New analysis from consulting firm Persistence Market Research (PMR) highlights construction sector expansion in emerging nations in regions such as the Asia Pacific as a major factor in the predicted 6.8% compound annual growth rate (CAGR) in aggregates demand between 2021 and 2031.
Demand for construction aggregates is also increasing for commercial & residential construction work across major markets, driven by increased activity in the refurbishment and renovation sector across the world.
"Growing urbanisation coupled with development of large-scale infrastructural projects in developing economies are expected to drive demand for construction aggregates," a Persistence Market Research analyst says.
PMR adds that macroeconomic factors such as urbanisation and industrialisation will continue to generate significant demand. Increased tourism, and expanding need for modern workplaces, malls and commercial buildings demand a large supply of construction aggregates, while a booming residential construction industry also helps propel demand.
Rising focus of governments in key economies on the expansion of transportation facilities and strengthening of power generation infrastructure, coupled with increased innovation in aggregate production methods aimed at boosting the efficiency of the manufacturing process and productivity, while maintaining high product quality, is projected to fuel demand growth of construction aggregates.
The report states that aggregate recycling is gaining prominence since it conserves natural resources and avoids the need for disposal with the use of readily accessible conventional aggregates in concrete and other applications.
Crushed stone construction aggregates are in great demand and are mainly utilised as a base or sub-base material in nearly all sorts of structures, including concrete and paving blocks for driveways, sidewalks, patios, office buildings, houses, and paved roads.
The infrastructure sector is expected to dominate the aggregates market due to the development of large-scale infrastructural projects in developing economies of the Asia Pacific as well as in North America and Europe.
Substantial urbanisation is projected to occur in countries such as India and Southeast Asian nations over the next decade, which would help drive the construction industry, and, in turn, also benefit construction aggregate manufacturers.
The report says the rising construction aggregate demand means that key players are boosting investments to enhance production capacity and focusing on increasing regional market share through mergers and acquisitions with local players.
PMR states that global construction aggregates industry is a significantly fragmented market due to the presence of a number of key local and regional players.
It adds that key players such as HeidelbergCement, Martin Marietta Materials, LSR Group, Holcim, Cemex, Vulcan Materials, CRH, Adelaide Brighton, Eurocement Group and Rogers Group are anticipated to create a competitive market environment at the global level.
Key players are emphasizing on expanding their regional market share and are establishing direct presence in local markets through mergers and acquisitions with regional players, as well as increasing their focus on acquiring stone quarries near potential high-demand locations.
The PMR analysis states: "Owing to the spread of COVID-19, factors such as lockdown and restrictions, loss of investment plans, as well as a variety of other issues such as supply chain disruption, shortages of subcontractors and materials, and contract terminations to save costs impacted the sales of construction aggregates.
"However, continuing spending on infrastructure development, increasing demand for residential & commercial construction, and development of smart and recyclable aggregates are likely to act as an opportunity for market players to grow in the future."
