The global construction aggregates market was pegged at more than $331 billion in terms of value at the end of 2019, and is set to hit nearly $623 billion in the next 10 years growing at a CAGR of 6 per cent, according to a report by leading consulting firm Persistence Market Research.
This is mainly due to the initiative of regional governments in emerging countries who are focusing on achieving continuous upgradation to address infrastructural shortfalls and improve education and healthcare systems and water and sanitation.
In line with this agenda, respective governments are placing importance on implementing solutions for sustainable mining and increasing productivity & automation, which has resulted in growth in the construction aggregates market.
This is expected to enhance the demand for construction aggregates across the globe, stated the report.
The government has been strategically emphasizing on yielding maximum output from these opportunities by increasing investments on interconnection plans with different countries which has resulted in the growth of the construction aggregates market.
The growing demand for leisure activities, such as amusement parks and other luxury sports venues, in the US, Europe, China, and the Middle East is propelling the construction aggregates markets across the country.
This is expected to create opportunities for market players to enhance their product portfolios and is likely to provide a much-needed boost to their revenues, thus propelling the growth of the construction aggregates market.
According to the report, a increasing use of recycled aggregates is also likely to bolster demand for construction aggregates.
Aggregate recycling is a simple process that involves breaking, removing, and crushing existing aggregates into materials of specified quality and size.
It is now gaining traction since it protects natural resources and eliminates the need for disposal, as it requires the use of readily available conventional aggregates for concrete and other applications.
This has, in turn, resulted in the growth of the construction aggregates market. All construction buildings that were created in the past have a certain life span, after which the structure is unsafe as it can collapse. In addition, the use of recycled aggregates can help save costs and create additional commercial opportunities.
According to the report, technological disruption is changing customer behavior toward interaction with all types of commercial real estate, which includes retail, office space, hospitality, and others, and this is likely to have a negative impact on the construction aggregates market.
For instance, online rental infrastructure service providing companies can shift their businesses from hotels and apartments by providing rental infrastructural services for recreational purposes. This is likely to decrease the demand for nonresidential construction aggregates over the forecast period, it added.
The research pointed out that industrial and infrastructural development in emerging economies is expected to create opportunities for the construction aggregates market to grow in the long-term.
Majority of the infrastructural development includes the development of inter & intra-country road infrastructure, tunnel development, rail web & new airports, among others.
The construction aggregates market is estimated to witness significant growth opportunities, stated the report by Persistence Market Research.
However, high transportation cost & rising energy cost are among factors that are likely to restrain the market growth. However, the demand for construction aggregates is estimated to grow at a rapid pace following the introduction of new production technologies.
The major players in the sector are LafargeHolcim, CRH, Martin Marietta Materials, Heidelberg Cement AG, LSR Group, Cemex SAB de CV ADR, and Vulcan Materials Company.
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