Construction Aggregates Market Overview
The Construction Aggregates Market size is estimated to grow at a CAGR of 6.2% during the forecast period of 2022-2027 and is expected to reach a value of US$662.5 billion by the year 2027. Construction aggregates are the most basic building materials used in construction, that comprise a broad category of particulate materials ranging from coarse to medium-grained. These aggregates serve as reinforcement to the overall composite materials such as asphalt and concrete with the additional pozzolanic reaction that gives it good cementing properties. Some types of construction aggregates are sand, crushed stone, blast furnace slag, and gravel. Currently, more eco-friendly options aggregates through glass recycling are also being adopted.
COVID-19 Impact
During the COVID-19 Pandemic, many industries had suffered a tumultuous time, and it was no different for the Construction Aggregates Market. Many governments across the globe implemented lockdown regulations and factories & production facilities in many sectors came to a halt. The supply chain was greatly disrupted as many businesses followed the lockdown protocols. According to the Royal Institution of Chartered Surveyors, due to the severe lockdown protocols worldwide, there was an 11.2% decrease in productivity in the construction sector in the second quarter of 2020. Notably, 6.9% of global residential construction and infrastructure projects were cancelled due to the pandemic, while 24.9% of projects were being put on hold. However, post-COVID recovery in regional construction markets is gaining traction and the global construction sector is expected to grow in the forecast period. As such the Construction Aggregates Market is also expected to grow within the forecast period of 2022-2027.
Construction Aggregates Market Analysis – By Application
Concrete holds the largest share of 39% in the application segment of the Construction Aggregates Market in 2022-2027. Concrete is a composite material that comprises of various construction aggregates bonded together with cement and water. Both fine and coarse construction aggregates, such as sand and crushed stones like limestone & granite, are used in concrete to reinforce it and give it rigidity. According to the Global Cement and Concrete Association (GCCA), the concrete production in 2020 was 4.2 billion tons with the market value of the global cement and concrete market being USD $ 440 billion. It is estimated that the market will reach a production value of 9.8 billion tons by 2050. This is one of the key factors driving the Construction Aggregates Market within 2022-2027.
Construction Aggregates Market Analysis – By End-Use Industry
The Commercial sector holds the largest share in the end-use Industry segment by 47% in 2020. Commercial constructions like malls, city halls, schools, libraries, office buildings, and so on, see the most implementation of construction aggregates. According to the United States Census Bureau, the Public Construction sector spending, seasonally adjusted, was estimated to be USD $341.9 billion in August 2021. Educational constructions, seasonally adjusted, were estimated to be USD $79.8 billion while highway construction was estimated to be USD $98.3 billion. The construction spending amounted to USD $1.584 trillion at a seasonally adjusted annual rate in August 2021, an annual increase of 8.9% from August 2020. There is also an increase in demand for residential housing and new ambitious infrastructure projects are arising globally. These factors help the growth of the Construction Aggregates Industry.
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Construction Aggregates Market Analysis – By Geography
Asia-Pacific holds the largest share by region of 44% in the geography segment in 2020. This is primarily because of the growing economies of countries like China, India, South Korea, Indonesia, the Philippines, and Vietnam. There has been a dramatic increase in construction in these countries, primarily attributed to the increase in quality of lifestyle. According to the International Trade Administration, the Construction Industry of China is the world’s largest construction market and is expected to grow at an annual average of 5.2% between 2021-2029 while the revenue value is expected to be USD $1.1 trillion by FY 2021. According to the India Brand Equity Foundation, the Indian Government has invested INR Rs.1,69,637 crore (USD $24.27 billion) in the Infrastructure Sector during the Union Budget 2020-21. There is a massive increase in the need for construction in Asia-Pacific which is driving the need for construction aggregates in the region.
Construction Aggregates Market Drivers
The increasing demand for Building & Construction globally post COVID-19As the world is currently recovering from the COVID-19 pandemic, there is an increase in demand for the construction sector. Many countries have invested to support the buildings and construction industry through economic stimulus packages and policies and as a reaction to the global pandemic. According to the Royal Institution of Chartered Surveyors (RICS), the Q1 2021 Construction Monitor for the Americas shows construction activity continuing to pick with the Construction Activity Index (CAI) rising to +13 from +3 in the final three months of 2020, and negative readings recorded before that. The global Construction Activity Index (CAI) is a weighted composite measure encompassing variables on current and expected market activity as well as margin pressures. Similarly, the CAI for the Asia Pacific rose to +15 in Q1 2021 from +8 in Q4 2020. The growth in Asia-Pacific is largely fuelled by China, which has the largest construction market in the world.
Increase in Infrastructure Projects globally
Many different infrastructure projects are emerging globally which are being planned for the future. For example, in India, there is the Bharatmala Project which aims to construct 34,800 kilometres of road pan-India, and the Setu Bharatam Project which aims to build bridges. In Europe, there is the Rail Baltica project which aims to link Finland, Estonia, Latvia, and Lithuania with Poland through the European standard gauge rail line network. In the U.S., there is the California High-Speed Rail project which aims to significantly cut the rail journey time between San Francisco and Los Angeles. According to the Council on Foreign Relations, it is estimated that China invests 5.1% of its GDP on all the infrastructure projects planned from 2016-2040. It is followed by Indonesia at 4.1% of their GDP and Australia & India at 3.6% of their GDP on infrastructure projects planned from 2016-2040. Due to this, the demand for construction aggregates has increased substantially and will continue to do so within 2022-2027.
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Construction Aggregates Market Challenges
Stringent Regulations for the Building & Construction industry
One of the key challenges for the Construction Aggregates Market is the various regulations put in place to monitor the construction sector. For example, Building Energy Codes, like the CARICOM Regional Energy Efficiency Building Code (CREEBC), which is implemented in the Caribbeans, mandate the construction and maintenance of low-energy buildings. A building must conform to the code, covering energy codes, carbon footprints of materials, integrated design, and so on, to obtain planning permission. Other regulations such as The Construction (Design and Management) Regulations 2015, of the United Kingdom, take a risk management collaborative approach to identify hazards and ensure that actions are in place to mitigate identified risks. While these health and safety regulations are essential for the well-being of people, they do have stringent restrictions and pressure on the construction sector. As such, this proves to be a constraint for the Construction Aggregates Market.
Construction Aggregates Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in this market. Construction Aggregates top 10 companies include:
HeidelbergCement
Martin Marietta Inc.
LafargeHolcim Ltd.
CEMEX, S.A.B de C.V.
China National Building Material Co., Ltd.
LSR Group
Vulcan Materials Company
Eurocement Group
CRH plc
Adelaide Brighton Cement
Key Takeaways
The Asia-Pacific region holds the largest share in the Construction Aggregates Market due to the booming construction sector in the region.
The primary application of construction aggregates is in concrete which are composite materials, used as foundations in buildings and structures.
The increase in the number of infrastructure projects and the investment in these projects is one of the key drivers for the Construction Aggregates Market.
Recent Developments
On July 22, 2021, LafargeHolcim, Ltd., and its subsidiary, Geocycle, announced a USD $ 3.4 million research project with the U.S. Army Corps of Engineers’ Engineer Research and Development Center (ERDC) to study how construction and demolition (C&D) materials can be recycled for construction aggregates.
On April 22, 2021, CEMEX announced the acquisition of a new floating bucket chain dredger which will boost their gravel production in Germany and is their largest investment in a CEMEX gravel plant in the last ten years.
Relevant Reports
Specialty Concrete Market – Forecast (2022 – 2027)
https://www.industryarc.com/Report/18472/specialty-concrete-market-research-report-analysis.html
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