# Construction Materials Market

> Construction Materials Market Research Report Information By Material Type (Aggregates, Cement, Bricks and Blocks, Metals, and Others (Insulation, Coatings, Sealants, and Composites)), By Construction Type (New Construction and Renovation and Repairs), By End-user Industry (Residential, Infrastructure, Commercial, and Industrial), and By Region (North America, Europe, Asia-Pacific, and Rest of the World) – Market Forecast Till 2035.

- **Forecast Period:** 2026-2035
- **CAGR:** 5.4%
- **2025:** USD 1,640.0 Billion
- **2035:** USD 2,765.2 Billion
- **Key Players:** CRH, Saint-Gobain, Heidelberg Materials AG, HOLCIM, Cemex S.A.B DE C.V., Owens Corning, TATA Steel Limited, Kingspan

**Report ID:** MRFR/CnM/10600-HCR · **Pages:** 111 · **Author:** Chitranshi Jaiswal · **Last Updated:** November 11, 2026

**URL:** https://www.marketresearchfuture.com/reports/construction-materials-market-12121

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## Market Summary

As per Market Research Future analysis, the Construction Materials Market was estimated at 1367.86 USD Billion in 2024. The Construction Materials industry is projected to grow from 1425.34 USD Billion in 2025 to 2151.19 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 4% during the forecast period 2025 - 2035

## Market Drivers

## Driver Impact Analysis

| Driver | ~% Impact on CAGR | Geographic Relevance | Impact Timeline | Ref |
| --- | --- | --- | --- | --- |
| Public infrastructure capital programs | +1.2% | North America, India, Gulf | Medium-term (2–4 yr) | [4][5] |
| Urban housing deficits | +0.9% | Asia-Pacific, Africa, Latin America | Long-term (≥4 yr) | [8] |
| Data center, energy and advanced-manufacturing build-out | +0.6% | North America, Europe, Asia-Pacific | Short-term (≤2 yr) | [17] |
| Lifecycle carbon disclosure and low-carbon specifications | +0.5% | Europe, North America | Medium-term (2–4 yr) | [6][7] |
| Renovation and energy-retrofit mandates | +0.5% | Europe, Japan, North America | Long-term (≥4 yr) | [15][16] |
| Gulf giga-projects and diversification programs | +0.3% | Middle East | Medium-term (2–4 yr) | [21] |

### Public Infrastructure Capital Programs

In the construction materials market, government funds continue to be the biggest demand lever. India's FY2025–2026 budget allots ₹11.21 lakh crore for capital expenditures, with the greatest civil-works allocations going to roads and railroads [4]. Highways, bridges, water systems, and grid upgrades in the US are funded under the USD 1.2 trillion Infrastructure Investment and Jobs Act through 2026, with project completions continuing into the early 2030s [5]. Because these methods use structural [steel](https://www.marketresearchfuture.com/reports/steel-market-5465), cement, and aggregates in predetermined amounts, volume forecasting is exceptionally accurate for suppliers of heavy commodities.

### Urban Housing Deficits

Instead of being cyclical, residential needs are structural. By 2030, an estimated 3 billion people—roughly 40% of the world's population—will need sufficient housing, which translates to nearly 96,000 new affordable units every day, according to UN-Habitat [8]. The majority of that gap is found in South Asia, Southeast Asia, and sub-Saharan Africa, where construction systems are dominated by masonry, cement, and reinforcing bars. This demand is turned into procurement through affordable housing programs, which favor producers with local plants and short delivery distances.

### Data Center, Energy and Advanced-Manufacturing Build-Out

Electricity demand from data centers is expected to more than double by 2030, according to the International Energy Agency [17]. Each hyperscale campus requires high-strength concrete, structural steel, fire-rated boards and extensive substation civil works. Semiconductor fabs, battery plants and LNG terminals add demand for specialty concrete and coated steel with tight tolerances. This segment pays for certification and speed, lifting realized prices above commodity benchmarks.

### Lifecycle Carbon Disclosure and Low-Carbon Specifications

Regulation is moving carbon from a marketing claim to a procurement criterion in the Construction Materials Market. The EU's Construction Products Regulation 2024/3110 entered into force on 7 January 2025, with most provisions applying from 8 January 2026, including environmental sustainability declarations [6]. The EU Carbon Border Adjustment Mechanism moved into its definitive period on 1 January 2026, requiring importers to pay for emissions embedded in cement and steel [7]. Producers with verified data gain a measurable edge in tenders.

