Global construction aggregates market is estimated to be valued at USD 437.73 Bn in 2024, exhibiting a CAGR of 4.8% over the forecast period 2024-2031. The market is anticipated to witness steady growth over the forecast period driven by rising infrastructure development projects around the world as well as rapid urbanization in developing nations. Furthermore, the growth of construction industry especially in Asia Pacific and Middle East region will boost demand for construction aggregates in the near future.
Rising government expenditure on infrastructural projects such as roads, highways, railways, airports, and others across both developed and developing economies is a key driver boosting demand for construction aggregates globally. Government investment in infrastructure helps in the overall economic development and substantially boosts employment and business opportunities. For instance, the U.S. government increased the infrastructure spending by 35% from 2021 levels in 2022 budget to strengthen transport networks and drive post-pandemic recovery
Growing urbanization is another major factor augmenting the construction aggregates market growth. Rapid migration towards cities due to availability of better livelihood opportunities has increased urban population worldwide. This has created demand for housing, commercial buildings and other urban infrastructure, leading to higher consumption of aggregates.
Infrastructure development boosts demand for construction aggregates
One of the major drivers propelling the growth of the global construction aggregates market is ongoing infrastructure development projects across both developing and developed nations. Governments around the world are investing heavily in building and modernizing infrastructure like roads, bridges, rail networks, airports, seaports, and others which requires large volumes of crushed stone, sand, gravel and other aggregates. For example, China's ambitious 'Belt and Road Initiative' connecting Asia with Africa and Europe involves massive infrastructure projects that are expected to boost demand for aggregates in the near future. Infrastructure stimulus packages in countries like the U.S., India and several European nations will support aggregates consumption.
Residential and commercial construction can drive the market growth
Rising urbanization coupled with population growth leads to construction of new residential and commercial buildings at a large scale globally. Mega-cities are emerging and expanding rapidly requiring housing, offices, malls and other real estate structures. This real estate boom particularly in developing economies is significantly fueling the need for construction aggregates as concrete, cement and asphalt are the primary raw materials used in building activities. The global residential construction sector alone consumed over 7 billion tons of crushed stone, sand and gravel in 2019. The market is forecast to witness growth even further with the affordable housing programs being implemented in nations with large housing backlogs like India, Indonesia and Brazil
Regulatory restrictions can limit mining of natural resources
One major restraint limiting the growth potential of the global construction aggregates market is the increasing regulatory restrictions and challenges pertaining to mining and extraction of natural resources. Governments are placing stricter environmental laws related to land usage, resource conservation, emissions control, rehabilitation of mined areas, and others to balance economic development and sustainability goals. This leads to longer approval timelines, higher production costs and possible project cancellations for aggregate producers. Shortage of viable mining land near urban centers due to urban sprawl is another constraint. The industry will have to find innovative solutions to overcome such policy hurdles to meet rising demand in a responsible way.
Rising input and transportation costs squeeze margins
Continuously rising input costs like diesel, labor and minerals are squeezing profit margins for construction aggregates producers worldwide. Fuel prices directly impact transportation needs for moving raw materials and finished products. Labor costs are also trending upwards due to shortage of skilled workforce. The industry needs to find ways to optimize operations and logistics while passing on at least partial cost increases to customers to maintain the financial health of organizations.
Growing demand for recycled construction waste
One major opportunity for the aggregates industry lies in utilizing and processing construction and demolition waste into usable materials. Rapid urbanization and infrastructure building leads to massive amounts of construction waste generated annually across cities. There is a growing emphasis on recycling and reusing this debris instead of disposing it in landfills. Producers offering solutions to collect, process and supply recycled aggregates catering to various construction applications can gain edge. Governments may also provide incentives for 'green' and sustainable materials to promote the circular economy concept. This presents new revenue streams for innovating firms.
Public-private partnerships can boost project pipeline
Engaging in public-private partnerships is another key opportunity area where construction aggregates producers can partner with governments on major infrastructure initiatives helping to develop a strong long-term project pipeline. Such collaborations allow risk and resources sharing while ensuring regular work orders. Overall, the aggregates sector remains well-positioned to capture new prospects arising from supportive policy frameworks and evolving construction materials market dynamics.
Link - https://www.coherentmarketinsights.com/market-insight/construction-aggregates-market-2163
Key Developments
- On August 23, 2022, AggMaps, a digital technology platform for contractors and aggregate suppliers, launched its website and digital marketplace. The platform streamlines the process of sourcing, delivering, and purchasing construction aggregates. AggMaps currently showcases comprehensive price lists for over 700 locations across the U.S. The website enables users to swiftly identify and locate quarries and pits that produce construction aggregates such as crushed stone, construction sand & gravel, and recycled aggregates.
- In December 2023, Aggregate Industries opened a new Ready Mix Concrete Plant in Shoreham, and announced a new apprenticeship scheme for 2024
- On April 22, 2021, CEMEX announced the acquisition of a new floating bucket chain dredger which will boost its gravel production in Germany and is its largest investment in a CEMEX gravel plant in the last ten years.
- In September 2021, Martin Marietta Materials, a supplier of aggregates and heavy building materials, acquired Ferrovial’s U.S. unit Southern Crushed Concrete (SSC), a producer of recycled concrete and asphalt, for US$ 140 million. Martin Marietta Materials has been strengthening its geographic footprint with solid buyouts in Southeast Texas.
Key Players
Adbri Ltd (Adbri), Big City Crushed Concrete, CEMEX S.A.B. de C.V., CRH Plc. (CRH), Delta Sand & Gravel, Eurocement Group, Ferma Corp, Green Stone Materials, Heidelberg Cement AG, Holcim, Independence Recycling of Florida, Martin Marietta Materials, Rogers Group Inc., Tarmac, Top Grade Site Management, LLC, Vulcan Materials Company, China Resources Cement Holdings Limited, Royal Mineral.