Construction Materials Market Research, 2032
The global 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.
Report Key Highlighters:
- The construction materials market is highly fragmented, with several players including 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.
- More than 6,765 product literatures, industry releases, annual reports, and other such documents of major industry participants along with authentic industry journals, trade associations' releases, and government websites have been reviewed for generating high-value industry insights.
- The study covers nearly 20 countries. The segment analysis of each country in terms of value and volume during the forecast period 2022-2032 is covered in the construction materials market report.
Construction materials are essential elements used in building and infrastructure projects. Some common types of construction materials include cement, concrete, steel, wood, glass, bricks, aggregates, and others.
Surge in population and urbanization are propelling the construction materials market growth during the forecast period.
Rapid urbanization leads to increased demand for housing, both residential and commercial. This requires the construction of apartment buildings, condominiums, townhouses, and other housing structures. Also, urbanization leads to the establishment of more businesses, offices, retail spaces, and entertainment facilities, necessitating the construction of commercial buildings. In addition, as urban populations grow, there is a need for schools, healthcare facilities, government offices, and recreational centers, leading to increased construction of public and civic buildings. In addition, aging urban infrastructure requires repairs, upgrades, and replacements, leading to ongoing construction projects and material utilization.
Urbanization encourages the adoption of modern construction techniques and innovative materials to meet the demands of growing populations sustainably. Besides, urban areas are adopting smart city technologies, which can involve the construction of advanced infrastructure requiring specialized materials. Besides, with increasing urban populations, there is a need for environmentally friendly construction materials and sustainable building practices to reduce the impact on resources.
Further, environmental regulations and the increasing emphasis on sustainability are other crucial drivers of demand for eco-friendly and sustainable construction materials. As concerns about climate change and resource depletion increase, both government policies and consumer preferences are pushing the construction industry to adopt more environmentally responsible practices. Certifications such as LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method) encourage the use of sustainable materials and construction practices, driving demand for eco-friendly alternatives. Also, regulations and incentives aimed at improving energy efficiency in buildings lead to the adoption of materials with better insulation properties and reduced thermal conductivity.
In addition, demand for materials made from renewable resources such as bamboo, cork, and certain types of timber is increasing due to their sustainable growth and harvesting cycles. However, the cost fluctuation associated with construction materials is expected to act as a major restraint for market growth. Nevertheless, the growing demand for green construction materials is anticipated to offer many opportunities for market growth in the coming years.
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.
Asia-Pacific was the highest revenue contributor in 2022. Asia-Pacific is witnessing significant urbanization, leading to the construction of residential complexes, commercial spaces, and infrastructure in order to accommodate the rising urban population. Besides, urbanization propels the need for new infrastructure, including housing, transportation, utilities, and social services, leading to increased construction and development activities. Besides, the region has one of the highest rates of urbanization in the world. Many countries are witnessing a shift from rural to urban living as people seek better economic opportunities and improved living standards in cities.
Aggregates segment was the highest revenue contributor to the market in 2022. Aggregates are granular materials used in construction as a key component of concrete, asphalt, and other building applications. They provide bulk and stability to the final construction product while contributing to the structural strength, durability, and overall performance of the material. Aggregates can be natural or manufactured and come in various sizes and types to suit different construction needs.
While the demand for aggregates is significant, there are also challenges such as environmental concerns related to quarrying and transportation, supply chain disruptions, and the need to balance resource extraction with sustainability goals. To address these challenges, the industry is exploring innovations such as alternative materials, improved extraction methods, and sustainable transportation practices.
Residential segment was the highest revenue contributor to the market in 2022. Many regions are facing housing shortages, leading to increased construction activity to address the demand for affordable housing and rental properties. Developing countries are experiencing rapid urbanization, leading to increased demand for residential construction materials to accommodate urban growth.
Further, government programs promoting affordable housing, green building, and energy efficiency can stimulate demand for specific construction materials. Real estate investors and developers contribute to the demand for construction materials as they seek to capitalize on housing market opportunities. Consequently, the above-mentioned factors are anticipated to drive segment growth during the forecast period.
Key players in the construction materials industry 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. Nowadays, the key manufacturers operating in the construction materials market have adopted strategies such as product innovation, joint venture, expansion, partnership, agreement, investment, and collaboration to increase their market share.
Key Regulations:
Some key regulations and standards that impact the construction materials market include:
- LEED (Leadership in Energy and Environmental Design): LEED is a widely recognized green building certification system that encourages the use of sustainable construction materials and practices. It sets criteria for energy efficiency, water efficiency, materials selection, indoor environmental quality, and more.
- EU Construction Products Regulation (CPR): Applicable within the European Union, CPR mandates that construction products meet specific performance standards and have a CE marking to indicate compliance. This regulation covers aspects such as fire safety, structural integrity, and environmental impact.
- REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals): This European regulation aims to ensure the safe use of chemicals in products, including construction materials. It requires the registration and evaluation of chemical substances used in products to protect human health and the environment.
- Building Codes and Standards: Many countries have building codes that specify the minimum requirements for construction materials to ensure safety, structural integrity, and fire resistance. These codes may include specifications for materials such as concrete, steel, and wood.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the construction materials market analysis from 2022 to 2032 to identify the prevailing construction materials market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the construction materials market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global construction materials market trends, key players, market segments, application areas, and market growth strategies.
Construction Materials Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 1732.3 billion |
 Growth Rate | CAGR of 3.8% |
 Forecast period | 2022 - 2032 |
 Report Pages | 299 |
 By Material Type |
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 By End-use |
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 By Region |
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 Key Market Players | LIXIL Corporation, Knauf Digital GmbH, Grasim Industries Limited, CEMEX, S.A.B. de C.V., Holcim, ArcelorMittal, CRH, Ambuja Cements Ltd, Boral, Sika AG |
Analyst Review
According to the opinions of various CXOs of leading companies, the construction materials market is expected to witness increased demand during the forecast period due to population growth, urbanization, infrastructure development, and economic expansion. As the population continues to increase worldwide, more people are moving to urban areas, leading to the construction of residential and commercial buildings to cope with this trend. Also, infrastructure projects such as highways, airports, rail, and water supply schemes are also being invested by governments and privately owned companies. These projects require vast amounts of construction materials. In addition, growing economies often result in increased construction activity as businesses expand, leading to the construction of new factories, offices, and retail spaces.
The Construction Materials Market 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.
Infrastructure development is a major driving force behind the demand for construction materials.
Residential is the major end-user of Construction Materials Market.
Asia-Pacific is the largest regional market for Construction Materials.
The top companies to hold the market share in Construction Materials 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.
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