Construction Aggregates Market Key Research Findings
- Construction aggregates market size in 2018 was US$ 11.6 billion.
- The construction aggregates market is expected to observe a promising growth rate of 6.0% over 2019-2029, and is expected to reach a market value of US$ 22.14 billion by the end of forecast period.
- Growing population is projected to significantly increase the demand for residential and infrastructural development across the African region. According to the World Bank, in 2013, the African population was nearly 1.1 Bn, and is projected to reach 1.3 Bn in 2019. As such, urbanization is growing and increasing the demand for transportation facilities, besides many other activities. All such kinds of activities are pushing infrastructural development, including highways, power plants, dams, etc. Key factors such as population growth, increasing urbanization, and infrastructural developments are projected to boost the demand for construction aggregates across the region during the forecast period.
- From a regional perspective, Sub Saharan Africa is projected to hold a relatively prominent share in the Africa construction aggregates market. This is because of the requirement for construction aggregates across various applications such as infrastructure, residential, and industrial, among others, which is anticipated to lay a strong base for the robust growth of the Africa construction aggregates market.
- In terms of growth opportunities in the construction aggregates market, the demand for construction aggregates in Northern Africa, with the growing demand across various applications such as infrastructure and industrial, among others, is projected to generate high demand for construction aggregates.
- By type, the crushed stones segment is projected to be a very lucrative market for construction aggregates, with an expected value share of ~46.0% in 2019. Growing urbanization and infrastructural development, including the energy & power and and transport sectors are projected to boost the growth of the construction aggregates market in the coming years.
Top Three Factors Shaping the Construction Aggregates Market
Favorable
economic conditions coupled with increasing government spending are
expected to boost market growth for construction aggregates
The
construction materials market has witnessed sustainable incremental
growth over the years. This can be attributed favorable economic
conditions in various countries. The construction industry is projected
to witness acceleration in large public and private infrastructural
projects. In the coming years, it is estimated that, the construction
aggregates markets in emerging countries are expected to create
opportunities for various foreign players to penetrate into them. This
could create significant growth opportunities for local players to form
joint ventures or even be acquired by larger players that want to gain a
foothold in these domestic construction aggregates markets.
Office
construction is anticipated to witness significant growth over the
forecast period, which can be attributed to increasing employment,
especially in high-tech jobs market. This will increase the demand for
construction materials for constructing office spaces. Moreover, the
anticipated increase in healthcare expenditure is expected to fuel the
renovation of healthcare facilities, which is simultaneously expected to
increase the demand for construction aggregates over the forecast
period. Spending on schools and educational institutions is also
anticipated to increase to equip schools with modern technologies and
create a collaborative environment for students.
Travel & tourism expected to drive capital investment
Travel
and tourism is the key sector that contributes significantly to the GDP
of many countries. According to the Authority of World Travel &
Tourism, the total contribution of the travel and tourism sector of
South Africa to the African GDP was US$ 30.21 billion in 2018. It
accounted for around 14.2% of the total GDP in 2018, and is expected to
increase by 2.7% in 2019. This increase in tourism will lead to an
increase in capital investments in countries where a major chunk of the
GDP comes from the travel and tourism industry. The travel and tourism
sector attracted a significant share in Africa’s total investments. It
is further estimated that, this share will increase over the forecast
years. Increasing tourism is expected to attract significant foreign
direct investments in tourism-driven countries, which will eventually
lead to the launching of several hospitality-related construction
projects in these countries. Also, regional government spending is
expected to increase so as to support general tourism activities in
these countries. It will further drive the growth of the construction
industry across the African region, and subsequently increase the demand
for construction aggregates over the forecast period.
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Innovation in production technologies
Technological
innovation is essential for the production of aggregates. This has led
to the enhanced efficiency of aggregate manufacturing processes, leading
to substantial productivity as well as high quality products. Also,
several manufacturers present in the value chain are strengthening their
research and development infrastructure to develop new manufacturing
technologies. This, in turn, is fueling the growth of the Africa
construction aggregates market.
Maine
Company has developed a revolutionary automated process for testing the
overall composition of aggregates. This particular process is being
implemented in the heavy construction industry.
Africa Construction Aggregates Market: Structure Analysis
The
Africa construction aggregates market is a highly fragmented market,
wherein, tier 1 companies hold more than 12-15% the revenue share.
- Top companies in the construction aggregates market include Lafarge Holcim ltd., Cemex SAB de CV ADR, PPC Limited, Heidelberg Cement Group., and WG Wearne Limited, among others.
- As a part of their business strategy, prominent construction aggregate players have been focusing on a gaining market share in Sub Saharan Africa, as this region accounts for a prominent share in terms of demand for crushed stones, sand, and gravel for infrastructure and industrial applications, and is thus witnessing a rise in the demand for construction aggregates.
- Some of the construction aggregate market players have also shown keen interest in expanding their geographical presence in Northern Africa, with increasing production facilities, transportation, and energy infrastructure, which is expected to create lucrative growth opportunities for construction aggregate manufacturers.
- As a differentiating strategy, construction aggregate market participants are focusing on cost reduction in their product offerings, and the development of new techniques for the production of construction aggregates.
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