Cement Market Size (2024 – 2030)

The Cement Market was valued at USD 401.9 billion in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 574.62 billion by 2030, growing at a CAGR of 5.24%.

Cement plays a crucial role in the construction sector as a binding agent that joins surfaces of bricks, stones, and panels. Typically, it is a fine, powdery substance produced from limestone, clay, sand, iron ore, and bauxite.

Key Market Insights:

The Asia-Pacific region consistently leads in construction project volumes, with India at the forefront, holding a pipeline of infrastructure projects valued at over USD 25 million as of May 2022, surpassing other countries. China and Australia ranked third and fourth, respectively, in terms of project volumes. As a result, the Asia-Pacific region remains the primary global hub for cement consumption.

Cement Market Drivers:

Rise in Adoption of Green Cement to Boost Market Growth.

The increasing adoption of green cement for the construction of eco-friendly and sustainable buildings is expected to drive market growth. To mitigate the impact of emissions, modifications to the manufacturing process can significantly reduce emissions. This product employs a carbon-negative manufacturing method that minimizes pollution throughout its production stages. It provides a sustainable solution by addressing critical environmental issues and reducing the carbon footprint during production. In 2021, Hima Cement, a subsidiary of LafargeHolcim, introduced the Fundi masonry product, which features a reduced carbon footprint and is used in bricklaying, plastering, and mortar applications. Additionally, the United Nations Environment Program (UNEP) advocates for the production and use of new, environmentally sustainable, and cost-effective products. Consequently, these factors are anticipated to boost the demand for green cement in the near future.

Investment in Infrastructure Projects by Government Drives the market.

Cement Market Restraints and Challenges:

Government Regulations on Carbon Emissions to Hinder Market Growth.

Cement is a crucial material in construction, yet its production process is a significant source of CO2 emissions. Approximately two-thirds of these emissions arise from the chemical transformation of raw materials (process emissions), while the remaining third is related to the energy consumed during manufacturing (combustion emissions). The cement industry is responsible for 6-7% of global CO2 emissions. Due to its substantial contribution to global CO2 emissions, governments worldwide are implementing various environmental regulations to control emissions from cement manufacturing facilities. Consequently, these regulations are expected to constrain market growth.

The raw materials for cement production include limestone, chalk, shells, shale, clay, and silica sand. The production process has several hazardous environmental and health impacts. Inhalation of dust particles can lead to respiratory issues and irritation of the nose and throat. Additionally, cement manufacturing contributes significantly to pollution. The United States Environmental Protection Agency identifies the cement industry as the third-largest industrial polluter, emitting over 500 kilotons of nitrogen oxides, sulfur dioxide, and carbon monoxide annually. In response to these concerns, governments are imposing stricter environmental regulations on the production process, which is anticipated to further restrict the growth of the cement market.

Cement Market Opportunities:

Increasing demand for sustainable and eco-friendly cement creates opportunities.

CEMENT MARKET REPORT COVERAGE:

Cement Market Segmentation: By Application

• Commercial

• Infrastructure

• Industrial and Institutional

• Residential

The residential sector remains the largest consumer of cement globally, largely due to the prevalence of concrete homes, which drives substantial cement demand from this sector.

Infrastructure represents another major area of cement utilization, with cement being a crucial component of concrete used in the construction of roads, dams, ports, and other infrastructure projects. The Asia-Pacific region dominates cement consumption in this sector, particularly in China, India, South Korea, and Japan, which together represented 90% of the region's cement demand for infrastructure in 2022.

The commercial construction sector is anticipated to experience the most rapid growth in construction activities. For example, the new floor area in the commercial sector is projected to grow at the fastest compound annual growth rate (CAGR) of approximately 4.56% during the forecast period from 2023 to 2030. Consequently, cement demand from the commercial sector is expected to rise globally at a CAGR of 6.18% during the same period, potentially reaching USD 764.6 million by 2030.

Cement Market Segmentation: By Product

• White Cement

• Blended Cement

• Fiber Cement

• Ordinary Portland Cement

In 2023, the blended cement segment captured the largest market share due to its advantageous properties, including reduced water demand, enhanced workability and pumpability, and decreased crack formation from thermal stress. Blended cement comprises base Portland cement

China, and India. Significant growth in infrastructure and construction activities is a major factor contributing to this market trend. China, as the leading producer and consumer of cement globally, plays a crucial role in this growth due to its rapid population expansion and extensive infrastructure development. Additionally, the rising demand for residential spaces in China is anticipated to further support market growth.

In Europe, the market is projected to grow at a significant compound annual growth rate (CAGR). Key contributors to this growth include Russia, Germany, France, and the U.K., where increased demand for cement is driven by the renovation of old and potentially hazardous structures. The integration of sustainable and eco-friendly materials is also expected to bolster market expansion in the region.

In North America, the market is influenced by the rising demand for public infrastructure. The adoption of modern construction practices, such as precast concrete and 3D concrete printing, is anticipated to enhance cement consumption in the region. Additionally, increased government investment in the repair of aging and potentially unsafe bridges and structures is expected to further drive market growth.

Latin America is anticipated to experience market growth due to increasing urbanization. Government initiatives, including housing projects, the establishment of healthcare and educational facilities, and the development and maintenance of transportation infrastructure, are key factors contributing to this growth.

The Middle East & Africa are projected to see substantial market growth, driven by increasing demand for cement related to rising infrastructural activities in the region. The use of cement in mining and oil exploration activities is also contributing to the market expansion in this area.

COVID-19 Pandemic: Impact Analysis 

The COVID-19 pandemic led to the temporary closure of production facilities and construction sites in many countries, with curfews and restrictions halting non-essential business operations. This disruption resulted in decreased cement demand due to halted construction activities, economic constraints, and shortages of raw materials and labor. Consequently, the global cement market experienced a negative impact during the pandemic.

Despite this, the market began to recover as economic and manufacturing activities resumed globally. Although the pandemic affected volumes of heavy building materials, the impact was relatively modest. Governments quickly recognized the critical nature of the construction industry and facilitated the swift reopening of construction sites and their suppliers, aiding the market's rebound.