Below-Grade Waterproofing Membranes Market Size, Share & COVID-19 Impact Analysis, By Material (Bitumen, Polymers, Rubberized Asphalt, and Others), By End-use (Residential, Commercial, and Others), and Regional Forecast, 2023-2030

The below-grade waterproofing membranes market size was valued at USD 2.57 billion in 2022 and is projected to grow from USD 2.68 billion in 2023 to USD 3.65 billion by 2030, exhibiting a CAGR of 4.5% during the forecast period. Asia Pacific dominated the below-grade waterproofing membranes market with a market share of 44.75% in 2022.

Below-grade waterproofing membrane is a specialized material or barrier system used in construction to prevent water from entering the below-grade portions of a building, such as basements or foundation walls. These membranes are designed to resist water penetration and provide protection against moisture, ensuring structural integrity and longevity of the structure. They are typically coatings and membranes applied to the exterior surface of below-grade walls to create a waterproof seal.

Rapid urbanization and rising demand for new infrastructure is expected to drive the below-grade waterproofing membranes market growth. Furthermore, the increasing adoption of green building practices in developing countries will create market growth opportunities.

COVID-19 IMPACT

Stalled Construction Activities Due to Pandemic Hampered Market Growth

The COVID-19 pandemic had a significant impact on the market, presenting both challenges and opportunities. The initial disruptions in construction activities due to lockdowns and supply chain disruptions led to project delays and increased costs of construction materials. Several construction sites experienced temporary closures or slowdowns, resulting in delays in project completion. The uncertainty caused by the pandemic prompted investors and developers to exercise caution. This in turn, resulted in a slowdown in new construction activities and re-evaluation of the existing ones. This scenario negatively impacted the demand for below-grade waterproofing services and products.

However, countries across the world are already past the pandemic and have successfully entered the recovery phase. Demand for these waterproofing products has been increasing in tandem with the construction industry and is likely to follow a positive growth trend in the future. This factor is likely to create attractive opportunities for the market growth during the forecast period.

Below-Grade Waterproofing Membranes Market Trends

Rising Adoption of Green Building Practices to Create New Market Opportunities

The rising emphasis on green building practices is presenting a lucrative market opportunity for below-grade waterproofing membranes. As global awareness of environmental sustainability continues to rise, construction activities are evolving to align with these practices. One of the major aspects of these opportunities is the development of eco-friendly products. Manufacturers can invest in research and development to create waterproofing membranes made from recycled or sustainable materials. Such initiatives will not only contribute to the reduction of carbon footprint due to construction activities, but also help cater to the rising demand for eco-friendly construction solutions. Such an approach aligns with the priorities of environmentally conscious architects, builders, and developers, and can help set manufacturers apart in a competitive market. This not only resonates with the principles of sustainability, but can also help in avoiding potential legal challenges and liabilities associated with non-compliant products, as environmental regulations become more stringent. Thus, the opportunity to cater to green building practices is not only environmentally responsible, but also economically viable in the long term for manufacturers and consumers. This move will provide a path to innovation and market growth in an increasingly sustainability-focused construction sector.

Below-Grade Waterproofing Membranes Market Growth Factors

Rapid Urbanization to Create Demand for New Infrastructure, Driving the Market Growth

Rapid urbanization is expected to play a pivotal role in increasing the demand for below-grade waterproofing membranes. According to an article published by the World Economic Forum in 2022, more than 4.3 billion people, or 55% of the world's population, lived in urban areas and this number is expected to increase to 80% by 2050. As more people migrate to cities, there is an increasing demand for and investments in infrastructure development projects, including commercial and residential construction, such as underground parking facilities and transportation networks. The urban cities often have limited space, requiring more extensive underground construction to optimize land use. The population growth in the urban areas is likely to lead due to a surge in construction projects, many of which involve below-ground structures, such as basements, subways, and tunnels. Waterproofing membranes have become a critical component of infrastructure and building designs, as they enhance the longevity of structures and reduce maintenance costs. This is expected to result in the wider adoption of waterproofing solutions to protect underground infrastructure against damage caused by water infiltration, making below-grade waterproofing membranes an essential part of any construction project.

