Ordinary Portland Cement Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Ordinary Portland Cement Market Analysis

The Ordinary Portland Cement Market size is estimated at 1.34 Billion Tons in 2025, and is expected to reach 1.68 Billion Tons by 2030, at a CAGR of 4.69% during the forecast period (2025-2030).

The global construction industry is experiencing significant transformation driven by massive infrastructure development initiatives worldwide. Global infrastructure spending is projected to reach USD 2.78 trillion in 2023, reflecting governments' commitment to economic growth through construction activities. The United States has announced plans to allocate USD 1.2 trillion by 2025 through the Infrastructure Investment and Jobs Act, targeting critical areas including roads, bridges, rail networks, smart infrastructure, and electric vehicle infrastructure. This unprecedented level of investment signals a strong foundation for sustained growth in the construction materials sector, particularly for essential building materials like Ordinary Portland Cement.

Sustainability and modernization efforts are reshaping construction practices across major economies. Countries are increasingly focusing on developing smart cities, sustainable infrastructure, and energy-efficient buildings. The trend is particularly evident in the commercial construction sector, where developers are incorporating advanced building technologies and sustainable materials. For instance, Indonesia's commitment to modern retail infrastructure is demonstrated through six major shopping mall projects scheduled for completion by 2025, adding approximately 292,000 square meters of commercial space.

The Middle East region is witnessing remarkable transformation through ambitious development programs and infrastructure initiatives. Saudi Arabia's Vision 2030 program has catalyzed significant investments, with recent agreements worth USD 2.66 billion dedicated to developing commercial, tourism, and residential projects. These initiatives are complemented by similar programs across the region, with the United Arab Emirates recording an impressive 82% surge in infrastructure investments from 2021 to 2022, highlighting the region's commitment to economic diversification and infrastructure development.

Transportation infrastructure development has emerged as a key focus area across major economies, driving substantial construction activity. China's strategic emphasis on transportation networks is reflected in its increased transport infrastructure investment, which rose from USD 157.6 billion in 2021 to USD 165.6 billion in 2022. This trend is mirrored globally as countries prioritize connectivity through expanded road networks, railway systems, and airport infrastructure. The focus on transportation infrastructure development is particularly significant in emerging economies, where rapid urbanization and economic growth necessitate enhanced connectivity solutions. The demand for construction cement and Portland cement is expected to rise in tandem with these developments, thereby boosting cement manufacturing and cement production activities.

Global Ordinary Portland Cement Market Trends

Asia-Pacific's surge in large-scale office building projects is set to elevate the global floor area dedicated to commercial construction

• In 2022, the global new floor area for commercial construction witnessed a modest growth of 0.15% from the previous year. Europe stood out with a significant surge of 12.70%, driven by a push for high-energy-efficient office buildings to align with its 2030 carbon emission targets. As employees returned to offices, European companies, resuming lease decisions, spurred the construction of 4.5 million square feet of new office space in 2022. This momentum is poised to persist in 2023, with a projected global growth rate of 4.26%.
• The COVID-19 pandemic caused labor and material shortages, leading to cancellations and delays in commercial construction projects. However, as lockdowns eased and construction activities resumed, the global new floor area for commercial construction surged by 11.11% in 2021, with Asia-Pacific taking the lead with a growth rate of 20.98%.
• Looking ahead, the global new floor area for commercial construction is set to achieve a CAGR of 4.56%. Asia-Pacific is anticipated to outpace other regions, with a projected CAGR of 5.16%. This growth is fueled by a flurry of commercial construction projects in China, India, South Korea, and Japan. Notably, major Chinese cities like Beijing, Shanghai, Hong Kong, and Taipei are gearing up for an uptick in Grade A office space construction. Additionally, India is set to witness the opening of approximately 60 shopping malls, spanning 23.25 million square feet, in its top seven cities between 2023 and 2025. Collectively, these endeavors across Asia-Pacific are expected to add a staggering 1.56 billion square feet to the new floor area for commercial construction by 2030, compared to 2022.

