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The global aggregates market size is estimated to grow by USD 51.86 billion, at a Compound annual growth rate (CAGR) of 5.2% between 2023 and 2028. The market is experiencing substantial growth, propelled by various factors, notably the rising investments in the construction sector. As infrastructure projects expand, there's a parallel surge in demand for aggregates, essential components in concrete production for buildings, roads, and other structures. Furthermore, increasing investments in railway infrastructure contribute to market growth, as aggregates are vital for railway track ballast and construction materials. Additionally, the development of smart cities worldwide drives the demand for aggregates in urban construction projects, further bolstering market expansion. It also includes an in-depth analysis of drivers, trends, and challenges.
The market is pivotal to the construction industry, serving both commercial and residential sectors and supporting emerging economies' infrastructure needs. From concrete manufacturing to railway ballast, aggregates like sand, gravel, and crushed stone play crucial roles. With the rise of new infrastructure projects worldwide, demand surges for these materials, vital for building roads, railways, and high-rise structures. Granite and limestone are key components, while safety measures like drilling and blasting ensure efficient extraction. Aggregates also find applications in water filtration, purification, and soil erosion control, highlighting their diverse utility beyond construction, driving the market's growth and significance.
Increasing number of smart cities is the key factor driving market growth. With the growing urban population across the globe, the number of smart cities is expected to rise significantly owing to the increasing congestion of urban areas and major metropolitan cities. Smart cities will provide smarter solutions that can be deployed to reduce the straining effects of increasing urban population and introduce energy-efficient road networks, which will result in an efficient public transport system.
Moreover, the anticipated increase in smart cities worldwide is poised to drive significant growth in the global market for concrete equipment and related road construction machinery. As smart city initiatives expand, there will be a growing demand for robust concrete-based road networks, necessitating substantial quantities of construction aggregates in projects across various urban areas. The US construction aggregates market, a vital component in the production of concrete and road construction materials, stands to benefit from this trend. However, challenges such as regulatory constraints on aggregate extraction and land-use policies could impact the availability and pricing of aggregates, potentially influencing market dynamics. As smart city infrastructure projects accelerate, the demand for construction aggregates in the US is expected to rise, supporting the expansion of concrete-based road networks essential for modern urban environments.
The increasing preference for pea gravel over crushed stone is the primary trend in the construction market. The global market is witnessing the increasing adoption of and preference for pea gravel over crushed stone. Pea gravel or pea stones refer to small pea-sized stones. They are typically preferred over crushed stone for applications and above-ground projects. The different options pertaining to color enable the use of pea gravel as an apt solution to complement the landscaping. The smooth finish offered by pea gravel enables its use in playgrounds, patios, and walkways. It is also preferred over crushed stones in numerous high-traffic areas.
Furthermore, pea gravel is increasingly preferred for underground projects, including pipe bedding and drainage. It can be used in fence post-installation aggregate. While crushed stone has witnessed increasing demand, pea gravel has been an attractive option for buyers for various construction activities. Therefore, increasing preference for pea gravel over crushed stone will positively impact the growth of the global market trends during the forecast period.
Illegal mining activities is a major challenge to the construction market growth. Illegal mining activities have emerged as one of the major challenges faced by the global aggregate market, especially that of sand. The depletion of natural resources coupled with rising political pressures in countries such as India has led to the increased production of M-sand, as the production of M-sand does not include the exploitation of natural resources. The global market is considered an unorganized local market that involves an increase in the number of illegal activities.
Moreover, illegal sand mining activities have plagued several developing markets spark the demand for sand. The efforts by governments to curb the illegal mining of sand have proven futile owing to the rapid depletion of sand reserves in many countries. Furthermore, the illegal mining activities associated with sand and gravel have led to increased aggregates prices, especially in the urban areas of different countries, thereby hindering the growth of the global market during the forecast period.
