Supplementary Cementitious Materials Market by Type, Application, and Geography - Forecast and Analysis 2023-2027

Supplementary Cementitious Materials Market Forecast 2023-2027

The supplementary cementitious materials market size is forecast to increase by USD 12.04 billion, at a CAGR of 8.57% between 2022 and 2027.  The market's expansion relies on multiple factors, notably the surge in building and construction projects, driven by urbanization and infrastructure development. Silica fume's advantageous properties, such as improved strength and durability, contribute significantly to market growth, as it finds extensive use in concrete production. Moreover, government initiatives in the Asia-Pacific region, particularly the promotion of fly ash utilization, further propel market demand. As governments prioritize sustainable construction practices and environmental conservation, the adoption of fly ash as a supplementary cementitious material is expected to surge. These factors collectively fuel the growth trajectory of the market, creating lucrative opportunities for stakeholders across the construction industry value chain.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by type (fly ash, GBFS, and silica fume), application (residential, commercial, and industrial), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. 

Market Dynamics and Customer Landscape

In the realm of the market, data visualization plays a pivotal role in understanding complex trends and patterns. Location information and spatial data are crucial in analyzing SCM production and consumption patterns across the globe. Interconnected technologies such as Augmented Reality (AR), Big Data, Artificial Intelligence (AI), and Machine Learning (ML) are transforming the SCM industry. Satellite imagery, a significant component of remote sensing, is used to monitor land cover changes and vegetation growth, which in turn impact urban development. AI and ML algorithms are employed to analyze geospatial data, enabling accurate predictions of SCM demand in urban planning.

Georeferencing and metadata are essential for effective data management and analysis in the SCM industry. Software solutions and Geomatics technologies facilitate the integration of various data sources, ensuring comprehensive and accurate market insights. In conclusion, the SCMs market is undergoing a digital transformation, with data-driven insights becoming increasingly important. The integration of advanced technologies like AI, ML, and remote sensing is revolutionizing the way we approach SCM market analysis.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.

Key Market Driver

An increase in building and construction activities is notably driving the market growth. The global market for Supplementary Cementitious Materials (SCMs), including fly ash, ferrous slag, and silica fume, is projected to expand at a Compound Annual Growth Rate (CAGR) of 3.90% from the present to the forecast period. This growth can be attributed to the materials' ability to improve concrete's properties, such as reducing permeability, increasing strength, and enhancing cost-effectiveness. Weather-resistant SCMs are particularly in demand due to the increasing construction activities in countries like India, China, Vietnam, Malaysia, Saudi Arabia, Russia, and others, which are leading the construction market. Developing nations, including India, China, Malaysia, Brazil, Vietnam, and Indonesia, are experiencing a high growth rate in their construction industries, driving the SCM market towards a value of over USD 15 billion by 2030. Therefore, the abovementioned factors will boost the global market growth during the forecast period. 

Significant Market Trend

Environment-friendly cement technology is an emerging trend in the market. In the context of the expanding global economy, particularly in the construction sector, governments are initiating developmental projects to address infrastructure needs. However, the importance of sustainable infrastructure development is paramount in the face of increasing demand for bricks and cement. Supplementary cementitious materials (SCMs), including fly ash, ferrous slag, and silica fume, have revolutionized cement technology. Amidst economic interests, it is crucial to prioritize environmental concerns. Weather-resistant, eco-friendly, and cost-effective SCMs are essential to meet the demands of the construction industry while minimizing the environmental impact. Such factors will drive the market growth during the forecast period. 

Major Market Challenge

The high price of silica fume are a major challenge impeding the market growth. The market for Supplementary Cementitious Materials (SCMs), including silica fume, experiences varying price points based on geographical availability. In the context of construction, SCMs such as silica fume are utilized to enhance the properties of concrete, specifically improving compressive strength, bond strength, and abrasion resistance. Weather permitting, the addition of SCMs to Portland cement can range from 9% to 15% by mass. Despite these benefits, the cost of SCMs, particularly silica fume, is significantly higher than that of Portland cement. Prices for silica fume range from USD 400 to USD 1,000 per ton in countries where it is readily available, while in regions with limited availability, such as India, prices can reach up to USD 800 per ton. These disadvantages of fly ash are expected to limit the growth of the global supplementary cementitious materials market during the forecast period.

Customer Landscape

The report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research 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

Who are the Major Market Companies?

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.

Argos Ltd. - The company caters to the demand for supplementary cementitious materials like fly ash, slag cement, and silica fume. 

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• ArcelorMittal SA
• Ashtech India Pvt. Ltd.
• BASF SE
• Boral Ltd.
• Carbon Enterprises Ltd.
• CEMEX SAB de CV
• CR Minerals Co. LLC
• CRH Plc
• Diversified Minerals Inc.
• Dow Inc.
• Elkem ASA
• Ferroglobe Plc
• HeidelbergCement AG
• Holcim 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.

What is the Fastest-Growing Segment in the Market?

The market share growth by the fly ash segment will be significant during the forecast period. The market encompasses various applications, with fly ash being the most prevalent pozzolan. Obtained from coal combustion, fly ash is a fine powder rich in silicon dioxide, aluminum oxide, and iron oxide. Its production and disposal pose environmental challenges due to the requirement for extensive landfill areas.

