by The global construction materials market is a multi-billion dollar industry that includes a wide variety of materials used for construction purposes. Concrete, cement, aggregates, bricks, and other materials are used extensively in buildings, infrastructure, and other construction projects. The construction materials industry provides indispensable resources for the construction of roads, bridges, buildings, and other structures. These materials help create the foundation for societies worldwide through new residential, commercial, industrial and public construction.
The Global Construction Materials Market is estimated to be valued at US$ 1.47 Tn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the construction materials market include LafargeHolcim, HeidelbergCement, CRH plc, Cemex S.A.B. de C.V., Martin Marietta Materials, Inc., Boral Limited, Lehigh Hanson, Inc., Saint-Gobain, Taiheiyo Cement Corporation, Groupe Eiffage, China National Building Material Group Corporation, Anhui Conch Cement Company, UltraTech Cement Limited, James Hardie Industries plc, Knauf GIPS KG, Kiewit Corporation, Sika AG, Fletcher Building Limited, BASF SE, and Ytong (Xella Group). These market leaders are focusing on R&D initiatives, mergers & acquisitions, and geographic expansion to strengthen their global presence.
Construction Materials Market share is expanding rapidly due to rapid urbanization, infrastructure development projects, and rising construction activities across major economies. Additionally, the growing need for sustainable construction is driving demand for eco-friendly materials like recycled aggregates. The residential construction sector is a major contributor to overall growth, supported by increasing construction of single & multi-family housing units.
Owing to increased construction spending, the Asia Pacific region dominates the global market. However, North America and Europe are also significant markets for construction materials. Many companies are focusing on emerging economies in Latin America, Middle East, and Africa to tap new growth opportunities.
Market Key Trends
Sustainable construction practices are on the rise to reduce environmental impact and optimize resource efficiency. The demand for green construction materials is growing significantly. These include materials made from industrial waste or byproducts, as well as those incorporating recycled content. Their production involves less energy and emits fewer greenhouse gases compared to traditional materials. This key trend is expected to shape the future of the construction materials industry.
Porter’s Analysis
Threat of new entrants: The construction materials industry requires high capital investments for setting up manufacturing units and distribution network which poses a barrier for new companies. The established brands have economies of scale which makes it difficult for new players.
Bargaining power of buyers: Individual buyers have low bargaining power due to the fragmented nature of the construction industry. However, large construction companies and government entities have significant influence on pricing.
Bargaining power of suppliers: Majority of raw materials used in the industry such as cement, sand, aggregates etc. are widely available. However, for some materials suppliers have control over prices.
Threat of new substitutes: Construction Materials Market Challenges and Opportunities are shaped by the fact that there exist few product substitutes, and innovation mostly leads to improved products rather than entirely new substitutes.
Competitive rivalry: The industry has small number of global players and many regional and local players competing on basis of price, quality, innovation and customer service.
Geographical Regions
North America accounts for the largest share in the construction materials market, valued at US$ 304 Bn in 2024 mainly driven by residential and non-residential construction activities in the US. Asia Pacific is the fastest growing region projected to expand at a CAGR of 8% during the forecast period led by infrastructure development in China and India.
Europe currently holds the second largest market for construction materials valued at US$ 248 Bn in 2024. However, the region faces challenges of declining population and economic growth. The Middle East and Africa region is expected to witness significant investments in building new cities, highways and industrial parks supporting the construction material demand.
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*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. LinkedIn
