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The construction materials market size is forecast to increase by USD 964.9 billion at a CAGR of 9.47% between 2023 and 2028. The market's growth is influenced by various factors, notably the proliferation of smart cities which drive demand for advanced infrastructure solutions. Government initiatives aimed at bolstering infrastructure investments further stimulate market expansion. Additionally, the rising trend towards green buildings contributes significantly to market growth, fueled by environmental concerns and sustainability objectives. As cities evolve to meet modern needs, there's a heightened emphasis on integrating innovative technologies and sustainable practices into urban development projects. This dynamic landscape presents ample opportunities for companies operating in the market to capitalize on the increasing demand for infrastructure solutions tailored to the needs of smart and sustainable cities.
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The Construction Materials market is propelled by Infrastructure development initiatives worldwide, fueling demand for innovative materials. Contractors seek modern solutions to enhance project efficiency and meet stringent Environmental regulations. Trends indicate a shift towards sustainable practices, favoring Sustainable building materials and energy-efficient construction methods, thereby reducing the Carbon footprint. Challenges include managing fluctuating Raw materials costs and ensuring durability and structural integrity in Housing structures and Residential buildings. Despite hurdles, opportunities abound in catering to the growing demand for lightweight aggregates, recycled concrete, and affordable housing solutions. Our 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 rising number of smart cities is one of the primary construction materials market growth drivers. With the increase in population, urbanization is increasing. As of 2020, according to the WBG, the total world urban population stood at 56.16% of the total world population. Urban services such as public transport and road networks are facing several challenges due to the increasing urban population.
Countries worldwide are investing in smart city development to address urban congestion and enhance public transport and road networks efficiently. As smart cities expand globally, the demand for construction materials, including aggregates, is expected to rise significantly in the coming years. The US construction aggregates market plays a pivotal role in supporting infrastructure projects crucial for smart city initiatives. Aggregates are essential components in building robust road networks, sidewalks, and other urban infrastructure necessary for smart city functionality. The growth of smart cities will drive demand for construction aggregates in the US, as these materials are fundamental in the construction, maintenance, and enhancement of urban infrastructure designed to accommodate modern urban living standards and improve overall city efficiency and sustainability.
The adoption of new technologies and materials will be one of the key construction materials market trends. The productivity of the construction industry will increase with innovative technologies such as the use of new materials and the shifting focus toward the use of prefabricated modular building blocks. To enhance their customer base and increase their revenue shares, companies have the need to stay updated about technological advancements. Durable concrete, high-performance concrete, mineral admixtures, condensed silica fume, and high-volume fly ash concrete are some of the technologically advanced products.
Moreover, in the future, the application of blockchain technologies will improve contractual processes, and developments in machine learning will help ascertain issues in construction and enhance maintenance and operations. Hence, the adoption of technologies is a trend that can drive the growth of the market during the forecast period.
The uncertain macroeconomic conditions will be a major challenge impeding the construction materials market during the forecast period. The construction industry is highly sensitive to national and regional macroeconomic conditions. The US and global economies have been undergoing a period of moderate to slow growth and unprecedented volatility, which have had an adverse impact on 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.
Other factors, such as conditions in the non-residential real estate markets, labor and healthcare costs, limited access to credit, and other macroeconomic factors are other factors that can 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 is expected to impede the growth of the market during the forecast period.
The market report includes the adoption lifecycle of the market research and growth, covering from the innovatorâs stage to the laggardâs 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 and forecasting 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.
Aditya Birla Management Corp. Pvt. Ltd.: The company offers construction materials such as building products, ready-mix concrete, and cement. Also, the company offers viscose staple fiber, metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, insulators, financial services, and telecom.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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.
The market is propelled by a multitude of factors, with Infrastructure development serving as a primary driver. As governments invest heavily in modernizing and expanding roads, bridges, and airports, the demand for quality construction materials escalates. Moreover, the burgeoning need for residential buildings prompts the adoption of innovative materials and sustainable building practices to enhance durability and ensure structural integrity. With a focus on reducing the carbon footprint, the industry is witnessing a shift towards energy-efficient construction methods and the use of lightweight aggregates. Compliance with stringent environmental regulations further emphasizes the incorporation of recycled materials like recycled concrete and sustainable alternatives such as structural steel in housing structures, including apartments and affordable housing projects.
The market share growth by the cement segment will be significant during the forecast period. Cement manufacturing is a cost-intensive process, especially if it is required to be transported over long distances. This has encouraged most countries to have their cement manufacturing plants. The need for augmented construction activities due to the increasing rate of urbanization and industrial development drives the global cement market. With most of the growing urban population shifting toward a nuclear family structure, there will be an immense demand for houses and associated infrastructure that will help the global construction materials market to prosper during the forecast period.
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The cement segment was valued at USD 550.3 billion in 2018. Cement, also known as ordinary Portland cement (OPC), is a gray-colored inorganic material that possesses excellent binding properties. When cement is mixed with water, sand, gravel, and other construction materials, it forms a rock-like substance as it comprises a combination of minerals. At present, cement is one of the most vital commodities in the growing economies as it serves as one of the main ingredients to produce concrete used for mass construction, such as buildings, civil works, and industrial estates. Cement production is significantly high and is expected to increase further during the forecast period.
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APAC is estimated to contribute 54% to the growth of the global market during the forecast period. Technavioâs analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC was the largest consumer of construction materials globally in 2023. The region is also notable for its innovations, product development, and improvements in quality. The growth of the market 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 companies in the region. Such developments are expected to propel the growth of the market in the region during the forecast period.
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.
The market thrives amidst the rapid expansion of modern infrastructure projects and the increasing demand for materials like crushed stone, steel bars, and roofing materials. As economic development fuels business activities, the need for sturdy materials such as metal sheets rises, particularly in sectors like ferro cement and construction. With governments boosting infrastructure spending, a surge in residential apartments and commercial projects drives demand. However, challenges like labor shortages and material manufacturers' struggle persist. To address environmental concerns, the industry is shifting towards smart building practices and eco-friendly materials like recyclable concrete and natural fiber composites. The market's competitive nature spurs innovations, including the adoption of building certifications and sustainable practices, amidst growing customer inclination towards environmentally responsible construction solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
186 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.47% |
Market growth 2024-2028 |
USD 964.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.1 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 54% |
Key countries |
China, US, India, Germany, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adbri Ltd., Aditya Birla Management Corp. Pvt. Ltd., BGC Australia PTY Ltd., Birla Corp. Ltd., Cementir Holding NV, CEMEX SAB de CV, Compagnie de Saint Gobain, CRH Plc, Fletcher Building Ltd., Fujairah Cement Industries PJSC, HeidelbergCement AG, Holcim Ltd., JK Cement Ltd, JMH International Ltd., Nippon Steel Corp., PPC Ltd., Sumitomo Osaka Cement Co. Ltd., The India Cements Ltd, The Ramco Cements Ltd., and Ube Corp. |
Market dynamics |
Parent market analysis, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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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