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The Advanced Building Materials Market size is estimated to grow by USD 17 billion at a CAGR of 5.34% between 2022 and 2027. The advanced building materials market experiences significant growth due to several key drivers. Firstly, the proliferation of smart cities and the subsequent construction boom in these urban areas necessitates the use of advanced materials for infrastructure development. Secondly, the increasing focus on sustainability and energy efficiency has led to a surge in the construction of green buildings, which in turn drives demand for high-performance building materials. Lastly, stringent regulations governing cement manufacturing and the environmental impact of traditional construction methods compel industry players to adopt advanced materials that offer superior sustainability and reduced carbon footprint.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Market Customer Landscape
The Market is witnessing remarkable growth driven by factors such as the demand for cost-effective products and innovations like cross-laminated timber and structural insulated panels. Companies like Cemex, Saint-Gobain, and Greentown Labs are at the forefront, contributing to the industry's progress. The market is also benefiting from a shift towards green materials and initiatives promoting decarbonization and the circular economy. Infrastructure projects worldwide are increasingly adopting advanced cement and energy-efficient buildings, signaling a widespread adoption of sustainable practices in building construction. These trends highlight the industry's commitment to sustainable construction practices and the development of high-performance materials to meet evolving needs while addressing environmental concerns.
The increase in the number of smart cities is the key factor driving the growth of the global market. Nowadays, several countries are focusing on creating new smart cities to accommodate the increasing urban population. 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. This expansion and development of cities and infrastructure will pose a strong demand for advanced building materials as there is a growing inclination towards economical and eco-friendly building materials. Most road networks in these smart cities are expected to have concrete paved roads that are known to reduce the fuel consumption of vehicles passing over them.
As the number of smart cities is expected to increase during the forecast period, concrete-based road networks will increase in this period, driving the market for advanced building materials such as carbon nanotubes, self-healing concrete, transparent aluminum, and graphene-enhanced materials. This increasing concrete-based road network will require several advanced building materials such as Fiber-reinforced concrete, pozzolanic materials, recycled aggregates, asphalt modifiers, and geosynthetics. Therefore, an increasing number of smart cities will drive the demand for advanced building materials during the forecast period.
The rise in the use of recycled and eco-friendly materials is the primary trend shaping the global market growth. The increased usage of recycled and environmentally friendly materials such as bamboo-based composites, recycled plastic building blocks, and hempcrete, among others, is one significant trend in the global market. The growing focus on sustainability, minimizing environmental effects, and conserving natural resources is driving this trend in the market in focus. Traditional building materials are being replaced with recycled ones, such as recycled concrete aggregate, reclaimed wood, and recycled steel.
Due to their ability to be renewed and low in carbon emissions, eco-friendly materials like bamboo, cork, and hempcrete are also becoming more and more popular. These materials have advantages like lower energy use, less greenhouse gas emissions, and less waste production. The global movement for greener structures and the trend toward recycled and eco-friendly materials are complementary. Hence, a rise in the use of recycled and eco-friendly materials is a trend that can drive the growth of the market to focus during the forecast period.
Uncertain macroeconomic conditions are a major challenge impeding the growth of the global market. The construction industry is highly sensitive to global and regional macroeconomic conditions such as interest rates, GDP growth, inflation, and government spending. The US and global economies have been undergoing a period of moderate to slow growth and unprecedented volatility, which harms the industry. The continued uncertainty around prevailing economic conditions will have a negative impact on the industry and will continue to pose a risk as customers may postpone spending in response to tighter credit, declines in income or asset values, and negative financial news.
This could have an adverse effect on the demand for advanced building materials. Conditions in the non-residential real estate markets, labor and healthcare costs, access to credit, and other macroeconomic factors are other factors that could affect the demand. However, growing uncertainty regarding economic growth has depressed FDIs and delayed government subsidies, which has led to delayed or canceled projects. This challenge has the potential to impede the growth of the market in focus during the forecast period.
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.
3M Co.: The company offers advanced building materials such as Boron Carbide.
APV Engineered Coatings LLC: The company offers advanced building materials such as TPO PrimeKote. Also, they offer products such as water-based and solvent-based adhesives.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The advanced cement and concrete segment will account for a major share of the market's growth during the forecast period. To save carbon emissions and increase the durability of infrastructure, governments and organizations all over the world are supporting the use of modern cement and concrete. Self-compacting concrete, ultra-high-performance concrete, and 3D-printed concrete are examples of market breakthroughs that point to a reflected positive growth for the advanced cement and concrete sector hence driving the growth of the market in focus during the forecast period.
