Cement And Concrete Market Definition
The cement and concrete market consist of sales of cement and concrete products and related services by entities (organizations, sole traders and partnerships) that manufacture cement and concrete products such as concrete pipes, bricks, and paving blocks.
Cement And Concrete Market Size
The market for cement and concrete reached a value of nearly $439.2 billion in 2018, having grown at 7.0% since 2014.
Growth in the historic period resulted from government initiatives boosting housing demand and low interest rates for mortgages in developed countries. Factors that negatively affected growth in the historic period were shortages of coal for cement production and high taxes on cement imposed by governments
Going forward, global economic growth, increasing infrastructure spending and rapidly growing urban populations will drive growth. Factors that could hinder the growth of the cement and concrete market in the future include stringent regulations on emissions from cement plants, increasing interest rates, and increasing trade protectionism.
Cement And Concrete Market Drivers
The key drivers of the cement and concrete market include:
Government Initiatives To Boost Housing – Governments globally launched initiatives to provide funds and subsidies to make housing affordable, especially for low income families, which drove the demand for cement and concrete. These subsidies allowed customers to borrow money at low interest rates to invest in new houses. The government of Australia, for example, provides a grant of $15,000 through the ‘First Home Owners Grant’ scheme for purchase or construction of homes by first time buyers. In 2015, the Indian Government launched the “Housing for All by 2022” mission which provides grants for slum rehabilitation and construction of new houses. Such government initiatives encouraged people to construct new houses and drive growth in the housing market increasing the demand for cement in the historic period.
Cement And Concrete Market Restraints
The key restraints on the cement and concrete market include:
Shortages Of Coal Supply – During the historic period, the shortages of coal supply were a major restraint on the cement manufacturing industry. Cement manufacturing is an energy-intensive process and a major portion of this energy comes from burning coal, especially in developing countries. Coal supply reduced globally during the historic period due to logistics issues and decline in investments in coal extraction, negatively affecting the cement manufacturing industry. This increased the costs of coal, and also the production costs for cement manufacturers, restricting the growth of the cement and concrete market. In 2015, in India, the shortages of coal supply linked to the cement industry increased to 20% of the total operational costs of cement manufacturing companies, negatively affecting the industry.
Cement And Concrete Market Trends
Major trends influencing the cement and concrete market include:
IoT In Cement Manufacturing
Cement manufacturing plants are increasingly using digital technologies such as the internet of things (IoT) to improve plant efficiencies. IoT is a network of physical devices which communicate over the internet. IoT helps in remote monitoring and predictive maintenance of a cement plant. Remote monitoring is used to oversee operations of big vehicles in the quarries and to report on key metrics such as fuel consumption per tonne and operating hours. IoT can also be used to predict potential malfunctions and maintenance needs. In cement plants, predictive maintenance can improve up-time on critical cement equipment such as grinding mills and kilns. Other applications of IoT in the cement industry include tracking and measuring the durability of concrete mixture, reporting on compliance to international standards, and connected logistics to improve quarry production. Zoomlin, a ready-mix concrete production equipment manufacturer, is actively testing data-based metrics to improve operations of vehicles used in quarries.
Innovations In Cement Production
The increased use of alternative raw materials in cement production is delivering improved quality of products and reducing the environmental impact. The main raw material used in cement production has traditionally been limestone. About 60% of the industry’s CO2 emissions are caused by decarbonation of limestone during the production process. The innovations and R&D projects in the industry have already replaced some of the natural raw materials with waste and by-products from other industrial processes. The waste and by-products elements such as calcium, silica, alumina and iron are used as alternative binding materials instead of natural substances such as clay, shale and limestone in cement production. In Europe, for example, about 3-4% of raw materials used in the production of clinker consists of alternative raw materials and ashes from fuel, totaling about 14.5 million tonnes a year. The clinker-to-cement ratio in the EU27 is 73.7%, whereas ordinary Portland cement can contain up to 95% of clinker and the remaining 5% of gypsum.
Opportunities And Recommendations In The Cement And Concrete Market
Opportunities –The cement and concrete market size will gain the most in China at $60.9 billion. Market-trend-based strategies include adopting IoT technologies in production processes, investing in latest technologies, and adopting alternative materials in cement production.
