Construction aggregates are a mixture of different sized rocks, gravel and sand used to form foundations and surfaces for transportation infrastructure like roads and buildings. The mechanical strength and compressibility of aggregates makes them ideal as a base material for construction.
The global construction aggregates market is estimated to be valued at US$ 608.36 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.
Key players operating in the construction aggregates market are Sika Ag, Trelleborg Ab, Henkel Ltd., Flexcon Company, Inc, Nitto Denko Corporation, Pyrotek Inc., Vibratec, Autoneum, Rousch, Avery Dennison Corporation, American Acoustical Products, Polymer Technology Inc. Soundown Corporation, Heathcote Industrial Plastics, Vibracoustic Gmbh, Megasorber Pty Ltd, and 3M. The increasing infrastructure development activities around the world due to growing urbanization is the major driver boosting the demand for construction aggregates.
Key Takeaways
Key players: Key players in the Construction Aggregates Market Demand include global leaders like Sika Ag and Trelleborg Ab specialized in manufacturing aggregates, adhesives and sealants. These companies have wide distribution networks to cater to the growing demand.
Growing demand: The demand for construction aggregates is growing significantly driven by large scale infrastructure projects across both developing and developed nations. Mega infrastructure initiatives like bridges, highways, rail networks require huge volumes of aggregates.
Global expansion: Leading Construction Aggregates Market companies are expanding globally by either acquiring regional players or by establishing new production facilities. The focus is on high growth regions in Asia and Africa to leverage opportunities.
Market Key Trends
Use of recycled aggregates: With increasing focus on sustainability, the use of recycled aggregates from construction and demolition waste is a key trend in the industry. Recycled aggregates help reduce landfill waste and lower carbon footprint of new projects. Advanced processing technology is enabling higher reuse of recycled aggregates.
prefabrication and precasting: The construction industry is adopting modern Prefabrication and precasting techniques to boost productivity. Prefabricated construction uses factory-produced components like floors, walls, stairs that are then assembled on-site. This reduces waste and requirement of raw aggregates on site.
Porter’s Analysis
Threat of new entrants: The Construction Aggregates Market Companies requires high capital investments thus posing high barriers for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and fragmented market with multiple players.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of multiple substitute materials.
Threat of new substitutes: Substitutes like cement, steel, etc. pose moderate threat depending upon their price-performance benefits for specific applications.
Competitive rivalry: The market has many small and large players offering differentiated products leading to high competition.
Geographical regions of concentration
Asia Pacific region accounts for around 60% of the global market value owing to massive growth in construction industry in China and India. China alone contributes over 30% of global aggregates demand on account of its massive infrastructure projects.
Fastest growing region
Middle East & Africa region is expected to witness the fastest CAGR of over 8% during the forecast period due to rising government investments in construction and infrastructure development projects across GCC countries and Middle Eastern nations. Factors like increasing urbanization and industrialization are driving the growth of construction aggregates market in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.