South America's estimated fastest growth in residential constructions due to increasing government investments in schemes for affordable housing to boost the global residential sector

• In 2022, the global new floor area for residential construction declined by around 289 million square feet compared to 2021. This can be attributed to the housing crisis generated due to the shortage of land, labor, and unsustainably high construction materials prices. This crisis severely impacted Asia-Pacific, where the new floor area declined 5.39% in 2022 compared to 2021. However, a more positive outlook is expected in 2023 as the global new floor area is predicted to grow by 3.31% compared to 2022, owing to government investments that can finance the construction of new affordable homes capable of accommodating 3 billion people by 2030.
• The COVID-19 pandemic caused an economic slowdown, due to which many residential construction projects got canceled or delayed, and the global new floor area declined by 4.79% in 2020 compared to 2019. As the restrictions were lifted in 2021 and pent-up demand for housing projects was released, new floor area grew 11.22% compared to 2020, with Europe having the highest growth of 18.28%, followed by South America, which rose 17.36% in 2021 compared to 2020.
• The global new floor area for residential construction is expected to register a CAGR of 3.81% during the forecast period, with South America predicted to develop at the fastest CAGR of 4.05%. Schemes and initiatives like the Minha Casa Minha Vida in Brazil announced in 2023 with a few regulatory changes, for which the government plans an investment of USD 1.98 billion to provide affordable housing units for low-income families, and the FOGAES in Chile also publicized in 2023, with an initial investment of USD 50 million, are aimed at providing mortgage loans to families for affordable housing and will encourage the construction of new residential units.

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Segment Analysis: End Use Sector

Infrastructure Segment in Ordinary Portland Cement Market

The infrastructure sector maintains its dominant position in the global Portland cement market, commanding approximately 47% market share in 2024. This substantial market presence is primarily driven by massive infrastructure development projects across regions, particularly in the Asia-Pacific, where countries are heavily investing in transportation networks, energy facilities, and urban development projects. The sector's prominence is further reinforced by government initiatives worldwide, with significant investments planned for road networks, bridges, airports, and railway systems. For instance, the United States has allocated USD 1.2 trillion by 2025 for infrastructure development, including USD 550 billion from the Infrastructure Investment and Jobs Act. Similarly, Asia-Pacific's infrastructure needs are projected to surpass USD 1.7 trillion by 2030, indicating sustained demand for Ordinary Portland cement in this sector.

Commercial Segment in Ordinary Portland Cement Market

The commercial segment is emerging as the most dynamic growth sector in the Portland cement market, with a projected growth rate of approximately 6% during 2024-2029. This remarkable growth trajectory is primarily fueled by increasing demand for shopping malls, office spaces, and retail centers across global markets. The expansion is particularly notable in emerging economies, where rapid urbanization is driving the need for new commercial spaces. For instance, India is set to witness the opening of nearly 60 shopping malls, spanning 23.25 million square feet, in its top seven cities between 2023 and 2025. Additionally, major Chinese cities like Beijing, Shanghai, Hong Kong, and Taipei are experiencing a surge in Grade A office space construction, while Indonesia has six shopping mall projects slated for completion by 2025.

Remaining Segments in End Use Sector

The residential and industrial cement & institutional segments continue to play vital roles in shaping the Ordinary Portland cement market landscape. The residential sector represents a substantial portion of cement consumption, driven by affordable housing initiatives and urban development projects across both developed and developing nations. The industrial and institutional segment, while smaller in market share, maintains steady demand through the construction of manufacturing facilities, educational institutions, and healthcare infrastructure. Both segments are significantly influenced by government policies, urbanization trends, and economic growth factors, contributing to the overall market dynamics of structural cement consumption.

Ordinary Portland Cement Market Geography Segment Analysis

Ordinary Portland Cement Market in Asia-Pacific

The Asia-Pacific region stands as the dominant force in the global Ordinary Portland Cement market, driven by extensive construction activities across residential, commercial, and infrastructure sectors. The region's market dynamics are shaped by key players like China, India, Japan, and South Korea, with significant contributions from emerging economies such as Vietnam, Indonesia, and Thailand. Countries across the region are witnessing substantial investments in infrastructure development, urban housing projects, and commercial construction, supported by government initiatives and increasing private sector participation.

Ordinary Portland Cement Market in China

China maintains its position as the powerhouse of the Asia-Pacific Ordinary Portland Cement market, holding approximately 45% share of the region's market in 2024. The country's cement consumption is primarily driven by its unwavering commitment to infrastructure development, with major cities like Beijing, Shanghai, Hong Kong, and Taipei witnessing significant construction activities. The nation's focus on developing Grade A office spaces, residential complexes, and transportation infrastructure continues to fuel demand. China's robust manufacturing sector and ongoing urbanization initiatives further strengthen its position as the regional leader in cement consumption.

