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The construction materials market size is estimated to grow at a CAGR of 11.25% between 2022 and 2027. The market size is forecast to increase by USD 1,103.44 billion. The growth of the market depends on several factors, including the increasing number of smart cities, the increased investments by governments in infrastructure, and the increasing construction of green buildings.
This construction materials market report extensively covers market segmentation by product (cement, construction aggregates, concrete bricks, construction metals, and others), end-user (commercial, industrial, and residential), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing number of smart cities is notably driving the market growth, although factors such as the uncertain macroeconomic conditions 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.
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 across the world are building smart cities since this development will help in easing congestion caused by the growing population by efficiently solving issues related to public transport and road networks. With the rising development of smart cities, the demand for construction materials will also increase in the coming years, which will propel market growth.
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 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, and 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, 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 Construction Materials Market Customer Landscape
Vendors 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 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 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 481.86 billion in 2017 and continued to grow until 2021. 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 47% 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. APAC was the largest consumer of construction materials globally in 2022. 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 vendors in the region. Such developments are expected to propel the growth of the market in the region during the forecast period.
In 2020, the outbreak of COVID-19 affected the growth of several industries in the region, including the construction industry, as several construction projects were delayed or canceled due to economic downturns, disruptions in supply chains, and uncertainties in the growing construction industry. However, the region was able to control the spread of the pandemic in 2021 with the initiation of large-scale vaccination drives. This led to the lifting of lockdowns and the resumption of operations in the construction industry. Furthermore, the governments in APAC countries such as India made appropriate efforts in 2021 to improve the construction industry. For Instance, urban constructions are predicted to house 40% of the population and contribute to 75% of the GDP by 2030. The construction materials industry accounts for 8% of I dia GDP and is valued at approximately USD126 billion. Such factors will drive the growth of the regional market during the forecast period.
The construction materials 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.
Technavio categorizes the global construction materials market as a part of the global construction materials market within the global materials market. The parent global construction materials market covers products and companies engaged in the manufacturing of construction materials, including sand, clay, gypsum, lime, aggregates, cement, concrete, bricks, and other materials. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Construction Materials Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.25% |
Market growth 2023-2027 |
USD 1,103.44 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.58 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 47% |
Key countries |
US, Canada, China, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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 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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