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The concrete and cement market size is estimated to grow by USD 469.01 billion at a CAGR of 7.1% between 2022 and 2027. Rapid urbanization in APAC is driving the market growth. In APAC, including India, China, and Indonesia, there's a notable rural-to-urban migration, leading to a surge in nuclear families. By 2031, India's Ministry of Home Affairs projects nuclear households to increase to nearly 56% from the current 51.5%. To address this, India and China plan substantial investments in urban infrastructure, expecting population growth to create challenges like traffic congestion and housing shortages, prompting a focus on infrastructure development.
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This market report extensively covers market segmentation by Product (cement and concrete), End-user (residential and non-residential), and Geography (APAC, Europe, North America, South America, and Middle East and Africa). The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
The market share growth of the cement segment will be significant during the forecast period. Cement is a vital binding component in any construction activity, and it is utilized as a part of the concrete mix with materials such as bricks and stones. The concrete hardens and binds other materials to form building blocks for construction. By composition, there are many types. Various types of cement include portland, blended, white, and specialty cement. Portland cement is the most commonly used cement across the world. It is the most widely produced cement suitable for all general constructions.
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The cement segment was valued at USD 450 billion in 2017 and continued to grow until 2021. The market will show a positive growth rate during the forecast period, owing to the restoration of the global real estate market, infrastructure developments, favorable policies in emerging countries, and industrial developments.
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APAC is estimated to contribute 56% 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.
In APAC, the increasing number of construction projects is expected to drive the growth of the regional construction market during the forecast period. The construction industry in countries such as India, Vietnam, Indonesia, and Thailand is likely to grow at a rate of 4%-5% during the forecast period, which is higher than the predicted average growth rate of the regional construction industry. The increase in the number of infrastructural and construction activities in countries such as India, China, Japan, Thailand, Indonesia, and the Philippines is expected to drive the growth of the APAC market.
The market is influenced by environmental regulations due to emissions like nitrogen oxide and sulfur dioxide. Segmentation within the industry includes Portland and limestone varieties. Key sectors driving revenue include buildings, road construction, dams, and transportation hubs, responding to urbanization and the rising global population. Utilizing composites, the industry navigates environmental concerns while meeting infrastructure demands. The growing adoption of smart concrete is notably driving the market growth, although factors such as an increase in overall construction cost may impede the market growth. Our researchers analyzed the data with 2022 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.
Market growth is notably propelled by the increasing adoption of smart concrete, which addresses structural integrity concerns. While concrete remains a popular composite material in various constructions, its susceptibility to strain and tension leads to structural vulnerabilities. Modern advancements introduce self-sensing concrete, reinforced with carbon fibers to enhance strain resistance. By incorporating short carbon fibers, this innovative material exhibits heightened electrical resistance, enabling real-time monitoring of structural conditions, particularly post-earthquake. Hence, smart concrete is poised to drive market expansion, aligning with infrastructure demands amid rapid urbanization and population growth while adhering to environmental regulations.
The dominant trend in the market revolves around the escalating demand for green cement, catalyzing the surge in demand for alternative fuels derived from waste materials like solid recycled fuels, foundry sand, and sewage sludge. Urgent imperatives to curb carbon dioxide emissions further propel the adoption of these alternative fuels. Governments advocating green architecture seize rapid market entry points to ensure sustainable construction practices. Notably, the resistance of green cement to less alkaline compounds compared to Ordinary Portland Cement (OPC) in various construction projects is anticipated to significantly influence market expansion. Additionally, green cement's reduced water consumption in construction activities and its provision of thermal insulation and fire resistance, allowing structures to withstand temperatures up to 2,400 degrees F, contribute to heightened demand, consequently driving market growth during the forecast period.
The primary hurdle hindering market expansion is the escalation in overall construction expenses. Construction materials, including stainless steel, hardened steel, cast iron, concrete, bricks, and aggregates, constitute a substantial portion of these costs, making up nearly 10% of the total material expenses. Steel alone accounts for around 9% of the overall construction expenditure, with other materials contributing approximately 27% to the total costs. Fluctuations in material availability lead to variable pricing, amplifying project expenses with any price hikes. Despite its popularity for delivering clean and uniform designs, the utilization of white cement is restrained due to its higher cost compared to gray cement. The production of white concrete typically demands 40% more energy, further driving up expenses. Such cost implications pose challenges to global market growth, subsequently impacting market projections for the forecast period.
The 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 growth strategies.
Global Market 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.
Sumitomo Osaka Cement - The company offers cement and concrete along with other building products.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market is flourishing due to urbanization, driven by the rising global population's demand for residential and non-residential buildings and public infrastructure. Cement, a binder comprising fine powdery substances like limestone, clay, and iron ore, dominates the construction sector, aiding in eco-friendly and sustainable building initiatives. Companies like Hima Cement and LafargeHolcim lead with carbon-negative manufacturing techniques, addressing pollution concerns and reducing carbon footprints. Government initiatives, especially in developing countries, promote the use of precast products and eco-friendly materials, mitigating the hazardous impacts of manufacturing. With stringent environmental regulations enforced by organizations like the United States Environmental Protection Agency, emphasis is placed on reducing carbon emissions and hazardous pollutants like nitrogen oxide and sulfur dioxide. Application-wise, concrete finds extensive use in buildings, road construction, dams, and infrastructural projects, supporting the development of megastructures and transportation hubs worldwide.
The concrete and cement market is propelled by various factors, including the rising population, increasing demand for cement manufacturing, and the construction of healthcare centers like hospitals. Additionally, the trend toward eco-friendly and sustainable buildings drives the market forward. Despite growth, restraint factors such as government regulations and environmental concerns persist, especially regarding the health impacts of dust particles and carbon monoxide emissions. Various types of cement, including blended variants, cater to different needs like water demand and workability. Application-wise, the market serves diverse sectors, including residential, non-residential, and infrastructure projects like roads, commercial complexes, and stadiums.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Concrete And Cement Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.1% |
Market growth 2023-2027 |
USD 469.01 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.81 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 56% |
Key countries |
US, China, India, Indonesia, and Russia |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adani Group, Adelaide Brighton Ltd., BGC (Australia) PTY Ltd., Buzzi Unicem SpA, Cementir Holding NV, CEMEX SAB de CV, China National Building Material Co. Ltd., CRH Plc, Fletcher Building Ltd., Fomento de Construcciones y Contratas SA, HeidelbergCement AG, Holcim Ltd., JK Cement Ltd, Mitsubishi Cement Corp., NIPPON STEEL Co Ltd, PPC Ltd., Sumitomo OsakaCo. Ltd., Taiheiyo Cement Corp., Titan Cement Group, and UltraTech Cement Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, 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 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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