Construction Materials Market Overview
“The Construction Materials Market Predictable at $1.145 tillion in 2022, is estimated to increase at a CAGR of 10.12% from $1.360625 trillion in 2023 to $2.87 trillion by 2030.”
Construction material encompasses various substances used in infrastructure construction, including naturally occurring materials like stones, clay, wood, sand, and leaves, as well as advanced consruction materials like bricks, concrete, cement, and more. Major materials include recycled materials, glass fibers, rammed earth, bamboo, bituminous materials, and more.
The construction material industry is expanding due to the growing use of materials in commercial and residential sectors, leading to increased capital investments and a focus on R&D activities for higher-quality products.
The construction market is expected to expand due to infrastructure projects, population growth, per capita income, lending facilities, and government support. Improving tourist infrastructure in tourism-rich countries will create a critical scope for construction materials for hotels, motels, and resorts.
The US economy, worth $20 trillion, relies heavily on a robust infrastructure network, including bridges, roads, ports, and freight rail. The 117th Congress has invested $1.25 trillion in infrastructure development through the Inflation Reduction Act and Infrastructure Investment and Jobs Act.
The New South Wales government introduced the Property Tax (First Home Buyer Choice) Bill 2022, allowing first-time house owners to pay an annual property tax instead of stamp duty when purchasing their first residential property. The government predicts that these tax breaks will help around 97% of all first-time house buyers, or approximately 57,000 persons per year.
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Key Takeaways
In 2022, the North America area generated the highest revenue share.
In terms of application, the residential category produced the most revenue in 2022.
The building aggregates category is expected to have a significant market share from 2023 to 2030.
Market Dynamics
The US airport industry's growth is boosting construction materials demand. John F. Kennedy International Airport is set to undergo a $1.5 billion Terminal 4 modernization and expansion plan, which includes rehabilitating concourses, modifying roadways, and adding 10 gates, all expected to be completed by 2023.
The O'Hare Modernization Program plans to expand Terminals 3 and 5, and build a new Global Terminal, costing around $8.5 billion. This expansion is driven by increased US airport modernization and extension expenditures, resulting in a significant demand for necessary construction materials.
The real estate industry in India is expected to reach $1 trillion by 2030, accounting for 18-20% of the country's GDP. Private investor Blackstone plans to invest an additional $22 billion by 2030, boosting demand for construction materials like sand, metal, bricks, steel, and cement. This growth in residential and industrial development is a significant factor in India's economic growth.
In 2021, Japan's workers' families' average monthly disposable income is expected to be around $492,700 ($4,621.58), which significantly enhances their ability to pay home loan installments.
The Real Estate Economic Institute predicts 14,000 new flats in Tokyo's 23 wards in 2022, with net new investments totaling €10.8 billion ($12.22 billion) in 2021. This growth is driven by rising income levels and a thriving real estate sector, boosting Japan's construction materials market.
Trends
One of the key trends driving market expansion is the adoption of smart technologies and sustainable materials.
The adoption of smart technologies and sustainable materials is driving market expansion in the construction industry. Smart building materials adapt to environmental factors, while additive manufacturing technologies like 3D printing help create waste-free markets. However, workers still need to place rebar in concrete structures. Manufacturers are embracing new technology to adapt to the changing market, while additive manufacturing methods and measurement instruments like laser tools change the industry's technique. The growing popularity of sustainable materials like smart glass and composite shingles makes it easier for suppliers to provide viable options to customers.
Restraints/Challenges
Rising Fears of Unfavorable Construction Conditions Limiting Market Growth
The construction material industry faces challenges such as supply chain disruptions, employee safety concerns, lower real estate investment, electricity provision, environmental preservation, and a lack of competent labor. These factors hinder market growth, affecting the timeline and quality of construction materials. Natural disasters also increase costs and require multiple clearances from authorities for environmental preservation, electricity, pollution control, land, services, and utilization.
Competitive Landscape of the Construction Materials Market
- Cemex
- China National Building
- CRH PLC
- Daikin Industries
- Ferguson
- Grasim Industries
- HeidelbergCement AG
- LafargeHolcim
- Masco
- Anhui Conch Cement
- Asahi Glass
- BBMG
- Saint-Gobain
- Sika
Recent Developments in Construction Materials Market
June 2022- CRH plc, the world's leading manufacturer of building materials, has announced that it has agreed to acquire Barrette Outdoor Living, Inc., North America's leading provider of residential fencing and railing solutions, for USD 1.9 billion from TorQuest Partners and Caisse de dépôt et placement du Québec (CDPQ). This acquisition aims to create shareholder value through efficient allocation and reallocation of capital.
In April 2022, Adani Road Transport (ARTL) got a Letter of Award (LoA) from the National Highways Authority of India (NHAI) for a road project worth $ 242.71 million (₹ 2,008.47 crores). ARTL is a wholly owned subsidiary of Adani Enterprises and is involved in the business of operation, construction, and maintenance of highways, roads, and expressways.
The Gas Industry Roads Upgrades in the Northern Territory in Australia will be upgrading priority sections of roads for supporting the development of gas resources around the Beetaloo Sub-basin. Road upgrades particularly will include widening and strengthening. For this project, the Northern Territory Government Contribution allocated $43.4 million and the Australian Government has sanctioned $173.6 million. The construction in this project is scheduled to commence from early 2023 and is expected to be completed by late 2026.
May 2022- CEMEX, S.A.B. de C.V. and its partners launched the Carbon Neutral Alliance, a network of 20 public and private entities for the renewable energy generation initiative. This project aims to accelerate the development of cutting-edge technologies to make CEMEX's Rudersdorf plant the first carbon-neutral cement facility by 2030.