### Renovation and Energy-Retrofit Mandates

Europe's Renovation Wave strategy targets at least a doubling of annual energy renovation rates by 2030 [15]. The recast Energy Performance of Buildings Directive (EU) 2024/1275 requires all new buildings to be zero-emission from 2030 and sets renovation trajectories for the worst-performing stock [16]. Retrofit work shifts the material mix toward insulation, [plasterboard](https://www.marketresearchfuture.com/reports/plasterboard-market-1976), repair mortars and façade systems, which carry higher margins than bulk aggregates.

### Gulf Giga-Projects and Diversification Programs

Saudi Arabia's Vision 2030 has turned construction into a central pillar of economic diversification, with tourism, housing, industrial cities and transport corridors moving through procurement simultaneously [21]. The UAE and Qatar continue to fund metro, port and housing schemes. Projects in these countries specify sulfate-resistant cement, high-performance concrete admixtures and rebar at scale, supporting both local producers and importers with certified supply.

## Restraints

## Restraints Impact Analysis

| Restraint | ~% Impact on CAGR | Geographic Relevance | Impact Timeline | Ref |
| --- | --- | --- | --- | --- |
| Decarbonization capex and carbon pricing | −0.6% | Europe, global exporters | Long-term (≥4 yr) | [7][18] |
| China property contraction | −0.5% | China, Asia-Pacific | Medium-term (2–4 yr) | [2] |
| Quarry permitting and reserve constraints | −0.3% | North America, Europe | Long-term (≥4 yr) | [3] |
| Skilled construction labor shortage | −0.3% | North America, Europe | Short-term (≤2 yr) | [19] |
| High financing costs for residential projects | −0.3% | North America, Europe | Short-term (≤2 yr) | [22] |

### Decarbonization Capex and Carbon Pricing

Deep cutbacks necessitate carbon capture, alternative fuels, and clinker substitution because cement production contributes significantly to the world's industrial CO2 emissions [18]. EU steel and cement importers are required by CBAM to purchase embedded emissions-related certificates starting in 2026 [7]. Delivered prices are increased by compliance expenses, and smaller producers who lack funding for capture projects run the risk of missing out on premium markets.

### China Property Contraction

Although production decreased from approximately 2,000 million tons in 2023 to approximately 1,900 million tons in 2024, China is still the world's top manufacturer of cement [2]. Regional prices are under pressure due to the overcapacity in cement and flat glass caused by the decrease in home starts. Additionally, excess capacity drives exports into Southeast Asia, reducing local firms' profit margins.

### Quarry Permitting and Reserve Constraints

New quarry approvals, a bottleneck for the Construction Materials Market, routinely take years, and zoning, health and environmental reviews remain persistent issues for crushed-stone producers [3]. Permitting delays restrict supply growth near fast-growing metros, pushing up haul distances and delivered costs. That protects incumbents but caps how quickly the industry can respond to infrastructure surges.

### Skilled Construction Labor Shortage

U.S. contractors needed to attract an estimated 439,000 additional workers in 2025 to meet demand, according to Associated Builders and Contractors [19]. Labor gaps slow project execution across the Construction Materials Market, which defers material call-offs even when funding is approved. Similar shortages in Germany, the UK and Australia have stretched delivery schedules.

### High Financing Costs for Residential Projects

Elevated mortgage and construction-loan rates have weighed on housing starts. U.S. starts in August 2025 ran at an annualized 1,307,000 units, 6% below the prior-year level [22]. Lower residential volumes reduce demand for [bricks](https://www.marketresearchfuture.com/reports/bricks-market-25099), blocks, plasterboard and ready-mix concrete until rates ease.

## Opportunities

## Construction Materials Market Opportunities

### Carbon-Captured and Lower-Clinker Cement

Heidelberg Materials opened the Brevik CCS facility in Norway in June 2025, designed to capture about 400,000 tonnes of CO2 per year [10], and began delivering evoZero carbon-captured cement to European customers in October 2025 [9]. Early buyers such as Skanska show that contractors will pay for verified reductions. Producers that bundle low-clinker cement with traceable carbon data can move from commodity pricing to specification-led contracts.

