Construction aggregates include the material used in construction like sand, crushed stone, gravel, recycled concrete, slag, etc., these materials are mixed with cement or other adhesive to form concrete. The on-going infrastructure development projects on a large-scale in countries around the world are giving rise to the demand for construction aggregates. According to the latest report by Persistence Market Research (PMR), global construction aggregates market is estimated to grow at CAGR of 5.3% and attain a market valuation of $592.7 billion by the end of 2025.
While sand segment among the product type will dominate the global construction aggregates market, holding 44% market share. Crushed stone segment is estimated to be the most attractive, accounting more than 40% share by the end of 2017. Crushed stone segment is estimated to grow at CAGR of 6.8% during the forecast period. Gravel segment will also grow at CAGR of 5%.
Use of construction aggregates in infrastructure development is robust due to the huge investment being made in the sector by the government in various countries.
China and India to be Major Markets for Construction Aggregates
Among all the countries, China and India will remain major markets in the construction aggregates, mainly due to the growth of construction sector in these two countries. China is anticipated to hold around 26.8% market value share by the end of 2025. Improvement in the service life of various public utilities and robust urbanization will be the key factors driving demand for construction aggregates in India. North and Central America is projected to show an impressive growth.
Illegal Mining Acts as a Major Restraint in Construction Aggregates Market
Depletion of natural sources of sand is giving rise to the production of the manufactured sand. The construction aggregate market is also highly unorganized involving illegal mining activities. Lack of government initiatives in developing countries is hampering the production of recycled aggregates. Rules and regulations and time-consuming process of obtaining necessary permissions in the extraction of aggregates are also the reason for limiting the growth of construction aggregates market.
Mergers and Acquisitions Helps in Expansion of Companies Giving Boost to Construction Aggregates Market
Recently, Germany-based HeidelbergCement AG acquired its Italy-based competitor Italcementi SpA. The acquisition will give a boost to HeidelbergCement AG in the Middle East and Africa region. The acquisition will also expand company’s operations in Mediterranean countries and company is also planning to expand its operations in France and Belgium.
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