Rising Infrastructural Development Undertakings Worldwide Propel Global Construction Aggregates Market
Published On : Nov 29, 2015
Construction aggregates refer to a broad category of materials such as stone, crushed stone, gravel, etc., which find extensive application in construction undertakings. Due to the phenomenal tensile strength and durability of construction aggregates, they offer volume stability, resistance to wear and erosion, and other desired physical properties to the finished product, which is the reason for aggregates to be the world’s most mined material.
The global construction aggregates market will expand at a CAGR of 6.0% from 2014 to 2021, increasing from US$329.3 bn in 2015 to US$468.2 bn by 2021.
Modern Construction Undertakings Benefit Construction Aggregates Market
The emergence of new trends in construction undertakings is one of the major reasons for the increasing demand for construction aggregates. This includes utilization of manufactured sand and recycled aggregates, along with continual investments for infrastructural development for commercial and residential purposes.
However, high transportation costs, rising energy costs, and stringent zoning regulations for the use of these materials are restraining the growth of the global construction aggregates market.
The global market for construction aggregates is divided on the basis of product, application, and geography. By application, commercial, industrial, residential, and infrastructure are the segments of the construction aggregates market. In terms of volume, it is the residential segment that accounts for the largest market share and will exhibit the highest CAGR of 6.10% from 2014 to 2021. However, it is the infrastructure application segment that constituted 40.4% of the overall market in 2014 by volume.
State Efforts for Infrastructural Development Favor Construction Aggregates Market in Middle East
By geographical consideration, China dominates the global market for construction aggregates and registered a contribution of 26.4% to the overall market in 2014 by volume. This regional market was trailed by North America and Central America due to the increased utilization of construction aggregates in these regions.
China also represents the fastest growing market for construction aggregates in the foreseeable years. However, developing countries such as India and countries in the Middle East will exhibit considerable growth in the construction aggregates market in the coming years.
In the Middle East, the GCC (Gulf Cooperation Council) are making arduous efforts to reduce their dependence on oil. Thus, infrastructural development steps, which include the construction of some high-profile buildings, will be favorable for the construction aggregates market in the region.
For example, Dubai is set to host the World Expo in 2020 at the Jebel Ali area, which is poised to involve a revenue somewhere between US$2 bn to US$4 bn. The cost of the development of secondary infrastructure is poised to be more than US$8 bn and would offer construction opportunities in the transport, hospitality, retail, and commercial sectors.
In Qatar, the country’s expenditure on infrastructural development will reach about US$150 bn in the preparation of the 2022 FIFA World Cup and other infrastructural constructions keeping in line with Qatar’s 2030 vision. This will lead to substantial growth of the construction aggregates market in the region.
Some of the major companies operating in the global construction aggregates market are Heidelberg Cement AG, LSR Group PJSC, CEMEX S.A.B. de C.V., EUROCEMENT Holding AG, Martin Marietta Inc., Lafarge-Holcim Ltd. And Vulcan Materials Company.
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