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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's growth rate is influenced by several key factors, including the expanding global construction industry, the increasing adoption of smart concrete, and rapid urbanization in the Asia-Pacific (APAC) region. The global construction market is experiencing robust growth, driven by infrastructure development and investment in both residential and commercial projects. This expansion fuels the demand for innovative building materials and techniques. Concurrently, the adoption of smart concrete is rising, offering enhanced durability, sustainability, and cost-efficiency, making it an attractive option for modern construction needs. Additionally, rapid urbanization in the APAC region significantly boosts market growth as cities expand and new urban areas develop, requiring substantial construction activity and advanced materials. These factors collectively contribute to a dynamic market environment, presenting significant opportunities for industry stakeholders to innovate and capitalize on the burgeoning demand within the construction sector. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historic data from 2018 - 2022, besides analyzing the current market scenario.
Cement is a fine powder made up of crushed minerals such as limestone and clay that function as a binder that binds concrete together. Concrete is the final product resulting from mixing cement, aggregates (including sand), water, and admixtures together. Concrete and cement are some of the most commonly used building materials.
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In the market, infrastructure resilience and digitalization in construction are also key trends shaping the market. The market faces various drivers and restraints, including the availability of raw materials, increasing competition, and changing consumer preferences. Planned skyscrapers and other large-scale construction projects continue to fuel demand for concrete and cement products. Overall, the market is expected to grow steadily, driven by the increasing demand for infrastructure development and the construction sector's ongoing evolution. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Growing global construction market is the key factor driving the market. The cement and concrete market experiences significant growth due to the increasing demand for infrastructure development and construction activities in urban centers. Aggregate, sand, gravel, and other raw materials, such as cement, are essential components in the production of concrete pipes, bricks, paving blocks, buildings, and ready-mix concrete. The manufacturing process involves the energy-intensive burning of coal to produce cement in batch plants, resulting in high factory gate values. International standards require concrete mixtures to have specific properties, including excellent compressive strength and durability. Rapid hardening cement and low heat cement are popular choices for construction projects due to their quick setting and reduced energy consumption. White cement, hydrophobic cement, and colored cement are also available for specific applications. In developing markets like India, Indonesia, Malaysia, Vietnam, and the Philippines, there is a focus on infrastructure development and urbanization.
Moreover, commercial and residential buildings, as well as infrastructure projects such as bridges, girders, and structural components, require large quantities of concrete and cement. Urban areas, particularly high-rise buildings, are increasingly relying on concrete raised floors, concrete slabs, and wall panels for their durability and resistance to harsh climatic conditions. The cement and concrete industry faces threats such as increasing raw material costs, energy prices, and regulatory requirements. However, opportunities exist in the form of technological advancements, such as the use of steel beams and precast concrete, and the expansion into developed markets. Wholesalers and donors play a crucial role in ensuring the availability and affordability of cement and concrete in urban areas. Overall, the cement and concrete market is a critical component of the construction industry, contributing to the development of infrastructure and buildings worldwide.
Rapid urbanization and rising disposable income is the primary trend shaping the market. The expansion of economic conditions in India, Vietnam, Malaysia, China, and Qatar has resulted in a significant rise in the disposable income of consumers and a surge in urbanization. This economic growth has led to an enhancement in the purchasing power of individuals. As per The World Bank Group, China's GDP per capita rose from USD 9,976.68 in 2018 to USD 10,261.68 in 2019. Likewise, India's GDP per capita increased from USD 2,005.86 in 2018 to USD 2,099.60 in 2019. The escalating purchasing power of people will fuel the demand for residential and non-residential infrastructures, thereby bolstering the global construction market's growth during the forecast period. Cement and concrete are essential components of the construction industry, with aggregate, sand, and gravel serving as crucial additives. The production of concrete pipes, bricks, paving blocks, and other structural components relies on these materials. Urban centers, particularly in developing markets, are witnessing a construction boom, with a focus on residential and commercial buildings. Ready-mix concrete and batch plants are increasingly being utilized to meet the demand for concrete mixtures that adhere to international standards. Rapid hardening cement, low heat cement, white cement, hydrophobic cement, colored cement, and Portland pozzolana cement are various types of cement catering to diverse applications.
