The global concrete and cement market size is estimated to grow by $438.3bn from 2024-2028, according to Technavio research report.
The market is anticipated to expand at a compound annual growth rate (CAGR) of over 6.36 per cent during the forecast period.
Growing global construction market is driving market growth, with a trend towards rapid urbanization and rising disposable income, however, increase in overall construction cost poses a challenge, the report seen by NewsNGR said.
The report noted that the economic advancements in countries like India, Vietnam, Malaysia, China, and Qatar have resulted in a significant increase in consumer disposable incomes and rapid urbanization.
This economic growth has led to a rise in purchasing power, which in turn, will boost spending on residential and non-residential infrastructure projects.
According to The World Bank Group, China’s GDP per capita grew from $9,976.68 in 2018 to $10,261.68 in 2019, while India’s GDP per capita increased from $2,005.86 in 2018 to $2,099.60 in 2019.
The report noted that the global construction market is expected to grow due to the increasing demand for infrastructure projects in these regions.
Concrete is a popular choice for construction due to its ability to reduce shrinkage and cracking tendencies of cement, increase resistance to weathering, and minimize volume change from drying.
With an anticipated urban population growth from 4.19bn in 2018 to 4.27bn in 2019 and an additional 2bn people expected to live in urban and semi-urban areas by 2050, the demand for concrete and cement is poised to increase significantly.
On the market challenges, the report noted that construction industry relies heavily on various building materials, including cement, concrete, steel, bricks, and aggregates.
Cement and steel account for approximately 19 per cent of the total construction cost each.
According to the report, the availability and pricing of these materials can significantly impact construction costs, as a rise in the price of one material increases the overall cost.
In Europe, economically stable countries like the UK, France, and Germany can manage price hikes.
It noted, however, that volatile economic conditions in countries like Nigeria and Namibia make it challenging to cope with price increases.
“White cement, a premium type of cement, is popular for its clean and consistent designs. However, its production requires 40 per cent more energy than regular gray cement, leading to higher operating costs.
High taxes and manufacturing site costs in developing countries like India further increase white cement prices, potentially hindering the growth of the global white cement market and, consequently, the concrete and cement market,” the report said.
It stated that the cement and concrete market faces several challenges in supplying essential building materials for urban development adding that aggregate sources, including sand, gravel, and crushed stone, can impact availability and pricing.
“Manufacturing concrete pipes, bricks, paving blocks, and other structural components requires a consistent supply of cement.
Cement production is energy-intensive, relying heavily on coal supply and the burning process. International standards for concrete quality, such as those for ready-mix concrete and batch plants, must be met.
Urban centers, particularly those with high-rise buildings and infrastructure investments, have increasing demands for concrete and cement.
Threats include regulatory standards and competition from alternative building materials. Drivers include the construction boom, infrastructure investments, and urbanization in developing markets,” the report noted.