First publishedon www.AggBusiness.com
The global construction aggregates market will have a total value of US$331bn at the end of 2019, and is anticipated to reach nearly US$623bn by the end of 2029, growing at a CAGR of around 6%.
The forecast comes in a new report from Persistence Market Research (PMR), which states that regional governments in emerging countries are continually focusing on addressing shortfalls in infrastructure and improving education & healthcare systems and water & sanitation.
In line with this agenda, governments are placing importance on implementing solutions for sustainable mining and increasing productivity & automation, which has resulted in growth in the construction aggregates market. This is expected to enhance the demand for construction aggregates across the globe.
PMR says that growing demand for leisure activities - such as amusement parks and other luxury sports venues - in the US, Europe, China, and the Middle East is propelling national construction aggregates markets in the regions. This is expected to create opportunities for market players to enhance their product portfolios and is likely to provide a much-needed boost to their revenues and propel the growth of the construction aggregates market.
Aggregate recycling is a simple process that involves breaking, removing, and crushing existing aggregates into materials of specified quality and size. PMR says that the process is gaining traction since it protects natural resources and eliminates the need for disposal, as it requires the use of readily available conventional aggregates for concrete and other applications.
The report states that technological innovations are among the key restraining factors for real estate owners. It adds that technological disruption is changing customer behaviour toward interaction with all types of commercial real estate, which includes retail, office space, hospitality, and others, and this is likely to have a negative impact on the construction aggregates market.
For instance, online rental infrastructure service providing companies can shift their businesses from hotels and apartments by providing rental infrastructural services for recreational purposes. This is likely to decrease the demand for non-residential construction aggregates over the forecast period up to the end of 2029.
Industrial & infrastructural development in emerging economies is expected to create long-term growth opportunities for the construction aggregates market.
Most infrastructure development takes place in sectors such as inter & intra-country road infrastructure, tunnel development, and rail web & new airports. The construction aggregates market is estimated to witness significant growth opportunities, but PMR warns factors such as high transportation costs and rising energy cost are likely to restrain market growth. However, it estimates that demand for construction aggregates will grow at a rapid pace following the introduction of new production technologies.