The growing development of residential skyscrapers will spur opportunities for the Europe construction aggregates market, a report from Fortune Business Insights predicts.
The market size stood at US$17,788.1m in 2019 according to the report, which covers the construction aggregates market in Europe (including crushed stones, sand & gravel, and recycled aggregates).
Despite the huge disruption from the coronavirus pandemic, Fortune Business Insights says that the growing population, coupled with the rising employment rate, has fuelled demand for Europe construction aggregates, which will expand the market.
It adds that the migration of workers toward urban areas with improved living standards can further drive the market’s development in the coming years.
"The increasing demand for high-rise buildings in urban areas can have a tremendous impact on the global market," the report states. "The expansion of buildings and infrastructure such as schools, colleges, industries, and transportation structures can simultaneously improve the market prospects. Moreover, urban hubs such as London and Paris have increasingly used Europe construction aggregates prior to industrialisation. Besides, the demand for high-quality construction materials, including aggregates, will foster the market’s growth."
The pandemic resulted in the lockdown for many European nations, including Germany, France, and Italy. The lockdown caused an economic recession and disrupted various industries across the continent. According to Eurostat, the EU recorded a contraction of around 14.4% in Q2 of 2020 on a year-on-year basis. The reduced demand for construction materials has further dampened Europe construction aggregates’ requisite, thus hindering the market growth. However, the report says recovery of the market will be seen by 2021, as governments prepare to implement regulations to support green infrastructure, which, in turn, will augur well for the market.
Germany is expected to hold the dominant share during the forecast period of 2020 to 2027. It has been a key hub for infrastructure development with vast urban areas, and currently holds a 14.7% share in the Europe construction aggregates market. In addition, infrastructure projects in the Benelux countries are gaining traction due to the high spending capacity of the people and strong government support. The report states that the demand for aggregates in Belgium and the Netherlands will spur opportunities for the Europe construction aggregate market in the forthcoming years.