Construction Materials Market Size and Trends

The global construction materials market is estimated to be valued at USD 1.47 Tn in 2024 and is expected to reach USD 2.29 Tn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031.

Construction Materials Market Key Factors

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Increasing urbanization and infrastructure development projects across both developed and developing countries will drive the demand for construction materials. Additionally, growing investments towards non-residential construction such as commercial buildings, hospitals, and transport infrastructure are also expected to fuel the market growth. For instance, according to data from Statistics Canada released in July 2024, investment in non-residential construction in Canada increased by 0.6% in May 2024 compared to April 2024, reaching a total of US$ 6,376.4 million. Notably, the province of Newfoundland and Labrador experienced an 11.1% surge in investment, underscoring the regional variations in investment growth across Canada. These figures indicate a positive trend in non-residential construction investment, which can drive economic development, job creation, and infrastructure improvements in the affected regions. Furthermore, rapid industrialization and economic development in emerging nations of Asia Pacific and Middle East and Africa will continue to provide opportunities for construction material manufacturers globally. Meanwhile, rapid advancements in construction technologies and adoption of green building solutions will help counter certain challenges and further accelerate the market expansion. However, volatility in raw material prices may hind the construction materials market growth during the forecast period.

Rapid urbanization and infrastructure development globally

The global construction industry is witnessing rapid urbanization at an unprecedented rate. For instance, according to data by Invest India in 2022, The construction Industry in India is expected to reach US$ 1.4 Tn by 2025. As more and more people are moving to urban areas from rural regions in search of better live ability and employment opportunities, cities need to develop infrastructure at a similar pace to accommodate growing population. It is estimated that around 68% of the world population will be living in urban areas by 2050 which is a massive jump from 55% in 2018. Developing economies in Asia Pacific, Africa and Latin America are expected to drive this urbanization trend. This explosion of urban population coupled with lack of adequate housing and logistic infrastructure is compelling governments across the world to focus on construction of new townships, smart cities, roads, metros, airports, etc.

Countries like India and China having huge rural population migrating to cities are investing multi-billion dollars on rapid development of urban centers. India alone is developing 100 smart cities under its flagship smart city mission to equip its rising middle class with modern lifestyle. In last few years, Indian government's focus on infrastructure has resulted in major construction of new highways, ports, power generation plants etc. which is enhancing connectivity and catering rising demands. Similarly, Chinese government's continued thrust on infrastructure through initiatives like 'Belt and Road' is reshaping global construction industry landscape. Speedy implementation of infrastructure projects is necessary to keep pace with fast tracking industrialization.

While advanced nations already have well developed infrastructure, they are also witnessing constant upgradation and expansion drive to support aging population and evolving transportation needs. For example, developed economies in Europe and America are investing heavily on developing high-speed rail corridors, modernizing airports and boosting renewable energy infrastructure. Construction of new tunnels, bridges and buildings are regularly commissioned to stay ahead of competition.

Increasing demand for sustainable construction materials

With rising environmental concerns and focus on fighting climate change, there is growing demand for sustainable construction materials globally. Consumers as well as regulators are preferring eco-friendly alternatives that cut down carbon footprint and promote circularity. Use of materials like bamboo, straw bales, timber, seaweed, etc. that utilize renewable and natural resources are gaining traction. There is also thrust on innovative materials made from industrial and agricultural waste. For example, construction blocks are now being made from fly ash, slag, and other manufacturing byproducts that divert them from landfills. Similarly, recycled plastics are finding applications in building insulation, carpet backing and pipes.

Green cement variants using fly ash, slag and rice husk ash as partial replacements are reducing clinker dependence and lowering emissions. Hybrid cement blends infused with industrial byproducts offer strength with lowered carbon impact. These sustainable cementitious materials conform to codes while delivering economic and eco benefits. Use of recycled aggregates, glass and construction waste is also escalating to create circular loops in infrastructure projects. Admixtures like waste plastic molasses are employed to cut consumption of virgin materials in concrete.

Building design optimization through renewable energy integrations, passive heating/cooling, superior insulation and water harvesting are equally pivotal. Practices like green roofing, use of biodynamic materials, sustainable water and waste management systems are gaining prominence. Developers are incorporating green building certification compliances to attract environment-conscious homebuyers and tenants. Governments across major markets are formulating policies promoting greener buildings through tax rebates, incentives and mandates.

With severe impacts of climate change becoming visible, the call for future-proofing construction is gaining urgency. The sector is gradually shifting focus towards sustainable development goals through eco-centric innovations. This transition will keep pushing demand for advanced green materials globally going forward.