The Construction Aggregates Market is estimated to be valued at US$ 528.09 Bn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Construction aggregates are crushed stone or gravel for heavy construction projects such as roads, foundations, and railroad beds. Construction aggregates are advantageous due to their durability, low cost, availability, and ability to enhance drainage and strength when used in construction projects. With rapid urbanization and increasing infrastructure development, there is a rising demand for construction aggregates in both residential and non-residential construction.
Market key trends:
One of the key trends driving growth in the construction aggregates market is the rise in infrastructure projects globally. Governments across the world are increasingly investing in large infrastructure projects such as roads, bridges, highways, railways, dams, and urban infrastructure development to drive economic growth. According to the Global Infrastructure Outlook report by G20 and the OECD, the world needs to spend USD 94 trillion on infrastructure by 2040, with annual spending of over USD 6.9 trillion to achieve sustainable development goals. The construction aggregates play a vital role in these large infrastructure construction projects, thereby fostering market growth over the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants is low as the construction aggregates market requires high capital investments to establish production capacity and distribution networks. Bargaining power of buyers: The bargaining power of buyers is moderate as the buyers have sufficient options to switch between various construction aggregates suppliers based on price and quality. Bargaining power of suppliers: The bargaining power of suppliers is low as the raw materials used such as limestone, granite, and trap rock are abundant and commoditized. Threat of new substitutes: The threat of new substitutes is low as construction aggregates have few substitutes and play a critical role in the construction industry. Competitive rivalry: High due to the presence of many global players.
SWOT Analysis
Strength: Established distribution channels and production facilities give scale advantages. Wide portfolio of products and services add value to customers. Weakness: Volatile input costs due to dependency on fuel prices can squeeze margins. Seasonality of construction activity leads to demand fluctuations.
Opportunity: Rapid urbanization and infrastructure development in emerging economies fuel demand. Acquisitions and partnerships help expand global footprint.
Threats: Stringent environmental regulations increase compliance costs. Economic slowdowns negatively impact construction spending.
Key Takeaways
The Global Construction Aggregates Market Size is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period, due to increasing infrastructural developments and construction activities across regions. Asia Pacific dominates the global market with major contribution from China, India, and countries investing in urbanization and industrialization.
Regional analysis
Asia Pacific is the fastest growing region in the construction aggregates market owing to the ongoing infrastructure development projects and rising investments in transportation and housing sectors in major countries. China accounts for over 25% of the global market share led by the government initiatives to develop roads, railways, and affordable housing.
Key players
Key players operating in the construction aggregates market include China Resources Cement Holdings Limited, EuroCement Group, Vulcan Materials Company, LafargeHolcim, LSR Group, Adbri, Cemex, Heidelberg Cement AG, and Martin Marietta Materials. The markets leaders are focusing on expansions, mergers, and acquisitions to strengthen their market presence.
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