Construction Aggregates Market: Growing Infrastructure Development to Drive Market Growth
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 to 2030, according to a new report published by Coherent Market Insights.
Market Overview:
Construction aggregates are granular materials, such as crushed stone, sand, gravel, and slag, used in the construction industry. These materials provide strength and stability to the construction projects and enhance the durability of concrete and asphalt. The increasing demand for construction aggregates can be attributed to the growing infrastructure development, particularly in emerging economies. Infrastructure projects such as roads, bridges, airports, and residential and commercial buildings are driving the demand for construction aggregates. Additionally, the rising urbanization and population growth are further fueling the demand for construction aggregates as they are essential for the construction of housing and other infrastructure facilities.
Market key trends:
The key trend in the Construction Aggregates Market is the growing focus on sustainable construction practices. With increasing environmental concerns, there is a growing demand for eco-friendly construction materials. Construction aggregates produced from recycled materials, such as crushed concrete and asphalt pavement, are gaining traction in the market. These recycled aggregates not only reduce landfill waste but also help in conserving natural resources. Moreover, the use of recycled aggregates can contribute to the LEED (Leadership in Energy and Environmental Design) certification for green buildings. As a result, construction companies are adopting sustainable practices and incorporating recycled aggregates in their construction projects, thereby driving the growth of the market.
Porter’s Analysis
Threat of New Entrants: The construction aggregates market faces a moderate threat of new entrants due to the high initial investment required for setting up production facilities and the need for expertise in the industry. Additionally, established companies may have significant economies of scale and distribution networks, making it challenging for new players to enter the market.
Bargaining Power of Buyers: The bargaining power of buyers in the construction aggregates market is moderate. While buyers have the option to switch suppliers, the availability of substitutes is limited. However, large buyers with strong purchasing power may negotiate for better prices and terms.
Bargaining Power of Suppliers: The bargaining power of suppliers in the construction aggregates market is moderate to high. The industry highly relies on raw materials such as sand, gravel, and crushed stone, which are typically supplied by local or regional suppliers. This limited supplier base gives them the power to dictate prices and terms.
Threat of New Substitutes: The construction aggregates market faces a low threat of new substitutes. Aggregates are essential materials for construction projects, and there are limited alternatives that can meet the specific requirements of the industry. Although recycled aggregates and alternative materials are gaining traction due to sustainability concerns, they are not yet widely adopted.
Competitive Rivalry: The competitive rivalry in the construction aggregates market is high. There are several key players operating in the market, each striving to gain a larger market share. Competition is based on factors such as price, quality, customer service, and product innovation. Additionally, the market is fragmented, with many smaller regional players competing with larger multinational corporations.
Key Takeaways
The global Construction Aggregates Market Demand is expected to witness high growth, exhibiting a CAGR of 6.0% over the forecast period. This growth can be attributed to the increasing demand for construction activities, infrastructure development, and urbanization worldwide. Emerging economies, such as China and India, are significant contributors to market growth, as they invest heavily in construction projects to support their growing populations and economies.
In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the construction aggregates market. The region is witnessing rapid urbanization, infrastructure development, and industrialization, leading to a surge in construction activities. China, in particular, is a major market player due to its massive construction projects and government initiatives to boost infrastructure.
Key players operating in the construction aggregates market include China Resources Cement Holdings Limited, EuroCement Group, Vulcan Materials Company, LafargeHolcim, LSR Group, Adbri, Cemex, Heidelberg Cement AG, and Martin Marietta Materials. These companies have a strong market presence, extensive distribution networks, and strategic partnerships. They focus on continuous innovation, product development, and mergers and acquisitions to maintain their competitive edge in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
