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The concrete and cement market size is forecast to increase by USD 438.3 billion at a CAGR of 6.36% between 2023 and 2028. The market is experiencing significant growth due to several key trends and drivers. The global construction industry is expanding at a strong pace, leading to increased demand for concrete and cement. Rapid urbanization and rising disposable income in developing economies are fueling the construction sector, particularly in residential and commercial projects. Additionally, the increase in overall construction costs has led to a greater emphasis on using cost-effective materials, such as concrete and cement, to minimize expenses. These factors collectively contribute to the market's growth, making it an attractive investment opportunity for manufacturers and suppliers.
The construction materials market plays a pivotal role in the industry, fueled by the increasing need for building materials in urban regions. This market encompasses a range of products including sand, gravel, concrete pipes, bricks, paving blocks, ready-mix concrete, and various cement types such as portland cement, rapid hardening cement, low heat cement, white cement, hydrophobic cement, colored cement, and Portland pozzolana cement. Urbanization, particularly in developing markets, is a significant driver of demand due to the construction boom in residential and commercial buildings. Infrastructure development in urban centers, particularly high-rise buildings, necessitates substantial quantities of steel beams and concrete.
Market growth is influenced by infrastructure investments, regulatory standards, and the adoption of sustainable construction practices. However, challenges include adhering to regulatory requirements and ensuring infrastructure resilience in the face of natural disasters. Opportunities for growth lie in the implementation of digitalization in construction and the advancement of concrete technologies like self-healing concrete and high-performance concrete. Despite these challenges, the potential for expansion is substantial, particularly in developing markets where urbanization and infrastructure development continue to progress. In summary, the construction materials market is a vibrant and ever-evolving sector, shaped by the demand for building materials in urban areas, and presents opportunities for growth alongside challenges from regulatory standards and the need for sustainable and resilient infrastructure.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The cement segment is projected to experience substantial growth during the forecast period. Cement and concrete are fundamental components of construction, consisting of aggregate, sand, gravel, and cement. Sources of aggregate include sand, gravel, and crushed stone. Concrete is used in a multitude of applications, such as concrete pipes, bricks, and paving blocks. In urban areas, cement and concrete are extensively utilized in both residential and commercial buildings, as well as infrastructure development, including roads, bridges, and other structural components. Ready-mix concrete and batch plants enable the production of custom concrete mixtures. Rapid hardening, low heat, white, hydrophobic, and colored cements cater to various construction requirements. The cement industry is energy-intensive, with coal being a significant contributor to the burning process. International standards ensure that concrete meets specifications for concrete slabs, bridge girders, wall panels, and factory gate values.
Wholesalers distribute cement and concrete to various sectors, including urban development and high-rise buildings in both emerging and established markets. Steel beams pose competition, but cement and concrete's versatility presents both threats and opportunities. As a professional and knowledgeable virtual assistant, I will maintain a formal and respectful tone in all responses. The cement and concrete industry is essential to infrastructure development and construction, and its growth is a critical indicator of economic health.
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The cement segment was valued at USD 475.80 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 57% 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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The market is driven by the construction boom, fueled by planned skyscrapers and infrastructure investments. Regulatory standards for sustainable construction practices and infrastructure resilience are key restraints, pushing the industry towards advanced concrete and smart construction solutions. Cement manufacturing operational efficiencies are achieved through digitalization in construction, including remote monitoring, predictive maintenance, and automation of grinding mills and kilns. Advanced concrete offerings, such as rapid-hardening, low-heat, white, hydrophobic, and colored cement, cater to various applications in residential and non-residential construction. These include ready-mix concrete, concrete pipes, bricks and blocks, and bridge girders, as well as wall panels for fire-resistant, acoustically improved structures.
Low-interest loans and government incentives further support the market growth, enabling large-scale projects and increased demand for cement and concrete products. Overall, the market continues to evolve, with a focus on innovation, efficiency, and sustainability.
Our concrete and cement market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The construction industry is experiencing significant growth on a global scale, with ongoing projects and increasing demand for new infrastructure development. The global construction industry's expansion is driving the demand for cement and concrete due to their desirable properties, including superior compressive strength, durability, and resistance to chemicals and extreme climates. India, China, the US, Brazil, Malaysia, Russia, Hungary, and Vietnam are major players in the construction sector. APAC hosts several emerging economies, such as India, Indonesia, Malaysia, Vietnam, and the Philippines, which are prioritizing infrastructure development. Notably, in February 2018, the Malaysian government unveiled a USD322 billion infrastructure investment plan. Concrete and cement are integral components in various construction applications, including aggregate (sand, gravel), concrete pipes, bricks, paving blocks, buildings (residential and commercial), ready-mix concrete, and structural components (bridge girders, wall panels, and factory-made concrete raised floors).
The manufacturing process is energy-intensive, primarily involving the burning of coal. International standards ensure concrete mixture consistency, and various types, such as rapid hardening cement, low heat cement, white cement, hydrophobic cement, colored cement, and Portland pozzolana cement, cater to diverse market needs. Urban areas, particularly high-rise buildings, are significant consumers. Developing markets offer growth opportunities, while developed markets face threats from steel beams and other alternative construction materials. Wholesalers play a crucial role in the distribution network, and donations to urban amenities contribute to the industry's social responsibility.
