U.S. Construction Materials Market Size, Share & COVID-19 Impact Analysis, By Material Type (Aggregates, Cement, Bricks and Blocks, Metals, and Others), By End-user (Residential, Infrastructure, Commercial, and Industrial), and Country Forecast, 2023-2030

The U.S. construction materials market size was worth USD 146.8 billion in 2022 and is projected to grow at a CAGR of 3.7% during the forecast period.

Construction materials refer to a variety of materials used in the construction of buildings, roads, bridges, and other infrastructure. Each material has unique properties and characteristics that make it suitable for different types of construction projects. The choice of construction materials can impact the cost, durability, and sustainability of a project, making it an important consideration for architects, engineers, and builders.                 

Increasing framework spending and rising interest in residential houses have flooded the worldwide construction industry, especially in the real estate & housing sectors. The driving factor behind the market growth is the expanding infrastructure spending, especially in commercial projects. Throughout many recent years, there has been intense competition for clean expressways and public infrastructure in developed markets. Besides this, the rise in the public's disposable income has expanded property ownership, supporting the requirement for property investments, which drives market growth.

In 2020, the construction industry suffered a decline in growth due to the COVID-19 pandemic. The halt or temporary closure of construction activities due to the restrictions imposed by the government disrupted the demand for construction materials in the country. Nevertheless, the U.S. government established supportive measures for contractors to smooth their operations and stabilize the economy generated by the construction industry. As a result, the demand for these materials is expected to stabilize at a considerable rate.

U.S. Construction Materials Market Trends

Rising Consumption of Sustainable Materials and Adoption of Smart Technologies to Propel Market Expansion

While 3D printing cannot completely automate development, site workers are as yet expected to embed rebar into printed substantial designs. Manufacturers of these materials in the U.S. are adopting new technologies, which assist them with adjusting to a moving construction market. Simultaneously, creating a distinction between advanced building materials, such as smart glass and composite shingles, makes it more agreeable for suppliers to offer possible material choices to their clients.

U.S. Construction Materials Market Growth Factors

Government Norms Favoring a Rise in the Number of Smart Cities to Fuel Product Demand

With growing urbanization and the rapid development of remote areas in the U.S., the authorities are taking the necessary steps to oversee traffic intricacies to increase efficiencies and work on quality of life. This has made it a requirement for urban communities to screen and incorporate frameworks to improve available resources and expand services to residents. Hence, government norms are expected to support the rise in the number of smart cities. This further will fuel construction materials demand for residential and non-residential areas.

According to the U.S. Geological Survey, in 2022, the total construction output in the U.S. has increased by 11% compared to 2021. There has been a rise in spending under the residential category despite the increased prices in major areas. The increased cost of production and cement shipments rose by 4% in 2022 compared to 2021. Moreover, Texas, California, and Florida are the leading cement-consuming states across the U.S.

RESTRAINING FACTORS

Rising Environmental Concerns for Unfavorable Construction Circumstances May Hinder Market Growth

Manufacturing construction materials are exceptionally carbon-intensive, including mining, baking, and restoring refractory materials. Heavy amounts of carbon dioxide (CO2) and toxins, such as unpredictable natural mixtures and carbon monoxide, are generated during the assembly system. Owing to their well-known part as greenhouse gases, their air release is regulated by environmental agencies strictly. As concerns related to security and ecological well-being are increasing, manufacturers of these materials are constrained to lessen their carbon force. Owing to the already fierce competition in the market, such restrictions hamper the construction materials supply chain and limit the U.S. market growth potential of the market.

U.S. Construction Materials Market Segmentation Analysis

By Material Type Analysis

In terms of material type, the market is divided into aggregates, bricks and blocks, cement, metals, and others.

In 2022, the aggregates segment held the dominant U.S. construction materials market share. The expanded activity in the restoration and renovation in the construction sector raises the interest in building aggregates for business and residential projects across the U.S. market. In addition, the construction business is quickly changing digitally by demonstrating building data. BIM assists with utilizing natural substances by lessening waste and improving overall construction project output. This shows that the key economies are progressively centered around upgrading transportation and power-age infrastructure, which is poised to propel the segment growth.

