Construction Aggregates Market Key Research Findings
- Construction aggregates market size in 2018 was US$ 11.6 billion.
- The construction aggregates market is expected to observe a promising growth rate of 6.0% over 2019-2029, and is expected to reach a market value of US$ 22.14 billion by the end of forecast period.
- Growing population is projected to significantly increase the demand for residential and infrastructural development across the African region. According to the World Bank, in 2013, the African population was nearly 1.1 Bn, and is projected to reach 1.3 Bn in 2019. As such, urbanization is growing and increasing the demand for transportation facilities, besides many other activities. All such kinds of activities are pushing infrastructural development, including highways, power plants, dams, etc. Key factors such as population growth, increasing urbanization, and infrastructural developments are projected to boost the demand for construction aggregates across the region during the forecast period.
- From a regional perspective, Sub Saharan Africa is projected to hold a relatively prominent share in the Africa construction aggregates market. This is because of the requirement for construction aggregates across various applications such as infrastructure, residential, and industrial, among others, which is anticipated to lay a strong base for the robust growth of the Africa construction aggregates market.
- In terms of growth opportunities in the construction aggregates market, the demand for construction aggregates in Northern Africa, with the growing demand across various applications such as infrastructure and industrial, among others, is projected to generate high demand for construction aggregates.
- By type, the crushed stones segment is projected to be a very lucrative market for construction aggregates, with an expected value share of ~46.0% in 2019. Growing urbanization and infrastructural development, including the energy & power and and transport sectors are projected to boost the growth of the construction aggregates market in the coming years.
Top Three Factors Shaping the Construction Aggregates Market
Favorable economic conditions coupled with increasing government spending are expected to boost market growth for construction aggregates
The construction materials market has witnessed sustainable incremental growth over the years. This can be attributed favorable economic conditions in various countries. The construction industry is projected to witness acceleration in large public and private infrastructural projects. In the coming years, it is estimated that, the construction aggregates markets in emerging countries are expected to create opportunities for various foreign players to penetrate into them. This could create significant growth opportunities for local players to form joint ventures or even be acquired by larger players that want to gain a foothold in these domestic construction aggregates markets.
Office construction is anticipated to witness significant growth over the forecast period, which can be attributed to increasing employment, especially in high-tech jobs market. This will increase the demand for construction materials for constructing office spaces. Moreover, the anticipated increase in healthcare expenditure is expected to fuel the renovation of healthcare facilities, which is simultaneously expected to increase the demand for construction aggregates over the forecast period. Spending on schools and educational institutions is also anticipated to increase to equip schools with modern technologies and create a collaborative environment for students.
Travel & tourism expected to drive capital investment
Travel and tourism is the key sector that contributes significantly to the GDP of many countries. According to the Authority of World Travel & Tourism, the total contribution of the travel and tourism sector of South Africa to the African GDP was US$ 30.21 billion in 2018. It accounted for around 14.2% of the total GDP in 2018, and is expected to increase by 2.7% in 2019. This increase in tourism will lead to an increase in capital investments in countries where a major chunk of the GDP comes from the travel and tourism industry. The travel and tourism sector attracted a significant share in Africa’s total investments. It is further estimated that, this share will increase over the forecast years. Increasing tourism is expected to attract significant foreign direct investments in tourism-driven countries, which will eventually lead to the launching of several hospitality-related construction projects in these countries. Also, regional government spending is expected to increase so as to support general tourism activities in these countries. It will further drive the growth of the construction industry across the African region, and subsequently increase the demand for construction aggregates over the forecast period.
Innovation in production technologies
Technological innovation is essential for the production of aggregates. This has led to the enhanced efficiency of aggregate manufacturing processes, leading to substantial productivity as well as high quality products. Also, several manufacturers present in the value chain are strengthening their research and development infrastructure to develop new manufacturing technologies. This, in turn, is fueling the growth of the Africa construction aggregates market.
Maine Company has developed a revolutionary automated process for testing the overall composition of aggregates. This particular process is being implemented in the heavy construction industry.
