Europe Advanced Building Materials Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, Material, And Application : Opportunity Analysis and Industry Forecast, 2023-2032

The Europe Advanced Building Materials Market Size was valued at $9,985.6 million in 2021 and is projected to reach $17,735.6 million by 2032, registering a CAGR of 5.8% from 2023 to 2032. Advanced building materials primarily include green building materials as well as technically advanced building materials. Green building material encompasses materials that are eco-friendly and sustainable. On the other hand, technically advanced building materials are superior to traditional building materials in terms of strength, efficiency, durability, and others. Commonly found advanced building materials are ultra-high strength concrete, 3D printable cement, sealant, low-CO2 cement, cross-laminated timber, and others.

Market Dynamics

Europe advanced building materials market is primarily driven by various factors such as the development of technologies involved in manufacturing building materials. Moreover, with a rapid rise in urbanization in the countries such as Germany, Spain, Belgium, and others demand for quick and cost-effective construction has risen. Most importantly, the governments of many countries in the Europe are increasingly allocating substantial funds to construct, repair and modernize their infrastructure, thereby playing a pivotal role in propelling the growth of the advanced building materials market in Europe.

For example, an ongoing project focusing on the redevelopment and improvement of the Son Sant Joan Mallorca Airport in the picturesque Balearic Islands of Spain commenced its construction in the first quarter of 2023 and is anticipated to be completed by the first quarter of 2026. Simultaneously, several other civilian airports and military airbases are currently being developed throughout the region, which further emphasizes the commitment of the governments in the region to develop their infrastructure.

Furthermore, another interesting project in the region involving the construction of an 11-mile-long tunnel that will connect Germany and Denmark is currently under construction. This infrastructure project, known as the 'Fehmarnbelt tunnel,' will be at the depth of 130 ft in the Baltic Sea. It is expected that the Fehmarnbelt tunnel will reach completion by the year 2029, at a high investment of $8 billion. Furthermore, by the end of 2050, the total urban population in the region will increase to 83.7%, which is an astonishing increment from 75% in 2021.

This extensive urbanization will triggering massive demand for infrastructure support such as roads, subways, tunnels, common areas, and commercial infrastructures. In addition, the rising urbanization will also lead to an increased number of homeless people on the streets. Thus, various European nations have also invested heavily in the construction of affordable housing. For instance, the UK has allocated more than $11 billion which will be spent till 2026 for the construction of affordable housing up to 180,000 by 2026. Similarly, in October 2022, the federal government of Germany has shown its intentions to construct a sufficient amount of affordable, climate-neutral, and low barrier housing. Other countries such as France, Belgium, and others have also invested heavily in the development of affordable housing.

The allocation of funds to infrastructural development and affordable housing initiatives has paved the way for the construction of new residential complexes and the refurbishment of existing structures which drives demand for various advanced building materials; thereby driving Europe advanced building materials market growth.

However, the fluctuating cost of raw materials used for manufacturing advanced building materials is expected to restrain the market growth. Even if the manufacturer does not increase the price, it is expected to affect the profitability of the company involved in making advanced building materials. Moreover, strict government regulations towards non-eco-friendly advanced building materials are also expected to have a negative impact on the growth of the market

Moreover, construction activities and the materials used in construction are among the major polluting sources, thus the demand for advanced and sustainable construction materials has increased. For instance, in March 2023, the government of the UK announced that it will increase the use of timber in the construction industry in 2023. This is in line with the government’s strategy to reduce carbon emissions and meet its net-zero targets by 2050. Moreover, in April 2023, the government of Germany proposed a plan to raise the quota of timber in residential construction to 30% by 2030. The increasing demand for sustainable and eco-friendly buildings is among the major Europe advanced building materials market opportunities for the growth of key players in the market.

Europe advanced building materials market is witnessing various obstructions in its regular operations due to the COVID-19 pandemic and inflation. Earlier, the worldwide lockdowns resulted in reduced industrial activities, eventually leading to reduced demand for advanced building materials from various sectors such as construction and industrial in Europe. However, COVID-19 has subsided, and the major manufacturers of advanced building materials are performing well in 2023. Contrarily, the rising global inflation is a new major obstructing factor for the entire industry.

The inflation, which is a direct result of the Ukraine-Russia war, and few long-term impacts of the coronavirus pandemic, has introduced volatility in the prices of raw materials used for manufacturing advanced building materials.  In addition to this, the cost of oil & gas has also increased substantially, and many countries; especially, the countries in Europe, such as Germany, the UK, and France are experiencing severe negative impacts in their industrial production, including the production of advanced building materials. In addition, inflation is expected to worsen in the coming years, as the possibility of the ending of the war between Ukraine and Russia is less. Moreover, the cost of construction has risen substantially, discouraging  builders from initiating new projects, which is also expected to negatively affect market growth. However, with the continued talks between different countries, a peace agreement between Ukraine and Russia can be devised, and the negative impacts of inflation may subside.

Segmental Overview

The Europe advanced building materials market is segmented on the basis of types, material, application, and country. By type, the market is bifurcated into green material and technically advanced. Depending upon the material, the market is categorized into advanced cement and concrete, cross laminated timber, structural insulated panel, sealants, and others. On the basis of application, it is divided into building construction and infrastructure. Country wise, it is analyzed across major countries of Europe which include, Germany, France, Italy, the UK, and the rest of Europe.

