Global market to advance to 51.7 billion metric tons in 2019

The worldwide market for construction aggregates is projected to advance to 51.7 billion metric tons in 2019, recording growth comparable to that of the 2009-2014 period. Gains in residential building applications for aggregates will be driven by upturns in the housing markets of developed countries, and by heightened personal incomes in developing countries, stimulating demand for more modern housing.

Higher personal incomes will also create requirements for additional commercial, industrial, and retail space, stimulating construction of nonresidential buildings and boosting aggregates sales. Infrastructure investment across the globe will bolster nonbuilding construction-related aggregates sales, as well.

Crushed stone, alternative aggregates to dominate
Crushed stone and alternative aggregates such as recycled concrete, fly ash, and slag will expand at twice the pace of sand and gravel in the near term. Sand and gravel reserves are shrinking across much of the world, and illegal sand mining plagues a number of developing markets that have rapidly growing sand consumption requirements.

As efforts to curb illegal mining activities have been largely unsuccessful, reserves in many countries are expected to be depleted at a fast pace through 2019. This will result in price hikes, especially in urban centers where demand for aggregates is sizable, causing construction firms to utilize more favorably priced items. Alternative aggregates, in particular, are typically price-competitive with virgin aggregates because they are industrial waste and construction products that would otherwise be sent to a landfill or discarded.

Asia/Pacific, Africa/Mideast regions to register most rapid growth
Gains will be fastest in the Asia/Pacific region, with Vietnam, India, Malaysia, and Indonesia recording the most rapid increases. Although gains in the Chinese market will slow going forward, it will remain by far the largest national consumer of aggregates in 2019, representing nearly half of all global sales. The Africa/Mideast region will also record rapid growth, with all major national markets recording gains above the world average. In Central and South America, a number of government-backed affordable housing programs will help resuscitate the region’s residential construction industry and support aggregates market gains. An improvement in the US construction industry will boost aggregates sales for North America, while a return to growth after a long period of decline will benefit suppliers to the market in Western Europe. A better construction climate will also fortify growth in Eastern Europe through 2019.

Hydraulic concrete to remain largest application
Hydraulic concrete will remain the largest application for construction aggregates through 2019, when it will account for just under two-thirds of global demand. Sales in concrete applications will expand at an above average pace, fueled by gains in cement demand in all sectors of the construction industry.

Fast growing developing markets are especially reliant on concrete based construction techniques, further spurring segment gains. While gains will not be as sizable or rapid, demand in asphalt applications will represent an improved performance over the 2009-2014 period. This application will be fueled mainly by stronger construction markets in Western Europe and North America, where the use of asphalt paving is greater. On the other hand, new road construction in developing nations as infrastructure is improved will aid growth in the road base and coverings segment of the aggregates market.

Study coverage
This Freedonia industry study, World Construction Aggregates, presents historical demand data (2004, 2009, 2014) plus forecasts (2019, 2024) by market, as well as demand by product and application, in six global regions and 22 key countries. Demand data is also given for 15 other countries. The study also details market environment factors, evaluates company market share and profiles 30 industry participants.

World demand for construction aggregates looks set to grow to 51.7 billion tonnes in 2019. This represents an annual growth rate of 5.2%. A key driver for this growing demand will be infrastructure investment across the. The market trends are presented in World Construction Aggregates, a new study from the Freedonia Group, a Cleveland-based industry research firm.
Demand for crushed stone and alternative aggregates – such as recycled concrete, fly ash, and slag – will expand at twice the pace of sand and gravel in the near term. Sand and gravel reserves are shrinking across much of the world, and illegal sand mining plagues a number of developing markets that have rapidly growing sand consumption requirements.

“As efforts to curb illegal mining activities have been largely unsuccessful, sand and gravel reserves in many countries are expected to be depleted at a rapid pace through 2019,” noted analyst Zoe Biller. This will result in price hikes, especially in urban areas where demand for aggregates is sizable, and will lead construction firms to turn to more favourably priced items.
The report says that gains will be fastest in the Asia/Pacific region, with India, Indonesia, Vietnam, and Malaysia recording the most rapid increases. Although growth in the Chinese market will slow, China will remain by far the largest national consumer of aggregates in 2019, representing nearly half of all global sales.

The Africa/Mideast region will also record rapid growth, with all major national markets recording gains above the world average. In Central and South America, a number of government-backed affordable housing programs will help resuscitate the region’s residential construction industry and support aggregates market gains. An improvement in the US construction industry will boost aggregates sales for North America, while a return to growth after a long period of decline will benefit suppliers to the market in Western Europe. A healthier construction climate will also stimulate growth in Eastern Europe through 2019.

Source
Freedonia Group

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