Construction Materials Market Expected to Reach $1.7 Trillion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Construction Materials Market," The construction materials market size was valued at $1.2 trillion in 2022, and is projected to reach $1.7 trillion by 2032, growing at a CAGR of 3.8% from 2023 to 2032.

 Construction materials are the various substances and components used in the process of building structures, infrastructure, and other physical facilities. These materials are a core part of construction projects and define the total strength, durability, functionality or appearance of finished buildings.

 The key driver of the construction materials market growth is infrastructure development. The demand for construction materials is increasing significantly due to the investment of governments and private sector bodies in new infrastructure projects, such as roads, bridges, airports, railways or utilities. Infrastructure projects are essential for economic growth, connectivity, and the overall development of a region, and they rely heavily on a wide range of construction materials. Concrete is a fundamental material used in infrastructure construction due to its versatility, durability, and load-bearing capacity.

The demand for cement and concrete increases as more infrastructure projects are undertaken. In addition, the construction and maintenance of roads, highways, and runways require asphalt and other paving materials. The demand for these materials is directly linked to the expansion of transportation networks. Also, many governments prioritize infrastructure development to improve the quality of life, promote economic growth, and enhance connectivity. Such initiatives lead to sustained demand for construction materials.

However, the cost fluctuation associated with construction materials is expected to act as a major restraint for market growth.  A drop in demand for construction material, often due to economic conditions, may lead to a shortage or surplus of supply and cause prices to rise or fall accordingly. Furthermore, the construction materials are commodities as a result of price variations due to market conditions around the world, geopolitical factors and supply disruption.

Nevertheless, lucrative opportunities are anticipated to emerge in the next few years as a result of an increasing demand for sustainable or ecofriendly construction materials which aim at reducing their environmental impact from production to disposal. These materials aim to conserve resources, minimize energy consumption, reduce waste, and promote environmental and human health. Green construction materials play a crucial role in creating more sustainable and environmentally responsible buildings and infrastructure.

Increasing awareness about the environmental sustainability of buildings and regulatory requirements as well as desire to create healthier, more energy efficient buildings have increased demand for green building materials. There is a greater understanding of the environmental impact of construction materials and the need to reduce carbon emissions, resource depletion, and waste generation. Furthermore, green materials tend to have better insulation properties as well as lower energy costs for heating, cooling and lighting in buildings. Also, many governments are enforcing stricter building codes and standards that require the use of green materials to achieve energy efficiency and sustainability goals.

Furthermore, certifications such as BREEAM (Building Research Establishment Environmental Assessment Method) and LEED (Leadership in Energy and Environmental Design) incentivize the use of green materials and sustainable construction practices. Industry is responding by investing in R&D and innovation, as demand for green building materials continues to grow.

The construction materials market scope is segmented on the basis of material type, end-use, and region. By material type, the market is categorized into aggregates, cement, bricks and blocks, metals, and others. By end-use, the construction materials market is classified into residential, commercial, and industrial. By region, the construction materials market share is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The report covers strategies adopted by key players in the construction materials industry to sustain the competitive environment and increase their market share. The key players operating in the construction materials market include Ambuja Cements Ltd; ArcelorMittal; Grasim Industries Limited; LIXIL Corporation; Sika AG; CRH; Knauf Digital GmbH; CEMEX, S.A.B. de C.V.; Holcim; and Boral. In addition, the market drivers, restraints, and opportunities are explained in the report.

Key findings of the study:

• As per construction materials market analysis, based on material type, the aggregates segment was the highest revenue contributor to the market in 2022.
• On the basis of end-use, the residential segment was the highest revenue contributor to the market, growing with a CAGR of 3.8%.
• Region wise, Asia-Pacific dominated the market in 2022.