China and India are set to emerge as major aggregates markets during 2017-2025, according to a new report.
The report by Persistence Market Research, says that the global construction aggregates market is estimated to grow at compound annual growth rate of 5.3% and attain a market valuation of $592.7bn by the end of 2025.
Sand is among the product types that will dominate the global construction aggregates market, holding 44% market share. Crushed stone segment is estimated to be the most attractive, accounting more than 40% share by the end of 2017.
Crushed stone segment is estimated to grow at compound annual growth rate of 6.8% during the forecast period. Thew gravel segment will also grow at 5%, the report says.
Use of construction aggregates in infrastructure development is robust due to the huge investment being made in the sector by the government in various countries. Among all the countries, China and India will remain major markets in the construction aggregates, mainly due to the growth of construction sector in these two countries.
China is anticipated to hold around 26.8% market value share by the end of 2025. Improvement in the service life of various public utilities and robust urbanization will be the key factors driving demand for construction aggregates in India. North and Central America is projected to show an impressive growth.
Depletion of natural sources of sand is giving rise to the production of the manufactured sand. The construction aggregate market is also highly unorganized involving illegal mining activities. Lack of government initiatives in developing countries is hampering the production of recycled aggregates. Rules and regulations and time-consuming process of obtaining necessary permissions in the extraction of aggregates are also the reason for limiting the growth of construction aggregates market.
