Market Trends of Aggregates Industry
This section covers the major market trends shaping the Aggregates Market according to our research experts:
Growing Demand from Construction Applications
- Aggregate is a broad category of coarse to medium-grained particulate material used in construction activities, which includes sand, gravel, crushed stone, slag, recycled concrete, and geosynthetic aggregates. Aggregates are the most mined materials in the world. Aggregate materials are mixed with cement, bitumen, lime, gypsum, or other adhesives to form concrete or mortar that forms a major part of building blocks.
- In 2020, the total value of new construction put in place was about USD 1,469 billion in the United States, which reached about USD 1,590 billion in 2021, with a growth rate of about 8%. Thus, this increased the demand for flooring and roofing, which, in turn, increased the demand for the aggregates market.
- China is in a construction mega-boom. The country has the largest building market in the world, making up 20% of all construction investment globally. China is expected to spend nearly USD 13 trillion on buildings by 2030.
- Additionally, in India, massive urbanization is expected to happen in the next decade, pushing the demand for the aggregates in the construction sector.
- For instance, India is trying to build more than 100 smart cities all over the country to achieve rapid urbanization, which is expected contribute greatly for the aggregates demand in the country during the forecast period.
- Hence, with the growing construction activities, the demand for aggregates is expected to rapidly increase over the forecast period.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the aggregates market during the forecast period. With growing construction activities in countries such as China, India, and Japan, the consumption of aggregates is increasing in the region.
- According to the Chinese Ministry of Water Resources, CNY 703.6 billion (~ USD 98 billion) was invested in water-conservation infrastructure projects in 2022, a 63.9% increase over the same time in 2021.
- In November 2022, the Ministry of Road Transport and Highways sanctioned projects worth INR 68,000 crore (~USD 8.25 billion) in India, increasing the scope of the market studied.
- In March 2021, the Parliament of India passed a bill to create a USD 2.5 billion development finance institution called National Bank for Financing Infrastructure and Development (NaBFID) to fund infrastructure projects in India.
- According to the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investments in the construction development sector (townships, housing, built-up infrastructure, and construction development projects) and construction (infrastructure) activities stood at USD 28.64 billion and USD 26.22 billion respectively, between April 2000 and June 2022.
- The Chinese government has rolled out massive construction plans, including making provisions for the movement of 250 million people to its new megacities over the next ten years, creating a major scope for construction activity and increasing the demand for the aggregates market during the forecast period.
- The abovementioned factors, coupled with government support, will contribute to the increasing demand for the aggregates market during the forecast period.
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