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Construction Materials Market to Exceed USD 1.57 Trillion by 2025, Fueled by Booming Residential and Commercial Construction

07-21-2025 06:12 PM CET | Industry, Real Estate & Construction

Press release from: ABNewswire

Construction Materials Market to Exceed USD 1.57 Trillion

The global construction materials market is estimated to be valued at USD 1.57 Tn in 2025 and is expected to reach USD 2.47 Tn by 2032, exhibiting a compound annual growth rate (CAGR) of 6.7% from 2025 to 2032. Rising urbanization and the surge in infrastructure development projects in both developed and developing nations are set to significantly boost the demand for construction materials. Moreover, increasing investments in non-residential construction-particularly in commercial complexes, healthcare facilities, and transportation infrastructure-are anticipated to further propel market growth.

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Global Construction Materials Market Key Takeaways

According to Coherent Market Insights (CMI), the global construction materials market size is projected to reach a whooping USD 2.47 Tn by 2032, up from USD 1.57 Tn in 2025.

Global demand for construction materials is slated to increase at a CAGR of 6.7% during the forecast period.

Cement is expected to remain a highly sought-after material type during the assessment period, generating a market revenue of around USD 0.47 Tn in 2025.

Residential construction is likely to remain the most lucrative application for construction materials, accounting for a global market share of 43.9% in 2025.

North America is slated to lead the industry, accounting for more than 3/5 of the global construction materials market share in 2025.

As per CMI's new construction materials market analysis, Asia Pacific is poised to witness fastest growth over the forecast period.

Residential and Commercial Construction Boom Spurring Market Growth

Coherent Market Insights' latest construction materials market report highlights key factors driving market growth. One such key growth driver is the ongoing boom in residential and commercial construction.

Rapid urbanization and population growth in emerging economies like China and India are increasing demand for housing and commercial infrastructure, such as shopping malls and office spaces. This rising demand is expected to fuel consumption of construction materials over the forecast period.

Fluctuating Raw Material Prices Limiting Market Growth

The future construction materials market outlook looks optimistic. However, fluctuating prices of essential raw materials may constrain market growth to some extent during the forecast period.

Key construction materials like cement, lumber, and steel often experience high price volatility due to factors like geopolitical tensions, supply chain disruptions, and inflation. This pricing instability can negatively impact construction materials market demand, as it raises project costs and delays construction activities.

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Increasing Infrastructure Spending Creating Growth Opportunities

Governments in nations like China and the United States are significantly investing in large-scale infrastructure projects, including roads, railways, bridges, and smart cities. For example, according to the U.S. Census Bureau, total construction spending in the United States reached approximately USD 841 billion during the first five months of 2025. This continued increase in infrastructure investment is anticipated to generate substantial growth opportunities for construction material companies throughout the forecast period.

Impact of AI on the Construction Materials Market

Artificial Intelligence (AI) is positively impacting the construction materials market. It enhances efficiency, reduces costs, and improves decision-making.

AI helps manufacturers forecast demand, optimize inventory, and streamline supply chain operations. In construction, AI-driven technologies enable real-time quality control, automate material testing, and support development of innovative, sustainable materials.

AI also facilitates smart construction planning by integrating material data with project timelines, leading to reduced waste and improved resource utilization. Overall, AI is fostering a more data-driven and sustainable approach in the construction materials industry.

Emerging Construction Materials Market Trends

Sustainability and green building trends are significantly driving the growth of the construction materials industry. Homeowners and builders are becoming increasingly aware of the environmental impact of construction practices. This is boosting demand for recyclable, low-carbon, and energy-efficient materials.

Another prominent growth-shaping trend in the construction materials market is the increasing renovation and remodeling activities. Homeowners, especially in developed nations, are increasing investments in home renovation projects. This trend is expected to fuel sales of construction materials like cement and metals.

Technological advancements in building materials are positively shaping the target industry. Leading companies are striving to develop eco-friendly, sustainable, and lightweight materials, such as green cement and precast concrete, to improve construction efficiency and help end users comply with environmental regulations.

Many industry players are shifting their focus towards creating smart construction materials, including self-healing concrete and carbon fiber composites that offer energy efficiency and longer durability. For instance, in 2024, Basilisk Self-Healing Concrete was launched in the United States. These innovations are expected to boost the construction materials industry value and growth.

Rise of prefabrication and modular construction is unlocking new growth opportunities for construction material companies. There is a growing trend towards using prefab and modular construction techniques across various regions. This drives demand for specialized materials for off-site manufacturing and usage.

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Analyst's View

"The global construction materials industry is poised to experience strong growth, owing to expanding residential and commercial construction activities, increased infrastructure investments, rising adoption of green building practices, and ongoing advancements in building material technologies," said Yash Doshi, a senior analyst at CMI.

Current Events and Their Impact on the Construction Materials Market

Event

Description and Impact

Surge in Green Infrastructure Spending (Q1 2025)

* Description: Governments across the U.S., EU, and Asia-Pacific have pledged billions toward climate-resilient infrastructure, including renewable energy, and some initiatives do include roads or additional built infrastructure.

* Impact: This will continue to boost demand for low-carbon concrete, recycled steel, and sustainable insulation materials.

Breakthroughs in Carbon-Negative Concrete (2025 Trials)

* Description: Companies like CarbonCure and Solidia are expanding pilot programs in Canada and Germany to test carbon-negative concrete technologies that inject or mineralize CO during the curing process, reducing lifecycle emissions.

* Impact: These innovations are poised to disrupt traditional cement markets amid growing interest from ESG-focused developers.

AI-Driven Smart Construction Adoption

* Description: Firms increasingly use AI and robotics to automate procurement, design, and construction planning, reducing material wastage.

* Impact: This is increasing demand for prefabricated, modular, and precision-engineered materials that integrate seamlessly with digital systems.

Competitor Insights

Key companies listed in the construction materials market research report:

- HeidelbergCement

- LafargeHolcim

- CRH plc

- Martin Marietta Materials, Inc.

- Cemex S.A.B. de C.V.

- Lehigh Hanson, Inc.

- Boral Limited

- Saint-Gobain

- Groupe Eiffage

- Taiheiyo Cement Corporation

- Anhui Conch Cement Company

- China National Building Material Group Corporation

- UltraTech Cement Limited

- Knauf GIPS KG

- James Hardie Industries plc

- Kiewit Corporation

- Fletcher Building Limited

- Sika AG

- Ytong (Xella Group)

- BASF SE

Key Developments

In April 2024, Navrattan Group announced plans to introduce green cement in India. This ecofriendly alternative to conventional Portland cement is designed to reduce carbon emissions and lessen the environmental impact of concrete production, while maintaining performance and durability.

In October 2024, CRH Ventures introduced a new accelerator program, Sustainable Building Materials. This program is aimed specifically at earlystage startups in ConTech and ClimateTech. Its mission is to support marketready solutions that minimize waste, reduce emissions, and improve energy efficiency across the construction value chain.

In January 2024, Heidelberg Materials launched evoBuild, a new global brand for low-carbon and circular products. This move is aimed at strengthening the company's presence in the building materials industry.

Media Contact
Company Name: Coherent Market Insights
Contact Person: Mr. Shah
Email:Send Email [https://www.abnewswire.com/email_contact_us.php?pr=construction-materials-market-to-exceed-usd-157-trillion-by-2025-fueled-by-booming-residential-and-commercial-construction]
Phone: + 12524771362
Address:533 Airport Boulevard, Suite 400, Burlingame, CA 94010, United States
Country: United States
Website: https://www.coherentmarketinsights.com/industry-reports/construction-materials-market

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