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The global cement market size was valued at USD 326.81 billion in 2021 and is projected to grow from USD 340.61 billion in 2022 to USD 481.73 billion by 2029, exhibiting a CAGR of 5.1% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with cement experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 3.6% in 2020 as compared to 2019.
The rising population has increased the need for residential buildings. This has surged the demand for cement across the globe. The growing demand for public infrastructure and non-residential buildings, including hospitals and healthcare centers, has created an opportunity for product consumption. Hence, the rising demand from the expanding construction sector is the current market trend.
The pandemic caused Negative Impact on the Operations & Production in Various Countries
The spread of the COVID-19 pandemic has negatively impacted the market, owing to government regulation that restricted the movement of both people and goods. The pandemic has severely impacted the production and operations of various countries. For instance, China's cement output was 769 million tons from January to May 2020, down 8.2% year on year, according to the Ministry of Industry and Information Technology of China. In May 2020, the output reached 249 million tons, an increase of 8.6% year over year and a monthly peak.
In addition, the shutdown of cement manufacturing plants in the U.S. and Germany has also affected their operations. According to Birlasoft Limited, in 2020, construction output in North America was expected to decline by 6.6%, resulting in a loss of USD 122.4 billion in projects. However, governments of various countries are enacting supportive regulations and attempting to re-establish their economies. As a result, the demand is expected to stabilize over the next few years.
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Increasing Adoption of Green Cement to Boost Growth Potentials
The rising adoption of green cement to construct eco-friendly and sustainable buildings will promote cement industry growth. As part of an effort to reduce the threat posed by emissions, the process of manufacturing can be modified to substantially reduce emissions. This product is made using a carbon-negative manufacturing technique that minimizes pollution during unit operations. It is a sustainable solution that addresses serious environmental concerns by reducing carbon footprint during production. In 2021, Hima Cement, a subsidiary of LafargeHolcim, launched Fundi masonry product with a lower carbon footprint that finds application in bricklaying, plastering, and mortar works. Moreover, the United Nations Environment Program (UNEP) also urges the production and use of new environmentally sustainable and cost-effective products. Hence, such factors will flourish the demand for green cement in the near future.
Surging Demand from Construction Activities to Support Market Growth
The rising population will effectively influence the market growth on account of the increasing need for residential spaces, such as apartments and private bungalows. Furthermore, the growing demand for amenities in residential spaces is expected to accelerate the market size. Moreover, the rising need for non-residential establishments, such as malls, airports, industries, roads, and office buildings, is also expected to support the market growth.
Career opportunities and better quality of life have created a need for urbanization. Government initiatives to support construction & infrastructural activities in developing countries will further increase the demand. Moreover, the rising demand for precast products, such as blocks, panels, roof tiles, and others will increase product consumption globally. Currently, China is the dominant cement producer and consumer across the world. Hence, the growth in construction activities in this country will boost the market size.
Government Regulations on Carbon Emissions from Manufacturing Plants to Hinder Growth
Raw materials used for the production include limestone, chalk, shells, shale, clay, and silica sand. Its production causes various hazardous impacts on the environment and human health. The inhalation of dust particles can cause difficulties in breathing and irritate the nose and throat. Furthermore, the manufacturing of this product causes a high amount of pollution. According to the United States Environmental Protection Agency, the cement industry is the third-largest industrial polluter that releases over 500 kilotons of nitrogen oxide, sulfur dioxide, and carbon monoxide each year. Due to such factors, various environmental regulations are imposed by governments over the cement production process. Hence, this is anticipated to restrain the cement market growth.
Blended Segment to Exhibit a Significant Cement Market Share Owing to the Swiftly Expanding Demand from Various Applications
The market is segmented into portland cement, blended, and others on the basis of type. Among these, the blended segment accounts for the largest market share owing to its characteristics, such as reduced water demand, improved workability & pump ability, and reduced crack formation due to thermal stress. The blended segment consists of base portland in which other materials, such as limestone, slag, and pozzolana, are added to obtain the different blends. The increasing demand for blended types from applications, namely, buildings, road construction, and mining, is expected to help in surging the market revenue globally.
