Building Stone Market Analysis

Stone are the most widely used building materials. The stones that are used for construction activities are sedimentary, igneous or metamorphic in origin. They can be cut or shaped into blocks and slabs. Stones used for building and construction purposes occur throughout the geographical column and can be found across the world. A building stone is a rock that can be safely used in some situation in the construction as a dressed or undressed unit. Building stones are of various type such as granite, marble, limestone, and sandstone among others.  The global building stone market has been categorized under the global construction materials market. The global construction materials market includes manufacturers of sand, clay, gypsum, lime, aggregates, cement, concrete and bricks. 

Building Stone Market Segmentation

The global building stone market is estimated to be over USD 34 billion in 2019 and will grow at a CAGR of over 5% during 2019 and 2024. Asia Pacific is the major region contributing over half of the total market, followed by North America. Many factors are expected to influence growth in the global building stone market during the forecast period.

Our analysis identifies the following factors to be driving the growth of the global building stone market:

Growth in construction industry

Demand for stones is highly influenced by the peaks and troughs in the construction industry. The residential housing sector accounted for more than 35% of the total global construction market. In recent years, the advent of globalization has resulted in extensive migration of people from rural areas to urban cities, which has contributed to the need for sustainable housing and supporting infrastructure. Also, developed economies such as the UK and the US are presently facing the problem of aging infrastructure. Restoration and maintenance processes, along with the shift to supportable retrofitting and infrastructure development practices, are driving the construction market growth in these countries. Reliable and good quality infrastructure is a prominent enabler for sustainable socio-economic development of any country as it attracts foreign direct investment (FDI) and modernizes the economy. The rise in residential construction in developing countries is expected to contribute to the demand for building stone.

Growing preference for natural stone

Many residential and commercial building owners have stopped using synthetic building materials for reducing carbon footprint. This has driven the demand for natural stones such as marble and granite in commercial and residential construction projects. It is expected that the number of commercial buildings such as office space, hotels, hospitals, and recreation centers will grow significantly during the forecast period. Also, the rise in new residential construction projects driven by eco-conscious millennials that prefer natural stones to synthetic stones is expected to drive the demand for building stone market.

Product differentiate and durability

Vendors innovate continually in terms of design and shape to meet the varied needs of consumers. New stones like granite and marble are being introduce in the market in different colors ranging from black and white to green and blue. In addition, these stones are available in different forms such as slabs in various sizes. They allow better flexibility in designing to cater to the need of builder, architects, and designers. Being more durable than wood or brick, building stones are increasingly used for fencing as they can resist rain, wind, snow, and heat during different weather conditions.

Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:

Volatility in construction materials costs

The unpredictability associated with the cost of construction materials is expected to delay construction projects. For instance, the aggressive trade policies and tax reforms being introduced in the US will affect the prices and sourcing of construction materials from major exporting countries such as China, Italy, Germany, and Turkey. According to the Bureau of Labor Statistics, in 2018, the producer price index (PPI) for construction material inputs used in residential construction witnessed an increment of more than 3%, which was twice the increase in consumer price index during the same period.  Also, construction companies have had to increase labor wages to attract skilled and unskilled labor, which has increased construction costs and delayed several projects. All these factors are expected to impede the demand-led growth of the building stone market during the forecast period.

High cost of land transportation

Stone industry faces several challenges when it comes to handling the transport and logistics of the material. Stones are primarily transported to the site by using sea, road or rail mode of transportation. Bulk cargo ships are used for transporting stones that are granular in shape. Well-planned transportation is an important component in the stone industry. Every stone deposit demands different sets of containers and logistics requirements. Transportation of stones could be expensive and pose significant hazard to the environment due to its bulkiness and dense nature. One of the major problems that is being encountered while transporting the stones such as rough granites is the resulting container damage. Containers are also damaged while loading and unloading the stones that are rough and sharp in texture. The complexity and cost involved in the transporting stones could hamper the growth of the market.

Rising competition from alternative material

The alternate building materials like tiles are giving tough competition to the granite stones. Stone and tile companies like Walker & Zanger and Cercom are using technology to develop porcelain slabs that replicate the look of marble. Further, innovation with digital tiles can provide the exact look of a granite stone or marble. However, they lack the required strength which is the biggest challenge to the industry. Hence the owners of granite stones in the study area are advised to create more awareness about the usage and durability of granite stones. Efforts should be taken by them to encourage research and development in the granite stone industry

Building Stone Market Insights

The global building stone market can be segmented into the following:

Based on type

  • Granite
  • Limestone
  • Marble
  • Sandstone
  • Slate
  • Others

Based on end-use

  • Residential
  • Commercial
  • Landscape
  • Others

By region

  • North America
  • Europe
  • APAC
  • South America
  • MEA

Our reports on the global building stone market cover several large and small vendors active in the market including, Krukowski Stone Co. Inc., LEVANTINA, Kangli Stone Group, Stamford Stone, Arriscraft, Emmaboda Granit AB, Tianjin Zhongjian Wanli Stone Co. Ltd., Al-Waleed Stone Manufacturing & Marketing Company, Cultured Stone, Corinthian Cast Stone Inc, Bradstone, and Jerusalem Gardens Stone Works among others.

Mergers and acquisitions are among the strategies adopted by manufacturers in the global building stone market:

  • Polycor Inc. has acquired Elliott Stone Company Inc., a quarrier and fabricator of Indiana limestone-based in Indiana, US. The acquisition has added a portfolio of natural stone building products for the hardscapes and masonry industry to Polycor’s product listing. 
  • Stamford Stone has acquired Clipsham Quarry Company, which will continue to trade under its existing name, and under the ownership of Stamford Stone Holdings Ltd.
  • Boral Ltd. announced the completion of its acquisition of Headwaters Inc., a building products manufacturer and fly ash marketer in North America.

Backed with competitive intelligence and benchmarking, our global building stone market research report is designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.

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