Ordinary Portland Cement Market in Vietnam

Vietnam emerges as the fastest-growing market in the Asia-Pacific region, with a projected growth rate of approximately 6% during 2024-2029. The country's cement market is experiencing rapid expansion driven by ambitious infrastructure projects like the Dong Dang-Tra Linh Expressway and the Bao Loc-Lien Khuong Expressway. Vietnam's government has implemented favorable land policies and launched initiatives to construct affordable housing units, demonstrating its commitment to sustainable urban development. The country's increasing emphasis on manufacturing infrastructure and its positioning as a potential global manufacturing hub further accelerates cement demand.

Ordinary Portland Cement Market in Europe

Europe's Ordinary Portland Cement market demonstrates a mature and well-established ecosystem, characterized by stringent quality standards and sustainable construction practices. The region's market is influenced by various factors including renovation projects, infrastructure modernization, and green building initiatives. Key markets like Germany, France, and the United Kingdom drive significant demand through their construction activities, while Eastern European countries contribute to market growth through infrastructure development projects.

Ordinary Portland Cement Market in Russia

Russia dominates the European Ordinary Portland Cement market, commanding approximately 22% of the region's market share in 2024. The country's cement consumption is primarily driven by extensive infrastructure development projects and residential construction activities. Russia's focus on developing transportation infrastructure, including highways and railways, coupled with urban development initiatives, maintains its position as the leading cement consumer in the region. The country's vast geographical expanse and ongoing modernization of industrial facilities further contribute to sustained cement demand.

Ordinary Portland Cement Market in Spain

Spain positions itself as the fastest-growing market in Europe, with a projected growth rate of approximately 4% during 2024-2029. The country's cement market is experiencing significant momentum driven by various infrastructure projects including the Madrid Metro Expansion and Las Lomas del Higueron Residential Complex. Spain's focus on developing commercial spaces, coupled with increasing investments in residential and infrastructure projects, creates a robust foundation for market growth. The country's emphasis on sustainable construction practices and urban development initiatives further supports market expansion.

Ordinary Portland Cement Market in Middle East and Africa

The Middle East and Africa region demonstrates strong growth potential in the Ordinary Portland Cement market, driven by extensive construction activities across residential, commercial, and infrastructure sectors. The region benefits from significant government investments in infrastructure development and urban planning initiatives. Countries across the region are implementing various construction projects, ranging from residential complexes to commercial centers and transportation infrastructure.

Ordinary Portland Cement Market in Saudi Arabia

Saudi Arabia maintains its position as the largest cement market in the Middle East and Africa region. The country's cement consumption is primarily driven by its Vision 2030 initiative, which encompasses various development projects across residential, commercial, and infrastructure sectors. The kingdom's focus on developing new cities, tourism projects, and transportation infrastructure sustains its position as the regional leader in cement consumption. Ongoing investments in housing projects and commercial developments further strengthen the country's market dominance.

Ordinary Portland Cement Market in United Arab Emirates

The United Arab Emirates emerges as the fastest-growing market in the Middle East and Africa region. The country's cement market is experiencing rapid expansion driven by its robust development agenda focusing on industrial, transportation, and energy infrastructure. The UAE's emphasis on attracting foreign direct investment through infrastructure development creates sustained demand for cement. The nation's commitment to developing commercial spaces and residential projects, coupled with its focus on sustainable construction practices, supports market growth.

Ordinary Portland Cement Market in North America

The North American Ordinary Portland Cement market demonstrates strong growth potential, driven by infrastructure modernization initiatives and residential construction activities across the United States, Canada, and Mexico. The region's market dynamics are influenced by government infrastructure spending, housing development projects, and commercial construction activities. The United States leads the regional market as the largest consumer, benefiting from substantial infrastructure investments and construction activities across various sectors. Meanwhile, Mexico emerges as the fastest-growing market, supported by its expanding construction industry and increasing demand for housing and infrastructure development.

Ordinary Portland Cement Market in South America

The South American Ordinary Portland Cement market showcases significant growth potential, driven by infrastructure development initiatives and housing construction activities across the region. Brazil dominates the regional market as both the largest and fastest-growing country, supported by government housing initiatives and infrastructure development projects. The region's market is characterized by increasing investments in residential construction, infrastructure modernization, and commercial development projects. Countries across South America are implementing various construction projects, ranging from affordable housing initiatives to transportation infrastructure development, contributing to market expansion.

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We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 24+ free charts, the section covers rare data on newly built floor area, infrastructural spending, and existing construction floor area across residential, commercial, industrial and institutional sectors.