Published on: December 12, 2019
Construction aggregates or aggregates refer to broad category of medium to coarse-grained materials (particulate) used in the construction industry. Some of the most common types of construction aggregates include sand, crushed stone, slag, gravel and other aggregates. Construction aggregates are among the most mined minerals globally and are an integral component of composite materials such as asphalt concrete and concrete. The application of construction aggregates in composite materials serves as the reinforcement of the strength of the entire structure. The global construction aggregates 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.
The global construction aggregates market is expected to cross USD 500 billion by 2024, growing at a CAGR above 5% from 2019 to 2024. The global construction aggregates market is witnessing the increasing adoption of preference for pea gravel over crushed stone, production of manufactured sand (M-sand) is increasing due to shortage of river sand, demand for recycled construction aggregates has been increased due to depletion of natural resources especially sand, high cost for acquiring good quality construction aggregates.
Based on geography, the Asia Pacific market has the dominant market share with China alone accounting for nearly 30% of the global market share. The growth of the market in the region is driven by multiple factors including increased number of construction projects in APAC countries and rise in usage of natural gravel and crushed stone in countries such as China and India. Other factors driving the market are considering employing alternative fuels including hydroelectric power to produce cement, thereby augmenting the demand for construction aggregates. Therefore, the substantial growth in emerging economies in APAC has sparked the demand for construction aggregates during the forecast period.
Global construction aggregates market can be segmented into the following:
Many factors are expected to drive growth in the construction aggregates market during the forecast period. Our analysis identifies the following factors to be driving the growth in the construction aggregates market:
The increasing investments in the construction sector have driven the global construction aggregates market as construction aggregates are important materials for construction activities. Countries like China and India have contributed to increased demand for construction aggregates owing to the increase in the number of government-funded investments in infrastructure development. For instance, only in India the national highway network is expected to cover nearly 50,000 kilometers by 2020. Therefore, government-funded investments, especially in APAC and EMEA, have strengthened the global construction aggregates market.
The stretches of unpaved roads in different countries of the world, especially in regions such as Americas, have been a cause of concern to the local, state, and national authorities. These long stretches of unpaved roads have led to unacceptable dust levels, impassability during wet weather conditions, and poor quality of driving and have urged people/authorities to focus on the pavements of roads. The increased focus on paving roads has driven the demand for construction aggregates as integral materials to be included in materials such as asphalt.
The global construction aggregates market is driven by the increasing demand from the construction industry, especially from the residential sector in, developing economies in APAC such as China and India. Therefore, rising urbanization especially in the residential sector, rapid industrialization in APAC, has emerged as one of the key driving factors for the growth of construction aggregates in the market.
Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:
Illegal mining activities have emerged as one of the major challenges faced by the global construction aggregators market, especially the illegal mining of sand. The depletion of natural resources coupled with rising political pressures in countries such as India have led to the increased production of M sand as the production of M sand does not include the exploitation of natural resources. The construction aggregates market is considered as an unorganized local market that involves an increase in the number of illegal activities.
The global construction aggregates market is threatened by the presence of substitutes, especially for concrete. Furthermore, the release of greenhouse gases such as CO2 in abundance during the production of concrete into the atmosphere has led to the increasing environmental concerns; this has led to the shift from use of concrete towards its alternatives such as aluminum and tempered glass. Therefore, the construction aggregates market faces stiff challenges from substitutes.
The global construction aggregates market has witnessed an increased focus on the effects of quarrying. Quarrying refers to the process of extracting construction materials from a quarry (deep pit). The process results in various off-site and on-site environmental effects as it involves different stages of extraction of materials such as blasting, crushing, excavation, stockpiling, screening, and transport. The increased concerns regarding the environmental effects caused by quarrying of construction aggregates have driven the demand for substitutes in the construction aggregates market which have lower impact on environment.
Our reports on the construction aggregates market cover several large and small vendors active in the market including CEPSA, Heidelberg Cement, CRH plc, LafargeHolcim, LSR Group, Martin Marietta Magnesia Specialties, CEMEX S.A.B. de C.V., and Vulcan Materials Co.
Acquisitions and introduction of new technologies and products are some of the strategies adopted the companies in the global construction aggregates market.
Following are few of the major developments in the market:
Backed with competitive intelligence and benchmarking, our construction aggregates 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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