Global aggregates market value was USD 463.3 billion in 2019. It is expected to grow at 3.3% compound annual growth rate (CAGR), between 2020 and 2027. In the next few years, the aggregates market will be driven by the rapid growth of the construction sector, especially in emerging economies like Asia Pacific and Middle East & Africa. The key end-use industries for the product are commercial and residential construction, as well as transport infrastructure. It is used primarily in concrete, rail ballast, road base & covers, and concrete manufacturing. Due to lockdowns in major cities around the globe, the COVID-19 pandemic directly limited or halted all construction activities. This will likely to slow down market growth in 2020. However, a sharp recovery is expected by 2021.
According to the preliminary figures for Q1 2020, China's construction activity declined by almost 3.1%. Slow growth in the construction and building sector, combined with restrictions on the movement of goods, will likely lower product demand in FY 2020. However, China's consumption patterns are expected to improve in the second half 2020.
The macroeconomic environment is expected to drive the growth as the country's construction industry has shown positive growth since May. According to the International Monetary Fund (IMF), the country's GDP will recover by the second quarter of FY 2020. This is because the country has been freed from the restrictions imposed and new policies are being implemented. This will likely benefit China's market in the short-term.
Crushed stone dominated the market, accounting for a revenue share in 2019 of 58.1%. Because of its easy availability, the segment will grow at a faster CAGR between 2020 and 2027. In the U.S., every state except Delaware produces crushed stone. It is used mainly in the construction of cement and road construction. Concrete is made with sand, coarse aggregates and cement.
Rapid urbanization in emerging countries like India, Indonesia and China has led to a growing housing sector. This will be a major driver of the segment's future growth. Gravel is used extensively in the manufacture of concrete blocks, pipes and bricks as well as road construction materials. This product is in high demand due to the increase in high-rise buildings that use concrete in large quantities. Over the past decade, high-rise buildings has seen significant growth.
Concrete was the most popular application segment in 2019, accounting for 68.3% of revenue. This segment will likely maintain its dominance over the next few years, due to the rapid growth of the housing sector and the increasing number of infrastructure projects across different regions. The U.S. and China will likely contribute the largest number of new infrastructure projects after the COVID-19 pandemic. This should support the segment's growth.
In 2019, the road base and coverings segment accounted for the second highest revenue share. Estimates suggest that 1 km of roadway construction will require nearly 25,000 tons crushed stones. Due to large investments from India, the roadway construction industry is expected to continue to grow in emerging countries. The Indian government proposed numerous projects to develop the nation's roadway infrastructure in 2019.
Asia Pacific dominated the market, accounting for 66% of the total revenue in 2019. It will continue to grow at the fastest CAGR between 2020 and 2027. The region's well-established construction industry is responsible for this growth. According to statistics released by IMF, Asia Pacific is most likely to be the least affected area due to the COVID-19 epidemic. The region's rapid industrialization and urbanization, as well as the revival of foreign investment funding and rising disposable income levels, will likely boost construction spending and drive the demand for aggregates in the future.
The pandemic has ravaged Europe. The region's market will experience a sharp drop in 2020, and then a slowdown until 2027. Due to political uncertainty and the economic slowdown, Europe has seen slower growth in construction over the last few years.
North America was forced to suspend all manufacturing and related activities due to the pandemic. Construction was one of these activities. The activities slowly resumed operations in the second half 2020. In July 2020 plans were revealed for the construction of a 322-unit housing development in New York, U.S. This project is part the state's USD 1.4 million initiative. It is being constructed as a joint venture by Monadnock Development, CB Emmanuel Realty.
Due to large investments in the development of road infrastructure, Central & South America will see a steady increase rate over the forecast period. The government of Argentina plans major road construction across the country by 2022. 16 major road projects have been identified by the government, with an estimated total length of almost 7,000 km.
Global markets are highly competitive. Most companies have extensive distribution channels across different regions and are integrated throughout the value chain. To gain more market share, companies compete on a variety of factors. They are also focused on the development of new products and technologies and refining existing products in order to maintain the market share. The following are some of the most prominent players in aggregates market:
LafargeHolcim
Martin Marietta
LSR Group
HeidelbergCement AG
CEMEX S.A.B. de C.V
Vulcan Materials Company
CRH plc
Adelaide Brighton Ltd
Eurocement Group
Rogers Group Inc.
Up Market Research published a new report titled “Aggregates Market research report which is segmented by Type (Sand, Crushed Stone, Gravel), by Application (Road Base & Coverings, Concrete), By Players/Companies Adelaide Brighton Ltd, CEMEX SAB de CV, Martin Marietta, LSR Group, LafargeHolcim, Rogers Group Inc, CRH plc, Vulcan Materials Company, HeidelbergCement AG, Eurocement Group”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Aggregates Market Research Report |
By Type | Sand, Crushed Stone, Gravel |
By Application | Road Base & Coverings, Concrete |
By Companies | Adelaide Brighton Ltd, CEMEX SAB de CV, Martin Marietta, LSR Group, LafargeHolcim, Rogers Group Inc, CRH plc, Vulcan Materials Company, HeidelbergCement AG, Eurocement Group |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 248 |
Number of Tables & Figures | 174 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Type (Sand, Crushed Stone, Gravel), by Application (Road Base & Coverings, Concrete).
Aggregates Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Aggregates Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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