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The cement market is estimated to grow at a CAGR of 4.62% between 2022 and 2027. The size of the market is forecast to increase by USD 94.17 billion. The growth of the market depends on several factors, including increasing investments in road and highway infrastructure projects, the growth of the construction industry, and the use of energy-efficient technologies.
This report extensively covers market segmentation by product (blended, portland, and others), end-user (residential and non-residential), and geography (APAC, Middle East and Africa, Europe, North America, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global cement market as a part of the global construction materials market within the global materials market. The parent global construction materials market covers products and companies engaged in the manufacturing of construction materials, including sand, clay, gypsum, lime, aggregates, cement, concrete, bricks, and other materials. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The use of energy-efficient technologies is notably driving the market growth, although factors such as the increase in construction cost may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Cement Market Driver
The use of energy-efficient technologies is notably driving market growth. Cement manufacturing requires a huge amount of energy, and carbon dioxide is released in high volumes during the process. This emission of carbon dioxide can be conserved and used in different aspects. To conserve energy efficiently, cement manufacturing units have created new technologies that can bring better results in the future. This will be a driver for the growth of the industry in the future.
Additionally, the level of carbon dioxide emission will also decrease, as companies have created new technologies such as fillers and cement additives like DOW latex powder. In recent years, the production of composite cement has been increasing due to reasons such as process economics, energy reduction, ecology (mostly reduction of CO2 emission), conservation of resources, and product quality/diversity. Energy-efficient grinding systems are also used in cement manufacturing at present. Thus, the use of energy-efficient technologies will drive the market to focus during the forecast period.
Significant Cement Market Trend
The rising demand for green cement is a major trend in the market. The increase in construction and building activities is the primary factor for the growth of the global market. Green cement demand is accelerating the growth of alternative fuels that are derived from waste materials such as solid recovered fuels, foundry sand, used oils, sewage sludge, animal meals, filter cakes, and fly ashes.
The urgent need to reduce carbon dioxide emissions encourages the use of alternative fuels. Governments promoting green architecture can gain quick footholds in the market to ensure sustainable construction. The durability offered by green cement for various construction projects compared to OPC for a less alkaline mixture is expected to play an important role in the development of the market. Future projects such as nuclear power plants, the construction of bridges and pavements, and other infrastructure projects are expected to lead to high demand for lucrative opportunities across the market.
The main reason for the increase in demand for green cement in construction is also its lower water consumption. Green cement offers excellent thermal insulation and excellent fire resistance. Thus, increasing demand for green cement will drive the market during the forecast period.
Major Cement Market Challenge
The increase in construction cost is a major factor impeding the market. Building materials such as stainless steel, hardened steel, cast iron, cement, concrete, brick, aggregate, and other building materials are used in the construction industry. The price of cement is about 1-15% of the construction costs, the price of steel is about 8-10% of the construction costs, and the share of other materials is 25-30% of the construction costs.
The availability of these materials creates a cycle of variable price, where an increase in the price of one building material increases the total cost of construction, which leads to the need for additional investment in the total cost of construction. For example, a building needs bricks, cement, mortar, steel, and other materials. When steel prices rise, construction costs rise; as a result, construction costs also increase. An increase in the cost of one segment increases the total construction cost, which can be a big challenge for builders and construction companies. Construction companies in European countries such as the UK, France, and Germany are financially strong and able to withstand price increases for ongoing construction projects. However, African countries such as Nigeria and Namibia are unable to contain such price increases due to the unstable economies of these countries. Thus, the aforementioned factors make it difficult for the consolidation of the market during the forecast period.
Key Cement Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Cement Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
GRUPO ARGOS S.A. - The company operates under multiple segments including cement, energy, and real estate among others, with a high focus on cement.? The company under this segment?offers cement solutions through its subsidiary ARGOS.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the blended segment will be significant during the forecast period. Blended cement is a product in which part of the clinker is substituted with other materials.
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The blended segment was valued at USD 177.67 billion in 2017 and continued to grow until 2021. The production of this product involves interring one or more additives, in various proportions, at the grinding stage. Thus, blended cement can be defined as the uniform mix of portland cement and blending materials such as silica fumes, fly ash, limestone, and slag to enhance its properties for different applications. The consumption of this product is increasing as it can improve the workability, strength, durability, and chemical resistance of concrete. Additionally, water consumption is less, which makes it easy to work with and shape. This product can also be used in functions such as domestic construction, engineering projects, mining applications, and road construction. Therefore, the increase in various infrastructural development projects will drive the demand for blended cement and, contribute to the growth of the market in focus during the forecast period.
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APAC is estimated to contribute 84% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In 2022, APAC accounted for the largest share of the global market in terms of the consumption of cement. The market in APAC is dominated by China, Japan, India, Australia, South Korea, and Indonesia. The factors responsible for the growth of the market in APAC are growing industrialization, rapid urbanization, and increasing infrastructure development. APAC is leading the market as it is home to some of the leading manufacturing and export-oriented countries. Several countries in APAC are witnessing rapid economic growth, which is boosting the industrial sector and increasing the urbanization rate. China, India, Japan, and Australia significantly contribute to the growth of the market in APAC.
In APAC, population growth will also fuel the demand for cement during the forecast period. The Smart City Mission by the Government of India has increased infrastructure development in the country. The ongoing infrastructure projects across the country will drive the demand for cement during the forecast period. Such projects require cement, which will drive the growth of the market in APAC during the forecast period. The construction industry in several Asian countries is also growing. Developing countries, including India, Vietnam, Indonesia, and Malaysia, where residential housing constructions are growing exponentially due to a rise in household incomes and increasing urbanization, are expected to be significant contributors to the growth of the market in APAC during the forecast period.
In 2020, the COVID-19 pandemic affected the growth of several industries in APAC, including the construction industry, as many projects were put on hold. However, COVID-19 vaccination drives across various countries in the region helped revive the growth of the regional construction industry since 2021. Therefore, the growing construction industry in the region will drive the growth of the focused market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Product (Blended, Portland, and Others), End-user (Residential and Non-residential), and Geography (APAC, Middle East and Africa, Europe, North America, and South America).
Cement Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.62% |
Market growth 2023-2027 |
USD 94.17 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.85 |
Regional analysis |
APAC, Middle East and Africa, Europe, North America, and South America |
Performing market contribution |
APAC at 84% |
Key countries |
US, Turkey, China, India, and Indonesia |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adbri Ltd., Al Safwa Ltd., Buzzi Unicem SpA, Cementir Holding NV, CEMEX SAB de CV, China National Building Material Co. Ltd., Drake, Epcco Publishing Group Ltd., Fujairah Cement Industries PJSC, GRUPO ARGOS S.A., HeidelbergCement AG, Holcim Ltd., INTERCEMENT PARTICIPACOES SA, PPC Ltd., Siam Cement PCL, Taiheiyo Cement Corp., Taiwan Cement Ltd., Votorantim SA, Sumitomo Osaka Cement Co. Ltd., and Aditya Birla Management Corp. Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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