### Emerging-Market Housing and Infrastructure

India, ASEAN and sub-Saharan Africa combine large housing gaps with rising public capex [4][8]. Building regional grinding units, ready-mix networks and block plants near growth corridors lowers logistics costs and secures share before consolidation peaks. Brazil's Novo PAC investment program adds a similar opening in South America [23].

### Product Data and Digital Product Passports

The revised EU Construction Products Regulation lays the groundwork for digital product passports and machine-readable performance data [6]. Suppliers that structure lifecycle data, traceability and declarations of performance can sell data services to designers, contractors and asset owners, opening a recurring revenue line beyond tonnage.

### Recycled Aggregates and Circular Construction

The buildings sector generates around a third of global waste [1]. Recycled concrete aggregates, recarbonated fines and reclaimed steel reduce landfill costs and virgin extraction. Cities with tight quarry supply offer the strongest economics for recycling hubs located near demolition activity.

### Construction Chemicals for Repair and Retrofit

Saint-Gobain completed its acquisition of Fosroc in February 2025, adding admixtures, waterproofing and concrete-repair products with expected 2024 revenue of USD 487 million [13]. Repair mortars, sealants and waterproofing systems align directly with renovation demand and carry higher margins than bulk materials.

## Future Outlook

## Construction Materials Market Future Outlook

### Decarbonized Cement Moves From Pilot to Portfolio

Carbon capture is no longer theoretical for cement. Brevik's 400,000-tonne annual capture capacity offers a template for further projects [10], and the Global Cement and Concrete Association's roadmap targets net-zero concrete by 2050 [20]. By the early 2030s, expect leading producers to price low-carbon grades as standard lines rather than premium exceptions, while unabated plants face rising carbon costs in Europe [7][18].

### Data-Driven Procurement and Traceability

Digital product passports, verified declarations and lifecycle data will increasingly determine which materials make it onto specifications [6]. Contractors and owners will use this data to compare suppliers on carbon, durability and recycled content. Producers that invest early in data infrastructure will lock in preferred-supplier status on public tenders.

### Electrification and Digital Infrastructure Supercycle

Within the Construction Materials Market, grid expansion, renewable generation and data centers will absorb a growing share of structural steel, cable-trench concrete and foundation materials through 2035 [17]. This demand is less exposed to interest-rate swings than housing and supports the Metals segment's above-average growth.

### Portfolio Reshaping and Consolidation

Recent transactions in the Construction Materials Market show a clear pattern: heavy-materials players are separating by geography or buying into higher-margin chemicals and solutions [11][12][13][14]. Further consolidation in aggregates and [construction chemicals](https://www.marketresearchfuture.com/reports/construction-chemicals-market-1960) is likely, while fragmented markets in Africa and Southeast Asia remain open to regional champions.

## Segment Insights

## Construction Materials Market Segmentation

### By Material Type

| Segment | Key Metric (2025) | Primary Demand Driver |
| --- | --- | --- |
| Aggregates | 40.5% share | Concrete, road base and drainage works |
| Cement | USD 439.5 Billion | Infrastructure and housing; blended-cement adoption |
| Bricks and Blocks | 4.1% CAGR | Residential construction and heritage renovation |
| Metals | 6.2% CAGR | Grid, renewables and data center structures |
| Others | 7.4% share | Insulation, coatings, sealants and composites |

Aggregates form the volume base of the Construction Materials Market, with permitted reserves acting as a durable barrier to entry. Cement is the second-largest category, and blended formulations are gaining share as buyers ask for lower clinker content. Metals grow fastest because grid and data center projects specify higher-grade structural steel. Bricks and Blocks face competition from prefabricated panels, while Others, including insulation and specialty coatings, benefit from performance-led procurement.

### By Construction Type

| Segment | Key Metric (2025) | Primary Demand Driver |
| --- | --- | --- |
| New Construction | 68.0% share | Housing programs, industrial projects and public works |
| Renovation and Repairs | 6.6% CAGR | Energy retrofits and aging-asset maintenance |

New Construction dominates the Construction Materials Market by volume, led by housing in India and Southeast Asia, Gulf infrastructure and North American industrial projects. Renovation and Repairs grows faster because maintenance and energy-efficiency work continue when new-building activity slows. Retrofit projects use more insulation, plasterboard and repair mortars than bulk aggregates, which rewards suppliers with specialized portfolios.

