Construction aggregates are the most mined and grained product available in the world and are basic components of composite materials such as asphalt concrete and concrete. These materials are produced from natural deposits such as limestone, granite, and trap rock by drilling and blasting the rock into smaller pieces. Construction aggregates are used as base materials underneath highways, airports, runaway, parking lots, and railroads. This material is also used in water purification, filtration, and to control erosion of soil.
Global construction aggregates market was valued at US$ 470 Billion in 2021 exhibiting a CAGR of 6.0% during the forecast period (2022 to 2030).
Market Drivers
Growing tourism industry coupled with increasing investment in the development of recreational projects demanding heavy construction activities is expected to propel the growth of the construction aggregates market. According to the World Travel & Tourism Council’s (WTTC) report of 2021, travel and tourism grew by 4% from year 2020 to 2021, and contributed US$ 1.74 trillion to the world economy. Hence, growing travel and tourism industry is expected to foster the construction aggregates market growth.
Increasing innovation in technologies for the production of aggregates for increasing efficiency of manufacturing processes and productivity is projected to fuel the growth of the global construction aggregates market over the forecast period. For example, a German-based leading manufacturer of aggregates, Haver & Boecker’s, ‘Hydro-Clean’ washing unit cleans toxic material from aggregates and reduces water consumption by around 75% as compared to conventional log washers.
Among region, Asia Pacific dominated the global construction aggregates market in 2021 due to growth in construction activities in emerging economies such as India, China, etc., followed by North America and Europe.
Figure 1. Global Construction Aggregates Market Value Share (%), By Region, 2021
Market Restraints
High transportation cost of construction aggregates due to their heavy weight is expected to restrict the construction aggregates market growth. According to Coherent Market Insights, transportation cost amounts to around 50% of the overall administrative cost incurred on construction aggregates. Hence, the high transportation cost of construction aggregates is expected to restrain the construction aggregates market growth over the forecast timeframe.
Construction aggregates are expected to have slower market growth due to strict zoning regulations and restrictions on aggregate extraction in populous areas. Getting permission for a mining site is time-consuming and difficult process, owing to environmental laws, zoning laws, and land development laws, and it could take many years. According to Coherent Market Insights, California has 74 billion metric tons of reserves in government-approved mining land; however, mining is permitted in only 6–8% of the land.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 470 Bn |
| Historical Data for: | 2017-2020 | Estimated Year: | 2022 |
| Forecast Period 2022 to 2030 CAGR: | 6.0% | Forecast Period: | 2022-2030 |
| Geographies covered: |
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| Companies covered: |
China Resources Cement Holdings Limited, EuroCement Group, Vulcan Materials Company, LafargeHolcim, LSR Group, Adbri, Cemex, Heidelberg Cement AG, and Martin Marietta Materials. |
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Market Opportunities
Increasing investment for introducing new aggregates machinery by major players is expected to propel the global construction aggregates market growth over the forecast period. For instance, in November 2019, AR Demolition, an innovative specialist contractor offering deconstruction, demolition, and remediation services and emergency response, continued investing in the future of its business with advanced machinery worth US$ 1 million for Aggrecycle, a sister company of AR, providing a full range of aggregate services from crushing and screening to waste management.
Rising focus of manufacturers on increasing the production of aggregates is projected to propel the market growth over the forecast timeframe. For instance, in January 2019, Metso Oyj, a Finland-based industrial machinery company focusing on providing technology and services for mining, aggregates, oil and gas, recycling, pulp and paper, and other process industries, had launched a number of new art solutions for the aggregate, construction, and mining industries in Bauma. The launches include technologies and services that enable improving productivity and driving down costs.
Figure 2. Global Construction Aggregates Market Value Share (%), By Application, 2021
On the basis of application, in 2021, the infrastructure segment accounted the largest market share, in terms of revenue, followed by residential and industrial segments. The rising number of infrastructural activities in emerging economies is expected to surge the market growth in the coming years.
Recent Developments
Competitive Section
Major players operating in the global construction aggregates market include China Resources Cement Holdings Limited, EuroCement Group, Vulcan Materials Company, LafargeHolcim, LSR Group, Adbri, Cemex, and Martin Marietta Materials.
Construction aggregates are the materials used as reinforcements in construction to increase the strength of composite materials. The size of these materials ranges from finely grained to medium coarse and are available in different forms such as sand, crushed stones, slag, gravel, and others.
Market Dynamics
The market is anticipated to grow substantially in forthcoming years owing to surge in infrastructure developments across the globe, especially in emerging economies. Governments are focused on strengthening their infrastructures in transportation and energy sector to boost the economic growth of the country. Geographically, Asia Pacific is projected to witness the fastest growth in next few years on the account of the rising number of construction projects in the region.
Companies involved in the market are increasing the production of high-quality aggregates which is likely to provide more strength and durability to the composite materials. Moreover, key players are expanding their production capacity to meet the rising demands for construction aggregates. This is expected to propel the market growth in the next few years.
According to preliminary data by Invest Gate, from Q1 to Q2 of FY 2020, China's construction industry shrank by around 3.1%. The demand for aggregate product was projected to decrease throughout the course of FY 2020 due to restrictions on the flow of commodities and weak growth in the building and construction sector.
According to a report issued by the International Monetary Fund (IMF) in April 2020, the country's GDP was predicted to rebound by the second quarter of FY 2020 when imposed lockdowns were lifted and new supportive policies were put into place. This is likely to boost the market growth in China.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section
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