Construction aggregates are primarily used as a base or bed in construction projects such as roads and bridges. These aggregates include sand, gravel, crushed stone, slag, recycled concrete, and geosynthetic aggregates used in construction. They provide foundation and structure to buildings and roads. Rapid infrastructure development along with increasing construction of residential and commercial spaces globally have fueled the demand for construction aggregates.
The global construction aggregates market is estimated to be valued at US$ 528.09 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the construction aggregates market is the adoption of sustainable mining practices by market players. Growing environmental concerns regarding mining and its impact have prompted companies to explore eco-friendly mining alternatives. For example, some companies are using desalination and recycling techniques to manage water used in mining and washing processes. Transition to solar and wind energy is another sustainable initiative gaining traction in construction aggregates production. Few companies have also started mining aggregates from construction debris to promote recycling and reduce landfill waste. Such sustainable innovations are expected to drive the construction aggregates industry in the coming years.
Porter’s Analysis
Threat of new entrants: The construction aggregates market requires high capital investments and established distribution channels, acting as a barrier for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute materials. However, construction aggregates are essential raw materials for construction projects.
Bargaging power of suppliers: A few large players dominate the global supply of construction aggregates, giving them significant bargaining power over buyers.
Threat of new substitutes: There exist substitute materials like recycled concrete and asphalt that can be used for certain construction applications, posing a moderate threat.
Competitive rivalry: The market is highly fragmented with the presence of several global and local vendors. Competition is based on pricing and quality.
Key Takeaways
The Global Construction Aggregates Market Size is expected to witness high growth.
Regional analysis: In Europe, Germany and UK are the major consumers of construction aggregates. Favorable government policies supporting infrastructure development are boosting the market. Meanwhile, growth in North America will be driven by the US owing to increased spending on highways and rail construction.
Key players operating in the construction aggregates market are Sika Ag, Trelleborg Ab, Henkel Ltd., Flexcon Company, Inc, Nitto Denko Corporation, Pyrotek Inc., and Vibratec. These players are focusing on new product launches and partnerships with builders to strengthen their positions. For instance, Sika AG offers concrete admixtures and cement additives to enhance properties of construction aggregates for different applications.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it