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 broadly categorized into crushed stone, sand & gravel, and slag. These materials are widely used in construction activities for infrastructure projects such as roads, bridges, buildings, and hydraulic works. They provide strength, resilience and durability to construction projects. With rapid urbanization and infrastructure development projects worldwide, the demand for construction aggregates is increasing significantly.
Market key trends:
One of the key trends driving the growth of construction aggregates market is increasing investment in infrastructure development across the globe. Governments of various countries are heavily investing in development of transportation and energy infrastructure such as roadways, railways, ports, airports and power projects. Additionally, rising urbanization is also necessitating construction of housing, commercial buildings and other urban infrastructure which requires massive use of construction aggregates. For instance, according to World Bank, global investment in infrastructure is estimated to be around US$ 3.7 trillion annually until 2040 with major investment planned in Asia and Africa. This rising investment in infrastructure development is expected to boost the demand for construction aggregates over the forecast period.
Porter’s Analysis
Threat of new entrants: High capital requirements for setting up quarries and mines acts as a barrier for new players to enter. Bargaining power of buyers: Large buyers like construction companies have higher bargaining power negotiating on aggregate prices. Bargaining power of suppliers: Suppliers of raw materials have less influence as construction aggregates have few substitutes. Threat of new substitutes: No major substitute available for construction aggregates. Competitive rivalry: Fierce competition exists between existing players.
SWOT Analysis
Strengths: Abundant natural resources and steady growth in construction activities. Weaknesses: Vulnerable to economic cycles and stringent environmental regulations. Opportunities: Increasing investments in infrastructure projects. Threats: Price fluctuations of raw materials and growing trade protectionism.
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 investments in infrastructure development projects across major economies. Regionally, Asia Pacific dominates the global market and is expected to maintain its dominance during the forecast period, owing to huge ongoing infrastructure projects in China and India. The market in North America is projected to exhibit significant growth due to recovering construction sector in the US.
Key players operating in the construction aggregates market are China Resources Cement Holdings Limited, EuroCement Group, Vulcan Materials Company, LafargeHolcim, LSR Group, Adbri, Cemex, Heidelberg Cement AG, and Martin Marietta Materials. These players are focusing on expansion in high growth regions through mergers and acquisitions.
For More Insights, Read: https://www.newswirestats.com/construction-aggregates-market-demand-growth-and-regional-outlook-by-2030/
