Construction Aggregates Market

2021 Analysis and Review: Construction Aggregates Market by Product Type – Crushed Stones, Sand, and Gravels for 2021-2031

Construction Aggregates Market Snapshot

As per a Future Market Insights (FMI) study, the increasing use of recycled construction aggregates, coupled with investment towards infrastructural expansion in Asia Pacific, Europe, and North America are shaping the construction aggregates demand outlook.

By 2031, the market valuation will top US$ 664.6 Bn and it is expected to exhibit a healthy 6.8% CAGR between 2021 and 2031. HeidelbergCement AG, Martin Marietta Materials Inc, LSR Group, LafargeHolcim Ltd, and Cemex SAB de CV ADR are expected to remain top market players. As a result of high competition, top market players are expected to hold 6.6% of the market in 2021.

Key Points Covered in Construction Aggregates Market Survey

  • Market estimates and forecast 2021-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Construction Aggregates Market and how to Navigate
  • Recommendation on Key Winning Strategies

Construction aggregates Market Historic Sales Compared to 2021-2031 Forecast Outlook

Demand for construction aggregates increased at 3.8% CAGR in 2016-2020. Continued decline in construction activities dampened growth prospects to an extent. The trend continued until 2020, as unprecedented outbreak of COVID-19 caused supply-chain disruptions.

Sales however will recover in 2021, reaching a valuation of US$ 344.4 Bn. FMI has projected the demand to surge at an impressive 6.8% CAGR between 2021 and 2031 backed by recovery of construction activities, especially in emerging economies.

Increasing investments by the governments to support development of residential and commercial projects will fuel market growth. As per the market study, the U.S., the Netherlands, France, Spain, Malaysia, and India will emerge as key producers in the construction aggregates market.

How is Recovery of Residential Projects Driving Construction Aggregates Sales?

Fast-paced urbanization and the influx of population have provided impetus to construction activities globally, subsequently causing construction aggregates sales uptick.

Population migration from rural to urban areas has compelled governments across various countries to offer incentives to residential construction. For instance, the Pradhan Mantri Awas Yojna – Housing For All, a government scheme in India sanctions home loans to citizens for building required residential spaces.

Similarly, the U.S. Department of Agriculture (USDA) assists rural citizens with homeownership, repair, and renovation programs. The department also provides financing to elderly, disabled, and low-income residents while aiding them to manage rent payments. The USDA works with private and public organizations to provide financial aid for construction and repair of the rural and multi-family housing complexes.

Apart from this, the U.S. Census Bureau recorded US$ 751.7 Bn expenditure in the residential sector in May 2021. These numbers hint towards the rapid expansion of residential projects, which will further result in high demand for construction aggregates in the upcoming years.

What is the Impact of Digital Transformation in Construction Aggregates Market?

Technology has transformed most crucial operations in various domains, including the construction industry.

This digital transformation in the industry is widely known as Construction 4.0, which, as a term, encompasses the usage of connectivity for real-time decision making and streamlining operational management.

This approach has allowed construction companies and the workforce to adopt a technology framework that will help them to meet with the industry's current challenges.

The introduction of Building Information Modeling (BIM) is rapidly supporting digital transformation in the construction sector. BIM provides assistance with time management, cost planning, sustainability in raw material usage, reduction in waste, and improved overall project performance.

Driven by these factors, the construction sector is anticipated to witness more developments, which in turn will promote sales of construction aggregates during the assessment period.

Manufactured Sand Will Emerge as an Alternative to Natural Sand

Increasing usage of natural sand in construction activities has resulted in depletion of natural sand from riverbeds. Continuous global sand mining activities have led to the implementation of stringent environmental and land use legislation, making extraction of natural sand difficult and expensive.

Natural sand has inherently high silt and clay content which makes it difficult to mix with concrete if not processes properly. Besides this, high-quality sand pits are often located in remote locations and lead to high costs in transportation.

