Construction Materials Market Is Estimated To Witness High Growth Owing To Increasing Infrastructure Development Projects

The construction materials market is estimated to be valued at USD 1.47 trillion in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

The rapid growth of the construction materials market is driven by increasing infrastructure development projects worldwide along with growing urbanization. Various governments across the globe are investing heavily in development of roads, bridges, highways, airports, and other infrastructure projects which is creating high demand for cement, steel, and other construction materials. According to World Economic Forum, global investment in infrastructure is estimated to be over USD 50 trillion by 2040. Such massive investments will propel the need for construction materials over the coming years.

Key Market Trends: Rise in Green Building Projects– With growing awareness about environmental protection, there is a rising trend of green and sustainable construction worldwide. Green construction uses materials and methods that are environment-friendly and reduce carbon footprint such as recycled aggregates, wood, and eco-friendly cement. Leadership in Energy and Environmental Design (LEED) certified buildings are on the rise promoting use of recyclable and energy-efficient materials.

Construction Technology Advancements – Integration of latest technologies such as drones, 3D printing, AI, and robotics is streamlining construction processes and reducing time and material wastage at construction sites. For example, 3D concrete printing helps build strong concrete structures with minimal concrete use compared to traditional construction methods. Such technology adoption is aiding productivity and sustainability in the construction sector.

Construction Materials Market Opportunities: By Material Type Insights–The cement segment accounted for the largest revenue share in 2019 and is expected to maintain its dominance over the forecast period. Cement is a basic and integral component used in construction activities. Rising residential and commercial construction projects will propel the demand for cement. The segment is anticipated to surpass a valuation of USD 500 billion by 2031.

By Application Type Insights-The residential segment held the second-largest share of the global construction materials market in 2019. Rapid urbanization and growing population have increased the demand for housing and residential spaces significantly over the years. The residential construction segment is expected to record a CAGR of over 7% during 2021-2031. Various government initiatives to develop affordable housing for lower-income groups will further support segmental growth.

Key Market Takeaways: The global construction materials market size was valued at USD 1.47 trillion in 2024 and is anticipated to witness a CAGR of 6.5% during the forecast period 2024-2031. Increasing infrastructural developments coupled with rising building & construction activities across both commercial and residential sectors are the major factors responsible for market growth.

On the basis of material type, the cement segment is expected to hold a dominant position, accounting for over 30% of the global market share by 2031. This is attributed to the growing usage of cement in the construction of buildings, roads, and other infrastructure projects.

By application type, the residential construction segment is projected to remain the largest application area. Increasing urbanization and the rising need for housing due to high population growth rates will drive the residential construction activities significantly.

Geographically, North America is expected to hold a dominant position over the forecast period. Rising emphasis on smart city development projects and upgrades of existing infrastructure in the US and Canada is fueling market growth.

Competitor Insights: Key players operating in the construction materials market include CRH Plc., Boral Ltd., Adelaide Brighton Ltd., CEMEX S.A.B. de C.V., LafargeHolcim Ltd., and Eagle Materials. These players are focusing on new product development and mergers & acquisitions to gain a competitive advantage in the market.

Recent Developments: In the 2023-2024 timeframe, FRP composite systems will see higher acceptance among engineers for strengthening purposes including seismic retrofitting of bridges and buildings, crack repair in concrete structures and adding flexural/shear capacity to slabs and beams. The global CFRP rebar market alone is forecast to increase at over 7.5% CAGR through 2024 driven by resilient, durable rebar solutions for marine structures, parking structures, water/wastewater tanks etc. More information in full report.