Additionally, the energy-intensive process of cement production involves burning coal, which poses environmental concerns. However, the industry is exploring alternative fuel sources and energy-efficient technologies to mitigate these threats. Urban areas, particularly high-rise buildings, are major consumers of concrete and cement. Infrastructure development, including the construction of bridges, girders, and structural components, also contributes significantly to the market's growth. Factories that produce cement and concrete are essential contributors to the economy, with factory gate values influencing the prices of these products. Wholesalers play a vital role in the distribution of cement and concrete, while donations and government initiatives support the industry's growth in developing markets. Despite the opportunities, the cement and concrete market faces challenges such as increasing raw material costs, environmental regulations, and competition from alternative building materials. Steel beams, for instance, are gaining popularity as a sustainable alternative to concrete for structural applications. Nonetheless, the market's growth is expected to remain robust due to the increasing demand for infrastructure and housing in urban areas.
Increase in overall construction cost| is the major challenge that affects the market expansion. The construction industry relies heavily on cement and concrete as primary building materials, alongside aggregates such as sand, gravel, and various types of bricks and paving blocks. Cement, a crucial component of concrete, represents approximately 10% of the total construction cost. The availability and pricing of these materials can significantly impact the overall cost of construction projects. Cement and concrete are essential for various structures, including buildings, bridges, and infrastructure. Ready-mix concrete and batch plants are commonly used to produce concrete mixtures that adhere to international standards for strength and durability. Rapid hardening cement and low heat cement are popular options for urban areas due to their quick setting properties and reduced energy consumption during the curing process. White cement, hydrophobic cement, and colored cement are specialized types of cement used for specific applications, such as aesthetic purposes or in the production of concrete pipes. Urban centers, particularly in developing markets, require large quantities of cement and concrete for residential and commercial buildings, as well as for amenities and infrastructure development.
Further, the production of cement and concrete is an energy-intensive process, primarily relying on coal supply. The burning of coal contributes to the overall cost and potential environmental concerns. Threats and opportunities in the cement and concrete market include the increasing demand for sustainable and eco-friendly alternatives, as well as the potential for price volatility due to fluctuations in raw material costs and energy prices. Factories that produce cement and concrete face pressure to maintain high production levels to meet demand, particularly in urban areas where high-rise buildings and infrastructure development are common. Wholesalers and donations play a role in the distribution and availability of cement and concrete in the market. In developed markets like the UK, France, and Germany, the economic strength of construction players enables them to manage price hikes in ongoing projects. However, in developing markets, price volatility and the need for additional investments in the total construction cost can pose challenges. Steel beams and other structural components are also essential in construction projects, and their pricing can impact the overall cost of concrete and cement usage.
The market encompasses the production and distribution of sand, gravel, concrete pipes, bricks, paving blocks, and various types of cement, including ready-mix concrete, batch plant, rapid hardening cement, low heat cement, white cement, hydrophobic cement, colored cement, and Portland pozzolana cement. This market caters to the construction needs of urban centers, residential buildings, commercial buildings, and high rise buildings in both developing and developed markets. Infrastructure investments and the construction boom in urban areas present significant opportunities for market growth. However, threats such as regulatory standards and sustainability concerns are driving the adoption of advanced concrete and sustainable construction practices.
The market share growth by the cement segment will be significant during the forecast years. The market encompasses a wide range of materials and applications, including aggregate, sand, gravel, concrete pipes, bricks, paving blocks, buildings, and various structural components. Cement is the binding agent that holds these elements together, with different types such as rapid hardening cement, low heat cement, white cement, hydrophobic cement, and colored cement, each offering unique properties for specific uses. Urban centers are major consumers of cement and concrete, with residential and commercial buildings, infrastructure, and amenities driving demand. The production process is energy-intensive, often relying on coal supply for fuel, resulting in significant greenhouse gas emissions.