The market share growth by the concrete segment will be significant during the forecast period. The aggregates that are used in concrete applications are sand, gravel, granite, crushed stones, and others. Sand refers to loosely packed particles associated with hard broken rock and comprises grains obtained from disintegrated rocks. Sand offers strength along with other properties of construction materials, such as concrete and asphalt. Sand is considered one of the most important materials in the construction industry.
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The concrete segment was valued at USD 100.75 billion in 2018. M-sand acts as a substitute for river sand and is being increasingly employed in concrete construction. It is obtained by the crushing of hard granite stones. Alternatively, coarse sand is used with water, cement, and other related materials to manufacture ready-mix concrete. Further, gravel aggregates refer to the aggregates obtained from the process of quarried rock sifting coupled with natural stone rock crushing. Gravel construction aggregates are preferred to granite aggregates, as the former is more cost-effective. These aggregates are used for concretes and foundations and in products that are manufactured using reinforced concrete. These factors will positively impact the growth of the concrete segment in the construction market during the forecast period.
APAC is estimated to contribute 52% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Natural gravel and crushed stone are increasingly used in countries such as India and China. In India, gravel has been conventionally used for the construction of outstanding structures. For instance, river gravel has been used as a coarse aggregate to produce concrete in dams such as the Bhakra Nangal Dam. Aggregates also find application in numerous concrete bridges and power stations in India. Therefore, the substantial growth in developing countries in APAC has sparked the demand for aggregates, thereby driving the growth of the market during the forecast period.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including Boral Ltd., Buzzi SpA, CEMEX SAB de CV, China Resources Holdings Co. Ltd., CRH Plc, EUROCEMENT Group, Fisher Sand and Gravel Co., HeidelbergCement AG, Holcim Ltd., Irving Materials Inc., LSR Group, Martin Marietta Materials Inc., Rogers Group Inc., Sika AG, UEM Group Berhad, Vicat, Vulcan Materials Co., Adbri Ltd., and Carmeuse Coordination Center SA
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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In emerging economies, the commercial & residential construction sector plays a crucial role in developing transport infrastructure. Concrete manufacturing is vital, serving various purposes like railway ballast and road base & coverings. According to the International Monetary Fund (IMF), the GDP reflects the significant role of construction materials like concrete blocks, pipes, and bricks, especially in high-rise buildings. The application segment extends to roadway construction, new infrastructure projects, and airport runways. Aggregates, including composite materials and natural sediments like limestone, provide essential foundation materials, with measures in place for soil erosion control. These materials are crucial for building highways, railroads, parking lots, and for water filtration and purification processes amidst concerns like falling rocks, requiring drilling and blasting for safe construction.
Additionally, in the face of rapid urbanization and industrialization, the market becomes pivotal, especially in addressing infrastructure problems in built-up areas (BUAs). Natural sand, a primary component, is essential for construction projects, including residential buildings, commercial buildings, shopping malls, hospitals, and schools. As per reports from organizations like the United Nations and the World Bank, the growing global population underscores the urgent need for infrastructure development and innovation. Notable projects such as the American Dream Mall by the Triple Five Group highlight the market's significance in supporting tourism activities. The aggregates market serves as a cornerstone for addressing infrastructure challenges and fostering sustainable development amidst the evolving needs of modern societies.
Market Scope |
|
Market Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.2% |
Market Growth 2024-2028 |
USD 51.86 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.68 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 52% |
Key countries |
US, China, India, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Anglo American plc, Boral Ltd., Buzzi SpA, CEMEX SAB de CV, China Resources Holdings Co. Ltd., CRH Plc, EUROCEMENT Group, Fisher Sand and Gravel Co., HeidelbergCement AG, Holcim Ltd., Irving Materials Inc., LSR Group, Martin Marietta Materials Inc., Rogers Group Inc., Sika AG, UEM Group Berhad, Vicat, Vulcan Materials Co., Adbri Ltd., and Carmeuse Coordination Center SA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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