Construction Materials Market Size was valued at USD 1,259.8 Billion in 2022. The Construction Materials industry is projected to grow from USD 1,312.7 Billion in 2023 to USD 1,824.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.20% during the forecast period (2023 - 2032). Government programs promoting the growth of smart cities, infrastructural development and environmentally friendly building techniques, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Various governments are looking at smarter solutions to manage traffic complexity, increase efficiency, and improve the quality of life due to rising urbanization and rapid expansion of remote locations. Cities now need to monitor and integrate infrastructure in order to maximize services to inhabitants and make the most use of available resources. Through innovative technologies like data-driven traffic management and intelligent lighting systems, the smart city program seeks to support inclusive and sustainable communities that provide the essential infrastructure for a good standard of living and a healthy environment. The goal is to take a close look at crowded areas and develop a repeatable model to act as a guide for other aspirant cities.
The industry is primarily driven by an increase in government spending on infrastructure development, including building and infrastructure projects. Concrete and wall cladding, as well as precast materials and elements, are used in several industries, including tunnel construction. With an expected two billion more people living in cities by 2040, there will be a significant increase in the demand for infrastructure such highways, subways, tunnels, common areas, and commercial facilities. The need for advanced material for construction applications is being driven by the need for products with shorter production times and lower costs. Additionally, using precast materials and parts as well as ready-mix concrete cuts down significantly on building time. For instance, precast concrete pavement allowed for the construction of a road in Nagpur, India, in just six hours in February 2020, as opposed to the usual eight to ten days or longer. Similar to this, Gage Brothers Concrete Products used precast concrete components to construct a 440,000 square foot N95 manufacturing facility in approximately 52 days in January 2021.
One of the key market-driving aspects is the advancement of production technologies for advanced building materials. Advance construction materials are likewise being offered by many significant innovators. For instance, Kingspan Group acquired Ondura in September 2021 in order to grow its roofing and waterproofing business across Europe and North America. These elements are fueling the demand for innovative building materials. When compared to conventional construction materials, the cost of producing advanced building materials is higher. To operate on these advanced materials, advanced machinery is needed. Customers who don't need equipment constantly or for a long time are therefore unable to purchase such a costly gadget. Additionally, not all consumers have the financial means to purchase such pricey equipment. The market's expansion is hampered by the higher cost of modern construction materials. Alternative building materials are also green materials because they are entirely eco-friendly and produce no hazardous gases or radiation. Therefore, the market for innovative building materials is constrained by the rise of environmentally friendly construction materials. Thus, driving the Construction Materials market revenue.
The Construction Materials market segmentation, based on material type, includes aggregates, cement, bricks and blocks, metals, and others. Aggregates segment accounted for the largest revenue share in 2022. The construction industry's explosive rise across a number of developing nations is to blame for the segment's expansion. There are several applications for aggregates in the building sector. Most frequently, asphalt concrete, portland cement concrete, backfill, railroad ballast, roadway base course, and erosion control use construction aggregates. Bridges, public and private structures, roads and highways, airports, and seaports all contain construction aggregates.
The Construction Materials market segmentation, based on end user, includes residential, infrastructure, commercial, and industrial. Residential segment dominated the Construction Materials market in 2022.In the upcoming years, China's residential market is anticipated to expand at a promising rate. China had a 64.7 percent urbanization rate as of 2022; by 2035, this rate is expected to increase to 75-80%. Banks in around 90 Chinese cities lowered mortgage rates in February 2022 in an effort to increase consumer demand and purchasing power in the nation's residential real estate sector. According to estimates, the German real estate market generated a record-breaking € 337 billion ($381.61 billion) in turnover in 2021. Germany's hotel sector is expected to grow in the upcoming years with the construction of 364 new buildings and 57,926 more rooms. The largest seaport in Germany is located in Hamburg, which will soon have 23 new hotels and 5,625 more rooms. 19 hotels are anticipated to open in Berlin's capital city, adding a total of 4,121 new rooms. 96 new properties and 15,485 additional rooms are predicted to enter the French hotel market during the projection period. As a result, the development of new hotels greatly contributes to the expansion of the commercial sector segment.
Figure 1: Construction Materials Market, by End User, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Construction Materials Market dominated this market in 2022 (45.80%). Due to the existence of countries with good economic policies, high GDP, early adoption of cutting-edge infrastructure, and a thriving ecosystem of the construction sector, North America is the most developed continent. In Canada, the number of immigrants has significantly increased in recent years. Population growth in Canada is roughly two times as fast as it is in the other G7 nations. The 1.8 million population increase in Canada between 2016 and 2021 can be attributed to the new newcomers, who may be temporary or permanent residents. Despite the fact that the COVID-19 epidemic hindered migration, close to 185,000 permanent immigrants entered Canada in fiscal year 2020. As a result, the residential real estate market in Canada is experiencing tremendous growth.Further, the U.S. Construction Materials market held the largest market share, and the Canada Construction Materials market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: CONSTRUCTION MATERIALS MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Construction Materials market accounted for the healthy market share in 2022.The rapid expansion of the region's residential market is a factor in the industry growth in Europe. High per capita income and customer preference for owning two homes and using the third to generate money through leasing or rentals. The use of these resources is also anticipated to increase as a result of the existence of a few large materials firms in the area.Further, the German Construction Materials market held the largest market share, and the U.K Construction Materials market was the fastest growing market in the European region.
