First publishedon www.AggBusiness.com
The global construction aggregates market is tipped be valued at over US$565.8 billion by the end of 2026, according to a new report by Persistence Market Research (PMR). Pic - Metso
The global construction aggregates market is tipped to be valued at over US$565.8 billion by the end of 2026, according to a new report by Persistence Market Research (PMR). Over an eight-year projection period 2018-2026, PMR, a leading U.S.-based global business market research consultancy, expects the market to see a compound annual growth rate (CAGR) of 6.8%.
Exploding industrialisation and urbanisation will continue to create high demand prospects in China, the rest of Asia Pacific, and rapidly thriving economies in South East Asia. PMR says China will however remain the global leader throughout the forecast period, 2018-2026. Furthermore, developing regions such as Middle East & Africa and Latin America will reportedly represent low-volume high-growth markets, owing to rapid growth of the construction industry and increasing number of organisational tie-ups.
Among product types, the PMR report says that crushed stone is estimated to hold a significantly large share of the total market revenue, owing to exponential infrastructure development. Sand is also one of the key product types; however, PMR says manufactured sand will gradually replace natural sand over the assessment period.
Some of the leading players in global construction aggregates market are said by the PMR report to include HeidelbergCement, Martin Marietta Materials, LSR Group, LafargeHolcim , CEMEX, Vulcan Materials Company, CRH, Eurocement Group, and Adelaide Brighton.
The new PMR report continues: “As commodity prices have moved towards stability, a slew of sustainable market opportunities have cropped up in the recent past. This has been translating into a positive growth outlook for various regional markets operating in the construction industry. As a majority of regional governments are initiating hefty investments in infrastructural development, it is most likely that the demand for construction aggregates will maintain a growing trajectory in next few years.”
The report notes that the infrastructure sector currently accounts for a sizeable global construction aggregates market value share of more than 40, followed by the residential sector with around 25% share. It adds: “Expanding government investments towards rail and road infrastructure projects, are presumed to extend strong support to the sales of construction aggregates. Projects such as remodelling of old airports and development of new airport structures, will also continue to drive growth of the market in next eight years. Substantial revenue generation opportunities will reportedly spring up in developing regions, as governments are introducing a wide range of residential programs and housing schemes. Industrial players are striving for augmented market shares by targeting regional markets for expansion.
The PMR report forecasts that aggregates recycling, which involves breaking, removing, and crushing existing aggregates into the materials of specified quality and size, will potentially gain in popularity higher, as the process of aggregate recycling preserves the natural resources intact, offering efficiency in terms of both cost and energy. “In a nutshell, growing demand for recycled construction aggregates is expected to efficiently conserve diminishing resources of urban aggregates, and effectively help local governments meet the production targets,” states the report.