### By End-user Industry

| Segment | Key Metric (2025) | Primary Demand Driver |
| --- | --- | --- |
| Residential | 42.4% share | Housing deficits and affordable-housing schemes |
| Infrastructure | 6.9% CAGR | Roads, rail, energy networks and water systems |
| Commercial | USD 287.0 Billion | Logistics, data centers and hospitality |
| Industrial | 10.6% share | Semiconductor, battery and LNG facilities |

Residential remains the largest end-user segment of the Construction Materials Market, absorbing cement, aggregates, bricks and finishing products across fast-urbanizing economies. Infrastructure grows fastest as government capital programs in North America, India and the Gulf move into construction. Commercial demand holds steady as data centers and logistics offset weaker office and retail formats, while Industrial projects require certified high-performance concrete and structural steel.

## Regional Market Share Analysis

## Regional Market Share Analysis

| Region | Key Metric (2025) | Primary Investment Themes |
| --- | --- | --- |
| North America | USD 341.1 Billion | Federal highway and bridge funding, data centers, reshoring manufacturing |
| Europe | 3.9% CAGR | Renovation, low-carbon cement, lifecycle carbon rules |
| Asia-Pacific | 47.5% share | Urban housing, rail and metro, industrial corridors |
| South America | 5.6% share | Housing programs, logistics infrastructure, mining-linked works |
| Middle East & Africa | 5.9% CAGR | Giga-projects, transport, social housing |
| Total | USD 1,640.0 Billion | — |

Asia-Pacific leads the Construction Materials Market by a wide margin, while North America and Europe contribute higher-value product mixes. Middle East & Africa posts the second-fastest growth on the back of Gulf project pipelines.

### North America

| Country | Key Metric (2025) | Key Driver |
| --- | --- | --- |
| US | 78.0% of regional market | IIJA-funded highway, bridge and water works |
| Canada | 9.5% of regional market | Housing Accelerator Fund and transit projects |
| Mexico | 12.5% of regional market | Nearshoring-led industrial parks and rail |

The United States anchors regional demand through multi-year federal funding and a pipeline of data center and semiconductor projects [5][17]. Consolidation is reshaping supply: Quikrete closed its USD 11.5 billion acquisition of Summit Materials in February 2025 [12], and Holcim spun off Amrize as a North America-focused company in June 2025 [11]. Mexico benefits from factory relocations near the U.S. border.

### Europe

| Country | Key Metric (2025) | Key Driver |
| --- | --- | --- |
| Germany | 19.5% of regional market | Rail renewal and housing retrofit |
| UK | 13.0% of regional market | Housing targets and road maintenance |
| France | 14.0% of regional market | RE2020 low-carbon building rules |
| Italy | 9.5% of regional market | Recovery-plan infrastructure |
| Spain | 8.0% of regional market | Housing rehabilitation programs |
| Nordic Countries | 6.0% of regional market | Low-carbon procurement and CCS |
| Russia | 11.5% of regional market | Domestic housing and transport |
| Rest of Europe | 18.5% of regional market | EU cohesion-funded works in Central and Eastern Europe |

Growth in the European Construction Materials Market depends more on product upgrades than volume. The revised Construction Products Regulation and CBAM raise the value of verified low-carbon cement and steel [6][7]. Renovation offers steadier demand than new-build activity, supported by the Renovation Wave and the recast buildings directive [15][16]. Nordic markets lead early adoption of carbon-captured products [9].

### Asia-Pacific

| Country | Key Metric (2025) | Key Driver |
| --- | --- | --- |
| China | 54.0% of regional market | Infrastructure and urban renewal amid property correction |
| India | 15.5% of regional market | Central capex and affordable housing |
| Japan | 8.5% of regional market | Seismic retrofit and aging-infrastructure renewal |
| South Korea | 4.5% of regional market | Semiconductor fabs and new towns |
| ASEAN | 9.5% of regional market | Urbanization in Vietnam, Indonesia and the Philippines |
| Rest of Asia-Pacific | 8.0% of regional market | Australian transport and housing pipeline |

China still dominates regional volumes of the Construction Materials Market, but India is the growth engine, with cement production rising about 7% to roughly 450 million tonnes in 2024 [2]. UltraTech Cement took control of India Cements in December 2024, extending its reach in southern India [14]. Vietnam, Indonesia and the Philippines add demand through metro, port and housing programs.

