Rising investments in construction sector to drive the market growth at 7.3% CAGR
In the coming years, it is anticipated that recovering building activity in developed economies and powerful growth prospects for housing and infrastructure building projects in developing countries will increase demand for building materials. Increased focus on sustainable buildings, increasing environmental issues, building regulations laws, and power efficiency performance norms drive demand for environmentally friendly construction products.
Increasing pressure to decrease the carbon footprint of building materials manufacturing, businesses are employing initiatives such as gradual rehabilitation of quarries, reducing industrial emissions, particulate matter and dust, ensuring optimal water consumption through wastewater recycling and restoration of rainwater, and making optimal use of natural resources.
With population growth, more individuals are moving to urban areas and this increases congestion in urban areas. This commands the need for smart cities to develop. The rise in intelligent towns will be one of the market drivers of global building materials. Due to the growing urban population, urban services such as public transport and road networks face several difficulties. This induces nations around the globe to concentrate on the growth of smart cities as this growth will assist alleviate the congestion created by the increasing population by effectively resolving public transport and road network problems.
Construction aggregates segment to remain a key growth driver
In 2017, the construction aggregates segment was the biggest part of the construction materials sector. The cement segment, however, will account for the largest proportion of this construction goods market in the coming years as it is the principal component for mass construction as civil works houses or industrial properties. Cement production is significantly high and is recognized as the most important commodity in growing economies.
One of the main market trends in building products will be the adoption of fresh techniques and materials. With the use of fresh materials and the changing focus towards the use of modular prefabricated building blocks, the productivity of construction will grow. Companies have to keep up to date with the technological progress to improve their client base and boost their income shares. Some technologically sophisticated goods include durable concrete, high-performance concrete, ore admixtures, condensed silica fume and high-volume fly ash concrete.
Asia Pacific to dominate market growth
Asia-Pacific is the world’s biggest and fastest increasing market. Growth in the region is driven by reinforcing building activity, fast industrialization and urbanization, increasing housing requirements of a increasing population, growth in company activity, and enhanced commercial building projects as a result. China continues to be the world’s leading building industry, despite the slowdown in latest years in economic growth. Urbanization continues one of the main drivers for investing in housing and infrastructure projects by the Chinese government.
The primary participants include Aditya Birla Group, Anhui Conch Cement Company Limited, Boral Limited, Buzzi Unicem SpA, and Dyckerhoff AG among others.