Building Materials Market Size, Share, Industry, Forecast and outlook (2023-2030)

Global Building Materials Market is segmented By Type (Construction Aggregates, Cement, Concrete Bricks, Metals, Others), By End-User (Residential, Commercial, Industrial, Infrastructural), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023 - 2030

Building Materials Market Overview

The Global Building Materials Market reached USD 1.3 trillion in 2022 and is expected to reach USD 1.7 trillion by 2030 growing with a CAGR of 3.9% during the forecast period 2023-2030. The demand for building materials is on the rise as a result of government investments in the construction of infrastructure, including public buildings, utilities and transportation systems.

The continual development of industries including highways, railways, tunnels, non-residential buildings and mining makes the construction of new infrastructure imperative. 

The demand for products with speedy manufacturing schedules and reduced production costs is what is driving the demand for innovative materials for building applications. The use of ready-mix concrete and precast components also significantly decreases construction time. For instance, Gauge Brothers Concrete Products used precast concrete components to construct a 440,000-square-foot N95 manufacturing facility in about 52 days in January 2021.

Building Materials Market Scope

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Building Materials Market Dynamics

Rising Demand for Innovative Materials

Considering the importance that consumers and developers place on affordable, environmentally friendly and energy-efficient constructions, the construction sector is expected to be in high demand. As demand for residential and commercial projects increases, construction activity is rebounding, which helps the industry develop. 

The federal government's increased focus on energy-efficiency and green construction as a response to the recent global crisis is anticipated to have an impact on the global building materials demand. The advancement of innovative construction materials is one of the main factors driving the global building materials market growth. Numerous significant players in the market offer innovative building materials. 

The new innovative investment firm CRH Ventures will begin operations in 2022, as stated by CRH. The new company will focus on the technologies that address the main challenges affecting the building sector and has funds of USD 250 million. According to the firm, CRH Ventures would consider a number of aspects when making investment selections, including possibilities for decarbonization, automation and the creation of cutting-edge sustainable building materials.

Rapid Expansion of Commercial & Infrastructural Sector

Building materials are in high demand for a variety of uses in the commercial and infrastructure sectors. Due to market growth drivers including a surge in foreign direct investment for infrastructure projects like public spaces, sports stadiums, roads, bridges and others, expanding advancement and remodeling in commercial spaces and urbanization trends, the sector has experienced substantial expansion. 

For instance, the National Investment Promotion & Facilitation Agency reports that the NIP 2019–2025 investment budget of USD 1.4 trillion included 17% for railways, 16% for urban infrastructure and 19% for motorways and roads. The total amount spent on commercial building in U.S. went from USD 93,086 in May 2021 to USD 104,434 in February 2022, according to U.S. Census Bureau. The number of commercial and infrastructure construction projects is increasing, which is driving the demand for building materials globally.

Volatility in Price of Materials

According to the Associated General Contractors of America's analysis of government data, the cost of goods and services used in nonresidential construction kept increasing at a double-digit rate in November 2021, driven by excessive increases in the price of a variety of building materials. Association pointed out that contractors are being forced to pay more for both the supplies and the subcontractor services they require to complete the majority of projects.

The prices that manufacturers and service providers, such as distributors and transportation companies, charge have increased by 10.1% since November 2021, despite a 0.4% decline from October to November in the producer price index for inputs to non-residential construction. The increase over the previous year was greater than the 7.4% growth in the completed goods producer price index as a whole. Hence, the fluctuations in price is going to slow down the market growth.

Building Materials Market Segment Analysis

The global building materials market is segmented based on type, end-user and region.

Cement is the Major Ingredient in Concrete

Cement segment is projected to represent about 1/3rd of the global building materials market during the forecast period. It is an essential component in the production of concrete, employed in the construction of roads, bridges, and other infrastructure. The European Cement Association estimates that shipping cement costs roughly €10 per ton over a distance of 100 km by road and about €15 per ton over a distance of 100 km by sea. The usage of cement is therefore predicted to increase as a result of its cost-effectiveness and lengthy service life.

Cement makers are expanding and slowly implementing sustainable practices, such as reducing carbon emissions, improving energy efficiency and using alternative fuels, in response to growing environmental concerns. CEMEX, a multinational construction materials firm with its headquarters in Mexico, extended its production facility in Jamaica in August 2022. The development will allow CEMEX's Jamaica cement plant to produce up to 30% more cement.

