Market Insights

Below-grade (below-ground level) waterproofing is one of the key technologies used in the construction industry that is now becoming an essential step to protect a structure from water. It is performed to restrict the penetration of water through any below-grade structure. Below-grade waterproofing is performed through either a sheet-based membrane or liquid-coated membrane, depending upon the type of waterproofing material. High-density polyethylene (HDPE), thermoplastic olefin (TPO), ethylene propylene diene monomer (EPDM), polyvinyl chloride (PVC), bitumen (bituminous and modified bitumen, etc.), bentonite (such as sodium bentonite), and rubberized asphalt are some of the materials, which are extensively used in below-grade structures.

Below-grade waterproofing is widely used in public infrastructure, commercial & residential buildings in structures, such as basements, foundations, planters, tunnels, bridges, elevator pits, and drainage systems. The below-grade waterproofing market currently represents less than a 5% share of the overall waterproofing market. The cost of waterproofing the structures amounts to less than 1% of the total construction cost and saves an equivalent amount or more in future repair and maintenance costs over the service life of the structure.

The outbreak of COVID-19 severely impacted several industries worldwide, with the construction industry proving to be one of its biggest victims. Stringent government measures, taken by the local authorities and governments of several countries, such as the lockdown of major economies, to control the spread of the pandemic not only paused the construction industry growth; but also caused supply chain disruptions.

The lockdown dented the organic growth of the construction industry, which resulted in deteriorated workload activities, production halts, rising raw material costs, and project delays. Many countries shut down their manufacturing sector which led to a sharp decrease in the production of a wide range of materials. The impact of this was quite visible in the construction industry with a shortage of materials causing higher material prices and project delays. As a result of that, the below-grade waterproofing market witnessed a -9.1% decline in 2020.

After the decline, the below-grade waterproofing market quickly rebounded from 2021 onwards and is expected to grow at a healthy CAGR of 5.5% to reach a value of US$ 1.7 Billion by 2027. Increasing demand for energy-efficient buildings coupled with an expected increase in the organic growth of the construction industry, asserts a positive comeback in the need for below-grade waterproofing, offering good growth opportunities for the market participants and investors in the long run.

The market is heading toward consolidation as the industry is noticing several mergers & acquisitions, especially in the past few years. The announcement of Sika to acquire MBCC and the acquisition of GCP Applied Technologies and Chryso by Saint Gobain are the most noticeable ones among several M&As performed. It is anticipated that the market is likely to further consolidate in the coming years.

Another trend, which is the result of the pandemic, which is changing the entire market dynamics is supply chain disruption. The supply chain crisis is keeping the procurement team engaged throughout time. Lockdowns, labor crises, and inconsistent demand are some of causing factors for supply chain crises. As a result of that, there is a sudden spike in raw material prices. It is anticipated that the supply chain remains one of the biggest challenges for industry stakeholders in the near future. 

Segment Analysis

The below-grade waterproofing market is segmented based on the material type as polymers, bitumen, bentonite, rubberized asphalt, and others. Polymer is expected to remain the most dominant material type in the below-grade waterproofing market during the forecast period. The segment is also likely to grow at the fastest pace during 2022-2027. Increasing synthetic polymer production to support rising population and urbanization, an introduction of a high-performance below-grade waterproofing system, and a gradual shift from bitumen to synthetic polymers are the major growth drivers of the segment over the long run.

Based on the membrane type, the market is segmented into sheet-based waterproofing and liquid-coated waterproofing. The sheet-based membrane is expected to remain the more significant membrane type in the below-grade waterproofing market during the forecast period. Increasing usage of breathable waterproofing membranes and environmentally safe products remain the major factors for the higher growth of sheet-based below-grade waterproofing membranes in the long run.

Based on the position type, the market is segmented into positive side, negative side, and blind side. The positive side is projected to remain the dominant segment of the below-grade waterproofing market over the next five years, whereas the blind side is likely to be the fastest-growing segment, driven by its suitability with zero property line application.

Based on the end-user type, the market is segmented into commercial buildings, residential buildings, and public infrastructure. Commercial building is expected to remain the dominant segment of the below-grade waterproofing market during the forecast period. An anticipated increase in construction activities of high-rise buildings coupled with an increasing preference for waterproofing systems in foundations and basements are the major growth drivers of the market in the commercial building segment. The residential, as well as public infrastructure segments, are also expected to create sizeable opportunities during the same period.

Among regions, Asia-Pacific is likely to remain the largest below-grade waterproofing market during the forecast period. The region is also expected to log the fastest recovery during the same period. The expected increase in investment in the construction sector post-pandemic, along with continued growth in the construction and infrastructure sector in emerging Asian economies, such as China and India, will drive the demand for below-grade waterproofing in the region in the long run.

Key Players

The market is highly populated with the presence of several local, regional, and global players. Most of the major players compete in some of the governing factors including price, product offerings, regional presence, etc. The following are the key players in the below-grade waterproofing market.

• GCP Applied Technologies
• Sika AG
• RPM International Inc.
• Carlisle Companies, Inc.
• Mineral Technologies, Inc.
• MBCC Group 

Other major players are MAPEI S.p.A., Soprema Group, Beijing Oriental Yuhong Waterproof Technology Co., Ltd., Jiangsu Canlon Building Materials Co., Ltd., and Henry Company.

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s below-grade waterproofing market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

The below-grade waterproofing market is segmented into the following categories. 

Below-Grade Waterproofing Market, by Material Type

• Polymers (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Bitumen (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Bentonite (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Rubberized Asphalt (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

Below-Grade Waterproofing Market, by Membrane Type

• Sheet-based Waterproofing (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Liquid-applied Waterproofing (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

Below-Grade Waterproofing Market, by Application Type

• Fluid-Applied Waterproofing (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Fully Bonded Waterproofing (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Loose-Laid Waterproofing (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Self-Adhered Waterproofing (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

Below-Grade Waterproofing Market, by Position Type

• Positive Side (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Blind Side (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Negative Side (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

Below-Grade Waterproofing Market, by End-User Type

• Commercial Building (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Residential Building (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Public Infrastructure (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

Below-Grade Waterproofing Market, by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, The Middle East, and Others)

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Regional Segmentation

• Current market size (2021) of below-grade waterproofing in any of the North American countries by material type

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview research offers custom research services across the sectors. In the case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry at sales@stratviewresearch.com