### South America

| Country | Key Metric (2025) | Key Driver |
| --- | --- | --- |
| Brazil | 52.0% of regional market | Novo PAC infrastructure and housing investment |
| Argentina | 14.5% of regional market | Energy and mining-related construction |
| Rest of South America | 33.5% of regional market | Peru, Chile and Colombia transport and mining works |

Brazil sets the regional pace through its Novo PAC program, which channels public and private investment into housing, sanitation and logistics [23]. Copper and lithium projects in Chile, Peru and Argentina sustain demand for cement, steel and aggregates in remote areas, where supply logistics favor integrated producers.

### Middle East & Africa

| Country | Key Metric (2025) | Key Driver |
| --- | --- | --- |
| Saudi Arabia | 27.0% of regional market | Vision 2030 giga-projects and housing |
| UAE | 16.5% of regional market | Transport, tourism and real estate |
| South Africa | 10.5% of regional market | Infrastructure maintenance backlog |
| Egypt | 13.0% of regional market | New administrative capital and housing |
| Rest of MEA | 33.0% of regional market | Urban growth in Nigeria, Kenya and Morocco |

Saudi Arabia leads regional procurement as Vision 2030 projects move from design to construction [21]. Saint-Gobain's purchase of Dubai-based Fosroc reflects the strategic value of Gulf demand for admixtures and waterproofing [13]. Africa's urban population growth creates long-run demand for cement and blocks, although currency volatility affects project timing.

## Competitive Benchmarking

## Competitive Benchmarking

The Construction Materials Market has low concentration. The top five producers together hold an estimated 6–8% of global value, and the Herfindahl-Hirschman Index sits well below 100, reflecting thousands of regional quarries, cement plants and ready-mix operators. Concentration is much higher at the local level, where haul distances limit competition to a few suppliers per metro area.

| Company | Est. Revenue Share Range | Key Offerings for Construction Materials Market | Strategic Positioning |
| --- | --- | --- | --- |
| CRH | ~1.8–2.3% | Aggregates, cement, asphalt, building products | Largest North American aggregates footprint; acquisitive |
| Saint-Gobain | ~1.2–1.8% | Plasterboard, insulation, glass, construction chemicals | Light and sustainable construction; expanded via Fosroc and CSR |
| Heidelberg Materials AG | ~1.1–1.4% | Cement, aggregates, ready-mix, evoZero | Carbon capture leader |
| HOLCIM | ~0.8–1.1% | Cement, aggregates, roofing, ECOPlanet | Europe, Latin America, Asia and Africa focus after Amrize spin-off |
| Cemex S.A.B DE C.V. | ~0.8–1.1% | Cement, ready-mix, aggregates, Vertua | Strong in Mexico, U.S. and Europe |
| Owens Corning | ~0.5–0.7% | Roofing, insulation, doors | North American residential exposure |
| TATA Steel Limited | ~0.4–0.7% | Rebar, structural steel, coated sheets | Indian infrastructure and housing |
| Kingspan | ~0.4–0.6% | Insulated panels, insulation boards | Energy-efficient envelope specialist |
| Vulcan Materials Company | ~0.4–0.5% | Aggregates, asphalt, ready-mix | Largest U.S. aggregates producer by volume |
| Martin Marietta | ~0.3–0.5% | Aggregates, cement, magnesia specialties | U.S. Sunbelt aggregates leader |
| Taiheiyo Materials Corporation | ~0.3–0.5% | Cement, specialty cement products | Japan and Pacific-rim cement supply |
| Buzzi S.p.A. | ~0.2–0.3% | Cement, ready-mix | Italy, Germany, U.S. and Central Europe |
| Vicat S.A. | ~0.2–0.3% | Cement, concrete, aggregates | France, U.S., India and emerging markets |
| Titan Cement International S.A. | ~0.1–0.2% | Cement, aggregates, ready-mix | U.S. East Coast and Southeast Europe |
| CSR Limited | ~0.1–0.2% | Plasterboard, bricks, insulation | Australian building products; part of Saint-Gobain since 2024 |