Bricks and blocks are some of the most commonly used building materials in the market. Bricks are made from clay that is molded and baked in a kiln to create a hard, durable building material. Blocks, on the other hand, are typically made from concrete and come in a variety of shapes and sizes. These materials are widely used in building walls, foundations, and other structures due to their strength, durability, and fire resistance. They are also relatively affordable and readily available, making them a popular choice for both residential and commercial construction projects.

By End-user Analysis

Based on end-user, the market is segmented into residential, commercial, infrastructure, and industrial.

The residential segment holds the largest share of the market. Driven by the demand for housing and steady government policies, residential structures witnessed a solid rebound in 2022 and are poised to observe strong development in the coming decade. People migrating from remote to metropolitan regions drive initiatives across different nations, leading to campaigns within the real estate industry. Moreover, the USDA offers home redesign projects and allows U.S. citizens to become mortgage holders. USDA likewise offers funds for old, impaired, or low-pay individuals and ensures that the rustic occupants of multi-unit lodging buildings pay their lease. The USDA collaborates with public and non-benefit associations to offer credits and awards to lodging owners to develop and redesign country multi-family residential buildings. Thus, these factors will assist with creating interest in the U.S. construction materials market across different ventures.

In the U.S. market, these materials are widely used for commercial spaces such as office buildings, shopping centers, hotels, restaurants, hospitals, schools, and other commercial facilities. These projects require a variety of construction materials, including steel, concrete, glass, and wood. The choice of materials depends on various factors such as cost, strength, durability, aesthetics, and environmental impact. Sustainable and eco-friendly building materials are gaining popularity in the commercial construction industry due to their energy efficiency and reduced carbon footprint and will drive the commercial segment growth.

List of Key Companies in U.S. Construction Materials Market

The U.S. construction materials market showcases the presence of established and emerging refractory companies with respect to the competitive landscape. Top players include LafargeHolcim Ltd., CEMEX, and HeidelbergCement among others. Companies compete primarily in terms of the product’s application characteristics and price. Product innovation, acquisition, collaborations, and social marketing are being focused on by market players.

LIST OF KEY COMPANIES PROFILED:

• LafargeHolcim Ltd. (Switzerland)


• CEMEX (Mexico)


• HeidelbergCement (Germany)


• Boral Limited (Australia)


• Buzzi Unicem (Italy)


• Ash Grove Cement Company (U.S.)


• Argos S.A. (Colombia)


• Eagle Materials Inc. (U.S.)


• GCC SAB de (Mexico)

KEY INDUSTRY DEVELOPMENTS:

• April 2023: Holcim US announced to acquire Duro-Last, a pioneer in commercial roofing systems with pro forma net sales of USD 540 million. The company has a track record of double-digit growth in North America's USD 40 billion roofing material business. Holcim's integrated roofing generates USD 60 million per year, however, after the acquisition, Holcim's roofing system will exceed USD 4 billion ahead of schedule. This acquisition enables "Holcim strategy 2025" by accelerating green solutions and products business by up to 30% of group net sales from insulation and roofing to repair and refurbishment.


• March 2023: Cemex announced a capital investment of USD 250 million to expand the Cemex facility in Comal County at the company's New Braunfels, Texas location. This investment aims to double the cement production capacity to 2.4 million tons for the growing demand for cement and rising construction activities in Texas to initiate the projects around the state.

REPORT COVERAGE

The market research report provides a detailed analysis of the market. It focuses on aspects such as material type, end-user, and leading companies. It also provides quantitative data in terms of value, research methodology for market size estimation, and insights into the latest market trends. In addition, the report highlights vital industry developments and the competitive landscape. It focuses on key aspects such as an overview of technological advancements, new product launches, key industry developments such as mergers, partnerships, & acquisitions, and the COVID-19 impact on the market. Besides this, the report also highlights key industry dynamics. In addition to the aforementioned factors, it encompasses several factors that have contributed to the growth in recent years.

Report Scope & Segmentation