- Press Release
- Construction Aggregates Market to Surpass US$ 666.7 Billion by 2027
Construction Aggregates Market to Surpass US$ 666.7 Billion by 2027 - Coherent Market Insights
Published On : Jan 17, 2020
Construction aggregates are grained particulate materials that are widely used in the construction industry and also used in the drainage application due to its high hydraulic conductivity value as compared to soils. Moreover, construction aggregates are also used as a base material in the construction of foundations, roads, and railroads as it stables the foundation. These products include stone, sand, and gravel and are extracted from naturally occurring mineral deposits. Construction aggregates are also used in chemical, agriculture, glass, and metallurgical industry.
The global construction aggregates market was estimated to account for US$ 393.8 billion in terms of revenue in 2018 and is predicted to grow at a CAGR of 6.0% during the forecast period (2019 to 2027).
Drivers
Growing construction of large-scale infrastructure projects across developing economies is primarily fueling the market growth of the construction aggregates market. Moreover, governments of major countries are focusing on the development of transportation and strengthening energy (power generation) infrastructure is further expected to foster market growth. For instance, in December 2015, the U.S. Congress passed a US$ 305 billion, five-year highway and transit bill to strengthen the country’s infrastructure. Several infrastructure projects such as the construction of light rail corridor, office buildings, and shopping centers are underway in North America.
Market Opportunities
Rising demand for construction aggregates from water filtration and sewage treatment process is expected to offer immense growth opportunity over the forecast period. Therefore, the market is also expected to gain benefit from the rising number of water treatment plant around the globe. For instance, in October 2019, The U.S. Environmental Protection Agency announced that it has approved and helped fund a US$ 297 million plan by Maryland to implement key water infrastructure projects, including upgraded wastewater treatment plants and stormwater control measures to better serve residents, increase efficiency and reduce pollution.
Market Restraints
Rising energy cost as the manufacturer are adversely affected by rising energy costs as mining and production of aggregates require natural gas, petroleum coke, diesel, and coal. Thus, the growing cost of fuel can adversely affect the market growth of the construction aggregates. Furthermore, the construction industry is also affected during rainy seasons, hence unfavorable weather condition is also expected to hamper the market growth of the construction aggregates.
Among product type, sand dominated the global construction aggregates market in 2018 with a 43.7% of market share in terms of revenue, followed by crushed stone and gravel, respectively.
Market Trends
Increasing focus of manufacturers on recycling aggregates is gaining traction in the market and this trend is expected to augment the market growth of construction aggregates over the forecast period. Recycling of aggregates is a simple process that involves removing, breaking, and crushing of existing aggregates into fine material of desired size and quality. Moreover, recycling of aggregates help in the protection of natural resources and eliminate the need for disposal. Therefore, the growing focus of the manufacturer for recycling of aggregates is expected to propel the market growth.
Major players in the construction aggregates market are adopting strategic mergers and acquisitions in order to expand their global footprints are expected to propel the market growth of the construction aggregates. For instance, in January 2018, Natural Resource Partners L.P. announced that it has completed the previously announced sale of its construction aggregates business segment, VantaCore Partners LLC, to an affiliate of Sun Capital Partners, Inc. for US$205 million before transaction expenses and customary purchase price adjustments.
Competitive Section:
Key players active in the global construction aggregates market are HeidelbergCement AG, Martin Marietta Materials, Inc., LSR Group, LafargeHolcim, CEMEX S.A.B. de C.V., Vulcan Materials Company, CRH, Eurocement Group, and Adelaide Brighton Ltd.
Few Recent Developments
LSR Group
LafargeHolcim
Market taxonomy
By Product Type
By Application
By Region
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