These factors are encouraging contractors to actively replace natural sand with manufactured sand. Manufactured sand is produced by crushing rocks and quarry stones into fine, sand-size particles. Low-value aggregates obtained from by-products of rock crushing can be effectively turned into high-value manufactured sand.

Manufactured sand is more cost-effective than natural sand as it is produced in areas near construction sites. This brings down the cost of transportation and promotes a consistent supply. In addition, manufactured sand has a denser particle packaging than natural sand and is free of silt and clay. These properties make manufactured sand exhibit high flexural strength, better abrasion resistance, and high unit weight.

High Transportation Costs May Cause Bottlenecks

Transportation of construction aggregates is not a difficult affair; however, the high weight and volume of these materials can increase the cost associated with transportation.

Apart from this, sand and gravel reserves are depleting across the world, and illegal mining has hampered the supply of these types of construction aggregates. Stringer mining laws across several countries have resulted in a spike in product prices, which might impact growth prospects in the market.

Country-wise Insights

Infrastructural Developments Continue Supporting Construction Aggregates Sales in the U.S.

As per FMI’s analysis, the construction aggregation market in the U.S. will continue expanding at a steady pace owing to investments by governments towards the expansion of roadways and infrastructure.

To contain the spread of the novel coronavirus, construction activities in the U.S. were temporarily suspended, resulting in a downward trend in market growth. However, with an expedited vaccination process and increasing adoption of technological advancements in the country, growth is anticipated to pick up pace in the upcoming years.

Besides this, the U.S. Department of Transportation has announced US$ 905.25 Mn in proposed rewards for FY 2021. These funds are allocated for the development of 24 projects in 18 states that come under the Infrastructure for Rebuilding America (INFRA) grant program.

Aforementioned government initiatives, coupled with high adoption rate of connective technology in the construction sector are anticipated to propel sales of construction aggregates in the country through 2031.

Why is Germany Considered a Leading Construction Aggregates Market?

Germany has emerged as a leading construction aggregates market in Europe. Presence of leading market players and expansion in infrastructure, particularly hotels and resorts are anticipated to shape the growth outlook for the market in Germany.

With the resumption of international travel, an influx of tourists and students in the country is expected to increase in the coming years. This will fuel the need for accommodation, thereby, creating prospects for construction of hotels and resorts in the country.

These developments are expected to bode well for the construction aggregates market.

Will China Continue Dominating the Construction Aggregates Market?

The construction aggregates market in China is anticipated to reach a market valuation of US$ 143.3 Bn in 2021, owing to increasing urbanization and industrialization in the country.

Rising per capita income, coupled with population migration from rural to urban areas will spur demand for residential facilities. Expansions in healthcare infrastructure have also raised the requirement for building hospitals and healthcare facilities in the country, which will further promote sales of construction aggregates.

In addition to residential projects, infrastructural projects such as roadways, railways, and basic roads in rural areas are anticipated to generate demand for construction aggregates in the near future.

Also, stringent mining laws in the country are promoting the adoption of sustainable construction aggregates. These factors are creating lucrative opportunities for market players to incorporate product innovations and expand production facilities in the country.

How will Construction Aggregates Sales Fare in India?

With rapid urbanization in the country, FMI projects a positive growth outlook for the construction aggregates market between 2021 and 2031. Expansion of the railway and roadways network in the country will propel sales of construction aggregates.

The presence of various local players operating in the market is ensuring adequate supply of construction aggregates while actively promoting construction activities. This factor also has created prospects for entry of global players.

As highlighted by the UN, India’s urban population size will nearly double between 2018-2025, growing from 461 to 877 Mn. This is indicative of higher demand for residential and commercial facilities in the near future, which will create attractive opportunities for the sales of construction aggregates market.