RESTRAINING FACTORS

Fluctuating Raw Material Prices and Need for Skilled Labor During Installation to Hamper Market Growth

The cost of raw materials is a critical factor influencing the demand for below-grade waterproofing membranes. These materials typically include bitumen, polymers, and various chemical additives. Most of the waterproofing raw materials are derived from petrochemical sources. Fluctuations in the prices of these materials can have a substantial impact on the manufacturing costs of waterproofing membranes. This dependency on petrochemicals not only makes these raw materials vulnerable to price fluctuations, but also exposes the industry to environmental concerns and regulatory pressures related to the use of materials derived from fossil fuels. Additionally, the shortage of skilled labor in the construction industry is another significant challenge that directly affects the proper application of below-grade waterproofing membranes. Skilled workers are crucial for the successful application of these materials as improper application can result in water infiltration and structural damage over time.

Below-Grade Waterproofing Membranes Market Segmentation Analysis

By Material Analysis

Bitumen Became a Popular Material Due to its Cost Effectiveness and Ease of Installation

Based on material, the market is segmented into bitumen, polymers, rubberized asphalt, and others.

The bitumen segment held the largest below-grade waterproofing membranes market share in 2022. Bitumen-based membranes are often preferred for their ease of handling and application, contributing to cost-effective and efficient installation processes. These membranes are also reinforced with materials, such as fiberglass or polyester to enhance the strength of the final product. Rising demand for easy-to-install and cost-effective membranes will drive the segment growth.

Polymer is the other prominent segment that includes Thermoplastic Polyolefins (TPO) and Ethylene Propylene Diene Monomer (EPDM). These membranes offer superior water resistance and water proofing, hence they are preferred by various end-users.

Rubberized asphalt is expected to witness a considerable growth during the forecast period. These products refers to asphalt modified with synthetic rubber or polymer additives, which enhance its durability and flexibility. These enhanced properties are likely to prompt demand and drive the segment’s growth.

By End-use Analysis

Industrial and Infrastructure Construction End-Users Increased Product Use Owing to High Membrane Adoption

Based on application, the market is segmented into residential, commercial, and others.

The others segment accounted for the dominant market share in 2022 and is expected to continue to hold a major market share during the forecast period. This segment covers the membranes that are consumed in industrial and infrastructure construction activities. Waterproofing membranes have become a critical component of modern construction designs as they enhance the longevity of structures and reduce maintenance costs. Furthermore, emergence of stricter building codes and regulations across the globe is likely to boost the adoption of advanced waterproofing solutions in new construction projects. This will drive the segment’s growth during the forecast period.

Factors, such as rapidly growing population, rising urbanization activities, and increasing investments in the real estate sector are contributing toward the growth of the residential segment. The migration of people from rural to urban areas for better earning and living standards has fueled the need for residential spaces, thereby leading to the segment’s notable growth.

REGIONAL INSIGHTS

Asia Pacific accounted for a share of 44.8% in the global market in 2022. The region is undergoing rapid urbanization, leading to an increase in construction activities. This is likely to create a significant demand for below-grade waterproofing membranes to protect structures from water damage in densely populated urban areas. In addition to this, large-scale infrastructure projects, particularly in emerging economies, such as China and India, are anticipated to fuel the demand for reliable waterproofing solutions to ensure the longevity and durability of new constructions. China is the leading country in Asia Pacific with a rapidly growing construction industry.

In North America, both the U.S. and Canada have strict building codes that focuses on the importance of effective waterproofing to prevent water damage, mold, and other issues that can compromise a building’s durability. The region experiences diverse weather conditions, including heavy rainfall, snow, and temperature variations. Waterproofing membranes play a critical role in safeguarding structures against water damage, freeze-thaw cycles, and other potential damage caused by severe weather conditions. Below-grade waterproofing membranes are considered an essential component to ensure the reliability of structures, whether in commercial, residential, or infrastructure projects. As the U.S. increases its federal infrastructure spending on the development of new infrastructure projects, the regional market is expected to benefit and grow in tandem.

European countries have stringent building codes and regulations that emphasizes on environmental sustainability, energy efficiency, and overall construction quality. Waterproofing membranes play a pivotal role in complying with these regulatory standards. In addition to this, the membranes that contribute to thermal insulation, preventing heat loss or gain, are likely to be in high demand as they align with the green building practices that support the region’s commitment toward the wider adoption of sustainable construction methods. As new urban spaces are developed in the region, waterproofing solutions are likely to play a crucial role in maintaining structural integrity in below-grade constructions, such as basements and underground facilities. Thus, these factors will benefit and drive the regional market growth during the forecast period.

