Cement Market

According to Stratistics MRC, the Global Cement Market is accounted for $353.0 billion in 2022 and is expected to reach $560.1 billion by 2028 growing at a CAGR of 8.0% during the forecast period. Buildings are constructed with cement, a grinded mineral powder that is grey in colour. Cement serves as a binder material. It is created by grinding a mixture of marl, clay, and limestone, which is then combined with water to form a dense mass. It is widely utilised for the mass building of homes, civil works, and industrial estates and has outstanding durability and strength. The demand for residential construction has grown along with the population. As a result, cement demand has increased all over the world. Consumption of goods has been made possible by the rising demand for public infrastructure and non-residential structures, such as hospitals and healthcare facilities.

According to Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the number of new housing starts increased for the first time in 3 years in 2021. The number of new housing starts in 2021 was 865,909 units, an increase of 6.6% from 2020. Custom home starts increased to 281,279 units by 6.9% year on year in 2021, while, rental housing increased for the first time in five years to 337,752 units by 9.2% compared to 2020.



Market Dynamics:

Driver:

Growing use of green cement to increase potential growth

Growth in the cement industry will be boosted by the increasing use of green cement in the construction of sustainable and eco-friendly structures. The production process can be modified to significantly reduce emissions as part of an effort to minimize the threat that emissions pose. This product is produced using a low-pollution unit operation technique that is carbon-negative in manufacture. It is a sustainable solution that, by lowering production-related carbon emissions, addresses essential ecological concerns.

Restraint:

Government regulation of industrial plant carbon emissions constrains growth

Limestone, chalk, shells, shale, clay, and silica sand are used as primary ingredients in the production. The environment and human health are both negatively impacted by its manufacture in a variety of hazardous ways. Particles of dust can irritate the nose and throat while also making breathing difficult. In addition, there is significant pollution generated during the production of this product. With annual emissions of more than 500 kilotons of nitrogen oxide, sulphur dioxide, and carbon monoxide, the cement sector is ranked third among industrial polluters by the United States Environmental Protection Agency. However, governments enforce a variety of environmental rules over the cement manufacturing process as a result of these concerns.

Opportunity:

Increasing necessity from construction activities

Due to the growing need for residential spaces like apartments and private bungalows, the population rise will have a significant impact on the market's expansion. The market size is also anticipated to increase because of the increasing need for amenities in residential spaces. Moreover, the market is anticipated to rise as a result of the increased demand for non-residential structures such as malls, airports, industries, highways, and office buildings. However, global product consumption will also rise as a result of the growing demand for precast products such as blocks, panels, roof tiles, and others.

Threat:

Low technology investment

The exclusion of technology and automation makes the issue in the cement manufacturing sector severe. India has a surplus of labour, and many people agree that employing workers is a better investment than investing in cutting-edge automation technology, which may be able to eliminate 50% of physical labour and human participation. The logistics sector in India receives much less investment than those in other countries for this single reason. Lack of access to creative and cutting-edge resources that deal with data science, operational automation, and technical trackability is a major problem for cement manufacturers.

Covid-19 Impact:

The COVID-19 pandemic had a detrimental effect on the cement market in 2020, which led to decreased demand in the construction sector and the closure of several manufacturing facilities. Government regulation that impedes the mobility of both people and goods has negatively impacted the market as the COVID-19 pandemic spreads. The epidemic had a significant impact on numerous nations' production and activities. For instance, according to the Chinese Ministry of Industry and Information Technology, China produced 769 million tonnes of cement from January to May 2020, a decrease of 8.2% from the same period in 2019.

The blended segment is expected to be the largest during the forecast period

Because of its characteristics, including decreased water demand, enhanced workability and pumpability, and less crack development due to thermal stress, the blended segment holds the largest share of the market during the projection period. In order to create the various blends, additional ingredients, including pozzolana, slag, and limestone, are added to the base portland in the blended portion. Additionally, the demand for mixed kinds from industries like mining, building construction, and road construction is predicted to increase, which would boost market revenue globally.

