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The global construction materials market size was valued at USD 1,272.60 billion in 2022 and is projected to grow from USD 1,320.01 billion in 2023 to USD 1,729.62 billion by 2030, exhibiting a CAGR of 3.9% during the forecast period.
The growth of the market is tied to the construction industry's overall development. Increasing infrastructure spending and rising demand for residential apartments have surged the global construction industry in recent years, particularly in growing markets. The demand driver for the market is increasing infrastructure investments, particularly in commercial projects. Over the past few decades, there has been intense competition for clean highways and public infrastructure in developed markets. Furthermore, rising prosperity has increased property ownership, boosting the need for highway investment, which boosts the construction materials market growth.
Over time, government-sponsored projects are expected to boost construction material demand by stimulating business growth. Due to a rise in construction and urbanization, a few limitations can hinder the market growth. These materials industry is currently faced with several environmental issues, such as increased dust, vibrations, noise, and soil water levels caused by exploration and processing. Moreover, stiff competition puts pressure on industry vendors with high logistic costs while strict zoning laws and regulations on natural material extraction affect the movement of various product supplies.
Halted Supply Chain & Construction Activities Impacted Global Market During COVID-19 Pandemic
The COVID-19 pandemic in 2020 caused unprecedented social and economic disruption. According to experts, this global crisis has caused more problems than any other historical event, which will be remembered as one of the most significant black swan events. COVID-19 has had a significant economic impact on the building materials and construction industries. Trends such as disruptions in cash flow, breaks in supply chain, shifts in resource allocation, the requirement for social distance, and others are expected to bring about change on every level.
The COVID-19 crisis widely affected construction activities all over the world. As the governments imposed lockdowns, all construction activities were halted, leading to a massive loss for the country and material manufacturers. Most construction workers headed to their homes and engaged themselves in other work, unwilling to return and resume their work again, which caused labor shortage in urban areas. The halt on work will directly impact the company's revenues, jobs, and project delays. Among the world's largest employment providers include construction, infrastructure, and real estate sectors, which have been affected by the lockdown restrictions.
Manufacturers have resumed work and begun taking on new construction projects with appropriate safety measures to ensure that their employees are not infected with the virus. While most nations import construction materials from China and other nations, and restrictions on exporting goods from one country to another significantly impact construction activities due to high dependence on the Chinese supply chain. But after learning from harsh times, many construction firms are developing strategies to build a long-term availability of these materials by identifying the alternate possibility of material suppliers.
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Adoption of Smart Technologies and Sustainable Materials is One of the Key Trends Impelling Market Expansion
Smart building materials are adaptive and change their properties based on environmental conditions. Additive manufacturing technologies such as 3D printing help manufacturers create a market in a way that reduces waste. While 3D printing can't fully automate construction, workers are still needed to insert rebar into printed concrete structures. Manufacturers in the construction materials industry are adapting modern technologies, which help them adapt to a shifting construction market. Additive manufacturing methods and measurement instruments such as laser tools change the construction company's methodology. Simultaneously, the developing fame of sustainable materials, similar to smart glass and composite shingles, makes it more comfortable for suppliers to offer feasible material choices to their clients.
Government Initiatives Favoring an Increase in the Number of Smart Cities to Boost Product Demand
With increased urbanization and rapid expansion of remote areas, various governments are looking at smarter ways to manage traffic complexities, increase efficiencies, and improve the quality of life. This has created a need for cities that monitor and integrate infrastructure to optimize resources and maximize services to citizens. The smart city initiative aims to promote sustainable and inclusive cities that provide core infrastructure to give a decent quality of life and a clean and sustainable environment through smart solutions such as intelligent lighting systems, data-driven traffic management, and others. The idea is to look at congested areas and create a replicable model to serve as a beacon to other aspiring cities.
Rising Concerns for Unfavorable Construction Circumstances to Restrict Market Growth
The construction material industry is usually affected by unfavorable circumstances restricting the market growth. Some of the main reasons are shortage in the supply of materials due to disruptions in supply chain, safety concerns of the employees, reduced investment in the real estate sector, electricity provision, environment preservation, and lack of skilled workforce. This further hampers the timeline and quality of construction materials, the effect of natural disaster cumulatively increases the expenses and costs of the structure, and the arising need for multiple clearances from various designated authorities such as environment preservation, electricity, pollution control, land, services, utilization, and others.
The above challenges have been impacting the progress of this industry across the globe. The effective hour of discussion must mitigate the challenges by introducing modernization and scaling up the labor force.
Aggregates Segment to Register Appreciable Growth Owing to Boost in Infrastructure Development
Globally, increased activity in the refurbishment and renovation industry is surging the demand for construction aggregates for commercial and residential construction projects across major markets. Furthermore, macroeconomic factors such as urbanization and industrialization will continue to generate significant demand. Construction aggregates are in high order due to rising tourism and the demand for modern workplaces, shopping malls, and commercial buildings. The booming residential construction industry also contributes to this demand.
