by Construction aggregates are natural granular materials such as sand, gravel, crushed stone, slag, recycled concrete, and geosynthetic aggregates used in construction. They are used in building and paving applications such as road bases, concrete, asphalt, railroad ballast, fill, landscaping, and drainage systems. Some of the main uses of construction aggregates include concrete aggregates, road base and coverings, railway ballast, and asphaltic concrete. They are basic construction components that add to the stability and strength of structures and pavements. Rapid infrastructure development projects, especially roads, rails, dams, bridges and commercial & residential buildings are expected to drive the demand for construction aggregates over the forecast period.
The global construction aggregates market is estimated to be valued at US$ 528.09 billion in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The construction aggregates market opportunity is expected to be flourished by rapid infrastructure development. Majority of countries are spending significantly on infrastructure to support economic growth. According to World Bank, the global infrastructure investment need is estimated to be USD 94 trillion by 2040. Rising investment in roads, railroad, bridges, dams and other infrastructure projects will positively influence the consumption of construction aggregates. Similarly, robust growth in building & construction activities especially in emerging nations such as India, China and Southeast Asian countries will augment the demand for construction aggregates over the coming years.
Rapid urbanization is another major driver of construction aggregates market. There is continuous shift of population from rural to urban areas globally in search of enhanced livelihood opportunities. This has increased the need for residential and commercial construction in cities and metropolitan areas. Development of smart cities and urban infrastructure needs huge quantity of construction aggregates.
Segment Analysis
The construction aggregates market can be segmented into crushed stone, sand, gravel, and others. Among these, crushed stone dominates the market and holds around 60% share owing to its wide applications in the construction industry for building foundations, roads, and highways. Crushed stone has superior properties such as good compression strength and durability which makes it ideal for construction activities.
PEST Analysis
Political: Favorable government policies towards infrastructure development projects in emerging nations will boost the demand for construction aggregates. Some countries also provide subsidies for procuring construction materials.
Economic: Growth of the real estate and infrastructure industries due to rapid urbanization, rising disposable income, and investments in public projects augment the construction aggregates market. The global GDP growth also impacts market trends.
Social: Increasing population, rural to urban migration, and improving standards of living fuel the demand for housing, transportation, and commercial construction requiring aggregates.
Technological: Innovation in mining and crushing equipment helps enhance quarry production and resource utilization. Advances in construction techniques allow for efficient use of aggregates in cement, concrete, and asphalt products.
Key Takeaways
The Global Construction Aggregates Market Size is expected to witness high growth during the forecast period of 2023 to 2030 supported by ongoing infrastructure development works worldwide.
Regional analysis: The Asia Pacific accounts for more than 50% share of the global construction aggregates market led by China, India, and other developing Asian countries. Mega infrastructure projects such as roads, railways, power plants, and industrial parks stimulate demand. The availability of low-cost labor and raw materials further boosts aggregate consumption in the region.
Key players operating in the construction aggregates market are Sika Ag, Trelleborg Ab, Henkel Ltd., Flexcon Company, Inc, Nitto Denko Corporation, Pyrotek Inc., Vibratec, Autoneum, Rousch, Avery Dennison Corporation, American Acoustical Products, Polymer Technology Inc. Soundown Corporation, Heathcote Industrial Plastics, Vibracoustic Gmbh, Megasorber Pty Ltd, and 3M. Sika Ag is a leading supplier with a wide product portfolio and global footprint.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
