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Construction Aggregates Market Segmented By Recycled Construction Aggregates and Crushed Stone, Sand, Gravels Types
Newly released data on the construction aggregates industry analysis by Persistence Market Research shows that global demand for crushed stones enjoyed year-on-year (YoY) growth of 6.4% in 2021 to top 20.8 Bn tons. As per value growth rate, construction aggregate sales are set to witness a CAGR of 6.8% over the assessment period of 2021 and 2031.
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Governments of major economies are focusing on the development of various infrastructure projects so as to benefit the growth of the economy, which is a key opportunity for the rise in consumption of construction aggregates.
Factors such as innovation in technologies required for the production of recycled aggregates and their benefits such as sustainability gains, increased efficiency of manufacturing processes, and provision of high quality products, coupled with prominent expansion strategies among key players are expected to drive demand at a CAGR of 6.8% over the next ten years.
Housing market recovery, ongoing residential and industrial projects in regions such as North America and Asia Pacific, and increased government spending on the development of infrastructural projects such as transportation facilities and power generation are some of the key opportunities for construction aggregate manufacturers.
Factors such as rising environmental concerns related to construction and cost-effective solutions such as recycling of aggregates with increased investments on innovation of green construction materials are factors key players can focus on.
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Construction aggregates are typically a low-cost resource, but transportation costs are significantly high due to their weight and volume, which is a major impediment to the market's expansion.
Transportation expenses account for almost half of the total administrative and logistical costs associated with construction aggregates, coupled with stringent zoning laws and regulations on construction aggregate extraction in populated areas.
These factors are expected to curb market growth of construction aggregates to some extent.
With an absolute dollar opportunity of around US$ 166 Bn, China is expected to be the most lucrative market for construction aggregate suppliers.
Rapid industrialization and urbanization as well as rising disposable income levels are expected to enhance construction spending in the country.
The Chinese government's massive construction plans, which include provisions for the relocation of 250 million people to new megacities over the next decade, is creating significant construction activity, thereby increasing demand for construction aggregates.
Will Demand for Construction Aggregates Surge in India?
In 2021, the market in India increased 6.6% year on year, bucking initial scepticism about how it would perform during a global pandemic. Across the whole of India, total sales of construction aggregates reached USS 39.6 Bn.
Factors such as population growth, urbanization, industrialization, and rise in disposable income are key growth drivers of the construction industry, which, in turn, benefits suppliers of construction aggregates.
Furthermore, upcoming infrastructure projects with ongoing project opportunities coupled with various government flagship initiatives such as as 'Smart Cities,' 'Housing for All,' 'Make in India,' and 'Atal Mission for Urban Rejuvenation and Transformation (AMRUT)' will further drive consumption of construction aggregates in the country.
What Makes China a Lucrative Market for Construction Aggregate Manufacturers?
China is expected to dominate the Asia Pacific as well as global market for construction aggregates. In 2020, China accounted for over 44.3% share of the global market.
Rising personal & family incomes as well as population migration from rural to urban regions are projected to fuel demand for residential development, thereby increasing the need for construction aggregates in China.
Moreover, increasing aging population in China is raising the requirement for the construction of new healthcare facilities and hospitals, which, in turn, can also aid the growth of the construction aggregates industry in the country.
Which Application of Construction Aggregates Generates Most Revenue?
Infrastructure segment is projected to expand at a CAGR of around 7.4% for construction aggregates during 2021 – 2031, reaching more than 40 million tons by 2031.
Increasing infrastructure activities in the healthcare, education, energy, and power sectors in developing economies backed by rising government spending on infrastructural development makes the infrastructure application of construction aggregates the most profitable sub-segment of all.
What is the Commercial Potential of Crushed Stones?
Crushed stones is one of the fastest-growing segment and is expected to create an incremental $ opportunity of 44.8% of the overall incremental dollar opportunity over the coming assessment period of 2021-2031.
Due to their easy availability and primary utilization as a building material in the manufacture of cement, construction of roads, paving blocks for driveways, sidewalks, patios, office buildings, this sub-segment has a higher commercial potential due to numerous applications in the construction industry.
Why is the Demand for Natural Sand Surging?
Natural sand accounted for over 1/4 of overall demand for construction aggregates in 2020.
It is one of the most commonly used and an important material in construction. Due to its easy availability and fine quality, natural sand is good for all types of construction activities such as concrete production and plastering.
Being the most economical of all and with properties such as round shape particles and smoother surface makes it one of the principal components in concrete, which, in turn, raises demand for natural sand in numerous construction activities.
How Has COVID-19 Deaccelerated the Sales of Construction Aggregates?
COVID-19 has significantly impacted demand for construction aggregates. The industry, which was growing at around 3.8% annually, witnessed a year-on-year growth of nearly -2% in 2020 with the onset of COVID-19.
Supply chain disruptions, lockdowns and restrictions by various governments all around the globe, shortage of raw materials, and halt in construction activities affected market growth.
However, over the long term, with the relaxation of lockdowns in major economies and increasing demand for residential & commercial construction activities, demand for construction aggregates will recover.
Companies are focusing on expanding their manufacturing units across regions. Strategies include innovation, collaborations with key players, partnerships, strategic alliances, and strengthening of regional and global distribution networks.
Some of the key developments are:
Similarly, recent developments related to companies manufacturing construction aggregates have been tracked by the team at Persistence Market Research, which are available in the full report.
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The global construction aggregates market is currently valued at over US$ 344 Bn.
Increasing infrastructure investments in Asia Pacific, North America, and Europe, innovation in production technologies, and rising residential projects are driving demand for construction aggregates.
From 2016 to 2020, demand for construction aggregates increased at a CAGR of 3.8%.
Sales of construction aggregates are projected to increase at 6.8% CAGR and be valued at over US$ 664 Bn by 2031.
Top 5 construction aggregate manufacturers account for around 6% to 7% market share, as per ratings based in market share, market reach, clientele, etc.
The market for construction aggregates in Germany holds around 30% share in the European market.
China, India, Australia & New Zealand, the U.S., and Japan are major demand countries for construction aggregates.
The U.S., Netherlands, Spain, France, Italy, India, and Malaysia are key producers of construction aggregates.
The U.S., Netherlands, Germany, Belgium, and Malaysia are key exporting countries of construction aggregates.
Through 2031, the market in Japan is expected to expand at 6.5% CAGRs.
