Market Trends of Supplementary Cementitious Materials Industry
This section covers the major market trends shaping the Supplementary Cementitious Materials Market according to our research experts:
Growth in the Residential Construction Industry
- Growing population and rapid urbanization are two major factors driving the residential construction segment. With increasing disposable income in the hands of the growing population, there is an increasing demand for homes in the market.
- As per a joint study conducted by Global Construction Perspectives and Oxford Economics, 31,000 homes need to be built every day for the next 14 years to suffice the growing housing demand in India, adding to a total of 170 million properties by 2030.
- Other major countries like China, the United States, Indonesia, and the United Kingdom are expected to be major contributors to the construction industry by 2030. China is expected to add USD 2.1 trillion to global construction output over the next eight years.
- The United Kingdom is expected to spend over USD 6 trillion on construction works by 2030. Residential house building is set to be significant, with 3.3 million homes expected to be constructed over the next 14 years.
- The rise in population and rapid urbanization across major economies are expected to serve as the growth engine for the residential construction segment, thereby driving the demand for the SCM market during the forecast period.
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Asia-Pacific Region Expected to Lead Globally
- The highest demand globally for supplementary cementitious materials is expected to come from the Asia-Pacific region during the forecast period. The booming construction industry, growing population, and rapid urbanization are factors driving regional growth. China and India are expected to lead the Asia-Pacific region.
- China is the global leader in cement production, with 2.5 billion metric tons in 2021, accounting for more than half of the world's production. China is followed by India and Vietnam as the world's second and third-largest cement producers, respectively.
- In China, the investment in infrastructure has increased by 7.4% year-on-year between January and July 2022. The government is also considering allowing local governments to sell up to approximately USD 220 billion of the 2023 special bond quota, through which the government aims to fund infrastructure construction.
- As per ICRA, in FY22, cement production in India is expected to grow at roughly 12% year-on-year. This growth is expected to be driven by increasing rural housing demand and the government's strong focus on infrastructure development.
- The growing demand for cement is in tandem with the growing construction industry. The residential sector is expected to grow exponentially over the forecast period, with the government encouraging the construction of homes for rural populations through different schemes and funding.
- Therefore, the Asia-Pacific region is expected to dominate the global market during the forecast period due to the above-mentioned factors.
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