika’s presence across the U.S.
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Polished concrete floors are non-porous and dense due to which they do not attract bacteria, and moisture. This leaves the surface clean and germ-free which is of utmost priority during pandemic times. Also, polished concrete floors is a toxic-free flooring alternative as it does not involve treatment with chemicals and sealers that emit toxic volatile organic compound (VOCs). These factors are anticipated to create lucrative investment opportunities during the forecast period.
Global Polished Concrete Market Analysis
The enormous growth of the global polished concrete market is mainly attributed to increasing construction activities and excellent advantages offered by polished concrete. The growing population, rapid urbanization, and construction of megaprojects demand sustainable construction solutions to reduce the environmental impact and emission of greenhouse gases. As stated by The Corporate Leaders Group, buildings in Europe account for 40% of energy consumption and 36% of CO2 emissions. These buildings include schools, hotels, workplaces, hospitals, and others. These buildings need to be renovated to reduce the environmental impact. Hence, renovation activities are estimated to drive the market for polished concrete and fuel the growth of the market.
The global polished concrete market is estimated to be valued at $2920.0 million by 2027, surging from $1832.9 million in 2019 at a noteworthy CAGR of 6.1%.
Some of the environmental impact associated with the use of polished concrete as cement is used as a base material may obstruct the growth of the market. Certain regulations on the use of cement due to emission of CO2 may create a negative impact in the market during the forecast period.
The growth in non-residential construction may create huge opportunities for the global polished concrete market in the future. For instance, as stated in the Construction Review Online, on April 4, 2021, the U.S. is building a Sound Transit 3 (ST3) megaproject in Seattle, Washington. This project will expand the present link light rail system to the suburbs of Tacoma, Everett and Issaquah, Federal Way and neighborhood areas of Seattle. Moreover, as stated in South China Morning Post, China had approved the construction of 26 infrastructure projects in 2019 with an estimated investment of $1,42,000 million. Such huge investments in construction sector are estimated to fuel the growth of polished concrete market as it is a widely used flooring solution in both residential and non-residential sectors owing to excellent durability and option for color customization. Such benefits may further lead to lucrative market opportunities in the global polished concrete market in the upcoming years.
Global Polished Concrete Market, Segmentation
The global polished concrete market is segmented based on type, method, construction type, end use, and region.
The type segment is further classified into densifier, sealer & crack filler and conditioner. Among these, the densifier sub-segment is anticipated to have the fastest growth and surpass $1,294.7 million by 2027, with an increase from $805.9 million in 2019. The growth can be attributed to water-resilient and moisture-resistant properties with the use of silicate- and siliconate-enhanced concrete densifiers. Densifiers find various applications across warehouses, shopping malls, industrial plants, hospitals, and others. These densifiers enhance the durability of floors. For instance, the densifier developed by CFI (Coating for Industry) named WearCOAT is lithium silicate which is a water-based concrete densifier that offers durability and remarkable finish to polished concrete floors. All these factors may create a positive impact on the sub-segment throughout the forecast period.
The method segment is further divided into wet and dry. The dry sub-segment is anticipated to have a dominating share in the global market and register a revenue of $1,614.6 million during the analysis timeframe.
The dry polished concrete method ensures safe environment as it uses dust extraction systems that are certified with HEPA (High Efficiency Particulate Air) filters so that operators are not exposed to hazardous respirable silica dust. Also, the dry polished concrete method endures more shine and finish compared to the wet method. The dry method is cost effective and suitable for both small areas and large open areas. These factors may aid the generation of lucrative revenue throughout the forecast period for the dry sub-segment.
The construction type segment is further categorized into new construction and renovation. The new construction sub-segment is predicted to have rapid growth and generate a revenue of $2,919.6 million by 2027.
The rapid urbanization, development of smart cities, and movement of people to urban areas are leading to growth in new construction activities, and therefore the demand for polished concrete is predicted to massively increase. The new construction activities involve the construction of residential and commercial places across the world. For instance, the use of polished concrete floors in new construction offers cost-effective solutions, they are hypoallergenic meaning they don’t trap allergens, bacteria, moisture and keep the floors clean. Also, polished concrete floors are energy-efficient, and scratch resistant. All these factors may generate massive opportunities for the segment over the forecast timeframe.
The end use segment is further categorized into residential and non-residential. The non-residential sub-segment is predicted to account for highest growth and generate a revenue of 1,541.9 million by 2027.
The polished concrete market is experiencing a high demand from non-residential sub-segment due to rapid construction of hotels, hospitals, commercial complexes, industrial buildings, and others. The use of polished concrete for non-residential purposes such as commercial or industrial construction help the contractors in achieving the LEED (Leadership in Energy and Environmental Design) ratings due to no harmful impact of polished concrete on indoor air quality or the environment. As stated in The U.S. Census Bureau on April 1, 2021, the spending on construction industry in the U.S. on non-residential construction was $3,51,200 million and it is expected to grow rapidly. All these factors are anticipated to drive the growth of the polished concrete market during the forecast period.
The polished concrete market for the North America region is projected to witness rapid growth. This region generated a revenue of $809.0 million in 2019 and is further projected to reach up to $1,292.1 million by 2027. The demand for polished concrete is surging in the North America region specifically because of factors such as increase in residential, commercial, and industrial construction activities. Growth in the financial sector, economic stability, and government regulations on the emission of harmful CO2 and greenhouse gases are expected to drive the demand for polished concrete market. For instance, as stated in Census.gov, the total construction spending in the U.S. was $1,516,927million in February 2021. This spending includes both the spending on private and public construction. These aspects are anticipated to boost the market growth in the North America region.
Key Players in the Global Polished Concrete Market
- Pittsburgh Plate Glass Industries, Inc.
- BASF SE
- Sika AG
- Ultra Tech Cement Limited
- The Sherwin Williams Company
- Boral Limited
- Solomon Colors Inc.
- The Euclid Chemical Company
- Vexcon Chemicals Inc.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Polished Concrete Market
- Bargaining Power of Suppliers: The companies involved in polished concrete business are extensive in number. Thus, companies have many options and alternatives to deal with expensive supplies. Moreover, volatile demands in supplier pricing may impact company profitability.
Thus, the bargaining power of the suppliers is moderate.
- Bargaining Power of Buyers: Buyers have high bargaining power, primarily because of the huge number of polished concrete suppliers and dealers that offer polished concrete at competitive prices. The buyers can hence choose the one that best fits their preferences and budget.
Hence, the bargaining power of buyers is high.
- Threat of New Entrants: Startups entering this market are making advancements in the polished concrete solutions. Further, the switching cost of the buyers is not high.
As a result, the threat of the new entrants is moderate.
- Threat of Substitutes: There is no alternative product for polished concrete that offers such cost effective and enhanced flooring solutions.
Therefore, the threat of substitutes is low.
- Competitive Rivalry in the Market: The ventures operating in the global polished concrete market are focusing on strategies such as acquisitions, product developments and launch to hold their position in the market. Such initiatives help the companies in strengthening the footprint worldwide.
Therefore, competitive rivalry in the market is moderate.
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