Portland is majorly used to produce concrete which is further used in the construction of beams, panels, and megastructures, such as dams and roads. It is also mixed with other materials, such as sand, in mortars and plasters. Moreover, the other types include composite, colored, quick setting, low-alkali, and air-entraining cement. Hence, the increasing demand for all these types for various applications will boost the market substantially.
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Non-Residential Segment to Generate the Highest Revenue Due to Rising Investment in Infrastructure Projects
The market is segmented into residential and non-residential on the basis of application. Among these, the non-residential segment is expected to be dominant throughout the forecast period. In this segment, the product is used for applications, such as the construction of roads, dams, commercial complexes, industrial buildings, stadiums, and transportation hubs. Rising urbanization and infrastructural activities have led to the increased demand for the product. Additionally, the high need for hospitals and schools is expected to support the market growth.
Growth in the residential segment is because of the rising world population and increasing demand for residential spaces from developing nations in Asia Pacific and the Middle East & Africa. The growing residential segment is anticipated to increase the consumption of the product.
Asia Pacific Cement Market Size, 2021 (USD Billion)
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Asia Pacific accounted for USD 230.67 billion in 2021 and is expected to remain dominant throughout the forecast period. This is attributable to the increased demand for the product from developing nations, such as China and India, and Southeast Asian countries. Growth in the construction & infrastructure activities is a key driver for this market in this region. China is the major country contributing to the market growth in the region as it is the dominant producer and consumer in the world. The dominance of the country is attributed to the factors including the rapid growth in population and infrastructure development activities in the region. Furthermore, the propelling demand for residential spaces in the country will support the market growth in China.
The Middle East & Africa is projected to witness substantial growth. This growth is associated with the increasing demand for the product from the rising infrastructural activities in the region. Moreover, its use in mining and oil exploration activities is another factor driving the market in the Middle East & Africa. The market in Europe is anticipated to grow at a significant CAGR. Russia, Germany, France, and the U.K. are the key countries contributing to the growth of the market in the region.
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In North America, the increasing demand for public infrastructure is one of the major factors influencing the growth of this market. Latin America will exhibit development in the market owing to rising urbanization. Government initiatives, such as housing schemes, establishments of hospitals and school facilities, and the development and maintenance of transportation infrastructure are other key factors that would lead to the growth of this market around the world.
Major Players to Strengthen Position by Increasing Product Offerings
Major producers of the product are spread out over the globe. It is leading to a diversified market structure. Producers located in North America and Europe are aiming to increase their presence in China and other countries in Asia Pacific in order to strengthen the market positions and drive the business growth of their organizations. Key players in the market have developed a strong regional presence, distribution channels, and product offerings. The adopted strategies, such as acquisition, new product development, and zero-carbon construction materials initiatives by key players, are expected to increase their presence in the market and serve their customers’ needs efficiently. For instance, HeidelbergCement plans to produce CO2-neutral concrete by 2050.
An Infographic Representation of Cement Market
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The global market research report provides qualitative and quantitative insights and a detailed analysis of the cement market size & growth rate for all possible segments in the market. It focuses on crucial aspects such as types, applications, and competitive landscape. Also, the report offers insights into market dynamics, and emerging global cement industry trends and highlights industry developments. In addition to the factors mentioned above, it encompasses various factors that have contributed to the market's growth over recent years.
Value (USD Billion); Volume (Million ton)
Type; Application; and Geography
Fortune Business Insights says that the global market size was USD 326.81 billion in 2021 and is projected to reach USD 481.73 billion by 2029.
In 2021, the market value stood at USD 326.81 billion.
Registering a CAGR of 5.1%, the market will exhibit rapid growth in the forecast period (2022-2029).
Based on application, the non-residential segment is expected to lead the market.
The rising product demand owing to the construction activities and the expansion of the construction industry are the key factors driving the market.
Asia Pacific is expected to hold the highest share in the market.
CEMEX,HeidelbergCement, and Italcementi are a few of the leading players in the market.
Rapid expansion of residential spaces and healthcare facilities, and production of sustainable grades are the factors expected to drive the adoption of the product.
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