by The global Construction Aggregates Market is estimated to be valued at US$ 470 billion in 2021 and is expected to exhibit a CAGR of 6.0% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
- A) Market Overview:
Construction aggregates are granular materials such as sand, gravel, crushed stone, slag, and recycled concrete that are used in construction projects. These materials provide strength and durability to the construction of roads, railways, bridges, airports, and buildings. The advantages of using construction aggregates include improved stability, reduced soil erosion, and cost-effectiveness. The increasing demand for construction aggregates is driven by the need for infrastructure development in both developed and developing countries.
- B) Market Key Trends:
One key trend in the global Construction Aggregates Market is the growing use of recycled concrete as a sustainable construction material. Recycled concrete is produced by crushing old concrete into small particles and using it as a replacement for natural aggregates. This practice not only reduces the demand for virgin aggregates but also helps in reducing landfill waste. For example, CEMEX, one of the key players in the market, has developed a technology called “Geofill” that uses recycled concrete as an aggregate in road construction. This trend is expected to gain traction in the coming years as governments worldwide emphasize sustainable development practices.
- C) Porter’s Analysis:
– Threat of new entrants: The construction aggregates market has a moderate threat of new entrants. The high capital requirement for setting up new production facilities and the presence of established players with strong distribution networks create a barrier to entry for new players.
– Bargaining power of buyers: Buyers in the construction aggregates market have a moderate bargaining power. The availability of multiple suppliers and the standardization of aggregates make it easier for buyers to switch suppliers based on price and quality.
– Bargaining power of suppliers: Suppliers in the construction aggregates market have a moderate bargaining power. The availability of multiple suppliers and the commoditization of aggregates give buyers the power to negotiate prices and terms.
– Threat of new substitutes: The threat of new substitutes in the construction aggregates market is low. Natural aggregates have unique properties and are difficult to replace with alternative materials.
– Competitive rivalry: The construction aggregates market is highly competitive, with key players competing based on price, quality, and distribution networks. The market is consolidated, with a few major players dominating the market share.
- D) Key Takeaways:
- The global Construction Aggregates Market is expected to witness high growth, exhibiting a CAGR of 6.0% over the forecast period, due to the increasing demand for infrastructure development. The construction of roads, bridges, and buildings drives the demand for construction aggregates.
- The Asia-Pacific region is expected to be the fastest-growing and dominating region in the construction aggregates market. The rapid urbanization and industrialization in countries like China and India are driving the demand for construction aggregates in the region.
- Key players operating in the global 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. These companies are focusing on mergers, acquisitions, and technological advancements to maintain their market position.
In conclusion, the global Construction Aggregates Market is projected to experience significant growth in the coming years due to the increasing need for infrastructure development. The use of recycled concrete as a sustainable construction material and the dominance of key players in the market are expected to shape the industry landscape.
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