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Global Construction Aggregates Market Will Rise At 6.8% CAGR BY 2025

10-17-2017 03:12 PM CET | Industry, Real Estate & Construction

Press release from: MRRSE.com

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Among the product types, the sand segment is estimated to remain dominant by holding almost 44% share in the global construction aggregates market during 2017. The crushed stone segment comes a close second, estimated to account for just a little more than 40% share by the end of 2017. The crushed stone segment is estimated to gain an impressive 230 BPS during the forecast period and is expected to expand at a relatively high CAGR of 6.8% during the said period. The gravel segment is estimated to be valued at more than US$ 55 Bn by the end of 2017 and is expected to grow at a CAGR of 5% to reach a market value of more than US$ 85 Bn by 2025 end. The gravel segment is likely to create an incremental $ opportunity of US$ 28 Bn over the period of forecast. The other aggregates segment is expected to hold relatively minor share due to very limited use of other type of aggregates in the construction industry.

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Illegal mining activities is one of the major restraints for the growth of manufactured sand in the global construction aggregates market

Owing to the depletion of natural sources of sand and rising political pressures, the global construction aggregates market is witnessing increasing production of manufactured sand.

However, the construction aggregates market is a highly unorganized local market with illegal mining activities, which may act as a major restraint for the growth of the global market for manufactured sand. Another factor hampering the growth of manufactured sand is that natural sand is expected to remain a significant segment than manufactured sand due to the availability of natural resources and more economical extraction procedures.

The production of other recycled aggregates is also hampered due to the lack of government initiatives in developing regions such as India, China, and Africa. Although construction aggregates are low cost materials, due to their heaviness, transportation costs will be higher and this is likely to restrain the growth of the global construction aggregates market.

Stringent zoning regulations on the extraction of aggregates in populated areas is one of the important reason for curbing the development of the aggregates segment. Many times obtaining the necessary permissions for a mining site is difficult and time-consuming due to environmental laws, land development laws, and zoning laws; and it could take several years to get permission, which will ultimately hinder the growth of the aggregates segment.

Germany-based HedelbergCement AG acquires Italy-based competitor company Italcementi SpA

Germany-based HeidelbergCement AG has bought over its Italy-based competitor company Italcementi SpA. HeidelbergCement claims itself as the world’s second-biggest cement maker.

Initially, HeidelbergCement purchased 45% of Italmobiliare SpA’s stake, by paying 10.6 Euros for each share, which is more than 60% higher than the closing price of Italcementi’s price before the announcement of the deal. This acquisition is expected to help in the expansion of operations of HeidelbergCement in the Mediterranean countries of Egypt and Italy and the company is also likely to spread its operations in Begium and France. This deal is also expected to give HeidelbergCement the greatest boost in the Africa and Middle East region. According to the highly placed officials of HeidelbergCement, company revenue is expected to increase to 20 billion Euros by 2020, with earnings before considering depreciation, taxes, amortization and interest of more than 5 billion Euros. The Germany based company operates 156 cement plants with an annual cement capacity of 197 million tons.

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