The non residential segment is expected to have the highest CAGR during the forecast period

As the product is used for projects like the construction of highways, dams, commercial complexes, industrial buildings, stadiums, and transit hubs, the non-residential segment is anticipated to have the highest CAGR over the projected period. Moreover, the demand for the product has increased as a result of growing urbanisation and infrastructure development. Besides that, the market is anticipated to rise due to the growing need for hospitals and schools.

Region with largest share:

As the cement industry has experienced substantial growth in the Asia-Pacific region, with nations like China and India accounting for a substantial portion of consumption, the region has dominated the largest share over the projection period. One of the biggest construction industries in the world is found in China. Furthermore, residential construction in the nation will likely be fueled by the rising housing demand, in both the public and private sectors. In order to maintain economic growth, China's central government has actively promoted fiscal stimulus in the form of infrastructure investments in recent years.

Region with highest CAGR:

Over the forecast period, the Middle East and Africa are anticipated to experience the highest growth, as this growth is attributed to the product's rising demand as a result of the region's expanding infrastructure-related activity. Another aspect influencing the Middle East and Africa market is its application in mining and oil exploration activities. Moreover, massive investments in the infrastructure sectors of numerous countries in the region are the major influencers of the expansion of the construction sector in MEA. However, the expansion of the regional market is projected to be aided by the increasing construction of rail networks connecting large cities and intra-regional train links.



Key players in the market

Some of the key players in Cement market include ACC Limited, Adani Group, Aditya Birla Management Corporation Pvt. Ltd, Ambuja Cements Ltd, Anhui Conch Cement Company Limited, Argos USA Corporation, Votorantim Cimentos, BBMG Corporation, Birla Cement, Buzzi Unicem S.p.A., Cement Corporation Of India Limited, Caterpillar Power Plants, CEMEX S.A.B. De C.V., China National Building Material Group Corporation, CNBM International Corporation, CRH plc, Dalmia Bharat Ltd, Drake Cement LLC, Grasim Industries Limited, HeidelbergCement, India Cements Ltd, InterCement, JK Lakshmi Cement Ltd, LafargeHolcim, Mitsubishi Cement Corporation, Wonderful Sky Financial Group Limited, Orient Cement Ltd, Parasakti Cement Industries Limited, Raymond Cement Industries, Shree Cement, Taiheiyo Cement Corporation, Tangshan Jidong Cement Co.,Ltd, The Ramco Cements Limited, The Siam Cement Group, and Titan Cement Company S.A.

Key Developments:

In June 2022, Ultratech Cement Ltd announced that the company’s board has approved an investment of INR 12,886 crore to add 22.6 million tons per annum cement capacity in total production by 2025.

In May 2022, Holcim signed an agreement for the Adani Group to acquire its business in India for cash of CHF 6.6 billion. The acquisition will consist of Holcim’s 63.11% stake in Ambuja Cement and its 4.48% direct stake in ACC.

In June 2021, Heidelberg Cement announced plans to turn its Sweedish factory at Slite into the world’s first CO2-neutral cement plant by 2030. The plan would cost at least EUR 100 million and would be able to capture 1.8 million tons of CO2 every year.

In December 2020, UltraTech Cement Ltd., a subsidiary of the Aditya Birla Group, invested around USD 722 million to expand its capacity to 12.8 million tonnes per annum through a combination of brownfield and greenfield expansion. This expansion includes a 6.7 mtpa capacity expansion in Uttar Pradesh, Odisha, Bihar, West Bengal, and a cement plant in Pali, Rajasthan.

In November 2020, HeidelbergCement invested around USD 485 million to modernize and reorganize its several cement plants in France. This investment program is intended to optimize the effectiveness, structures, and processes of the company’s operations in France.

Types Covered:
• Blended
• Portland
• Sulfate Resisting Cement
• Blast Furnace Slag Cement
• High Alumina Cement
• Grey Cement
• White Cement
• Hydraulic Cement
• Rapid Hardening Cement
• Other Types

Raw Materials Covered:
• Limestone
• Bauxite
• Gypsum
• Clay
• Silica
• Shells
• Shale
• Other Raw Materials

Methods Covered:
• Dry
• Wet

Applications Covered:
• Non Residential
• Residential

End Users Covered:
• Commercial
• Infrastructure
• Construction

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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