Government reforms in developing high-class infrastructure have promoted the expansion of allied industries such as cement, aggregate, real estate, and construction development projects. For instance, due to numerous regulatory reforms, such as the introduction of real estate regulatory bills and the inclusion of 100% foreign direct investment in the real estate sector, India's construction industry is anticipated to expand rapidly over the forecast period. This indicates that governments in key economies increasingly focus on enhancing transportation and power generation infrastructure that will help to boost the market.
In addition, the growth of aggregates is anticipated to be driven by advancements in technologies for the production of aggregates, thereby boosting productivity and efficiency while producing high-quality products. Moreover, the construction industry is rapidly transforming digitally by introducing building information modeling. BIM helps to make sustainable use of raw materials by reducing waste and improving overall project performance.
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Residential Segment to Exhibit a Significant Growth Rate Due to Rising Individual Income and Urban Migration
Based on end-user, the market is divided into residential, commercial, infrastructure, and industrial. Driven by the sustained demand for housing and supportive government policy, residential buildings will witness a strong rebound in 2022 and robust growth in the coming decade. Population migration from rural to urban areas insists governments across various countries by running initiatives across residential development. For instance, the Pradhan Mantri Awas Yojana (PMAY) program aims to provide affordable housing to all urban poor by 2022 through initiatives such as financial support by providing home loans to build their required residential spaces.
The USDA offers home renovation programs and opportunities for rural Americans to become homeowners. USDA also offers to finance the elderly, disabled, or low-income people and guarantees that the rural residents of multi-unit housing complexes will make them able to pay their rent. The USDA collaborates with public and non-profit organizations to offer loans and grants to housing developers for the construction and renovation of rural multi-family housing complexes. All these factors will help to generate the demand for construction materials across various industries.
Asia Pacific Construction Materials Market Size, 2022 (USD Billion)
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Asia Pacific held the largest construction materials market share and is anticipated to dominate the market during the forecast period. The market growth is associated with high infrastructural activities in the region, which boosts different sectors in the area. Additionally, countries in the region, such as India and China, have the highest population, with largest consumers of residential end-users, and thus the demand continues even though there was a downward trajectory during the COVID-19 pandemic. Construction material is one of the key raw materials for developing high-class infrastructure that plays a crucial role in the growth of any economy. Thus, the market is expected to grow at a high CAGR during the forecast period.
The construction sector in the United States is heavily dependent on supplies of copper, aluminum, steel stone, and fixtures from other countries, many of which come from developing nations such as China. This is expected to boost the industry expansion in the North America region.
The market growth in Europe is associated with the rapid increase in the region's residential sector. High per capita income and consumer preference for multiple properties, one for their own and the other as part of their leasing or rental income. Additionally, the presence of a few giant materials manufacturers in the region is expected to boost the consumption of these materials.
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The growth of the market in Latin America is due to increased industrialization. The demand for heavy industrial materials brought more new building materials, such as cast iron, steel, and glass, with which architects and engineers rearranged the concept of function, size, and form due to the impact of the industrial revolution. Meanwhile, the Middle East & Africa is expected to have significant market growth driven by increased industrial investments.
Key Players to Strengthen their Position by Offering Products to Building and Construction Industries
The foremost producers, including China National Building Material Co., Ltd., CRH PLC, LafargeHolcim Ltd., BBMG Corporation Ltd., and HeidelbergCement AG are company trademarks for the materials business.
On the other hand, China National Building Material Company Ltd. has a strong presence in the Asia Pacific region and manufactures construction materials. The company has a presence in China. The company is the biggest manufacturer of construction materials in the region. Similarly, the other key market players have established a strong regional presence, robust distribution channels, and varied product offerings.
An Infographic Representation of Construction Materials Market
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The global market report provides a detailed market analysis and focuses on crucial aspects such as material types, end-users, and leading companies. It provides quantitative data in terms of value, research methodology for market size estimation, and insights into market trends. It highlights vital industry developments and the competitive landscape. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the market growth in recent years.
CAGR of 3.9% from 2023 to 2030
Value (USD Billion)
By Material Type, End-user, and Geography
By Material Type
Fortune Business Insights says that the global market size was USD 1,272.60 billion in 2022 and is projected to reach USD 1,729.62 billion by 2030.
In 2022, the market value stood at USD 1,272.60 billion.
Registering a significant CAGR of 3.9%, the market will exhibit rapid growth in the forecast period (2023-2030).
The aggregates segment is expected to lead the market during the forecast period.
Growth in the residential sector is the major factor propelling the market growth.
China held the highest share in the market in 2022.
China National Building Material Co., Ltd., CRH PLC, LafargeHolcim Ltd., BBMG Corporation Ltd., and HeidelbergCement AG are the major players in the market.
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