Global Construction Aggregates Market Size Analysis

According to a research survey conducted by ChemView Consulting, in 2022, the Global Construction Aggregates Market was worth US$ 3,87,144.0 Mn and is expected to grow at a CAGR of 5.3% over the forecast period. While the historical CAGR is 4.8%, the market is expected to hit US$ 6,48,867.8 Mn by 2032 end.

Construction aggregates, essential components of composite materials like asphalt and concrete, are the most mined commodity in the world. By drilling down the larger rocks to tiny bits, these materials are created from natural resources, including limestone, rock traps, and granite. Under roads, airports, runways, parking lots, and trains, construction aggregates are employed as the foundational material. Additionally, this substance filters, prevent, and purifies water.

Other major market drivers include expanding the construction industry and rising construction spending, particularly in developing economies such as India and the Middle East. High transportation costs, stringent zoning regulations, seasonal factors, and increasing energy costs, on the other hand, are expected to limit the market growth.

During 2017-2032, the infrastructure segment will continue to account for the largest share of the total construction aggregates market and is expected to expand at a healthy CAGR. Sand will continue to be the most profitable product type; however, the crushed stone segment is expected to grow at a faster CAGR of 7.4% during the forecast period.

ChemView Consulting has analyzed that the construction industry is being pushed by digital transformation to improve project management, transparency, and cost efficiency. Construction companies implement advanced technologies such as Building Information Modeling (BIM), drones, and 3D printing to optimize their construction processes. This is expected to boost demand for construction aggregates over the forecast period.

Market Dynamic

RESIDENTIAL PROJECTS DRIVING CONSTRUCTION AGGREGATES SALES

Population growth and rapid urbanization which has increased aggregate construction sales. Governments in numerous nations have been driven to provide incentives for residential construction due to population migration from rural to urban areas. For instance, the Indian government’s Pradhan Mantri Awas Yojna – A housing For All program, grants home loans to individuals to help them construct necessary dwelling areas.

MANUFACTURED SAND WILL EMERGE AS AN ALTERNATIVE TO NATURAL SAND

Natural sand from riverbeds is being depleted due to rising natural sand usage in construction projects. As a result of ongoing sand mining activities around the world, strict environmental and land use regulations have been put in place, making the extraction of natural sand challenging and expensive.

If not processed appropriately, natural sand’s high silt and clay concentration make it challenging to mix with the concrete. In addition, high-quality sand pits are frequently found in isolated areas, which drives transportation expenses.

Due to these considerations, contractors are actively switching from natural sand to synthetic sand. Crushing rocks and quarry stones into tiny, sand-size particles creates manufactured sand. It is possible to successfully convert low-value by-products of rock crushing into high-value manufactured sand.

DIGITAL TRANSFORMATION IS DRIVING THE CONSTRUCTION INDUSTRY TOWARD IMPROVED PROJECT MANAGEMENT, TRANSPARENCY, AND COST EFFICIENCY

Digital transformations in the construction industry have introduced a new approach, allowing key construction companies and the workforce to adopt a technology framework that will assist them in meeting the industry’s current challenges.

The adoption of Building Information Modeling (BIM) hastened digital transformation in the construction industry. BIM aids in time management, cost planning, raw material sustainability, waste reduction, and improved overall project performance.

Market Segments Covered in Report

By Type:

• Crushed Stone
• Sand & Gravels
• Recycled Aggregates
• Other

By Application:

• Commercial
• Residential
• Industrial
• Infrastructure

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why does Sand & Gravel remain the dominant product type?

Sand will continue to be the most profitable product type; however, the crushed stone segment is expected to grow at a faster CAGR of 7.4% during the forecast period.

Sand and gravel’s easy availability and affordability will promote wider adoption in the construction industry. Cement, an essential binding ingredient in the building industry, is made from sand and gravel.

Cement will be used extensively as the housing sector expands in many nations, including India, China, and the United States. Additionally, the market’s sales will be boosted by crushed stone’s remarkable mechanical qualities and plentiful availability.

Why is it anticipated that Residential Segment would be the most popular and rapidly expanding application?

Strong economic growth in developing nations and low-interest rates in many wealthy countries are driving up demand for residential real estate. The market is predicted to expand during the forecast due to several factors, such as increased private building investments, technological advancements, and rising disposable income. The government’s increased investment in housing and infrastructure is also encouraging market expansion.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, the Middle East, and Africa.

• With a market share of 56.2%, the building aggregate sector will likely continue to be primarily funded by transforming rural areas in the Asia Pacific into cosmopolitan urban centers.
• Europe is now working on several infrastructure projects, including the construction of light rail lines, apartment buildings, and retail spaces. It encourages the market in the area to expand.
• The construction aggregates market in China is expected to reach US$ 143.3 billion in 2021 due to the country’s increasing urbanization and industrialization. Infrastructure projects such as roadways, railways, and basic roads in rural areas are expected to drive demand for construction aggregates in China and residential projects.
• The United States is expected to grow rapidly during the forecast period owing to investments by governments toward the expansion of roadways and infrastructure. The US Department of Transportation has proposed US$ 905.25 million in rewards for the fiscal year 2021. These funds will be used to develop 24 projects in 18 states through the Infrastructure for Rebuilding America (INFRA) grant program.