By Type:

The Europe advanced building materials market is bifurcated into green material and technically advanced. In 2022, the technically advanced segment dominated the market, in terms of revenue, and the green materials segment is expected to grow with a higher CAGR during the forecast period. Technically advanced materials commonly include ultra-high strength concrete, self-healing concrete, quick-setting sealants, 3D printable concrete, and enhanced fireproofing solutions. These materials possess high efficiency than the traditionally used building materials. On the other hand, the higher CAGR of the green materials segment is attributed to the For the past few years, there has been an increase in demand for sustainable and advanced building materials due to increased awareness of the benefits associated with these materials.

By Material:

The Europe advanced building materials market is divided into advanced cement and concrete, cross laminated timber, structural insulated panels, sealants, and others. In 2022, the Advanced cement and concrete segment dominated the market, in terms of revenue. This is attributed to increasing investments in the constriction of the infrastructure of bridges, tunnels, buildings, and others which makes substantial use of concrete and cement that are having high strength, durability, low carbon footprint, and are quick to cure. On the other hand, the sealant segment is expected to grow with a higher CAGR during the forecast period, owing to an increase in demand for structural facades, and cladding which makes use of sealants. Moreover, sealants are crucial for reducing the energy consumption of a building on air-conditioning, as the sealant does not allow unintentional movement of air between the building and the outside world.

By Application:

Europe advanced building materials market is divided into building construction and infrastructure. The building construction segment accounted for a higher market share in 2022. This is attributed to the growing population which drives demand for luxurious as well as affordable housing. In addition, rising urbanization also drives demand for commercial buildings. However, the infrastructure segment is anticipated to register a higher growth rate throughout the forecast period.

By Country:

Germany accounted for the highest Europe advanced building materials market share in 2022 and the rest of Europe is expected to grow with a higher CAGR throughout the projected period. Germany has allocated a significant number of resources to the development of its infrastructure as well as residential and non-residential buildings. On the other hand, the high CAGR of the rest of Europe is attributed to its greater potential for growth in the industrial and construction sectors. In addition, the countries such as Sweden, Belgium, Netherlands, and Spain are experiencing greater economic growth which can further enhance the growth potential of market in Europe.

Competition Analysis

Competitive analysis and profiles of the major players in the Europe advanced building materials market are provided in the report. Major companies in the report include BASF SE, CEMEX, S.A.B. DE C.V., DuPont de Nemours, Inc., HeidelbergCement AG, Holcim Ltd., Kingspan Group plc, Knauf Gips KG, PPG Industries Inc., Saint-Gobain Group, and SIPEUROPE s.r.o.

Major players to remain competitive adopt development strategies such as product launches, business expansion, acquisitions, partnerships, and others. For instance, in November 2021, Holcim introduced DYNAMax in Europe as well as in other parts of the world. DYNAMax is a high-performance concrete, has high durability and rigidity allowing greater design flexibility and sustainability. Moreover, in addition, in May 2023, CEMEX acquired a mortar plant near Madrid, Spain, to produce traditional and specialty mortars with enhanced sustainability attributes.

Key Benefits for Stakeholders

• The report provides an extensive analysis of the current and emerging Europe advanced building materials market trends and dynamics. 
• In-depth Europe advanced building materials market analysis is conducted by constructing market estimations for key market segments between 2021 and 2032.
• Extensive analysis of the Europe advanced building materials market is conducted by following key product positioning and monitoring of top competitors within the market framework.
• A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
• The Europe advanced building materials market forecast analysis from 2023 to 2032 is included in the report.
• The key players within the Europe advanced building materials market are profiled in this report and their strategies are analyzed thoroughly, which helps understand the competitive outlook of the Europe advanced building materials industry.

  Europe Advanced Building Materials Market Report Highlights

Aspects	Details
By Material	Advanced cement and concrete Cross laminated timber Structural insulated panel Sealants Other
By Type	Green materials Technically advanced
By Application	Building construction Infrastructure
By Country	Germany France Italy UK Rest of Europe
Key Market Players	Holcim Ltd., BASF SE, HeidelbergCement AG, Kingspan Group plc,, PPG Industries Inc., Knauf Gips KG, S.A.B. DE C.V., SIPEUROPE s.r.o., CEMEX, Saint-Gobain Group, DuPont de Nemours, Inc.

Analyst Review

The Europe advanced building materials market has witnessed significant growth in the past few years owing to an increase in residential and non-residential construction including the construction of roads, bridges, tunnels, stadiums, and other infrastructure. The construction of these structures makes considerable use of advanced building materials owing to their higher efficiency, performance, and strength than traditional materials. Moreover, advanced building materials are materials that can be customized to produce unique properties that are not necessarily achievable with conventional building materials; thereby making them superior to conventional building materials.

Furthermore, in recent times, there has been increased research on nanotechnologies to enhance material properties and functions, biotechnologies, and bioinspired materials that seek to replicate natural systems. Moreover, advanced building materials encompass innovative and economically sustainable solutions that effectively enhance profitability, reduce construction timelines, and significantly benefit the environment.

These materials integrate state-of-the-art technologies and practices, promoting both economic viability and environmental stewardship. By utilizing advanced building materials, construction projects can achieve higher levels of efficiency, resulting in increased profitability for stakeholders. Importantly, advanced building materials prioritize environmental considerations, actively mitigating negative impacts on the ecosystem. By adopting sustainable practices, these materials contribute to the preservation of natural resources, reduction of carbon emissions, and overall ecological well-being. The construction industry has historically been reluctant in the adoption of new technology, this is especially the case with small-scale developers. However, advanced building materials can greatly help in reducing the overall lower lifecycle expenses of a building and other structures, despite their initial high costs.

Author Name(s) : Saurabh Samel | Sonia Mutreja