Category-wise Insights

Crushed Stone to Remain Dominant Product Type

Easy availability and cost-effectiveness of crushed stone will facilitate wider adoption in the construction sector. Crushed stone is used for making cement, which is an integral binding agent in the construction sector.

Expansion of the housing sector across several counties including India, China, and the U.S. will result in utilization of cement in large quantity. Additionally, abundant supply and impressive mechanical properties of crushed stone will propel sales in the market.

Applications in Infrastructure to Continue Rising

Based on application, the infrastructure segment is expected to generate maximum revenue in the construction aggregates market.

Growth in the infrastructural sector can be attributed to urbanization and industrialization, which has underpinned the need for various projects such as construction of bridges, expressways, and roadways. Upward trends in such projects are likely to boost sales of construction aggregates during the assessment period.

Competitive Landscape

As per FMI's market survey, prominent players are focusing on production facility expansions and product innovations to develop sustainable construction aggregates.

Top players operating in the market include Heidelberg Cement AG, Martin Marietta Materials Inc, LSR Group, LafargeHolcim Ltd, and Cemex SAB de CV ADR.

Along with product innovations, players are aiming at strategic partnerships with regional players to strengthen their geographical footprint in the market. For instance:

  • In July 2021, LafargeHolcim announced a cooperative agreement research project with its subsidiary company Geocycle aimed at mineral recycling. The research project will be conducted in collaboration with the US Army Corps of Engineers’ Research and Development Center (ERDC) to study how construction demolition material can be used for energy recovery and production of construction aggregates.
  • In June 2021, HeidelbergCement AG announced its plans to build a carbon-neutral plant in Sweden. The new plant is expected to be the world's first carbon-neutral cement plant, allowing the company to reduce carbon emissions by 1.8 million metric tons of carbon dioxide per year.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa

Key Segments Covered

Product Type, Application Type, and Regions

Key Companies Profiled

  • Heidelberg Cement AG
  • Martin Marietta Materials Inc
  • LSR Group
  • LafargeHolcim Ltd.
  • Cemex SAB de CV ADR
  • Vulcan Materials Company
  • CRH plc
  • Adelaide Brighton Ltd.
  • Eurocement Group
  • ROGERS GROUP INC. 

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is the current construction aggregates market value?

    The construction aggregates market will reach a valuation of US$ 344.4 Bn in 2021.

  • At what rate did the construction aggregates market grow between 2016 and 2020?

    The construction aggregates market expanded at around 3.4% CAGR between 2016 and 2020.

  • What are the key trends driving construction aggregates sales?

    Rapid urbanization, expansions in the residential sector backed by government incentives across various countries is driving construction aggregates sales.

  • Who are the leading players in the construction aggregates market?

    Leading players operating in the construction aggregates market are Heidelberg Cement AG, Martin Marietta Materials Inc, LSR Group, LafargeHolcim Ltd and Cemex SAB de CV ADR.

  • What will be the demand outlook for  North America Construction Aggregates market?

    North America’s construction aggregates market is anticipated to experience steady growth, expanding at a 5.6% CAGR.

  • At what rate will construction aggregates demand rise in Europe?

    The construction aggregates market in Europe is expected to expand at a steady pace, with Germany accounting for 29.4% of the market share.

  • Which are the top countries driving the construction aggregates market sales?

    China, India, Australia, the U.S. and Japan are the top counties driving the construction aggregates market sales.

  • What is the current market share of Japan and South Korea in the global construction aggregates market?

    South Korea and Japan will collectively account for 7.8% of global market share in 2021.

Construction Aggregates Market by Category

By Product Type:

  • Crushed Stone
  • Sand
  • Gravels

By Application Type:

  • Commercial
  • Residential
  • Industrial
  • Infrastructure

By Region:

  • North & Central America
  • South America
  • India
  • China
  • Australia & New Zealand
  • Middle East
  • Africa
  • Rest of APAC
  • Southern & Western Europe
  • CIS & Eastern Europe
  • Northern Europe

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