Nigeria, Other Markets Set For $438.3 Billion Growth In Concrete, Cement Industry – Reports

The global concrete and cement market is projected to grow by $438.3 billion between 2024 and 2028, according to a recent report by Technavio.

The industry is expected to expand at a compound annual growth rate (CAGR) of over 6.36% during this period.

Key factors driving this growth include the booming global construction market, rapid urbanization, and increasing disposable incomes.

However, rising construction costs are identified as a significant challenge to the market’s expansion, as highlighted in the report seen by Naija News.

The report emphasizes that economic developments in countries such as India, Vietnam, Malaysia, China, and Qatar have led to a significant increase in consumer disposable income and accelerated urbanization.

This economic progress is boosting spending on both residential and non-residential infrastructure projects.

For instance, data from the World Bank Group reveals that China’s GDP per capita rose from $9,976.68 in 2018 to $10,261.68 in 2019, while India’s GDP per capita grew from $2,005.86 in 2018 to $2,099.60 in 2019.

The increasing demand for infrastructure projects in these regions is expected to further fuel the global construction market.

Concrete remains a preferred material in construction due to its properties, such as reducing shrinkage and cracking in cement, increasing resistance to weathering, and minimizing volume changes caused by drying.

With the global urban population anticipated to grow from 4.19 billion in 2018 to 4.27 billion in 2019, and an additional 2 billion people expected to live in urban and semi-urban areas by 2050, the demand for concrete and cement is poised for significant growth.

However, the report also highlights challenges in the industry. The construction sector depends heavily on materials like cement, concrete, steel, bricks, and aggregates, with cement and steel together accounting for about 19% of total construction costs.

Fluctuations in the availability and pricing of these materials can substantially impact overall construction costs.

While economically stable European countries like the UK, France, and Germany can absorb price increases, the report notes that volatile economic conditions in countries such as Nigeria and Namibia make it more difficult to manage such hikes.

The report also addresses the higher costs associated with producing white cement, a premium product favored for its clean and consistent designs.

White cement production requires 40% more energy than regular gray cement, leading to increased operating costs.

In developing countries like India, high taxes and production costs further drive up the price of white cement, potentially hindering the growth of the global white cement market and, by extension, the overall concrete and cement industry.

The concrete and cement market, while facing challenges, continues to supply essential building materials for urban development.

Issues like aggregate availability, energy-intensive production processes, and meeting international quality standards for concrete products are highlighted as ongoing concerns.

Despite these challenges, the market is expected to benefit from the construction boom, infrastructure investments, and urbanization, particularly in developing markets.