Construction Aggregates Market Analysis

Construction Aggregates Market Analysis

Crushed stone segment held 40% of the construction aggregates market share in 2022 and will foresee 6% growth rate through 2032. The varied granularity of crushed stone makes it suitable for use in different applications, thrusting the industry demand. The sector will flourish due to its pivotal role in infrastructure development projects globally, particularly in developing economies. Rapid urbanization and the rising government investments in infrastructure projects are the primary factors fostering business development. The soaring real estate sector, which requires high-quality construction materials for building activities, will also augment the product demand.
 

With the rising emphasis on sustainability in the construction sector, the use of recycled aggregates has become a significant factor for industry expansion. These aggregates are often used as a more sustainable alternative to primary aggregates, thereby contributing to the circular economy and reducing the environmental impacts caused by construction activities. Increasing focus on green construction and waste management will have a positive impact on the market progression worldwide.
 

The nonbuilding construction aggregates market held significant share in 2022 and generated revenue of around USD 144 Billion. The nonbuilding segment requires huge volumes of construction aggregates. The ongoing expansion of transportation infrastructure owing to rapid urbanization and economic development is a major factor driving business expansion. Various initiatives including the Belt and Road Initiative in China are also creating major opportunities for industry advancements.
 

The residential construction aggregates industry accounts for a considerable share. The escalating world population and rapid urbanization are leading to an increased housing demand, driving segment growth. The rise in living standards and increasing disposable incomes have augmented the need for high-quality residential infrastructure, thereby favoring the industry demand. The trend of continuous growth in the residential construction business is expected to persist over the forecast period, especially in emerging economies. Government initiatives for affordable housing as well as the entrance of innovative construction practices that incorporate high-quality construction aggregates will further fuel sector growth.
 

Asia Pacific construction aggregates market is poised to attain 6.3% gains between 2023 and 2032.  The region is witnessing a rise in construction activities due to rapid urbanization, growing populations, and increasing infrastructural development activities. Government projects, such as the India’s ‘Housing for All’ and China’s ‘Belt and Road Initiative’, significantly contribute to the rising demand for construction aggregates. The shift toward sustainable construction practices and recycled aggregates in these markets will also lead to new growth opportunities.
 

North America construction aggregates industry expansion can be attributed to the public & private investments in infrastructure projects. The proposed Infrastructure Plan of the U.S. government, which deals with the revamping & upgrading of the country's infrastructure, is expected to provide a substantial market demand. This plan, which deals with the creation of durable & resilient infrastructure, relies heavily on high-quality construction aggregates. The green building regulations of Canada including the National Energy Code for Buildings are pushing the demand for sustainable construction aggregates. Such government initiatives are expected to lead the business revenues by 2032.