Urbanization has progressed at an accelerated pace, resulting in an increase in disposable income for many individuals. The global construction industry has witnessed significant growth due to economic developments and urbanization in countries like India, Vietnam, Malaysia, China, and Qatar. These economic advancements have resulted in increased disposable incomes and rising purchasing power among consumers. This enhanced purchasing power will fuel demand for residential and non-residential infrastructure projects, thereby driving the growth of the global construction market. Cement and concrete are essential components of the construction industry.
The manufacturing process of cement and concrete involves the use of aggregate, sand, and gravel. The production of cement is an energy-intensive process that often involves burning coal. However, international standards mandate the use of eco-friendly alternatives such as Rapid hardening cement, Low heat cement, White cement, Hydrophobic cement, Colored cement, and Portland pozzolana cement to minimize environmental impact. The construction industry utilizes various products like Concrete pipes, Bricks, Paving blocks, Buildings, Ready-mix concrete, and Batch plants. Urban centers are witnessing an increase in demand for high-rise buildings, commercial buildings, and infrastructure development, including bridge girders, structural components, wall panels, and concrete slabs.
The construction industry's growth is also influenced by factors such as coal supply, energy-intensive processes, and the availability of steel beams. The construction market's growth presents both threats and opportunities. The increasing demand for concrete and cement products will lead to increased competition among wholesalers. However, the market's growth also offers opportunities for innovation and the development of new products to cater to the evolving needs of urban areas. Additionally, donations and government initiatives can contribute to the growth of the construction industry in developing markets.
The construction cost is a major challenge to the market. It has experienced an enhancement due to various factors, including material prices, labor costs, and regulatory requirements. Cement and concrete, comprised of aggregate, sand, gravel, and cementitious materials, are essential building components, accounting for approximately 30% of the total construction cost. Cement, specifically, represents nearly 10% of this expense. The production of cement and concrete is an energy-intensive process, often involving the burning of coal. In urban areas, the demand for cement and concrete is significant due to the construction of residential and commercial buildings, infrastructure development, and the production of concrete pipes, bricks, paving blocks, and other structural components. International standards ensure consistent quality, with variations in factory gate values influenced by factors such as location, production capacity, and input costs.
Ready-mix concrete and batch plants facilitate the efficient production of concrete mixtures, catering to the diverse needs of the construction industry. Rapid hardening, low heat, white, hydrophobic, colored, and Portland pozzolana cements are among the various types available to meet specific project requirements. Steel beams, a key building material, account for about 9% of the total construction cost. Urban centers in developing markets, particularly in Asia, are experiencing rapid growth, leading to increased demand for cement and concrete. However, threats such as price volatility, energy supply challenges, and regulatory issues pose opportunities for innovation and cost optimization. Wholesalers play a crucial role in the distribution of cement and concrete, ensuring a steady supply to construction sites.
Donations and government subsidies can help mitigate the financial impact of price hikes on urban amenities and high-rise buildings. The construction industry's ongoing evolution requires continuous adaptation to market trends and technological advancements.
The concrete and cement market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Adani Group: The company offers a comprehensive range of high-quality concrete and cement solutions, ensuring durability and strength for the clients' projects.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
Cement and concrete are essential building materials used in the construction industry for various applications, including aggregate, sand, gravel, concrete pipes, bricks, paving blocks, buildings, and infrastructure. The production of concrete involves the burning of coal, making it an energy-intensive process. The cement industry produces different types of cement, such as rapid hardening cement, low heat cement, white cement, hydrophobic cement, colored cement, and portland pozzolana cement. Urban centers, residential buildings, commercial buildings, and infrastructure development in urban areas are significant drivers for the cement and concrete market. Concrete is used in raising buildings, creating concrete slabs, bridge girders, and structural components, such as wall panels.
Ready-mix concrete and batch plants are essential in meeting the demand for concrete in construction projects. The cement and concrete market faces several challenges, including threats from alternative building materials and the need to meet international standards. However, opportunities exist in developing markets and the increasing demand for high-rise buildings and infrastructure development in both developed and developing markets. The market is also seeing the emergence of new technologies, such as steel beams, that could disrupt the traditional cement and concrete market. Factories produce cement and concrete at factory gate values, which are then sold to wholesalers for distribution to construction sites.
Donations and government funding for infrastructure projects in urban areas can also impact the market's growth. The cement and concrete industry must navigate these challenges and opportunities to remain competitive and meet the growing demand for these essential building materials.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.36% |
Market Growth 2024-2028 |
USD 438.3 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.98 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 57% |
Key countries |
China, India, US, Russia, and Indonesia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adani Group, Adbri Ltd., BGC Australia PTY Ltd., Buzzi SpA, Cementir Holding NV, CEMEX SAB de CV, China National Building Material Co. Ltd., CRH Plc, FCC SA, Fletcher Building Ltd., Heidelberg Materials AG, Holcim Ltd., JK Cement Ltd, Mitsubishi Cement Corp., NIPPON STEEL CEMENT Co Ltd, PPC Ltd., Sumitomo Osaka Cement Co. Ltd., Taiheiyo Cement Corp., Titan Cement Group, and UltraTech Cement Ltd. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market 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 Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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