According to a recent report from Global Industry Analysts (GIA), the global market for construction materials is projected to exceed $1 trillion by 2020, driven by an improving world economic outlook and recovering construction activity in residential, commercial, and infrastructure sectors. Growth in the global construction materials market is reliant on GDP growth, government spending on infrastructure and the health of the commercial and residential real estate market. Recovering economic growth, the housing needs of a growing world population, and a focus on infrastructure development are expected to bolster construction activity across residential, commercial, and infrastructure. The scenario is poised to benefit demand for a wide range of construction materials.
A key factor influencing trends in the construction materials market is population growth, particularly in urban locations across the world. Against the backdrop of population growth and migration toward urban centers, governments across the world are faced with the immediate challenge of addressing housing and infrastructure needs. There is increased demand for housing units in developing countries such as China, India and Brazil, in order to accommodate the needs of the expanding middle class population. This is expected to translate into significant growth opportunities for a range of construction materials, such as cement, brick, aggregates and construction steel.
Recovering construction activity in developed economies and strong growth opportunities for residential and infrastructure construction projects in developing nations are expected to boost demand for construction materials in the coming years. An increased focus on sustainable buildings, rising environmental concerns, legislation of building regulations and performance standards for energy efficiency are driving demand for eco-friendly building materials. Due to the growing pressure to reduce the carbon footprint of manufacturing of building materials, companies are employing measures such as gradual rehabilitation of quarries, lowering industrial emissions, particulates and dust, ensuring optimum consumption of water through wastewater recycling and rainwater recovery, and making optimum use of natural resources.
Asia-Pacific represents the largest and the fastest-growing market worldwide. Growth in the region is driven by strengthening construction activity, rapid industrialization and urbanization, rising housing needs of a growing population, growth in business activity and the resulting increased in commercial construction projects. China remains the leading construction market worldwide, despite the slowdown in economic growth in recent years. Urbanization remains one of the major factors driving the Chinese government to invest in housing and infrastructure projects.