Africa Construction Aggregates Market: Structure Analysis
The Africa construction aggregates market is a highly fragmented market, wherein, tier 1 companies hold more than 12-15% the revenue share.
- Top companies in the construction aggregates market include Lafarge Holcim ltd., Cemex SAB de CV ADR, PPC Limited, Heidelberg Cement Group., and WG Wearne Limited, among others.
- As a part of their business strategy, prominent construction aggregate players have been focusing on a gaining market share in Sub Saharan Africa, as this region accounts for a prominent share in terms of demand for crushed stones, sand, and gravel for infrastructure and industrial applications, and is thus witnessing a rise in the demand for construction aggregates.
- Some of the construction aggregate market players have also shown keen interest in expanding their geographical presence in Northern Africa, with increasing production facilities, transportation, and energy infrastructure, which is expected to create lucrative growth opportunities for construction aggregate manufacturers.
- As a differentiating strategy, construction aggregate market participants are focusing on cost reduction in their product offerings, and the development of new techniques for the production of construction aggregates.
Persistence Market Research, in its recent study on the construction aggregates market, offers a detailed value-volume analysis of the construction aggregates market on the basis of various segments such as type, application, and region. In terms of type, the crushed stones segment is projected to be a lucrative segment in terms of growth opportunities, since these are widely used in the construction industry, including infrastructural, residential, and commercial development. In Africa, numerous infrastructural projects are expected to boost the demand for construction aggregates during the forecast period. There has been significant growth in the demand for construction aggregates across various applications, such as infrastructure, residential, commercial, and industrial, which are projected to lay a strong base for the robust growth of the Africa construction aggregates market in the coming years.
The Africa construction aggregates market report covers market analysis through basis point analysis (BPS), incremental dollar opportunity index, market attractiveness analysis, and Y-o-Y growth. The volume analysis for the construction aggregates market has been considered in 'million tons', covering data for the historical period 2014-2018 and forecast for 2019-2029, with 2018 as the base year.
An Overview of the Construction Aggregates Market Report Chapters
The construction aggregates market report begins with an executive summary covering a gist of the report. The executive summary highlights the Africa construction aggregates market overview in terms of value and volume through various segments. The section also covers key supply- and demand-side trends in the Africa construction aggregates market. This section also outlines a technology roadmap with the introduction, adoption, and current developments in the construction aggregates market.
The next section of the construction aggregates market report begins with market definition, market taxonomy, product overview, their application downstream, and the research scope of construction aggregates.
The next section that follows in the Africa construction aggregates market report includes macroeconomic factors, along with value chain analysis, drivers, restraints, trends, and opportunities that have a profound rate of influence on the growth of the construction aggregates market. The information has been backed up with suitable examples and facts as obtained from official and authentic data credentials in the construction aggregates market.
Africa Construction Aggregates Market: Segmentation
- Crushed Stones
- Northern Africa
- Sub Saharan Africa
- South Africa
- Burkina Faso
- Cote d' Ivoire
- Benin & Togo
- Rest of Sub Saharan Africa
The next section provides a pricing analysis of construction aggregates on the basis of regional fronts, wherein, a weighted average price has been computed to arrive at the average prices in Africa. The primary objective of the construction aggregates market report is to offer key insights on competition positioning, current trends, market potential, growth rates, and other relevant statistics.
In the final section of the construction aggregates market report, we have provided a competition analysis with market share analysis pertaining to the construction aggregates market, and the performance of manufacturers by a tier-down structure of the Africa construction aggregates market. In the competition dashboard section of the Africa construction aggregates market, we have provided a dashboard view of the major players, along with market share and their key business strategies. This would enable clients to evaluate strategies deployed by market leaders, and help them develop effective strategies in the construction aggregates market.
The first stage of the construction aggregates research entailed the formulation of a preliminary hypothesis, which was considered from primary as well as secondary approaches. To analyse the construction aggregates market share and competition analysis, we tracked key developments in the construction aggregates market, such as collaborations, expansion, mergers & acquisitions, new orders, product launches, and awards and recognitions for companies operating in the market. Competition benchmarking has been provided for the top 5 competitors with respect to sales performance of construction aggregates.