Aggregates Market to Grow by USD 51.86 Billion (2024-2028), Driven by Construction Sector Investments, with AI Driving Market Transformation - Technavio

NEW YORK, Nov. 18, 2024 /PRNewswire/ -- Report with the AI impact on market trends - The global aggregates market size is estimated to grow by USD 51.86 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  5.2%  during the forecast period. Rising investments in construction sector is driving market growth, with a trend towards increasing preference for pea gravel over crushed stone. However, illegal mining activities  poses a challenge.Key market players include Anglo American plc, Boral Ltd., Buzzi SpA, CEMEX SAB de CV, China Resources Holdings Co. Ltd., CRH Plc, EUROCEMENT Group, Fisher Sand and Gravel Co., HeidelbergCement AG, Holcim Ltd., Irving Materials Inc., LSR Group, Martin Marietta Materials Inc., Rogers Group Inc., Sika AG, UEM Group Berhad, Vicat, Vulcan Materials Co., Adbri Ltd., and Carmeuse Coordination Center SA.

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Market Driver

The aggregates market is experiencing significant growth, particularly in emerging economies where infrastructure development is a priority. Cement, concrete manufacturing, and railway ballast are key applications, with demand driven by transport infrastructure projects. The construction sector, including road base & coverings, crushed stone, sand, gravel, concrete blocks, pipes, bricks, and high-rise buildings, also contributes to market growth. Natural sediments like granite and limestone, as well as composite materials, are popular foundation materials for infrastructure projects such as airport runways, highways, railroads, parking lots, and water filtration & purification systems. Infrastructure problems due to urbanization and industrialization necessitate investment in new projects. The application segments of roadway and railway are major consumers, with the Bipartisan Infrastructure Law boosting demand. Major aggregate producers face volatility due to factors like inflation, oil & gas prices, shipping costs, and interest rates. The manufacturing process must prioritize efficiency and productivity to deliver high-quality products. Digital transformation, such as the Hydro-Clean washing unit by Haver & Boecker, streamlines the process and reduces transportation costs. The coronavirus pandemic has disrupted supply chains, causing price fluctuations. Aggregates are essential for infrastructure development, from infrastructure projects to tourism activities. The United Nations and World Bank the importance of sustainable infrastructure development to meet the needs of the growing global population. 

The global aggregates market is experiencing a trend towards the use of pea gravel over crushed stone for various applications. Pea gravel, also known as pea stones, consists of small, round stones approximately the size of peas. These stones are preferred for above-ground projects due to their smooth finish and various color options, which make them an excellent complement to landscaping. In high-traffic areas, such as playgrounds, patios, and walkways, pea gravel is a popular choice due to its ease of use and durability. Additionally, pea gravel is increasingly used in underground projects, including pipe bedding and drainage, as well as fence post installation aggregate. Its small size and round shape make it an effective and efficient solution for these applications. 

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Market Challenges

• The aggregates market is experiencing significant growth due to the increasing demand for infrastructure development in emerging economies. However, challenges persist in the form of transport infrastructure limitations, which impact the cost and efficiency of cement, concrete manufacturing, and the transportation of crushed stone, sand, gravel, and other aggregates. Cement, concrete blocks, pipes, bricks, and high-rise buildings are major applications for aggregates in roadways, railway, and new infrastructure projects. Natural sediments like granite and limestone, as well as composite materials, are essential foundation materials for airport runways, highways, railroads, parking lots, and water filtration and purification systems. Infrastructure problems caused by urbanization and industrialization necessitate the production of high-quality products using digital transformation and advanced manufacturing processes. Major aggregate producers face volatility in prices due to inflation, oil & gas prices, shipping costs, and interest rates. The coronavirus pandemic has added to the challenges, causing disruptions in drilling, blasting, and transportation. The Bipartisan Infrastructure Law aims to address transportation cost issues and improve overall efficiency. The United Nations and the World Bank are also investing in infrastructure development to accommodate the growing global population and its urban and commercial needs. Triple Five Group's American Dream Mall and tourism activities are just a few examples of the infrastructure development that requires aggregates.
• The global aggregates market, particularly the sand segment, faces significant challenges from illegal mining activities. This issue is particularly prevalent in countries like India, where natural resources are being excessively exploited. The unregulated nature of the aggregates market contributes to the rise of these illegal activities. In India, sand mining has become a major concern, with it being referred to as a black market due to the large quantities of aggregates extracted annually without proper authorization. The depletion of natural resources and political pressures have led to an increase in the production of manufactured sand (M-sand), which is a more sustainable alternative as it does not require the extraction of natural resources.