## Recent News & Developments

## Recent News & Developments

- UltraTech Cement (December 2024): Completed the purchase of a 32.72% promoter stake in India Cements, raising its holding to about 55% and making it a subsidiary. The deal strengthens UltraTech's position in southern India [14]
- European Union (January 2025): Construction Products Regulation 2024/3110 entered into force, introducing environmental sustainability declarations for construction products [6]
- Quikrete (February 2025): Closed its acquisition of Summit Materials at an enterprise value of about USD 11.5 billion, adding aggregates and cement capacity in the U.S. and British Columbia [12]
- Saint-Gobain (February 2025): Completed the acquisition of Fosroc, expanding construction chemicals in India, the Middle East and Asia-Pacific [13]
- Government of India (February 2025): Budgeted ₹11.21 lakh crore for FY2025-26 capital expenditure, sustaining demand for cement, steel and aggregates [4]
- Heidelberg Materials (June 2025): Inaugurated Brevik CCS in Norway, the first industrial-scale carbon capture facility at a cement plant [10]
- Holcim (June 2025): Completed the 100% spin-off of Amrize, its North American business, now listed on the NYSE and SIX Swiss Exchange [11]
- Heidelberg Materials (October 2025): Began delivering evoZero carbon-captured cement to customers across Europe [9]

## Report Scope

| Parameter | Details |
| --- | --- |
| Market Scope | The market covers aggregates, cement, bricks and blocks, metals and other materials used in new construction and renovation across residential, infrastructure, commercial and industrial end uses. |
| Study Period | 2021–2035 |
| Base Year | 2025 |
| Historical Data | 2021–2024 |
| Forecast Period | 2026–2035 |
| Market Size in 2025 | USD 1,640.0 Billion |
| Market Size in 2035 | USD 2,765.2 Billion |
| CAGR (2026–2035) | 5.4% |
| Fastest Growing Segments | Infrastructure (6.9% CAGR); Renovation and Repairs (6.6% CAGR); Metals (6.2% CAGR) |
| Regions Covered | North America, Europe, South America, Asia Pacific, Middle East and Africa and ROW |
| Companies Profiled | HOLCIM, CRH, Heidelberg Materials AG, Cemex S.A.B DE C.V., Martin Marietta, Saint-Gobain, Vulcan Materials Company, Buzzi S.p.A., Kingspan, Owens Corning, TATA Steel Limited, Vicat S.A. |
| Valuation Currency | USD Billion |
| Methodology | 350+ primary expert interviews; bottom-up market sizing; top-down validation; data triangulation; scenario-based forecasting; real-time project tracking |

## Frequently Asked Questions

**Q: How will CBAM affect pricing in the Construction Materials Market?**
A: Imported cement and steel entering the EU now carry a certificate cost tied to embedded emissions [7]. Producers with verified low-emission data will face lower charges and gain a price advantage over high-emission exporters in the Construction Materials Market.

**Q: What should buyers check before specifying low-carbon cement?**
A: Ask for a third-party verified environmental product declaration and confirm strength-class equivalence with the project specification. Carbon-captured products such as evoZero now come with digital traceability and third-party assurance [9].

**Q: Why are aggregates businesses attractive to investors in the Construction Materials Market?**
A: Permitted reserves take years to replicate, and transport costs keep competition local [3]. That combination gives quarry owners durable pricing power in the Construction Materials Market.

**Q: Is carbon capture viable for smaller cement plants?**
A: Not yet at most sites. Brevik captures about half of one plant's emissions with state support and a dedicated storage chain [10], so smaller producers will rely on clinker substitution first.

**Q: How do digital product passports change supplier selection?**
A: They make performance and environmental data machine-readable across the supply chain [6]. Designers can compare products automatically, which penalizes suppliers without structured data.

**Q: Which emerging use case is reshaping demand in the Construction Materials Market?**
A: Data centers. They require high-strength foundations, fire-rated boards and heavy substation civil works, and the IEA expects their electricity demand to more than double by 2030 [17].

**Q: What integration risks follow large construction chemicals acquisitions?**
A: Acquirers must harmonize formulations, approvals and distributor contracts across dozens of countries. Fosroc alone operates 20 manufacturing plants, so integration can take several years [13].


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