Latin America has witnessed growth in its urban population due to a substantial increase in construction activities over the past few years. This growth in urban settlement has resulted in an increased demand for residential and commercial structures, driving the need for effective below-grade waterproofing membranes to protect these buildings from water damage. As the economic conditions in countries, such as Brazil and Mexico improve, there is a growing emphasis on upgrading the construction standards. This is likely to fuel the adoption of waterproofing membranes in construction activities, thereby driving the regional market growth.

The steadily expanding construction sector in several Middle Eastern and African countries is expected to drive the market’s growth in the Middle East & Africa.

List of Key Companies in Below-Grade Waterproofing Membranes Market

Strong Foothold of Well-Established Players to Create Entry Barrier for New Companies

The competitive landscape within the market is fragmented. However, there are fewer major players that dominate the market and account for a significant market share. These companies often have well-established production facilities, well-developed distribution networks, and strong brand recognition. They cater to a wide range of applications and customer base, including infrastructure projects and construction companies. Few of these top players include BASF SE, Sika AG, GCP Applied Technologies, Inc., RPM International Inc., Carlisle Companies Inc., and others.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Germany)


• GCP Applied Technologies, Inc. (U.S.)


• MAPEI Corporation (Italy)


• Minerals Technologies Inc. (U.S.)


• Polyguard (U.S.)


• RPM International Inc. (U.S.)


• Sika AG (Switzerland)


• SOPREMA US (U.S.)


• TAMKO Building Products LLC (U.S.)


• W. R. Meadows, Inc. (U.S.)


• AVM Industries (U.S.)


• Jiangsu CanlonBuilding Materials Co., Ltd. (China)


• Carlisle Companies Incorporated (U.S.)


• DörkenSystems Inc. (Canada)


• Oriental YuhongWaterproof Technology Co. Ltd. (China)


• Penetron (U.S.)


• XypexChemical Corporation (Canada)


• MAX FRANK Group (Germany)

KEY INDUSTRY DEVELOPMENTS:

• November 2022: Polyglass U.S.A. launched Mapeseal GC, a new waterproofing membrane for the building envelope. Mapeseal GC is a cold-fluid-applied, single-component, fast-curing, monolithic waterproofing membrane for damp and green concrete applications. The company also recommends to reinforce Mapeseal GC with Mapeseal Fabric in critical applications.


• July 2021: Sika acquired American Hydrotech Inc. and its affiliate Hydrotech Membrane Corporation. Hydrotech is a liquid membrane manufacturing company, providing its solutions to the roofing & waterproofing industry. The acquisition will help Sika strengthen its position in the North American market.


• July 2020: W. R. MEADOWS, INC. introduced HYDRALASTIC 836 SL, a single-component, cold-applied, solvent-free, water-activated waterproofing system. The product cures to form a flexible waterproofing membrane for both below-grade and above-grade applications. The company claimed that the product was self-levelling and could be cured in as little as 2 hours, making installation easier.


• January 2020: BASF introduced MasterSeal 730 UVS, a pre-applied, high-density polyethylene sheet waterproofing membrane, to the Asian market. The move was anticipated to expand the company’s waterproofing product portfolio under its Master Builders Solutions brand. MasterSeal 730 UVS is used in the construction of below grade structures in residential, commercial, and industrial buildings.


• March 2019: MAPEI S.p.A., for the first time, introduced its fully-bonded waterproofing membrane, called MAPEPROOF FBT, at the MADE trade fair in Milan. The membrane consists of a layer of synthetic FPO firmly sandwiched into a layer of non-woven fabric and was developed with the intention of waterproofing and reinforcing the concrete foundation structure.

REPORT COVERAGE

The research report provides both qualitative and quantitative insights on below-grade waterproofing membranes across the world. Quantitative insights include market sizing in terms of value (USD billion) across each segment, sub-segment, and region profiled in the scope of this study. Also, it provides market analysis and growth rates of each segment, sub-segment, and key counties across each region. Qualitative insights cover the elaborative analysis of key market drivers, restraints, growth opportunities, and industry trends related to the market. The competitive landscape section covers detailed company profiling of the key players operating in the market.

Report Scope & Segmentation