March 2022- Calix and Heidelberg Cement announced that the LEILAC-2 carbon capture project was awarded funding by the EU Horizon program. The project was aimed at separating 20% of the Hanover cement plant’s CO2 emissions or nearly 100,000t of CO2 every year.
May 2019- CEMEX sold its ready-mix assets and aggregates in Germany's North-West and North regions to GP Günter Papenburg AG. The holdings in Germany which were divested consisted of four ready-mix facilities, four aggregate quarries, nine aggregates quarries, and 14 ready-mix facilities.
Regional Insights
The Asia Pacific market is expected to dominate the construction materials market due to strong infrastructural activity and the high population of countries like India and China. These nations, with the largest residential end-users, have a strong demand for construction materials, which are crucial for the development of high-quality infrastructure. Despite a decline during the COVID-19 pandemic, the demand for construction materials is expected to persist, indicating a rapid growth in the market.
The US building industry heavily relies on foreign supplies of copper, aluminum, steel stone, and fixtures, largely from developing countries like China, which is expected to boost North American industry growth.
The residential sector expansion in Europe is driving market growth due to high per capita income, consumer preference for multiple properties, and the presence of large material manufacturers, which is expected to increase demand for these commodities.
Segments Covered in the Construction Materials Market
Construction Materials Market By Type
- Concrete Bricks
- Cement
- Construction Metals
- Construction Aggregates
- Others
Construction Materials Market By Application
- Residential Sector
- Industrial Sector
- Commercial Sector
Construction Materials Market By Region
- North America
- Europe
- Asia-Pacific
- Latin America
- The Middle East and Africa
Frequently Asked Questions
What is the construction materials market size?
The Construction Materials Market Predictable at $1.145 tillion in 2022, is estimated to increase at a CAGR of 10.12% from $1.360625 tillion in 2023 to $2.87 tillion by 2030
What will be the CAGR of global construction materials market?
The global construction materials market is poised to grow at a CAGR of 10.12% from 2023 to 2030.
Who are the prominent players operating in the construction materials market?
The major players operating in the construction materials market are Anhui Conch Cement, Asahi Glass, BBMG, Cemex, China National Building, CRH PLC, Daikin Industries, Ferguson, Grasim Industries, HeidelbergCement AG, LafargeHolcim, Masco, Saint-Gobain, Sika and Others.
Which are the driving factors of the construction materials market?
The driving factors of the construction materials market are the increasing per capita income, loan facilities, government support, and increasing use of commercial and residential sectors.
- Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
- Research Methodology (Premium Insights)
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
- Executive Summary
3.1. Market Snapshot
- Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
- COVID 19 Impact on Construction Materials Market
5.1. COVID-19 Landscape: Construction Materials Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
- Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
- Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
- Global Construction Materials Market, By Type
8.1. Construction Materials Market Revenue and Volume, by Type, 2023-2030
8.1.1. Construction Aggregates
8.1.1.1. Market Revenue and Volume Forecast
8.1.2. Concrete Bricks
8.1.2.1. Market Revenue and Volume Forecast
8.1.3. Cement
8.1.3.1. Market Revenue and Volume Forecast
8.1.4. Construction Metals
8.1.4.1. Market Revenue and Volume Forecast
8.1.5. Others
8.1.5.1. Market Revenue and Volume Forecast
- Global Construction Materials Market, By Application
9.1. Construction Materials Market Revenue and Volume, by Application, 2023-2030
9.1.1. Residential Sector
9.1.1.1. Market Revenue and Volume Forecast
9.1.2. Industrial Sector
9.1.2.1. Market Revenue and Volume Forecast
9.1.3. Commercial Sector
9.1.3.1. Market Revenue and Volume Forecast
- Global Construction Materials Market, Regional Estimates and Trend Forecast
10.1. North America
10.1.1. Market Revenue and Volume Forecast, by Type
10.1.2. Market Revenue and Volume Forecast, by Application
10.1.4. Rest of North America
10.1.4.1. Market Revenue and Volume Forecast, by Type
10.1.4.2. Market Revenue and Volume Forecast, by Application
10.2. Europe
10.2.1. Market Revenue and Volume Forecast, by Type
10.2.2. Market Revenue and Volume Forecast, by Application
10.2.6. Rest of Europe
10.2.6.1. Market Revenue and Volume Forecast, by Type
10.2.6.2. Market Revenue and Volume Forecast, by Application
10.3. APAC
10.3.1. Market Revenue and Volume Forecast, by Type
10.3.2. Market Revenue and Volume Forecast, by Application
10.3.6. Rest of APAC
10.3.6.1. Market Revenue and Volume Forecast, by Type
10.3.6.2. Market Revenue and Volume Forecast, by Application
10.4. MEA
10.4.1. Market Revenue and Volume Forecast, by Type
10.4.2. Market Revenue and Volume Forecast, by Application
10.4.6. Rest of MEA
10.4.6.1. Market Revenue and Volume Forecast, by Type
10.4.6.2. Market Revenue and Volume Forecast, by Application
10.5. Latin America
10.5.1. Market Revenue and Volume Forecast, by Type
10.5.2. Market Revenue and Volume Forecast, by Application
10.5.4. Rest of LATAM
10.5.4.1. Market Revenue and Volume Forecast, by Type
10.5.4.2. Market Revenue and Volume Forecast, by Application
- Company Profiles
11.1. Anhui Conch Cement
11.2. Asahi Glass
11.3. BBMG
11.4. Cemex
11.5. China National Building
11.6. CRH PLC
11.7. Daikin Industries
11.8. Ferguson
11.9. Ferguson
11.10. Grasim Industries
- Research Methodology
12.1. Primary Research
12.2. Secondary Research
12.3. Assumptions
- Appendix
13.1. About Us
13.2. Glossary of Terms
