The global construction industry is showing substantial growth which has been driving demand for cement and concrete. One of the key drivers behind the growth is urbanisation particularly in emerging markets. Meanwhile, rising per capita income is also underpinning demand for cement and concrete in the residential construction sector.
On the other hand, to provide better public services in transport, healthcare, energy etc, government spending is also on the rise, boosting demand for cement and concrete in the infrastructure sector. We assess that major demand for cement and concrete is attributed to the infrastructure sector which is on the rise across the globe.
However, limited space in major cities and urban areas is driving the trend towards high rise buildings, which is also embraced by even in the developing markets. High rise buildings tend to become less concrete intensive, which will be a downside risk for cement and concrete going forward. In developed markets, we ascertain that there is a negative correlation between high rise buildings and cement and concrete demand. Most of these high rise buildings will increase the usage of more expensive materials such as glass in facades and steel beams in structures. However, in developing markets, multiple storey buildings will continue to use traditional materials such as cement, marble etc. However, there is a growing trend for skyscrapers in some parts of developing Asia and Central and South America. Indeed the building core will be cement and concrete intensive, though most of the outer and parts are likely to use alternative materials for various reasons such as aesthetics and lightweight.
Moreover, the environmental costs and labour shortages, particularly in developed markets, will remain a serious issue in the industry. Brexit, NAFTA renegotiations and the US strict policy on immigration will also play a key role in impacting demand and supply of cement and concrete in these markets. On the other hand OBOR, Saudi Vision 2030 and $1 trillion US infrastructure plan would be some of the key mega projects underpinning demand for cement and concrete. Commodity Inside expects that a substantial amount of new cement supply will be added in emerging and developing markets to satisfy the growing demand.
This article is based on our recently publish report “The Global Cement and Concrete Market Outlook to 2028”. To learn more about the report please contact us at email@example.com