The Asia Pacific Construction Materials market is expected to register significant growth from 2023 to 2032. Over the course of the forecast period, the Asia Pacific (APAC) is anticipated to be a lucrative area for the construction material market. The government's programs to support housing for all, rising income levels, and people's preference for personal housing all contribute to the expansion of the residential construction sector in the APAC area. In Australia, it is anticipated that 178,000 new homes would be built during the 2025 fiscal year. Moreover, China’s Construction Materials market held the largest market share, and the Indian Construction Materials market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Construction Materials market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Construction Materials industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Construction Materials industry to benefit clients and increase the market sector. In recent years, the Construction Materials industry has offered some of the most significant advantages to medicine. Major players in the Construction Materials market, including China National Building Material Co., Ltd., CRH PLC, LafargeHolcim Ltd., BBMG Corporation Ltd., HeidelbergCement AG, CEMEX S.A.B. de C.V., Knauf Gips KG, Lixil Group Corporation, Anhui Conch Cement Co., Ltd., and Boral Limited, are attempting to increase market demand by investing in research and development Material Types.
Adani Enterprises Ltd. (Adani), a division of the Adani Group, is a diversified business that engages in the production of edible oil, solar modules, and coal logistics. The company's coal mining operations include asset mining, processing, acquisition, exploration, and development. The business operates coal mines in Australia, Indonesia, and India. Adani provides comprehensive infrastructure for food product handling, storage, and transportation. It runs contemporary controlled environment storage facilities in the Indian Shimla District towns of Rewali, Sainj, and Rohru. In Mundra Special Economic Zone (SEZ), it runs a manufacturing unit for solar photovoltaics. The headquarters of Adani are in Ahmadabad, Gujarat, India. The National Highways Authority of India (NHAI) issued a Letter of Award (LoA) to Adani Road Transport (ARTL) in April 2022 for a road project valued $ 242.71 million (about 2,008.47 crores).
The company CEMEX SAB de CV (CEMEX) produces building supplies. It produces and distributes building supplies such as cement, ready-mix concrete, aggregates, clinker, and others. The business also sells precast items such rail, concrete floors, box culverts, bridges, drainage basins, barriers, and parking curbs as well as asphalt, concrete blocks, concrete pipes, and these other materials. The cement products sold by CEMEX include oil-well, blended, masonry, mortar, white Portland, gray ordinary Portland, and white Portland. Additionally, it provides services including bulk cement dispatch systems resembling ATMs, customer-focused educational and training programs, finance for construction, mobile solutions, and online services. The corporation conducts business throughout the Americas, the Middle East, Africa, and Asia-Pacific. In San Pedro Garza Garcia, Nuevo Leon, Mexico, CEMEX has its headquarters. The Carbon Neutral Alliance, a network of 20 governmental and private organizations for the renewable energy generation effort, was established in May 2022 by CEMEX, S.A.B. de C.V. and its partners.
China National Building Material Co., Ltd.
CRH PLC
BBMG Corporation Ltd.
HeidelbergCement AG
CEMEX S.A.B. de C.V.
Knauf Gips KG
Lixil Group Corporation
Anhui Conch Cement Co., Ltd.
March 2022: The EU Horizon program has awarded financing to the LEILAC-2 carbon capture project, according to a statement from Calix and Heidelberg Cement. The project sought to capture almost 100,000 tons of CO2 annually, or 20% of the CO2 emissions from the Hanover cement plant.
Aggregates
Cement
Bricks and Blocks
Metals
Others
Residential
Infrastructure
Commercial
Industrial
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 1,259.8 Billion |
| Market Size 2023 | USD 1,312.7 Billion |
| Market Size 2032 | USD 1,824.4 Billion |
| Compound Annual Growth Rate (CAGR) | 4.20% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Material Type, End User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | China National Building Material Co., Ltd., CRH PLC, LafargeHolcim Ltd., BBMG Corporation Ltd., HeidelbergCement AG, CEMEX S.A.B. de C.V., Knauf Gips KG, Lixil Group Corporation, Anhui Conch Cement Co., Ltd., and Boral Limited |
| Key Market Opportunities | Adoption of Smart Technologies and Sustainable Materials |
| Key Market Dynamics | Government Initiatives Favoring an Increase in the Number of Smart Cities, Infrastructure Development, and Sustainable Construction Practices |
Construction Materials Market Highlights:
Frequently Asked Questions (FAQ) :
The Construction Materials market size was valued at USD 1,259.8 Billion in 2022.
The market is projected to grow at a CAGR of 4.20% during the forecast period, 2023-2032
North America had the largest share in the market
The key players in the market are China National Building Material Co., Ltd., CRH PLC, LafargeHolcim Ltd., BBMG Corporation Ltd., HeidelbergCement AG, CEMEX S.A.B. de C.V., Knauf Gips KG, Lixil Group Corporation, Anhui Conch Cement Co., Ltd., and Boral Limited
The Aggregates Material Type dominated the market in 2022.
The Residential End User had the largest share in the market.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
