Cement Market Size, Share & Trends Analysis Report By Product (Portland, Others), By Application (Residential, Non-residential/Infrastructure), By Region, And Segment Forecasts, 2018 - 2025

Industry Outlook

The global cement market size was valued at USD 355.6 billion in 2016. It is expected to register a CAGR of 7.8% from 2017 to 2025. Increasing investments in the infrastructure sector are one of the key trends escalating market growth. As per the World Bank in 2016, the global infrastructure investment is likely to reach nearly USD 94 trillion by 2040.

Growing requirement for the construction of institutional buildings for education and healthcare sectors is anticipated to drive the market in the coming years. Healthcare sectors in developing countries such as India, Malaysia, Indonesia, etc. are registering strong growth, which, in turn, is estimated to benefit the growth of the market in the coming years. For instance, the healthcare sector in India is projected to grow by nearly USD 120 billion from 2017 to 2020, exhibiting strong demand for construction activities.

Asia Pacific is known as the global growth engine for the construction sector. The market is, thus, poised to experience tremendous growth in the region. Countries such as China and India, among others, have observed significant growth in their construction output in recent years. The construction sector output in China has increased by nearly USD 1,168 billion from 2014 to 2017.

In India, steady development of metro projects and enhancement of the existing railway network to connect ports across the country are expected to generate staggering demand for the product in the coming years. The government of India has allocated nearly USD 8 billion for the development of railways.

Similarly, China’s 13^th five-year plan (2016-2020) has allocated nearly USD 529 billion for development of the railway sector. The government plans to connect 80% of the cities in the country to enable the efficient flow of trade and expand its economy.

Product Insights

Portland cement was valued at USD 316.5 billion in 2016 and is likely to witness a significant CAGR of 7.9% during the forecast period. The durability and high strength of the product and its widespread usage in the construction of residential, commercial, and industrial units are anticipated to propel the market.

The global demand for the others cement was valued USD 39.0 billion in 2016. Rapid expansion of the residential sector in developing countries is estimated to have a positive impact on the growth of the segment.

The global market is facing environmental issues regarding water usage, carbon dioxide emission, depletion of resources, and other industrial activities. To overcome these challenges, in 2014, 24 leading cement manufacturers established the Cement Sustainability Initiative (CSI), which, in turn, is projected to play a key role in enabling the steady growth of the market. For instance, one of the prominent manufacturers, Heidelberg Cement AG, initiated water resource protection and conservation policies to reduce water consumption during processing operations.

Application Insights

Non-residential/Infrastructure sector dominated the global cement market in 2016, accounting for over 66.0% of the overall revenue. China, India, and Japan are poised to lead the demand for cement for infrastructure projects over the forecast period. The World Bank predicts that these three countries are expected to attract 39% of the global infrastructure investments in the coming years.

Megaprojects such as China’s One Belt and One Road (OBOR) infrastructure program are likely to stir up the demand for cement during the forecast period. For instance, in August 2017, construction work was started on the East Coast Rail Link project to link Malaysia’s east and west regions. The project is a part of OBOR and is anticipated to amount to nearly USD 13.0 billion.  

Increasing urbanization is leading to steady growth of cities, which in turn is estimated to contribute to the growth of the segment. Besides this, the factor is projected to provide a significant push to residential construction.

APAC, majorly dominated by China, is poised to account for 60.0% of the new dwellings constructed across the world by end of 2018. Residential construction across the globe has increased significantly over the past few years. The real estate industry in India is expected to reach a value of approximately USD 853 billion by 2028.

In 2014, the World Bank collaborated with private institutional investors to launch the Global Infrastructure Facility to bridge the infrastructure gap within developing nations by providing funds for infrastructure development.

Regional Insights

In terms of volume, Asia Pacific dominated the market and is likely to register a CAGR of 5.2% during the forecast period. The regional market is driven by spiraling demand for affordable housing from developing economies such as India and China. Increasing income levels, rising population, and rapid urbanization in these economies are anticipated to promote residential construction.

Europe market is estimated to post a moderate CAGR during the same period. Russia is set to host the 2018 FIFA World Cup, which is projected to be the key catalyst triggering the demand for cement in the region.

North America is poised to experience healthy growth in terms of revenue during the forecast period. Soaring popularity of single-family units in countries such as the U.S. and Canada is expected to generate demand for residential construction, thereby boosting the uptake of cement.

The growth of the construction sector in MEA is primarily driven by massive investments in the infrastructure sector of multiple countries in the region. Rising construction of rail networks across major cities and intra-regional rail links is likely to supplement the growth of the regional market.

Cement Market Share Insights

There are a number of global players in the market, along with key regional players in China and India. Some of the major players in the market are Aditya Birla Ultratech, CNBM International Corporation, and other global players such as CEMEX S.A.B. de C.V., HeidelbergCement AG, Italcementi, InterCement, LafargeHolcim, SCG, Taiheiyo Cement Corporation, Titan Cement Group, Votorantim, and Anhui Conch Cement.

Several companies are forming joint ventures, mergers, and acquisitions to increase their market presence and product portfolio. Rapid investments are being made by market players to expand their capacities. For instance, in 2017, Dalmia Bharat Group planned to invest nearly USD 293 million to increase its capacity in Odisha, India.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional & country levels, and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the cement market based on product, application, and region:

• Product Outlook (Volume, Million Tons; Revenue, USD Million, 2014 - 2025)

  • Portland

  • Others

• Application Outlook (Volume, Million Tons; Revenue, USD Million, 2014 - 2025)

  • Residential

  • Non-residential/Infrastructure

• Regional Outlook (Volume, Million Tons; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia