CLEVELAND, March 24, 2016 /PRNewswire/ -- The worldwide market for construction aggregates is projected to advance to 51.7 billion metric tons in 2019, representing an annual growth rate of 5.2 percent. Residential building applications for aggregates will be driven by upturns in the housing markets of developed countries and by rising personal incomes in developing countries, which will spur demand for more modern housing. Rising personal incomes will also create requirements for additional commercial, industrial and retail space. Infrastructure investment across the globe will bolster nonbuilding construction related aggregates sales, as well. These and other trends are presented in World Construction Aggregates, a new study from The Freedonia Group, a Cleveland-based industry research firm.
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Demand for crushed stone and alternative aggregates -- such as recycled concrete, fly ash, and slag -- will expand at twice the pace of sand and gravel in the near term. Sand and gravel reserves are shrinking across much of the world, and illegal sand mining plagues a number of developing markets that have rapidly growing sand consumption requirements. "As efforts to curb illegal mining activities have been largely unsuccessful, sand and gravel reserves in many countries are expected to be depleted at a rapid pace through 2019," notes analyst Zoe Biller. This will result in price hikes, especially in urban centers where demand for aggregates is sizable, and will lead construction firms to turn to more favorably priced items.
Gains will be fastest in the Asia/Pacific region, with India, Indonesia, Vietnam, and Malaysia recording the most rapid increases. Although growth in the Chinese market will slow going forward, China will remain by far the largest national consumer of aggregates in 2019, representing nearly half of all global sales. The Africa/Mideast region will also record rapid growth, with all major national markets recording gains above the world average. In Central and South America, a number of government-backed affordable housing programs will help resuscitate the region's residential construction industry and support aggregates market gains. An improvement in the US construction industry will boost aggregates sales for North America, while a return to growth after a long period of decline will benefit suppliers to the market in Western Europe. A healthier construction climate will also stimulate growth in Eastern Europe through 2019.
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, market share information and profiles of the leading industry players. Reports can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group