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The global cement market size was USD 313.60 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the product witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a huge decline of 3.6% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 326.80 billion in 2021 to USD 458.64 billion in 2028 at a CAGR of 5.1% during the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
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 industry is the current market trend.
COVID-19 Pandemic has Impacted Operations & Productions of 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. 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 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 is a Prominent Trend
The rising adoption of green cement to construct eco-friendly and sustainable buildings will promote market 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 products that are both environmentally sustainable and cost-effective. 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 the consumption of cement globally. Currently, China is the dominant producer and consumer across the world. Hence, the growth in the construction activities in this country will boost the market size.
Government Regulations on Carbon Emissions from Manufacturing Plants to Hinder Growth
Raw materials used in the production of cement 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 also 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, this 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 production process. Hence, this is anticipated to restrain the market growth.
Blended Segment to Exhibit a Significant Share During the Forecast Period
The market is segmented into portland, blended, and others on the basis of type. Among these, the blended segment accounts for the largest cement market share owing to its characteristics, such as reduced water demand, improved workability & pump ability, and reduced crack formation due to thermal stress. Blended segment consists of a base portland in which other materials, such as limestone, slag, and pozzolana, are added to obtain the different blends. The increasing demand for blended cement 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, to be used 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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Residential Segment to Generate the Highest Revenue in the Upcoming Years
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, cement 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 factors, namely, 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, 2020 (USD Billion)
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Asia-Pacific accounted for USD 220.69 billion in 2020 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, India, and Southeast Asian countries. Growth in the construction & infrastructure activities is a key driver for the 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 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 Europe.
In North America, the increasing demand for public infrastructure is one of the major factors influencing the growth of the 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.
Key Market 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 market research report provides qualitative and quantitative insights and detailed analysis of the market size & growth rate for all possible segments in the market. It focuses on crucial aspects such as leading companies, types, and applications. Also, the report offers insights into market dynamics, emerging cement industry trends and highlights global 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 313.60 billion in 2020 and is projected to reach USD 458.64 billion by 2028.
In 2020, the market value stood at USD 313.60 billion.
Registering a CAGR of 5.1%, the market will exhibit rapid growth in the forecast period (2021-2028).
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.
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