The global concrete and cement market is expected to exceed $921 billion by 2020, growing at a CAGR of almost 8%, according to Technavio’s latest report, Global Concrete and Cement Market 2016-2020.
Soumya Mutsuddi, lead analyst at Technavio for construction research, says: “International events such as the Brazil Olympics, slated for 2016 and the FIFA World Cup held in 2014 have ensured a revival in commercial construction activities. Similar international events scheduled in countries like Qatar, Russia, and South Korea will necessitate the building of stadiums, hotels, and basic infrastructure including roads and transportation hubs. This growth in the construction market, will spur the demand for concrete, and cement.”
In this report, Technavio covers the present scenario and growth prospects of the Global Concrete and Cement Market 2016-2020. The report also presents the vendor landscape and a corresponding detailed analysis of the top four vendors operating in the market. The market is segmented into the following four regions: APAC, Europe, ROW, Americas.
APAC: infrastructure development to boost growth of concrete and cement market
The concrete and cement market in APAC is expected to grow due to infrastructure development. Countries such as China, India, Indonesia, Malaysia, and Vietnam offer significant growth potential for the concrete market in APAC. In addition, rising awareness among users and manufacturers about the advantages of prefabricated construction and concrete roads is also boosting the demand for concrete.
Cement manufacturing companies in APAC were responsible for 70% of the global cement supply in 2015. Globally, India is the second largest producers of cement after China. Apart from China and India, Vietnam, Indonesia, and Thailand are the other major players contributing to the growing cement market in APAC.
Europe: renovation of existing infrastructure to boost growth
Development of new infrastructure in Europe is slow due to the high quality of existing infrastructure. Governments are expected to focus more on renovation and expansion of existing infrastructure with demand variations.
The cement market in Europe fulfills the objectives of the European governments related to employment, training, energy efficiency of the building, and innovation in design of structures. In 2015, the cement industry provided 400,000 jobs to the European population. It is expected to increase by 5% in 2020. The construction companies are focusing on renovating existing buildings with energy-efficient and green infrastructure as per the policies laid out by European governments.
Apart from the green infrastructure development policy, the European Commission launched a new transportation policy in 2014, aimed at connecting the continent by removing bottlenecks like incompatible railway operations that can hamper smooth traffic flow. Increased focus will be placed on the development of public transportation systems, thus, leading to growth of the market.
ROW: large scale infrastructure projects to propel growth
ROW includes countries in the Middle East and Africa. Many of these countries are economically backward, especially in parts of Africa. The governments in these regions are diverting funds towards the development of basic infrastructures such as road and railway networks, which augurs well for the growth of the concrete market in the region.
The cement market in ROW is expected to grow at a CAGR of over 8%. Upcoming major events such as the World Expo in 2020 to be held in UAE and the FIFA World Cup of 2022 in Qatar, will result in an increased demand for cement. The demand for affordable housing is likely to remain high during the forecast period, especially in Saudi Arabia, as the country requires approximately 150,000 homes every year to meet the growing housing shortage.
Americas: demand for housing to boost growth
The concrete market in the Americas is expected to grow at a CAGR of over 7%. Apart from building construction, the demand for prefabricated construction is expected to grow during the forecast period due to the expansion and renovation of existing bridges and airports planned during 2015-2020.
The cement market in the Americas is expected to grow owing to the anticipated growth in population. “It is anticipated that the population in this region will increase by approximately 50 million by 2020, which in turn will boost the demand for high-quality infrastructure in all sectors such as residential, commercial, public, and waterworks,” Soumya says.
The region houses multiple major cement manufacturers such as the Mexico-based Cemex. Considering the potential of the market, many international players such as Germany-based Heidelberg Cement, Italy-based Essroc, and LafargeHolcim have also established their manufacturing units in this region.