Global Construction Materials Market By Type (Construction Aggregate, Concrete Bricks, Cement, Construction Metal, Other Types), By Application (Residential, Commercial, Industrial, and Other Applications) By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032

Report Overview

In 2022, the Global Construction Materials Market was valued at USD 1.40 Trillion, and is expected to reach USD 2.11 Trillion in 2032 from 2023 to 2032, this market is estimated to register a CAGR of 4.3%.

Construction materials refer to various substances and products used in the building industry for building or renovating structures such as buildings, bridges, roads, and others.

This range of products can include cement, concrete, steel, bricks, wood, insulation, and roofing materials, among many others – depending on factors like project requirements, structural needs, budget constraints, and environmental considerations. The choice can vary widely between projects depending on factors like this.

The growth of the construction materials market has seen significant surges over recent years for several reasons. First and foremost is population growth worldwide, leading to an increasing need for housing, infrastructure, and commercial spaces; as a result, construction activities worldwide have skyrocketed, leading to greater construction material consumption.

Key Takeaways

• The Construction Aggregrate Segment in the Global Construction Materials Market holds the largest share because of infrastructure Development.
• The Residential Sector in the Global construction materials Market holds the largest share because of the increase in population and growing cities.
• Investors worldwide are Investing money in the construction industry, giving the market a huge boost.
• Smart cities are one of the main growth drivers for the construction materials market.
• The global demand for infrastructure development is increasing, creating an opportunity for the construction materials market.
• One of the most significant trends in the construction materials market will be utilizing novel/new technologies and materials.
• Asia-Pacific Holds Region Accounted Significant Share of 45% of the Global Construction Materials Market in 2022
• 30% of Construction materials are produced in China, and stone and glass are made in Italy
• Cement production contributes 7% – 8% of the world’s carbon dioxide emissions, highlighting the industry’s large carbon footprint.
• 9 billion traditional bricks are manufactured each year.

Actual Numbers Might Vary in the final report

Market Scope

Type Analysis

The Construction Aggregrate Segment in the Global Construction Materials Market holds the largest share because of infrastructure Development.

Based on type, the construction materials market is segmented into construction aggregate, concrete bricks, cement, construction metal, and other types. Among these, the construction aggregate segment dominates the market with a market share of 35% in 2022 because of rapid global growth and development.

These aggregates produce asphalt concrete, Portland cement concrete and backfill, railway aggregate, road base, and erosion treatment. Furthermore, One of the reasons for the growth of the construction aggregate is the demand for high technology, technology locations, and shopping malls. The need for innovative connectivity is driven by the growing importance of technology, infrastructure, urbanization, and residential and commercial infrastructure development.

Application Analysis

The Residential Sector in the Global construction materials Market holds the largest share because of the increase in population and growing cities.

Based on applications, the global construction materials market is segmented into residential, commercial, industrial, and other applications. Among these, the residential sector holds the majority share of 45% of the global construction materials market because of the population growth worldwide.

This increases the need for housing, infrastructure, and commercial spaces. As a result, the construction material market has increased, leading to construction material consumption.

Furthermore, the construction material market is growing because construction companies are increasing capital expenditures to fulfill consumer demand and transferring extra resources to R&D and higher-end products. Government initiatives and proactive policies that promote cost-effective housing have further contributed to the expansion of this segment. Residential construction presents a significant market potential for manufacturers and suppliers of construction materials.

Key Market Segments

By Type

• Construction Aggregate
• Concrete Bricks
• Cement
• Construction Metal
• Other Types

By Application

• Residential
• Commercial
• Industrial
• Other Application

Drivers

Smart cities are one of the main growth drivers for the construction materials market.

Smart cities are being advanced in many countries around the sector. This is because smart cities will reduce traffic congestion resulting from increasingly more people by correctly solving problems associated with public transportation and road networks. As smart cities continue to grow, so does the demand for construction materials.

Smart cities are becoming increasingly popular, which is one of the principal reasons why the development materials marketplace is booming. Governments are stepping up their efforts to make clever towns a truth, an increasing number of human beings reside in towns, and technology is advancing quickly.

With an increasing number of smart cities stoning up, the want for high-tech construction substances is most effective going to develop. This is why the construction substances marketplace is anticipated to benefit from the development of smart cities.

Investors worldwide are Investing money in the construction industry, giving the market a huge boost.

Investors from around the globe have been contributing to the increase of the development sector, resulting in a great enlargement of the marketplace. Construction is considered one of the most important international industries, with a projected market length of US$14.2 trillion over the ten years from 2020.

The boom in the development cloth marketplace is essentially due to the growing demand for Construction substances in both the commercial and home industries. Construction companies are increasing their capital expenditures and concentrating more on R&D activities and higher-end products.

The construction sector is also benefiting from the growing need for long-term projects, partly due to increased government support, such as the Bipartisan Infrastructure Act (BIL) in the US ($1.2 trillion) and the NextGenerationEU (€800 billion) fund in Europe.

The development of new technologies is contributing to the expansion of the construction sector, allowing for data-driven decisions and decreasing delays, material consumption, and expenses.