Recommendations –To take advantage of the opportunities, The Business Research Company recommends the cement and concrete companies to consider focusing on new product developments with substitute raw materials, offering varied product packages, expanding in emerging markets, and leveraging technology to maximize reach, among other strategies.
Cement And Concrete Market Segmentation
The cement and concrete market is segmented by product type
By Product Type-
The cement and concrete market can be segmented by product type into
- a) Cement
- b) Ready-Mix Concrete
- c) Concrete Pipe, Brick And Block
- d) Other Concrete Product Manufacturing
Other Concrete Product Manufacturing had the highest growth rate of nearly 10.1% during the historic period.
Sub-Segmentation
By Product Type-
The cement market can be sub-segmented by product type into
- a) Portland cement
- b) Clinkered Cement
- c) Aluminous Cement
- d) White Cement
- e) Hydraulic Cement
The ready-mix concrete market can be sub-segmented by end use into
- a) Residential
- b) Commercial
- c) Industrial
The concrete pipe, brick and block market can be sub-segmented by product type into
- a) Pipes
- b) Blocks and Bricks
- c) Concrete Pavements
The other concrete product manufacturing market can be sub-segmented by product type into
- a) Prefabricated Structures
- b) Tiles & Flagstones
- c) Concrete Articles
- d) Panels and Boards
By Geography- The cement and concrete market is segmented into
- o North America
- USA
- o Western Europe,
- UK
- Germany
- France
- Spain
- Italy
- o Asia Pacific
- China
- Japan
- India
- Australia
- o Eastern Europe
- Russia
- o South America
- Brazil
- o Middle East
- o Africa
Asia- Pacific is the largest market for cement and concrete market, accounting for 44.0% of the global market. It was followed by Western Europe, North America, and other regions. Going forward, Eastern Europe and Africa will be the fastest growing markets in the cement and concrete market.
Cement And Concrete Competitive Landscape
Major Competitors are:
- • LafargeHolcim Ltd.
- • China National Building Material Company Limited
- • Anhui Conch Cement Company Limited
- • CRH Plc
- • HeidelbergCement AG
Other Competitors Include:
- • Dyckerhoff
- • Cemex
- • Grupo Cementos Portland Valderrivas
- • Sociedad Financiera y Minera, SA
- • Betoncem S.R.L. Buzzi Unicem
- • Cacem - Cementi
- • Colacem
- • SICICAL
- • Eqiom
- • Ecocem France
- • Ciments Calcia
- • Hanson Cement
- • Breedon Cement
- • Tarmac
- • Australian Steel mill services
- • Adelaide Brighton Cement
- • Cockburn Cement limited
- • Morgan Cement International
- • Northern Cement Limited
- • Sunstate Cement Limited
- • Independent Cement and Lime Pty Ltd
- • BGC Cement
- • Boral Cement
- • Asia Cement Co., Ltd.
- • Hanil Cement
- • Sungshin Cement
- • Halla Cement
- • HR Cement Limited
- • Golden Bay Cement
- • Taiheiyo Cement Corporation
- • Aso Cement
- • Fujian Cement Co. Ltd
- • Anhui Conch
- • ACC
- • Ultra Tech
- • China National Building Materials (CNBM)
- • Taiwan Cement
- • China Resources Cement
- • Jidong Development Group
- • Tianrui Group
- • Jiangsu Jinfeng Cement Group
- • Shanshui Cement
- • Sichuan Esheng Cement
- • Ambuja Cement
- • Jaypee Cement
- • Sumitomo Osaka Cement
- • Ube mitsubishi Cement Corporation
- • Nippon Steel & Sumikin Cement
- • Eurocement
- • Grupo Cementos Chihuahua
- • Elementia
- • Federal White Cement Ltd
- • Ciment Québec Inc.
- • Oldcastle Inc.
- • Vulcan Materials Co.
- • Votorantim Cimentos
- • Cementos Argos
- • Fars & Khuzestan Cement
- • Ghadir Investment
- • Tehran Cement
- • Arkan Building Material Company
- • Union Cement Company (UCC)
- • Fujairah Cement Industries
- • Gulf Cement
- • Star Cement
- • Sharjah Cement
- • Arabian Cement company
- • Titan cement Company
- • Sephaku cement
- • Amreyah Cement
- • BMIC
- • Dangote Cement
- • PPC Ltd