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The cement segment accounted for USD 475.80 billion in 2018. Ready-mix concrete and batch plants facilitate the delivery of concrete mixtures to construction sites, adhering to international standards for quality and consistency. Factories produce various concrete products, including concrete raised slabs, bridge girders, wall panels, and structural components for high-rise buildings. Wholesalers distribute these products to various markets, with developing markets showing significant growth due to increasing urbanization and infrastructure development. Despite the challenges posed by the energy-intensive production process and threats from alternative building materials, the cement and concrete industry continues to play a crucial role in shaping the built environment. Urban areas, particularly in developing markets, present both opportunities and challenges for growth, with the potential to transform skylines with steel beams and concrete structures.
In the residential segment, regulatory standards, such as those promoting sustainable construction practices and infrastructure resilience, are shaping the industry's future. Digitalization in construction is revolutionizing the sector, with advanced concrete technologies like smart construction and low-interest loans facilitating operational efficiencies. Cement manufacturing processes are being optimized through the use of grinding mills and kilns, enhancing load-bearing capacity and improving fire-resistance, acoustics, and other properties. Ready-mix concrete, concrete pipes, bricks and blocks, bridge girders, and wall panels are essential construction materials that continue to drive market growth. Rapid-hardening cement, low-heat cement, white cement, hydrophobic cement, and colored cement cater to diverse applications and customer preferences. Residential and non-residential construction sectors are major consumers of concrete and cement, with bridge girders and wall panels being key components in large-scale projects. In conclusion, the market is undergoing transformative changes, driven by factors such as infrastructure investments, digitalization, and regulatory standards. The industry is continuously innovating to meet the evolving needs of customers and the construction sector, with advanced concrete technologies and sustainable practices playing a crucial role in its growth.
APAC is estimated to contribute 57% to the growth of the global market during the projection period.
Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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The market is experiencing significant growth due to various drivers and restraints. Planned skyscrapers and construction boom in urban areas are primary factors fueling the demand for concrete and cement in the APAC region. Infrastructure investments, both public and private, are also contributing to market expansion. Regulatory standards, such as those promoting sustainable construction practices and infrastructure resilience, are shaping the industry's future. Digitalization in construction is revolutionizing the sector, with advanced concrete technologies like smart construction and low-interest loans facilitating operational efficiencies. Cement manufacturing processes are being optimized through the use of grinding mills and kilns, enhancing load-bearing capacity and improving fire-resistance, acoustics, and other properties.
Additionally, ready-mix concrete, concrete pipes, bricks and blocks, bridge girders, and wall panels are essential construction materials that continue to drive market growth. Rapid-hardening cement, low-heat cement, white cement, hydrophobic cement, and colored cement cater to diverse applications and customer preferences. Residential and non-residential construction sectors are major consumers of concrete and cement, with bridge girders and wall panels being key components in large-scale projects. In conclusion, the market is undergoing transformative changes, driven by factors such as infrastructure investments, digitalization, and regulatory standards. The industry is continuously innovating to meet the evolving needs of customers and the construction sector, with advanced concrete technologies and sustainable practices playing a crucial role in its growth.
Companies are implementing various market growth and forecasting 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 report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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., Taiheiyo Cement Corp., Titan Cement Group, and UltraTech Cement Ltd.
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 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market encompasses the production and sale of cement and concrete products. Cement is a fine powder made from calcium carbonate and other minerals, while concrete is a mixture of cement, water, sand, and aggregates. The concrete and cement industry plays a crucial role in the construction sector, as these materials are essential for building infrastructure, residential, and commercial structures. The demand for concrete and cement is driven by various factors, including population growth, urbanization, and increasing infrastructure development. The use of concrete and cement in construction projects is widespread, as they offer strength, durability, and versatility. Cement and concrete manufacturers employ various marketing strategies to promote their products and expand their customer base.
Further, the market is highly competitive, with numerous players vying for market share. The market faces several challenges, including increasing raw material costs, environmental regulations, and changing consumer preferences. Despite these challenges, the market is expected to grow steadily due to the increasing demand for construction projects. In conclusion, the market is a significant contributor to the construction industry, offering essential materials for building infrastructure and structures. The market is driven by various factors, including population growth, urbanization, and infrastructure development. Manufacturers employ various marketing strategies to promote their products and expand their customer base while facing challenges such as increasing raw material costs and environmental regulations.
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, 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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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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