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The fly ash segment was valued at USD 10.41 billion in 2017 and continued to grow until 2021.  In contrast, the SCM market extends beyond environmental concerns, reaching various scientific fields and industries. It incorporates advanced technologies such as Land Cover Classification, Location Information, and Location Intelligence. These technologies leverage Machine Learning (ML) algorithms, Real-time Data, and Spatial Data processing for applications like urban development, transportation, and military operations. Location Intelligence Technologies, powered by ML and Mapping of Planets, enable the assessment of vegetation health and topology. They are utilized in Smart City Development, target identification, and logistics, providing on-demand scalability and speed. Furthermore, these solutions are integrated with satellite imagery, Metadata, and Software solutions for various applications, including Martian Soil analysis, medicines, and military applications. Traditional Business Practices are being transformed through the integration of VR, ML algorithms, and Modeling for spatial data mining and processing. These advancements offer significant benefits in various industries, including urban planning, troop movements, and scientific research. Therefore, these factors will boost segment growth during the forecast period. 

Which are the Key Regions for the Market?

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APAC is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio’s analysts have explained the regional trends and drivers that shape the market during the forecast period. In APAC, the construction sector's expansion, driven by the demand for industrial buildings, warehouses, and infrastructure, is leading to an increased adoption of Supplementary Cementitious Materials (SCMs). Favorable government policies, such as India's Smart City Mission and Housing for All, are fueling this growth. SCMs offer cost-effective and quick-building solutions, making them essential in the region's industrial, commercial, and residential sectors. Location Intelligence Technologies, including machine learning (ML) algorithms, real-time data, and satellite imagery, play a crucial role in the construction industry. These technologies enable land cover classification, vegetation health assessment, and urban development planning. ML models and managed cloud services facilitate on-demand scalability and spatial data processing.

Moreover, location-enabled mobile devices and logistics applications use spatial data mining and modeling for target identification, transportation optimization, and troop movements. In scientific fields, ML algorithms are used for medicines discovery, planet mapping, and topology analysis. In summary, the construction sector's growth in APAC necessitates the use of advanced technologies like ML, location intelligence, and satellite imagery for efficient planning, resource allocation, and infrastructure development.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market trends and growth opportunities from 2017 to 2027. 

• Type Outlook 
  • Fly ash
  • GBFS
  • Silica fume

• Application Outlook
  • Commercial
  • Industrial
  •  Residential

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The market has experienced significant growth in recent years due to the increasing demand for sustainable and eco-friendly construction materials. Three-dimensional (3D) printing technology and advanced cementitious materials, such as technology and geospatial materials, have played a crucial role in this growth. Augmented and reality-based systems are used in the production and application of SCMs, enhancing their properties and improving construction efficiency. A wide range of SCMs, including calcium sulfoaluminate, calcium aluminate, and blast furnace slag, are used to increase the strength, durability, and sustainability of concrete. The use of SCMs in the construction industry is also driven by the need to reduce carbon emissions and promote circular economy principles. For instance, the use of industrial by-products such as fly ash and silica fume as SCMs not only reduces the amount of waste generated but also improves the overall performance of concrete. The market for SCMs is expected to continue growing due to the increasing demand for sustainable and high-performance construction materials. The use of SCMs in infrastructure projects, such as roads, bridges, and buildings, is expected to drive the growth of the market in the coming years.

Further, SCMs play a crucial role in enhancing the sustainability and performance of concrete structures. With the increasing focus on environmental conservation and infrastructure resilience, the demand for SCMs is on the rise. Advanced technologies like 3D mapping, IoT (Internet of Things), and AI algorithms are revolutionizing the SCM industry, enabling precise monitoring of material properties and environmental impacts. Cloud-based geographic information system (GIS) platforms facilitate real-time spatial data processing for efficient SCM utilization in various applications, including disaster management and climate change adaptation. Additionally, innovations in geospatial technologies and machine learning contribute to improved infrastructure planning and energy efficiency. As healthcare institutions and defense sectors adopt IoT and VR technologies, the market for SCMs continues to evolve to meet the diverse infrastructure requirements of the modern world.

Market Scope
Report Coverage	Details
Page number	173
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.57%
Market growth 2023-2027	USD 12.04 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	7.16
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 50%
Key countries	US, Saudi Arabia, China, India, and Brazil
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	ArcelorMittal SA, Argos Ltd., Ashtech India Pvt. Ltd., BASF SE, Boral Ltd., Carbon Enterprises Ltd., CEMEX SAB de CV, CR Minerals Co. LLC, CRH Plc, Diversified Minerals Inc., Dow Inc., Elkem ASA, Ferroglobe Plc, HeidelbergCement AG, Holcim Ltd., Kryton International Inc., Nippon Steel Corp., Shanghai Building Materials Group Co. Ltd., Sika AG, and Tata Steel Ltd.
Market dynamics	Parent market growth 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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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies 
• Comprehensive analysis of factors that will challenge the growth of market companies

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