Restraints

Uncertainty in the global economy will continue to be a major obstacle to the market growth of construction materials in the next few years.

Global financial uncertainty is predicted to impede the boom of the construction materials marketplace in the coming years. Construction is heavily reliant on international monetary situations, and any financial downturn will prime impact the construction enterprise. The uncertainty surrounding the present-day financial climate will continue to weigh on the industry.

It will remain a situation as customers may additionally hold off on spending due to tightening credit, decreased revenue or asset values, and bad monetary information. The coronavirus also had a vast effect on the global financial panorama, resulting in a disruption of supply chains, a loss of available exertions, and delays in the implementation of projects.

The demand for an actual estate can also be impacted using other macroeconomic elements, along with the state of non-residential property markets, the price of hard work and healthcare, and regulations on getting admission to credit score.

So, even as international economic uncertainty is a primary limitation to the growth of the construction substances market, the enterprise is expected to hold to extend in the long term.

Opportunity

The global demand for infrastructure development is increasing, creating an opportunity for the construction materials market.

With the ever-growing need for infrastructure improvement around the sector, there’s a growing call for construction materials. The Construction enterprise is experiencing a fast increase due to the speedy industrialization and urbanization that has necessitated the improvement of the construction infrastructure.

The production enterprise is experiencing a surge in calls for infrastructure improvement due to the rapid increase of the population, the boom in disposable earnings, and the alteration within the lifestyle of people, all of which might be contributing to the enlargement of the construction material enterprise.

Overall, the market for construction materials is predicted to extend in the coming years due to the growing demand for building materials, growing funding in research and development, and the improvement of new technology.

Trends

Sustainable Materials and Innovative Concrete Mixtures are the Trends In The Market

One of the most significant trends in the global construction materials market is the increasing demand for sustainable and eco-friendly materials. With growing environmental concerns and stricter regulations, construction companies opt for materials with a lower carbon footprint. This includes using recycled materials, sustainable timber, and energy-efficient products like LED lighting.

Concrete remains a staple in construction, but there is a shift towards more innovative mixtures. This includes self-healing concrete, which can repair cracks autonomously, and high-performance concrete, which offers enhanced durability and strength.

With a focus on energy efficiency, the market is witnessing a surge in demand for advanced insulation materials. Aerogels, vacuum-insulated panels (VIPs), and phase-change materials are gaining popularity due to their superior thermal performance.

2023 Recession Analysis

2023 Recession Has Significantly Impacted the Growth of the Construction Materials Market

The 2023 recession is expected to impact the Construction materials market greatly. The construction enterprises will take a big hit within the next few years. According to the Winter Forecasts from the Construction Products Association, construction output goes to drop by way of 7% this 12 months, and maximum markets will experience a drop within the year 2023.

Construction output is anticipated to drop even greater in 2023, losing 4.7%. But there is some right news for the Construction Materials industry – greater projects are being built internationally, so it seems like matters are searching up.

The Construction industry is projected to experience a recession soon, yet there are still capability boom prospects, including a boom in renewable power investments and expanded government guidance for infrastructure Construction. However, the fluctuation of uncooked material charges will challenge the industry.

Regional Analysis

Asia-Pacific Holds Region Accounted Significant Share of the Global Construction Materials Market

APAC region is projected to account for 45% of the Global Construction Materials Market over the forecast period. The APAC region has been experiencing rapid urbanization and population growth, particularly in countries like China and India.

As urban centers expand, there is a substantial demand for construction materials to support infrastructure development and the construction of residential and commercial properties. This surge in demand for construction materials is a fundamental driver of the region’s anticipated market share.

Moreover, government initiatives and infrastructure projects are pivotal in propelling the APAC region to the forefront of the global construction materials market. Many regional governments are committed to large-scale infrastructure development, including highways, airports, and public transportation systems. These projects necessitate vast quantities of construction materials, creating a substantial supplier market.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Key players focus on partnerships to gain a competitive advantage

Key players in this market are operating several strategies through partnerships, investments in expanding their product portfolio, mergers and acquisitions, etc. Market leaders are collaborating by forming alliances with other firms to remain competitive.

Additionally, many firms are investing in new product introductions to broaden their product offerings. Mergers and acquisitions are also among the primary strategies employed by players to diversify their product portfolios. Manufacturers can maintain their competitive edge by improving extraction efficiency or developing new applications.

Major Top Key Players

• CEMEX, S.A.B. de C.V.
• Holcim Group
• Ultratech Cement
• Ambuja Cement Ltd
• James Hardie Building Products Inc
• HeidelbergCement AG
• Vulcan Materials Company
• cement Roadstone holding
• China National Building
• Martin Marietta Materials, Inc
• Asia Cement
• Eagle Materials Inc.
• Other Key Players

Recent Development

In September 2023, Summit Materials announced that it would merge with the US operations of Cementos Argos in a cash and stock transaction valued at $3.2 billion. The deal will create the fourth-largest cement platform in the United States and accelerate Summit’s ‘Elevate 2025’ strategic plan.

Report Scope