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Segment Overview 

This aggregates market report extensively covers market segmentation by  

1. Application 
• 1.1 Concrete
• 1.2 Road base and coverings
• 1.3 Others
2. Product 
• 2.1 Crushed stone
• 2.2 Sand and gravel
• 2.3 Others
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Concrete-  The aggregates market encompasses various types of materials used in construction applications, including sand, gravel, granite, and crushed stones. Sand, derived from disintegrated rocks, is a crucial component in construction, providing strength and enhancing the properties of concrete and asphalt. Coarse sand, river sand, manufactured sand, and m-sand are common types. M-sand, obtained from crushed hard granite stones, is increasingly used as a substitute for river sand. Coarse sand is utilized in the production of ready-mix concrete, while river sand is widely employed for concreting and plastering. Crushed stones are essential for constructing railroads, airports, highways, buildings, factories, and water and sewage systems. Gravel aggregates, derived from quarried rock sifting and natural stone crushing, are cost-effective alternatives to granite aggregates. They are used in concretes, foundations, and reinforced concrete products. The demand for these aggregates, particularly in the concrete segment, is expected to drive the growth of the global aggregates market.

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Research Analysis

The aggregates market encompasses a wide range of minerals including crushed stone, sand, gravel, cement, concrete manufacturing materials, and natural sediments. These essential raw materials play a crucial role in the development of transport infrastructure, particularly in emerging economies. Applications span across various sectors such as roadway, railway, new infrastructure projects, and industrial construction. Aggregates are integral to the production of concrete blocks, pipes, bricks, high-rise buildings, and composite materials. They serve as foundation materials for highways, railroads, airport runways, and parking lots. Additionally, they are used in water filtration and purification systems, as well as soil erosion control. Natural sediments like sand, gravel, and crushed stone are extracted through drilling, blasting, or quarrying. Limestone and granite are popular choices for their durability and versatility. Aggregates' economic significance is reflected in their correlation with a country's GDP growth. The market's demand is driven by the increasing need for infrastructure development and urbanization.

Market Research Overview

The aggregates market is experiencing significant growth due to the increasing demand for transport infrastructure development in emerging economies. Cement, concrete manufacturing, railway ballast, road base & coverings, crushed stone, sand, and gravel are among the key raw materials driving this growth. The GDP of these economies is expanding, leading to an increase in infrastructure projects, including high-rise buildings, airports, highways, railroads, and parking lots. Natural sediments such as sand, gravel, and crushed stone are extracted through various methods like drilling, blasting, and quarrying. Composite materials and natural sediments like granite and limestone are also used as foundation materials. Infrastructure problems caused by urbanization and industrialization are driving the need for infrastructure development. The United Nations and World Bank are investing in new infrastructure projects to address these issues. The application segments for aggregates include roadway and railway. The use of aggregates extends beyond infrastructure projects to include applications in composite materials, natural sand, water filtration, and purification. The construction materials industry is also experiencing digital transformation, with companies investing in high-quality products and efficient manufacturing processes. The market is facing challenges such as inflation, volatility in prices, transportation cost, and interest rates. The coronavirus pandemic has also affected the market, leading to supply chain disruptions and increased shipping costs. Despite these challenges, major aggregate producers are adapting to the changing market conditions and exploring new transportation modes like trucks, trains, and ships to meet the growing demand.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Concrete
• Road Base And Coverings
• Others
• Product
• Crushed Stone
• Sand And Gravel
• Others
• Geography
• APAC
• Europe
• North America
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio