Cement Market size is expected to surpass USD 500 Billion by the end of 2033, witnessing around 6% CAGR during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of cement was USD 400 Billion. The growth of the market can be attributed to the surging demand for construction activities globally. The rising need for construction materials is a significant driver of the global cement industry. Construction is a key end-user of cement, and as the demand for new structures, facilities, and restorations in a country rise, so will cement consumption. For instance, by 2050, it is predicted that construction workers would add 3,500 new buildings to the daily pace. Furthermore, the introduction of cutting-edge technologies into the cement manufacturing process is also boosting the market expansion. A favorable market outlook is also being produced by the growing use of green cement in the construction of eco-friendly and sustainable buildings to reduce harmful emissions and enhance environmental health. Precast material makers are benefiting financially from the rising demand for products like blocks, roof panels, and tiles.
Cement is a critical commodity for growing economies. It is used for constructing mass construction which includes houses, civil workers, and industrial estates. Also, there has been huge investment made in the construction industry which is also estimated to influence the growth of the market over the forecast period. The Indian Parliament approved a bill in March 2021 to establish the National Bank for Financing Infrastructure and Development (NaBFID), an approximate USD 3 billion development finance organization, to finance infrastructure projects in India. Population growth and urbanization are also important drivers for the cement industry, as more people relocate to cities, increasing the need for infrastructure and housing construction. Economic growth is also important, as it may result in higher expenditure on construction activities.
Growth Drivers
Increasing Urban Population - A large number of people from rural areas are moving to the cities in search of a better life. This increases the demand for housing and infrastructure. The growing urban population is a significant driver of the global cement market. As more people relocate to cities, there is a greater need for housing, infrastructure, and commercial structures. This increases the demand for cement, which is a fundamental construction material utilized in the construction of large structures. By 2050, 68% of the world's population is expected to reside in cities, up from 55% in 2018.
Rising Number of Residential Projects- Residential housing construction, which includes single and multi-floor buildings, and houses, is a significant end-user of cement. As the population rises and urbanization increases, so does the need for houses, resulting in a rising demand for cement. Between 2002 and 2021, public residential building investment in the US increased dramatically in value. Approximately USD 10 Billion were spent on residential development projects by the public sector in 2021.
Rising Adoption of Green Cement - Green cement is a form of cement that has a lesser environmental effect than standard cement. It is also known as environmentally friendly cement or low-carbon cement. It is often created from alternative raw materials such as industrial by-products or debris, and it produces fewer emissions of greenhouse gases throughout the manufacturing process. In 2021, Hima Cement, a LafargeHolcim subsidiary, introduced Fundi, a masonry product used in bricklaying, plastering, and mortar operations that has a lower carbon footprint.
Rising Population-The population of the world is projected to rise by 2 billion people during the next 30 years, from 7.7 billion people today to 9.7 billion in 2050, with a potential peak of approximately 11 billion people around the year 2100.
Significant Rise in Remodeling -About 50% of respondents to a study taken in 2020 stated that they had remodeled their homes, and the median amount spent on renovations by a household increased to more than USD 13,000 in 2020 globally.
Challenges
|
Base Year |
2022 |
|
Forecast Year |
2023-2033 |
|
CAGR |
~6% |
|
Base Year Market Size (2022) |
~USD 400 Billion |
|
Forecast Year Market Size (2033) |
~ USD 500 Billion |
|
Regional Scope |
|
Application (Residential, Non-Residential)
The global cement market is segmented and analyzed for demand and supply by application into residential, and non-residential. Out of these, the non-residential segment is anticipated to garner the highest revenue by the end of 2033, backed by growing non-residential activities such as dams, roads, stadiums, commercial complexes, industrial buildings, and others. Cement is utilized extensively in the foundations, walls, and floors of such buildings. The increased need for space, as well as the increasing interest in e-commerce activities, is increasing the requirement for warehouses and storage to strengthen the supply chain, and hence creating a growing demand for cement. According to reports, in the year 2021, the length of the national highway constructed in India was over 12.5 thousand kilometers.
Type (Blended, Portland)
The global cement market is also segmented and analyzed for demand and supply by type into blended and Portland cement. Out of these segments, the Portland segment is anticipated to capture the largest share of the market by the end of 2033. This can be owed to the fact that Portland cement is the most widely used type of cement used all across the world as it can be used across a wide range of building projects. For instance, over 4.3 billion tons of Portland cement were produced in 2021.
Our in-depth analysis of the global market includes the following segments:
|
By Type |
|
|
By Application |
|
APAC Market Statistics
The Asia Pacific cement market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033, owing to the growth of the construction industry in this region. Leading the industry in the region are nations such as China, India, and Japan, which are some of the biggest cement manufacturers and users worldwide. Accounting for more than half of the world's cement production and consumption, China is both the biggest market in the region and the entire world today. India is another sizable market, with a burgeoning construction sector owing to the growing population and housing needs. Furthermore, increasing the production of cement and growing demand for smart home from developing nations such as China and India is driving the regional industry. In these economies, growing income levels, expanding populations, and quick urbanization are expected to encourage the development of new homes. Cement production in India grew by approximately 3% in July 2022 compared to July 2021. From April to July 2022–2023, compared to the same time the previous year, its cumulative index rose by about 12%.
Its L'Amal cement facility in Argentina was being expanded by InterCement subsidiary Loma Negra, which included a new 5800tpd state-of-the-art kiln, two vertical roller mills, and a full system for bagging and palletizing.
As part of the Group's journey toward digital transformation, Titan Cement International SA is building the smart cement plant of the future with a wide range of innovative solutions that harness the power of artificial intelligence (AI), including the rollout of its full autonomous, real-time optimizers for the entire cement production line.
Author Credits: Smruti Ranjan, Rajrani Baghel
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?