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The advanced cement and concrete segment was valued at USD 19.72 billion in 2018 and continued to grow until 2022. In the global market, the advanced cement and concrete segment is experiencing a significant expansion. The introduction of innovative cement and concrete products has been prompted by the demand for high-performance, sustainable construction solutions. Compared to more conventional materials, these ones have greater durability, strength, and environmental advantages. Technologies, including photocatalytic cement, self-healing concrete, and high-performance additives, have gained popularity. Hence, such factors are fuelling the growth of this segment during the forecast period.
Based on end-user, the market has been segmented into commercial, industrial, and residential. The commercial segment will account for the largest share of this segment. This segment includes a variety of commercial buildings, including workplaces, shops, hotels, and healthcare institutions. The need for energy-efficient solutions, improved durability, and aesthetic appeal are driving the need for advanced building materials in the commercial sector. Among the many cutting-edge building materials utilized in commercial construction are: Photovoltaic (PV) glass for solar energy production and photovoltaics integrated into buildings. Intelligent windows with dynamic glazing to control heat and light from the sun. High strength, durability, and low carbon footprint high-performance concrete will increase the market growth during the forecast period.
APAC is estimated to contribute 51% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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APAC was the largest consumer of advanced building materials globally in 2022. The region is also notable for its innovations, product development, and improvements in quality. The growth of the market in focus in the region is driven by the growth in construction activities for residential and non-residential buildings. The rising demand for low-cost construction materials such as mineral additives in countries such as China, South Korea, Malaysia, and India is leading to the business expansion of several major vendors in the region. Such developments are expected to propel the growth of the market in focus on the region during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
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The Market is experiencing a transformative shift towards sustainable and innovative construction practices. With a focus on circular economy and decarbonization, construction companies are embracing cost-effective products that offer superior performance and environmental benefits. Companies like Greentown Labs and Saint-Gobain are at the forefront of this movement, developing materials such as structural insulated panels, insulated concrete forms, and energy-efficient windows. These materials not only enhance building construction but also contribute to the sustainability goals of projects. Innovations such as engineered lumber, cross laminated timber, and smart glass are revolutionizing the industry by offering high-performance alternatives to traditional construction materials. Additionally, green insulation materials and eco-friendly paints are gaining popularity due to their thermal insulation properties and minimal environmental impact.
Amidst increasing urbanization and concerns about indoor environments, the market is witnessing a surge in demand for materials that offer soundproofing, moisture resistance, and resilience against natural disasters like earthquakes and fires. The market landscape depends on the Aqua Trace, New product releases, Ready-mix concrete, Precast products & elements, Ondura, Green materials, CALOSTAT brand, Troldtekt, Construction projects, Infrastructure sectors, Green building materials, AboitizLand, Infrastructure Pipeline, Shandong Province, Sustainable construction practices, Energy-efficient buildings, Innovative materials, High-performance materials, High-performance windows, Operational costs, Resistance to fire, Resistance to earthquakes, Strategic collaborations, High initial costsCollaborations between construction companies and material providers are driving product innovation to address health and safety concerns while navigating regulatory hurdles. While initial costs may be higher, the availability of alternatives and the potential for green retrofitting make investments in advanced building materials a strategic choice for smart buildings of the future.
Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.34% |
Market growth 2023-2027 |
USD 17 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.23 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 51% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., Aditya Birla Management Corp. Pvt. Ltd., APV Engineered Coatings LLC, BASF SE, Boral Ltd., CEMEX SAB de CV, Compagnie de Saint Gobain, CRH Plc, Daikin Industries Ltd., DuPont de Nemours Inc., Heidelberg Materials AG, Holcim Ltd., Huntsman International LLC, Kingspan Group Plc, Knauf Digital GmbH, OC Oerlikon Corp. AG, Owens Corning, PPG Industries Inc., Sika AG, and The Sherwin Williams Co. |
Market dynamics |
Parent market analysis, market growth analysis, market research and growth, market growth and forecasting, Market forecasting, market report, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our 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 Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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