Press release
Construction Aggregates Market to Garner Brimming Revenues of US$ 592.7 Bn by 2025
For instance, HeidelbergCement AG operates through cements, aggregates, and ready-mix concrete and asphalt business lines. The multinational group has presence in nearly 60 countries and has 3,000 plants, spread across Western and Northern Europe, North America, Eastern Europe, and Central Asia. Vulcan Materials Company, on the other hand, primarily operates in the U.S. and Mexico and has 344 sites for producing construction aggregates. Both these companies have been aggressive about mergers and acquisitions too. For instance, Vulcan Materials Company acquired of an asphalt plant in New Mexico worth US$33.2 mn in 2016. On the other hand, HeidelbergCement AG acquired 45% shares in Italcementi, an Italy-based cement and aggregate manufacturing group.
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Global Construction Aggregates Market to be worth US$ 592.7 Bn by 2025
As per the projections of the PMR report, the demand in the global construction aggregates market will expand at a formidable CAGR of 6.1% during the forecast period of 2017 to 2025. Revenue-wise, the opportunities in this market are estimated to translate into US$592.7 bn by the end of 2025, considerably more than the market’s evaluated valuation of US$370.4 bn in 2017. Martin Marietta Materials Inc., LSR Group, CRH Plc, EUROCEMENT Group, and Adelaide Brighton Ltd. are some of the other key vendors currently ahead of the curve in the global construction aggregates market.
Rapid Infrastructure Development in APAC Driving Demand in the Global Market
Growth of the construction aggregates market is predominantly driven by the development of large-scale infrastructure projects in developing economies of Asia Pacific as well as in North America and Europe, spurred by economic recovery. Governments of major economies are focusing on development of transportation facilities and strengthening energy or power generation infrastructure. For instance, in 2015, the Chinese government laid emphasis on the development of 300 infrastructure projects worth US$1.1 trillion to boost the country’s weakening GDP.
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In addition to that, innovation in technologies required for the production of aggregates has led to increased efficiency of manufacturing processes, leading to significant productivity as well as high quality of products. For instance, Haver & Boecker’s Hydro-clean washing unit cleans toxic material from aggregates and reduces water consumption by around 75% as compared to conventional log washer. Metso has developed a mobile jaw plant for aggregate crushing. The mobile plant can be easily moved between different operating sites, saving time and improving productivity.
High Cost of Transportation Challenging Market Growth
Although construction aggregates are low cost materials due to its heaviness, the transportation costs are much higher, which is the primary restraint over the growth of the market for the same. Usually, more than half of aggregates are transported via road and in some regions, shipping cost of an aggregate can outweigh the production cost if the material is trucked for more than 20 miles.
In addition to that, obtaining permission for a mining site is difficult and time-consuming due to environmental laws, land development laws, and zoning laws. This is another key challenge over the prosperity of the construction aggregates market. For instance, California has 74 bn MT of reserves in government-approved mining land, although mining is permitted in only 6-8% of the land.
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