Total demand for commercial waterproofing in North America was valued at $888 million based on the manufacturers’ factory gate level in 2016. Principia Consulting’s newly released industry report provides a focused assessment of the demand and supply of waterproofing products in commercial construction and the opportunities to capture growth.
This highly concentrated and competitive market is estimated to grow at a 4% annual rate through 2019. Projected growth is driven by overall economic conditions and new construction activity, plus a growing interest in “green” building concepts, for walkable, vegetative roofs and plaza deck areas for urban environments.
New Construction Driving Growth
New construction of commercial buildings is the leading segment of the waterproofing market representing 77% of the volume and 76% of the value for commercial waterproofing. Below grade and foundation areas of buildings require some type of waterproofing at all times. Since these projects are typically done only once in a building’s lifetime, care is given to ensure proper selection of material for the environment, soil conditions, and the design of the structure itself.
Trend Towards Systems
A strong trend exists towards a systems approach to waterproofing in commercial construction. Key stakeholders in the value chain place a high priority on cost containment in selecting a system for both new and existing construction work but performance is absolutely critical. In fact, waterproofing professionals (architects, contractors, consultants) and property owners and managers are commonly aligned in their views that performance of the product or system is the most important criteria when selecting or specifying waterproofing for a project. Each constituent also considers material costs as they focus on their bottom line, but the overarching concern is exposure to liability of the completed project.
Polyurea, polyurethanes, rubber coatings, and polymeric sheet membranes will grow slightly faster than asphaltic and cementitious types through 2019. These products are more often included as part of an overall commercial waterproofing system, which provides greater assurance against liability for all involved. Suppliers who are one or two-product providers may find themselves with limited growth or searching for partners. An ongoing challenge for suppliers is first gaining specification for their products in the project prior to participating in the bid process.
Waterproofing in Commercial Construction 2017 is Principia’s first exclusive coverage of the commercial waterproofing market, and provides a detailed analysis on the current and future state of this construction materials segment. The report draws upon interviews with over 550 manufacturers, distributors and dealers, contractors and property owners. Using 2016 as its launch point, the report analyzes demand drivers and trends by material, application, construction type, region, distribution channel and supplier, providing forecasts through 2019.
“Through our ongoing interaction with the construction industry it became apparent that there was a gap in market data and insights covering the waterproofing market. Competitive activity is high even though commercial waterproofing products are required to perform technically. Interchangeable products within and between product types open potential for brand differentiation for products with compelling value propositions”, states Susanna Ross, Industry Analyst at Principia.