Australia Supplementary Cementing Materials Market Size, Share & COVID-19 Impact Analysis, By Type (Fly Ash, Slag Cement, Silica Fumes, and Others), By End-Use Industry (Construction, Agriculture, and Others), And Regional Forecast, 2023-2030

The Australia supplementary cementing materials market size was valued at USD 141.8 million in 2022 and is projected to grow from USD 151.1 million in 2023 to USD 229.1 million by 2030, exhibiting a CAGR of 6.1% during the forecast period.

Supplementary Cementitious Materials/Supplementary Cementing Materials (SCMs) are added to concrete mixtures to improve durability and aid in pumpability and finishability. These materials decrease permeability, alter alkali reactivity and improve the overall hardened properties of concrete through hydraulic or pozzolanic activity or both. SCMs are added to the concrete as a partial replacement of portland or blended cement and are usually considered part of the total cementing system. Though these materials increase long-term strength, they may gain strength more slowly (silica fume is an exception). SCMs delay set time by slowing the rate of hydration (except silica fume). Supplementary cementing materials reduce the threat of thermal cracking by lowering peak hydration temperatures.

COVID-19 IMPACT

Massive Disruption in Supply Chain Halted Production Activities

The emergence of the COVID-19 pandemic negatively impacted all regions and businesses, including the Australian market. However, during the initial phase of the pandemic, the effect of the lockdown restrictions imposed across the globe was different for end-use industries that use supplementary cementing materials. The worldwide pandemic and lockdown restrictions enforced by several countries caused massive disruption in the production and supply chain of SCMs. In addition, companies experienced a shortage of trained and unskilled labor, resulting in huge losses. However, Australia showcased financial recovery. Its state and federal governments were enthusiastic about backing public infrastructure in response to the global pandemic and related economic slump. This approach was expected to offer key practices for other nations to follow for recovery from COVID-19.

LATEST TRENDS

Use of Purified Fly Ash in Cement for Sustainable Concrete is an Emerging Trend

Clay and fly ash are combined to make cement, which is further crushed after heating it to extremely high temperatures. More than 8% of the world's CO2 emissions originate from cement production, which is one of the major aspects contributing to greenhouse gas emissions. There has been significant research for developing low-carbon cement to pave the way toward the net zero-carbon emission goal. A study group at Rice University developed a partial solution.

Researchers applied the flash Joule heating technique, which rapidly heats carbon-containing constituents to nearly 3,000 degrees Celsius within milli-seconds by passing an electric current. This is done to extract harmful heavy metals from fly ash. This proved to be a significantly more energy-efficient approach than traditional methods, resulting in purified fly ash incorporated into cement. In a new study, researchers revealed that a batch of concrete turned out to be significantly stronger and more elastic when 30% of the cement was substituted with purified coal fly ash. Hence, the use of purified fly ash in cement to produce sustainable concrete is expected to create growth opportunities in the Australian market.

DRIVING FACTORS

Expansion in Construction and Infrastructure Activities to Boost Market Growth

Supplementary cementing materials are commonly used in concrete as additives and even sometimes as partial replacement of cement in concrete. Increasing demand for concrete from the construction industry is the prime factor driving the market growth. In 2020, the Australian government accelerated the infrastructural projects in private and public investment. The construction industry is one of the major GDP-contributing industries in Australia. According to the International Trade Administration, the Australian construction industry accounts for approximately 9% of GDP. Despite the near-term challenges in certain construction sectors, the sector is expected to show long-term growth. The construction industry in Australia is expected to grow steadily over a period of time.

For instance, Infrastructure Australia (IA) released its infrastructure priority list in February 2021, adding 44 new infrastructure proposals. IA has accountability to strategically audit Australia’s nationally important infrastructure and develop 15-year rolling plans that specify national and state-level priorities. Construction in the residential sector exhibited a 10% growth in 2021. This upturn is primarily driven by a surge in house demand maintained by record low-interest rates, government support programs, such as HomeBuilder, and an enhancing outlook for sustained employment growth.

