The Global Aggregates Market was Valued at US$ 465.2 Bn In 2020 is Expected to Reach US$ 657.2 Bn By 2027, at a CAGR Of 3.5% During The Forecast Period (2017-2027).
Aggregates are an essential construction material for concrete and includes inert granular materials such as gravel, sand and crushed stones. One of the key factors driving the demand for aggregates is the rapid growth of construction industry primarily from the developing regions. The regions such as Asia Pacific and Middle East & Africa is increasingly making investments to strengthen the industrial sector with the rising development of industrial plans and facilities. Moreover the rising adoption of recycled aggregates for construction purpose is supporting the growth of aggregates market globally.
However, the rising COVID-19 crisis has created enormous challenges for the industry workers. The pandemic has shrunken the economies of countries around the world, affecting the construction industry adversely reshaping the consumer’s spending capacity. Supply chain disruptions and demand erosion will further decrease the product demand. On account of impact of Covid-19 the prices of key raw material ingredients such as sand has increased significantly. The increase in prices was due to the increase in freight and logistics costs and depletion of resources such as and environmental restrictions on sand mining in key geographies.
Global Aggregates Market is Segmented as:
The unique insights provided by this report also includes the following:
Based on Type, transportation segment dominated the market in 2020
Based on the type the aggregates market is segmented as crushed stone, sand, gravel, and others. The crushed stone segment held the largest market share in 2020 and is anticipated to witness similar trends throughout the forecast period. The crushed stone segment is easily available in the region with almost every state in the U.S. producing crushed stones. Crushed stones are widely used in road construction and manufacturing of cement and due to the increasing infrastructure projects.
The demand for sand is also supported by the rising demand from the construction industry. However, the shrinking reserves of sand across the globe are hampering market growth. The initiatives undertaken by the government to preserve the environment, sand mining is considered illegal in most countries. For instance, in India, in January 2020, the Ministry of Environment, Forests and Climate Change have released a guideline called ‘The Enforcement and Monitoring Guidelines for Sand Mining 2020’ that provides instructions to the states to constantly monitor mining activities suing drones, ground surveys, aerial surveys and set up a dedicated task force at the district level. The guidelines also include direction for states to perform river audits and provide detailed survey reports of all the mining areas online in the public domain on a monthly basis. The guidelines were prepared to nullify the adverse effects of excessive sand mining and the prevention of illegal mining. Policies and regulations like these are restraining the market growth.
Based on Applications, commercial segment held the largest market share in the global aggregates market in 2020
The commercial application segment held the largest market share in 2020 and growing with the fastest CAGR of 4.6%. The growing urban population across the globe is supporting commercial and residential development. For instance, the Government of Canada is making infrastructure investments and in 2016, made the commitment to invest US$ 180 Bn over a period of 12 years supporting the demand for aggregate in the infrastructure application segment. Canada is also investing in recreational complex with an amount of US$ 53 Mn invested for recreational complex for residents in the Township of King. Investments like these is boosting the demand for aggregates in infrastructure. The industrial sector is matured in the region which is witnessing stable growth during the forecast period.
Based on regions, the North America region held a significant market share in 2020
One of the key factors accelerating the growth of the aggregates market in North America is the increasing need of upgrading the U.S. infrastructure owing to the rising number of bridge collapses. According to the American Society of Civil Engineers (ASCE), in 2016, approximately 9.1% of the bridges across the U.S. were structurally deficient. Similarly, the country’s residential sector is witnessing significant growth thereby supporting the market growth for aggregates.
Moreover, Canada is set to witness a rise in the demand for aggregates owing to the accelerating demand from the construction industry. The government of Canada is also making significant investments in infrastructure development supporting market growth. In 2016, the Government of Canada launched the ‘Investing in Canada Plan’ to achieve the three main objectives that include building social inclusion and socio-economic outcomes for all Canadians, creating long-term economic growth thereby building a stronger middle class, and to supporting the resilience of communities and transitioning to a clean growth economy.
Company Profiles and Competitive Intelligence:
The major players operating in the global aggregates market are, Vulcan Materials Company, CRH plc, Martin Marietta Aggregates, HeidelbergCement AG, LafargeHolcim Ltd., Cemex S.A.B. de C.V., Colas Inc., and MDU Resources Group, Inc., among others.
The report also provides in-depth analysis of market dynamics such as drivers, restraints opportunities and challenges
The report also provides in-depth analysis of key market trends
|1||Rising investment across various infrastructure projects especially for healthcare and educational infrastructure is increasing the demand for aggregates||Positive|
|2||Rising innovative technologies to increase the production of aggregates with increased efficiency and quality of the material||Positive|
|3||Government compliances and policies to source the construction material sustainably to protect the environment is hampering the market growth||Negative|
|4||Trucking cost per mile witnessed increasing trend in US post the impact of Covid-19 since June 2020 which further impacted the margins of cement aggregate producers and suppliers. There was a marginal decline post January 2021, however, the prices are still higher as compared to previous year the Per-mile truckload costs were still 8.1% higher in February as compared to the previous year||Negative|
|5||The leading market players across the construction aggregate industry are adopting strategic partnerships, mergers & acquisitions and joint ventures to gain a competitive edge and expand their geographic footprint||Positive|
The report also provides in-depth analysis of recent news developments and investments
Company Profiles and Competitive Intelligence
The key players operating in the market are:
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