February 24, 2024
Construction Aggregates Market

Projected Infrastructure Development To Boost The Growth Of Construction Aggregates Market

The global Construction Aggregates Market is estimated to be valued at US$ 528.09 Bn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Construction aggregates include crushed stone, sand, gravel, recycled concrete, and other granular materials used in construction. These include materials such as gravel, sand, crushed stone, slag, recycled concrete, and geosynthetic aggregates. Construction aggregates are basic construction materials used in infrastructure development like buildings, roads, bridges, highways, rail tracks etc. They are the essential components of concrete production and mixed with cement, water and admixtures to form concrete. Concrete is the world’s most versatile and widely used construction material. Its durability, strength and resistance to fire and water damage have made it an ideal choice for building construction. The rising infrastructure activities across residential and commercial sectors globally have been driving the demand for construction aggregates.

Market key trends:

One of the major trends observed in the construction aggregates market is the focus on green construction. Raw materials used in construction aggregates production have significant environmental footprint. This has led producers to focus on increasing usage of recycled and industrial by-products in aggregates production. Recycled concrete aggregates and manufactured sand are gaining widespread acceptance. Additionally, policy level support for use of recycled aggregates from demolition waste is encouraging construction players to adopt sustainable practices. The EU has set a voluntary target of using at least 400 million tons of recycled construction & demolition waste annually by 2020. Such initiatives are fueling the demand for eco-friendly construction aggregates. Technologies to process waste materials into aggregates are also emerging at a rapid pace. This shift towards green construction using recycled aggregates will be a defining trend in the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the construction aggregates market is low owing to high capital requirements for setting up plants and quarries. Bargaining power of buyers: The bargaining power of buyers is moderate due to the availability of substitutes. However, construction aggregates are essential raw materials for construction activities. Bargaining power of suppliers: The bargaining power of suppliers is high as key raw materials like limestone, granite, and basalt used for production are available at limited locations globally. Threat of new substitutes: The threat of new substitutes is low as there are limited substitutes for construction aggregates that can provide the same physical and chemical properties for construction needs. Competitive rivalry: Construction aggregates market is dominated by a few leading players globally.

Key Takeaways

The Global Construction Aggregates Market Size is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period, due to increasing infrastructure development activities across the global. The Asia Pacific region is expected to dominate the global construction aggregates market over the forecast period, owing to strong presence of infrastructure development projects in countries like China and India.

Regional analysis:
The Asia Pacific region dominated the global construction aggregates market in 2023, accounting for over 30% of the global demand. Factors such as strong presence of infrastructure development and construction projects in countries such as China and India are expected to drive the growth of construction aggregates in the region.

Key players:
Key players operating in the construction aggregates market are China Resources Cement Holdings Limited, EuroCement Group, Vulcan Materials Company, LafargeHolcim, LSR Group, Adbri, Cemex, Heidelberg Cement AG, and Martin Marietta Materials. China Resources Cement Holdings Limited is one of the largest construction aggregates companies globally with production facilities across China.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it