RESTRAINING FACTORS

Delayed Setting and Lower Early Strength of Concrete to Restrict Market Growth

The partial substitution of cement in concrete with supplementary cementing materials often results in low early strength and delayed setting. Additionally, when concrete with SCM is placed in a cold climate that encompasses certain chemical admixtures, problems of delayed setting and low early strength can increase and seriously influence pavement performance. When the ambient temperature is low, these resultant effects are aggravated. This situation can be challenging for planning and finishing operations on the job site and can have extensive and long-term effects on the concrete. Delayed settings and low early strengths may result in plastic shrinkage, settling, and thermal stress. These factors may cause accidental cracking and successive pavement distress for any concrete pavement comprising 50% slag, which is expected to limit the Australia supplementary cementing materials market growth.

SEGMENTATION

By Type Analysis

Slag Cement Segment is expected to Hold a Larger Share Owing to its Cementitious Characteristics

Based on type, the market is segmented into fly ash, slag cement, silica fumes, and others. In 2022, the slag cement segment accounted for the larger Australia supplementary cementing materials market share. Slag cement is produced as a byproduct of iron blast furnaces. Molten slag is diverted from the iron blast furnace and is rapidly cooled down, further turning into glassy granules that produce preferred reactive cementitious characteristics when pulverized into cement fineness. The silica fumes segment is expected to grow significantly, owing to its exceptional properties that enhance the concrete, reduce concrete bleeding, improve strength, and improve inhibition of chemical alkali-silica reaction.

By End-Use Industry Analysis

Construction Segment to be the Fastest-growing Application due to Rising Product Demand from Concrete Producers

In terms of end-use industry, the market is segmented into construction, agriculture, and others. The construction segment accounted for the largest market share in 2022. These materials are primarily employed in concrete as additives and partial cement replacements. SCMs enhance the workability and functionality of concrete and increase the concrete’s chemical resistance.

The construction segment is expected to continue its dominance throughout the forecast period, owing to the ever-increasing demand for concrete and supplementary cementing materials from the construction sector. Furthermore, increasing government initiative is expected to support infrastructural growth.

The agriculture segment is expected to show considerable growth. The others segment consists of industrial manufacturing facilities. Growing industrialization and increasing output of the business integrated industrial sector, including mining, manufacturing, and utilities are driving industrial construction, further aiding this market.

REGIONAL INSIGHTS

The market size in Australia stood at USD 141.8 million in 2022. SCMs are majorly employed in concrete and construction. Growing construction activities in Australia, primarily in industrial areas, are expected to drive market growth. According to the International Trade Administration, the Australian construction industry accounts for approximately 9% of GDP. Despite the near-term challenges in certain construction sectors, the sector is expected to grow long-term.

KEY INDUSTRY PLAYERS

Key Players are Adopting Expansion Strategies to Maintain their Market Share

The Australia supplementary cementitious materials market is fairly fragmented, with key players such as Wagners, Fly ash Australia, Cement Australia, and Boral. Manufacturers are expanding their business to gain competency in the industry and alleviate new entrants’ threats. 

Market participants fiercely compete with regional players with extensive distribution networks, regulatory know-how, and suppliers. In addition, companies sign contracts, acquisitions, and strategic partnerships with other market leaders to expand their existing market share.

LIST OF KEY COMPANIES PROFILED:

• Cement Australia (Australia)


• Boral (Australia)


• Wagners (Australia)


• Fly ash Australia (Australia)


• Adelaide Brighton Cement (Australia)


• Millmerran Flyash (Australia)


• Hallett Group (Australia)

KEY INDUSTRY DEVELOPMENTS:

• December 2022: Cement Australia Holdings Pty Ltd. announced a strategic partnership with KC8 Capture Technologies, a process engineering firm, to construct and install a demonstration plant to seize carbon dioxide emissions at one of Australia’s cement facilities in Gladstone. This deal aims to reduce the carbon footprint amid increasing air toxicity, and this plant is expected to be built by the second quarter of 2023.


• July 2022: The Hallet Group announced a green transformation project by building a USD 84.3 million cement plant in Port Augusta. This project will aim to reduce the carbon concentration by 0.3Mta in 2024, and after expansion, it will reach 1Mta in 2025.


• December 2021: Boral Ltd. announced to sell North America’s fly ash business at a market value of USD 755 million. The main purpose of the exit is to enhance the major focus on Boral's domestic sales.

REPORT COVERAGE

The Australia supplementary cementing materials market research report provides a detailed analysis of the market. It focuses on crucial aspects such as competitive landscape, supply chain, products, and end-use industries. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years.

This report includes historical data & forecasts revenue growth in Australia and analyzes the industry's latest market dynamics and opportunities.

Report Scope & Segmentation