Concrete and Cement Market size to record USD 469.01 billion growth from 2023-2027, Rapid urbanization and rising disposable income is one of the key market trends, Technavio

NEW YORK, May 2, 2024 /PRNewswire/ -- The global concrete and cement market size is estimated to grow by USD 469.01 billion from 2023 to 2027, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of over 7.1% during the forecast period.

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Key Trends Fueling Growth

• Rapid urbanization and rising disposable income: 
  • Economic advancements in India, Vietnam, Malaysia, China, and Qatar have boosted consumer incomes and urbanization. Rising incomes have bolstered people's purchasing power. In China, GDP per capita climbed from $9,976.68 in 2018 to $10,261.68 in 2019. Similarly, India saw an increase from $2,005.86 in 2018 to $2,099.60 in 2019.
  • This surge in spending potential is expected to drive growth in the global construction sector, particularly in residential and non-residential infrastructure. The global population, which reached 4.27 billion in urban areas in 2019, is forecasted to grow by 2 billion by 2050, mostly in Asia-Pacific and the Middle East.
  • Consequently, demand for residential and non-residential projects will soar in these regions, propelling the need for concrete and cement. Concrete's properties, such as reduced shrinkage and cracking, along with enhanced weather resistance, make it indispensable in various construction projects. With increasing disposable incomes and urbanization, the demand for concrete and cement is set to rise steadily.

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Major Challenges:

• Increase in overall construction cost 
  • Building materials such as stainless steel, hardened steel, cast iron, cement, concrete, bricks, and aggregates are widely used in construction. The cost of cement accounts for nearly 10% of the total construction cost. The cost of steel is about 9% of the total construction cost, and other materials account for nearly 27% of the total construction cost.  
  • The availability of these materials leads to variable pricing, wherein the rise in the price of one building material increases the total cost of construction, leading to the requirement of additional investments in the total construction cost. Construction players in European countries, such as the UK, France, and Germany, are economically strong and can manage price hikes in ongoing construction projects.
  • However, African countries, such as Nigeria and Namibia, are unable to manage price hikes because of the volatile economic conditions in these countries. White cement is a type of cement, which is widely used to ensure clean, colorful, consistent designs. However, white cement is more expensive than gray cement, as white cement production generally requires 40% higher energy than normal gray cement production.
  • The operating cost of white cement in developing countries, such as India, is high, owing to high taxes imposed by the government and high operating costs in manufacturing sites, which increase the price of white cement. Such high costs will hamper the growth of the global white cement market, which, in turn, will impact the growth of the global concrete and cement market during the forecast period.

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Analyst Review

The concrete and cement market encompasses a range of vital components crucial for construction projects worldwide. Cement acts as the binding agent, while concrete, comprising aggregate, sand, and gravel, forms the bulk material used in various applications. From residential buildings to commercial structures, including high-rise skyscrapers and infrastructure like bridges, the demand for concrete and cement remains steady.

Recent trends indicate a shift towards sustainable practices, with a focus on energy-efficient manufacturing processes and adherence to international standards. This shift is driven by increasing regulatory standards and a growing awareness of the importance of sustainability in construction.

Moreover, advancements in technology, such as digitalization and remote monitoring, enhance operational efficiencies and enable predictive maintenance, ensuring smoother operations at cement manufacturing facilities. Additionally, the market sees opportunities in developing markets where infrastructure investments are on the rise, while in developed markets, there is a focus on infrastructure resilience and smart construction practices.

Overall, the concrete and cement market continues to evolve, driven by a combination of factors including demand from construction projects, regulatory requirements, and technological advancements.

Market Overview

The concrete and cement market is experiencing robust growth driven by the construction boom, especially in urban centers. Demand for materials like concrete pipes, paving blocks, and ready-mix concrete is on the rise due to the planned skyscrapers and high-rise buildings. Additionally, rapid hardening cement and low heat cement are gaining traction for their specific applications, while hydrophobic and colored cement cater to diverse needs.

Despite opportunities, the market faces restraints such as fluctuating raw material costs and regulatory challenges. However, sustainable construction practices and digitalization are emerging as key drivers, promoting efficiency and reducing environmental impact. The adoption of advanced concrete technologies further enhances durability and strength, meeting the demands of modern infrastructure projects. In this dynamic landscape, staying abreast of market trends and leveraging innovations is essential for industry players to thrive.

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Key Topics Covered:

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

• Product 
  • Cement
  • Concrete
• End-user 
  • Residential
  • Non-residential
• Geography 
  • APAC
  • Europe
  • North America
  • South America
  • Middle East And Africa

 8 Geographic Landscape
 9 Drivers, Challenges, and Trends
10 Venodr Landscape
11 Vendor Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
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Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio