The construction materials market consists of a wide range of materials that are used in the construction and building of structures and buildings. Key construction materials include cement, concrete, aggregates, bricks, metal products such as structural steel, and wood. Concrete is the most widely used construction material produced by mixing cement, sand, water and aggregate.
It is strong, durable and affordable making it suitable for buildings, roads, bridges, dams and other infrastructure projects. Cement is another crucial construction material that acts as a binding agent in concrete. Aggregates are inert materials such as sand, gravel, and crushed stone which, along with water and cement, constitute concrete. Metal products and structural steel are commonly used for beams, columns, bars etc during construction.
The Global Construction Materials Market is estimated to be valued at USD 1.47 Tn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players: The major players operating in the construction materials market include CRH, LafargeHolcim, CEMEX, China National Building Material, and HeidelbergCement. These players account for around 30% of the global market share.
Growing demand: Rapid urbanization and Construction Materials Market Size of the construction sector across emerging economies such as China, India and Southeast Asia has increased the demand for construction materials over the years. The increase in the global population and middle-class size has further augmented infrastructure development.
Technological advancements: Advanced technologies including 3D printing are being increasingly used in the production of construction materials. New cement formulations, composite materials, and moisture-blocking roofing materials have augmented durability and sustainability in the industry.
Market Trends
Sustainable construction materials: There is a growing emphasis on use of environment-friendly and bio-based materials in construction such as bamboo, natural fibers, mycelium-insulated concrete forms etc. This trend is driven by stringent regulations and sustainability goals.
Infrastructure development: Mega infrastructure projects and smart city initiatives across developed and developing nations are expected to boost demand for cement, steel, aggregates etc. Governments are investing heavily in road, rail and housing construction.
Market Opportunities
Repair and rehabilitation market: The aging infrastructure in North America and Europe is driving opportunities in infrastructure repair markets for rebar, concrete repair mortars etc. This minimizes disruptions and enhances life of assets.
Offsite construction: Modern methods of construction using prefabricated components provide opportunities. Techniques like modular, panelized and precast construction reduce waste and build timelines. This market is expected to grow rapidly.
The Impact Of Covid-19 On Construction Material Market And Geographical Regions
The Covid-19 pandemic brought unprecedented challenges for the construction materials market. During the initial lockdown phases in 2020, construction activities were halted globally which severely impacted the demand for materials like cement, steel, wooden boards etc. The supply chains were disrupted as transport of raw materials and finished goods was restricted. This led to a sharp decline in sales volume across major players operating in this market. However, as restrictions eased in latter half of 2020, focus shifted towards infrastructure development and residential construction in many countries to boost economic recovery. Various stimulus packages by governments favored growth in construction activities.
While challenges continued in 2021 due to periodic lockdowns, pent up demand and focus on infrastructure works ensured gradual recovery. Project timelines were extended and costs increased owing to adoption of safety protocols, supply issues and rising prices of raw materials. Moving ahead, focus on sustainability and green construction is witnessing positive momentum. Popularity of wood-based and recycled materials is increasing to support circular economy goals. Governments are promoting use of innovative and disaster resilient construction technologies as well. With vaccination rates improving global economic outlook, the long term prospects of this market are bright on back of increasing investments in real estate and infrastructure sectors.
In terms of value, the Asia Pacific region currently dominates the global construction materials market, holding more than 40% share. China, India and other developing Asian countries have witnessed highest growth in construction activities over the past decade owing to rapid urbanization, population growth and economic development. Infrastructure development is a major priority for governments in the region. North America and Europe are other prominent markets whereas Middle East & Africa is expected to show high growth rates over the forecast period led by urbanization and economic diversification initiatives of Gulf countries. Meanwhile, Latin America is recovering after recent lull backed by prospective residential segment in key countries like Brazil and Mexico.
Within Asia Pacific, India's construction materials market holds tremendous potential for expansion, anticipated to be one of the fastest growing destinations globally. The government of India has given a massive boost to the infrastructure and real estate sector through initiatives like Smart Cities Mission and Housing for All by 2022. Ongoing construction of roads, metros, ports, power projects and expansion of commercial and residential space provides impetus. Moreover, rising disposable incomes, growing population and pro-business policy environment make India an attractive market for international players to invest and expand presence for long term gains in this sector.
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About Author-
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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