Source: DataM Intelligence Analysis (2023)

Building Materials Market Geographical Penetration

The Upsurge in Precast Building Materials in Asia-Pacific

In 2022, it was anticipated that Asia-Pacific will account for more than 1/3rd of the global building materials market. The main driver of the construction industry is an increase in government spending on infrastructure development, particularly on building and infrastructure projects. The demand for building materials is being driven by the need for more inexpensive and expedited development. 

The use of ready-mix concrete and precast components also significantly decreases construction time. Precast concrete pavement, for example, made it possible to build a road in Nagpur, India, in February 2020 in just six hours as opposed to the normal eight to ten days or more. The region's building materials demand is also expected to be driven by the Paris Climate Agreement, which China and India ratified in an effort to fight climate change, as well as growing infrastructure development in the region.

Source: DataM Intelligence Analysis (2023)

Building Materials Companies

The major global players include CEMEX, China National Building Material Company, Lafarge Holcim, Boral Limited, Buzzi Unicem SpA, Dyckerhoff AG, CRH Plc, CSR Limited, Aditya Birla Group and Ambuja Cements.

COVID-19 Impact on Building Materials Market 

COVID Impact

The building materials market is expected to be impacted by the increased number of COVID-19 cases around the world in the construction sector. The disruption of the material supply chain, labor shortages and the global closure of construction sites are all expected to cause problems for the construction industry. U.S. contractors had issues with their material supply chain as a result of foreign suppliers and logistics firms, many of whom are based in China, halting operations in an effort to contain the spread.

KPMG stated in April 2020 that COVID-19 has had a significant negative impact on more than 59 lakh crore worth of construction projects in India that are now in development. Furthermore, by 2030, 3 billion people would require new housing and fundamental urban infrastructure, according to the UN. Cement projects are supported by the International Finance Corporation (IFC) in order to help meet a fundamental need in emerging economies, notably in conflict and frontier markets.

AI Impact 

Selecting building materials with minimal environmental impact is made possible in a significant way by AI. It can determine the most environmentally friendly materials to employ in construction projects as well as the most effective manufacturing techniques by analysing huge databases of building materials. Costs associated with construction can be cut by up to 20% using robotics, AI and the Internet of Things. Engineers can deploy small robots into ongoing construction sites while wearing virtual reality goggles.

For instance, in April 2021 IBM Corporation, Red Hat Software and Cobuilder formed a global partnership to work on the development of a new platform that will help in bringing together the fragmented supply chain of the construction industry. It is expected that the platform, known as OpenBuilt, will offer a cutting-edge digital solution to help the next construction projects for the creation of safer, more sustainable and efficient technologies.

Russia-Ukraine War Impact

The combined effects of Brexit, COVID-19, and shipping route constraints were already being felt by the building materials supply companies prior to the Ukrainian conflict. The perfect storm was able to form as a result of all of the negative factors working together. Supply is unable to keep up with demand, which results in longer lead times and higher prices. 

Although the crisis may have a greater impact on raw materials, according to CLC, items from Ukraine, Russia and Belarus only accounted for 1.25% of construction product imports into the UK in 2021. According to the Construction Leadership Council (CLC), the squeeze will most likely be caused by the price and supply of raw commodities including oil, bitumen, copper and aluminum ore, which are required to produce other building materials.

Key Developments

• In October 2022, Wiltshire Heavy Construction Materials, one of the top providers of construction solutions and material circularity in the UK, was acquired by Holcim, a pioneer in innovative and sustainable building solutions. The purchase will increase Holcim's market share in the UK construction materials industry.
• In August 2022, Kaycan, a manufacturer and distributor of external building materials in Canada and the U.S., was acquired by Saint-Gobain, a French international firm of materials. With the acquisition, Saint-Gobain expanded its leadership position in the world of sustainable and light construction.
• Sherwin-Williams Company acquired AquaSurTech in February 2022 to increase the market share of its coatings solutions for construction materials.

Why Purchase the Report?

• To visualize the global building materials market segmentation based on type, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of building materials market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global building materials market report would provide approximately 53 tables, 50 figures and 207 pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies