Recycled construction aggregates are aggregates produced from reusing demolition waste, residual construction or building materials. They are used as a substitute to virgin aggregates for various construction applications such as roadbases, backfilling, pipe bedding and concreting. The recycling process involving sorting, crushing, and processing of demolition debris helps in waste minimization from construction and demolition activities. Recycled construction aggregates provide various environmental and economic benefits compared to natural aggregates such as reduced consumption of natural resources, energy savings from transportation and lowered greenhouse gas emissions. With rapid urbanization and infrastructure growth worldwide, the recycled construction aggregates market is expected to witness significant demand over the coming years.
The global Recycled Construction Aggregates Market is estimated to be valued at US$ 46.87 Bn in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends spurring growth in the recycled construction aggregates market is initiatives by governments worldwide to promote sustainable construction practices. Many countries have implemented policies to utilize a certain minimum percentage of recycled aggregates in public construction projects. For instance, the European Union's Waste Framework Directive mandates utilization of at least 70% construction, demolition and excavation waste. Another major trend is increasing R&D investments by recycled aggregates producers towards enhancing product quality. Advanced processing techniques allow recycled aggregates to achieve properties almost equivalent to virgin aggregates, facilitating their wider acceptance. Moreover, growing awareness about environmental protection and efficient waste management is augmenting the replacement of natural aggregates with recycled alternatives across end-use industries.
Porter's Analysis
Threat of new entrants: Low capital requirements to set up a new construction aggregates recycling facility makes threat of new entrants moderate. However, existing players have established supply chains and relations with builders that new entrants will take time to develop.
Bargaining power of buyers: Buyers have moderate bargaining power as quality and availability of recycled aggregates are not consistent across suppliers. Buyers can decide between recycled and virgin aggregates based on pricing and quality assurance.
Bargaining power of suppliers: Recycled construction waste suppliers have low bargaining power as materials are abundantly available from demolition and construction sites. Suppliers are price-takers in this commodity market.
Threat of new substitutes: Virgin quarry aggregates remain a substitute though recycled aggregates offer sustainability benefits. New composite materials may erode market for recycled aggregates over the long-term.
Competitive rivalry: Intense as major players compete on pricing, quality, and supply chain integration. Vertical integration and supply chain partnerships reduce competitive pressures.
Key Takeaways
The global Recycled Construction Aggregates Market Demand is expected to witness high growth, exhibiting CAGR of 9.5% over the forecast period 2023 to 2030, due to increasing adoption of sustainable construction practices. The market size for 2023 is estimated to be US$ 46.87 Bn.
The Asia Pacific region dominates the global recycled construction aggregates market owing to rapid infrastructural growth in China and India. North America and Europe are other major markets driven by stringent regulations regarding construction waste management. Government initiatives and awareness campaigns for green buildings are boosting market growth across all regions.
Key players operating in the recycled construction aggregates market are Tarmac, Delta Sand & Gravel Co., LafargeHolcim Ltd., Aggregate Industries Management, Inc., CEMEX, Vulcan Materials Company, CESPA, Green Stone Materials, CRH Plc., and Heidelberg Cement AG. Major players are focusing on technological advancements to improve quality and supply chain integration for consistent materials availability.
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