The construction materials market involves various products that are used in construction and infrastructure activities. Concrete, cement, bricks, sand, aggregates, wood, plastics, and metals are some of the major construction materials that are used for building roads, bridges, houses, dams, and other structures. Concrete is one of the most widely used construction materials as it can be molded or poured into various shapes. Cement is an essential binding agent used for making concrete. Aggregates provide bulk, structural integrity, and durability to concrete. Steel and wood are other commonly used structural materials in construction. Moreover, plastics, fiberglass, and other polymers are finding increasing applications as insulating materials and pipes in buildings.
The Global Construction Materials Market is estimated to be valued at USD 1.47 Tn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2031.
Increasing construction of commercial and residential buildings as well as infrastructure development activities are fueling the Construction Materials Market Size across major economies. Rapid urbanization and growing population are prompting governments worldwide to invest heavily in housing, roads, bridges, and other civic infrastructure projects, which requires large quantities of construction materials.
Key Takeaways
Key players operating in the construction materials market are LafargeHolcim, CRH plc, CEMEX S.A.B. de C.V., China National Building Material Company Limited, HeidelbergCement AG, and Vulcan Materials Company. These players are focusing on capacity expansion, acquisitions, and new product development to strengthen their market position.
There are significant opportunities for construction materials manufacturers in developing regions owing to ongoing infrastructure development projects. Countries like China, India, Indonesia, and Brazil are expected to majorly drive the future growth of the global market.
Key players are actively looking to expand their geographic footprint in high-growth markets through mergers and acquisitions. LafargeHolcim and HeidelbergCement have expanded globally through acquisitions in the last five years. CRH also plans to venture into new markets in Africa and Southeast Asia to tap the opportunities for construction materials.
Market drivers:
The rapid growth of the building and construction industry, especially in developing countries, is a key driver for the construction materials market. There is increasing spending on residential and commercial real estate as well as public infrastructure projects which demands huge amounts of cement, concrete, aggregates, and other materials.
Market restraints:
Volatility in raw material prices can pose a challenge for construction material manufacturers. Prices of raw materials like cement, steel, and aggregates are dependent on energy and transportation costs which are subject to global price fluctuations. This affects the operating profits of companies. Additionally, stringent environmental regulations regarding carbon emissions from cement production plants act as a market restraint.
Segment Analysis
Cement segment dominates the construction materials market accounting for over 40% of the total market share currently. Cement finds wide usage in construction of buildings, roads, bridges etc. It is expected to continue its dominance owing to rapid urbanization and growing infrastructure development activities across both commercial and residential sectors. The sand and gravel sub-segment holds the second largest share in the market. Sand and gravel are crucial raw materials used for manufacturing of cement and asphalt. Growth of cement and road construction industry ensures steady demand growth of sand and gravel over the coming years.
Global Analysis
Asia Pacific region occupies the leading position in the global construction materials market. Booming construction industry and exponential growth of infrastructure in countries like China and India have been major demand drivers. Rapid urbanization along with government initiatives to develop smart cities and housing projects for all is supporting strong market growth. North America and Europe are other prominent regional markets given their large installed base. However, Asia Pacific region is anticipated to witness comparatively faster growth over the forecast period led by India, China, Philippines and Indonesia.
Get More Insights on Construction Materials Market
Get this Report in Japanese Language- 建設資材市場
Get this Report in Korean Language- 건설 자재 시장
About Author-
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
(LinkedIn: www.linkedin.com/in/alice-mutum-3b247b137 )
