The global construction aggregates market is highly fragmented and various market players in several developing countries are focussing on strengthening their partnership with local EPC companies and are strategically deploying prime distributors in local regions. The key players are also involved in marking their direct presence in the local markets through mergers and acquisitions with regional players. A new report by Persistence Market Research titled “Construction Aggregates Market: Global Industry Analysis and Forecast, 2017 – 2025” discusses the approach taken by key players in the global construction aggregates market to achieve consistent growth by expanding their footprint in regions with high construction activities and also through tie-ups with local construction industries. Manufacturers are also focussing on acquiring stone quarries near potential high-demand locations and are also engaging in the production of manufactured sand. In an in-depth analysis of key regions, the analysts have observed that ongoing infrastructure development projects coupled with strong emphasis of the government to improve service life of various public utilities are expected to be the key factors driving demand for construction aggregates in India. While in the rest of Asia Pacific, the presence of a growing mining industry, abundant natural resources of construction aggregates and lack of major players is creating substantial opportunities for companies to invest in the region.
In order to provide a comprehensive view of the market, a detailed competitiveness analysis and key players’ information along with their unique selling propositions is mentioned in the report. The dashboard provides a detailed comparison of construction aggregates manufacturers on parameters such as operating margins, unique selling propositions, collective market share and geographic concentration. The study encompasses market attractiveness analysis of various segments of the global construction aggregates market.
The report highlights revenue generated from the sales of construction aggregates such as crushed stone, sand and gravel across various regions and important countries within these regions. Apart from this, the global construction aggregates market value chain analysis, profitability margins, cost influencing factors, pricing trends and factors influencing the sales of construction aggregates are also included in the report. Macroeconomic indicators such as GDP, per capita income, per capita construction expenditure, construction industry growth and cement consumption have been considered.
By Product Type
A number of primary and secondary sources have been consulted during the course of this study. Secondary sources include Factiva, GBI, Genios, and Meltwater. Companies’ annual reports and publications have also been examined while drafting this report. Market size and forecast for each market segment have been provided in the context of global and regional markets. The global construction aggregates market has been analyzed based on anticipated demand in the market. Prices considered for the calculation of revenue include average regional prices obtained through primary quotes from numerous regional construction aggregates manufacturers, suppliers, and distributors.
All key end users have been considered and potential applications have been estimated on the basis of secondary sources and feedback from primary respondents. Regional demand patterns have been considered while estimating the market for various end users of construction aggregates in different regions. Top-down approach has been used to estimate the forecast for the global construction aggregates market by region. Market numbers for individual segments have been derived using the bottom-up approach, which is cumulative of each region’s demand. The company-level market share has been derived on the basis of revenues reported by key manufacturers. The market has been forecast based on constant currency rates.
Crushed stone segment is projected to be a relatively attractive segment in terms of market growth rate and size
Among the product types, the sand segment is estimated to remain dominant by holding almost 44% share in the global construction aggregates market during 2017. The crushed stone segment comes a close second, estimated to account for just a little more than 40% share by the end of 2017. The crushed stone segment is estimated to gain an impressive 230 BPS during the forecast period and is expected to expand at a relatively high CAGR of 6.8% during the said period. The gravel segment is estimated to be valued at more than US$ 55 Bn by the end of 2017 and is expected to grow at a CAGR of 5% to reach a market value of more than US$ 85 Bn by 2025 end. The gravel segment is likely to create an incremental $ opportunity of US$ 28 Bn over the period of forecast. The other aggregates segment is expected to hold relatively minor share due to very limited use of other type of aggregates in the construction industry.
Illegal mining activities is one of the major restraints for the growth of manufactured sand in the global construction aggregates market
Owing to the depletion of natural sources of sand and rising political pressures, the global construction aggregates market is witnessing increasing production of manufactured sand.
However, the construction aggregates market is a highly unorganized local market with illegal mining activities, which may act as a major restraint for the growth of the global market for manufactured sand. Another factor hampering the growth of manufactured sand is that natural sand is expected to remain a significant segment than manufactured sand due to the availability of natural resources and more economical extraction procedures.
The production of other recycled aggregates is also hampered due to the lack of government initiatives in developing regions such as India, China, and Africa. Although construction aggregates are low cost materials, due to their heaviness, transportation costs will be higher and this is likely to restrain the growth of the global construction aggregates market.
Stringent zoning regulations on the extraction of aggregates in populated areas is one of the important reason for curbing the development of the aggregates segment. Many times obtaining the necessary permissions for a mining site is difficult and time-consuming due to environmental laws, land development laws, and zoning laws; and it could take several years to get permission, which will ultimately hinder the growth of the aggregates segment.
Germany-based HedelbergCement AG acquires Italy-based competitor company Italcementi SpA
Germany-based HeidelbergCement AG has bought over its Italy-based competitor company Italcementi SpA. HeidelbergCement claims itself as the world’s second-biggest cement maker.
Initially, HeidelbergCement purchased 45% of Italmobiliare SpA’s stake, by paying 10.6 Euros for each share, which is more than 60% higher than the closing price of Italcementi’s price before the announcement of the deal. This acquisition is expected to help in the expansion of operations of HeidelbergCement in the Mediterranean countries of Egypt and Italy and the company is also likely to spread its operations in Begium and France. This deal is also expected to give HeidelbergCement the greatest boost in the Africa and Middle East region. According to the highly placed officials of HeidelbergCement, company revenue is expected to increase to 20 billion Euros by 2020, with earnings before considering depreciation, taxes, amortization and interest of more than 5 billion Euros. The Germany based company operates 156 cement plants with an annual cement capacity of 197 million tons.