Competition Analysis

Major players focus on production facility expansions and product innovations to develop sustainable construction aggregates. Along with product innovations, players seek strategic alliances with regional players to expand their geographic footprint in the market.

The global market is extremely competitive, and most businesses have extensive distribution networks extending over numerous geographic areas and are completely integrated along the whole value chain. Companies compete based on various variables, such as an aggressive price approach to increase their market share.

The key developments in the Global Construction Aggregates Market are:

• In July 2021, With its subsidiary firm Geocycle, Lafarge Holcim announced a research study under a partnership agreement focused on recycling minerals. The research project aims to determine how construction demolition waste can be used for energy recovery and the manufacturing of construction aggregates. It will be carried out in partnership with the US Army Corps of Engineers Research and Development Centre (ERDC).
• In June 2021, the construction of a carbon-neutral factory in Sweden was announced by Heidelberg Cement AG. The company will be able to cut carbon emissions by 1.8 million metric tonnes of carbon dioxide annually thanks to the new facility, which is anticipated to be the first carbon-neutral cement plant in the entire globe.
• In May 2015, to increase the capacity of its facility in the Philippines, Cemex SAB de CV ADR announced intentions to invest US$ 300 Mn.

A list of some of the key suppliers present in the market are:

• Heidelberg Cement AG
• Martin Marietta Materials Inc.
• LSR Group
• Lafarge Holcim Ltd
• Cemex SAB de CV ADR
• Vulcan Materials Company
• CRH plc
• Adelaide Brighton Ltd
• Eurocement Group
• Rogers Group Inc.
• China Resources Cement Holdings Limited

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.

• Report Includes

  Market Size Data

  • Global market size data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment and region
  • Regional level market size data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment and country
  • Country level market share data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment
  • Market attractiveness analysis based on market share index and CAGR index for each of the segments and regions
  • Incremental dollar opportunity generated in the forecast period would be indicated
  • Key Takeaways, Recommendations, and key investment pockets for the relevant segments would be highlighted

  Market Background

  • Macroeconomic factors that impact the market developments
  • Market dynamics (Drivers, Restraints, Opportunities) that positively or negatively influence market growth
  • Supply Side and Demand Side trends – trends witnessed from buyers and suppliers side
  • Production and Consumption Gap Analysis – analysis of gap between production and consumption in any geography to fulfil unmet demand
  • Trade analysis and analysis of key supply and demand hubs
  • Identification of hotbed opportunities existing in the market
  • Porter’s and PEST analysis to understand the business environment of the geography
  • Regulatory scenario – Identification of key sector specific and trade regulations, and assessment of whether it helps or hinder market development & growth

  Pricing Analysis

  • Regional-level product pricing analysis to set and benchmark your current or future product offerings across each product type
  • Historical and projected pricing trends of the product which helps in determining the product’s price and/or services beneficial for companies product lifecycle
  • Cost teardown analysis and key factors impacting pricing

  Value Chain Analysis

  • Country-wise list of raw material suppliers
    • Raw material price trends and buyers’ sentiment
    • Overview of Intelligent Sourcing Technique
    • Raw material procurement requirements
    • Vendor selection criteria
  • Country-wise list of product manufacturers
  • Country-wise list of distributors/traders
  • Country-wise list of end-users
    • End-Users/Customers consumption mapping
    • Key End-Users/Customers client list
  • Country-wise list of other key channel partners
  • Average profitability margins
  • Regional value chain dynamics

  Competition Analysis

  • Market shares and production capacities of key players
  • Tier structure analysis of market
  • Comprehensive competition dashboard representing the top 10-15 players in the market
  • Individual company profiles of top 15 to 20 manufacturers
    • Business Overview
    • Product Portfolio
    • Key Financials
    • Recent Developments
    • SWOT Analysis
    • Strategies

Country Coverage
North America: U.S., Canada
Latin America: Brazil, Mexico, Argentina, Central America, Rest of Latin America
Western Europe: Germany, Italy, France, UK, Spain, Poland, Romania, Rest of Western Europe
Eastern Europe: Russia & Belarus, Balkan Countries, Baltic Countries, Central Asia, Rest of Eastern Europe
Middle East & Africa: KSA, UAE, Turkey, Israel, Northern Africa, South Africa, Rest of Middle East & Africa
East Asia: China, Japan, South Korea
South Asia & Pacific: India, ASEAN, Australia & New Zealand, Rest of South Asia & Pacific

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