Infrastructure Investments Support The Global Construction Aggregates Market

    Construction aggregates are a broad category of granular materials such as crushed stone, stone, and gravel etc., which finds application in construction activities. Aggregates are the world’s most mined material. According to Future Market Insight, aggregates give resistance to wear and erosion, volume stability, and other desired physical properties to the finished product. Construction aggregates are mainly used in the applications such as commercial, residential, Industrial, and infrastructure in a number of construction activities. The global construction aggregates market is anticipated to grow from an estimated USD350.2 billion in 2016 to USD560.9 billion by 2024, at a CAGR of 6.1% during the forecast period.

    “The global construction aggregates market is anticipated to grow from an estimated USD350.2 billion in 2016 to USD560.9 billion by 2024, at a CAGR of 6.1%...”

    In fact, the rising investments in the construction sector are driving the growth of the global construction aggregates market. Moreover, new trends such as manufactured sand, and recycled aggregates, along with the rising number of investments in infrastructure worldwide are all factors helping drive the growth of the construction aggregates market, whereas the high transportation costs, stringent zoning regulations, the seasonal factors, and the rising energy costs restrain the growth of the global construction aggregates market. In terms of volume, the highest CAGR will be observed in the residential segment for the forecast period. However, the infrastructure segment is likely to constitute the largest share of the total market size. When it comes to the global market, China is considered the largest market of construction aggregates and is dominating the global construction aggregates market. In fact, China was the biggest consumer of construction aggregates and in 2015, it was able to dominate the market in question, followed by North and Central America. As a matter of fact, China will represent the fastest growing region in the construction aggregates market in terms of value growing at a CAGR of 4.7%. However, developing economies like India and the Middle East are also anticipated to witness a considerable growth rate in construction aggregates market during the forecast period. The market in North and Central America will cross a value of USD95 billion by 2024 end. Moreover, in order to reduce its dependence on oil, the GCC (Gulf Cooperation Council) have undertaken major steps as a part of the economy transformation. A few infrastructure development steps undertaken by these countries include following projects, and these are highly expected to impact the construction aggregates market demand in the region. According to Guy Woodford, Dubai is home to one of the latest attention-grabbing Middle East infrastructure megaprojects: a 3.2km waterway through downtown Dubai due to open in 2017. A USD544 million canal is reportedly progressing at breakneck speed. Dubai is an Emirate within the United Arab Emirates, which, when combined with the Gulf countries, is one of three distinct markets in the Middle East region, with Saudi Arabia and Iran completing the trio. Moreover, Dubai is scheduled to host the World Expo 2020 at the Jebel Ali area, involving total revenue of between USD2 billion to USD4 billion. Furthermore, the amount spent on the secondary infrastructure will be over USD8 billion, and would provide construction opportunities in the hospitality, transport, commercial, and retail sectors. Saudi Arabia, on the other hand, is the world’s biggest oil exporter and the largest economy in the Arab region, but a dramatic slump in oil revenues led to a record Saudi budget deficit of USD97bn in 2016. Efforts are being made to address this, including the Saudi government’s January 2017 agreement to allow an IMF-backed value-added tax to be imposed across the Gulf, ending the region’s much publicized tax-free living. In addition to the 2022 FIFA World Cup taking place in Qatar. Ahead of the 2022 FIFA World Cup and Qatar's 2030 Vision, the country’s infrastructure expenditure is estimated to reach about USD150 billion. Certainly, major players in the global construction aggregates market are focused towards expanding their production capacities such as LafargeHolcim Ltd., Vulcan Materials Company, Martin Marietta Materials, etc…
    ACW Staff