Green Cement Market Size, Share & Industry Analysis, By Type (Fly Ash, Slag, Recycled Aggregate, and Others), By Application (Residential, Non-Residential, and Infrastructure), and Regional Forecast, 2024-2032

The global green cement market size was valued at USD 35.65 billion in 2023 and is projected to grow from USD 39.32 billion in 2024 to USD 83.28 billion by 2032, exhibiting a CAGR of 9.9% during the forecast period. North America dominated the green cement market with a market share of 37.17% in 2023. Moreover, the green cement market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 28.89 billion by 2032, driven by increasing use of sustainable cement in residential and non-residential projects over traditional cement.

Green cement is an environment-friendly cement mainly processed through discarded waste, including blast furnaces and fly ash. The manufacturing process of this cement is extremely energy sufficient as major producers use advanced technologies, thereby aiding in lowering carbon emissions. According to JK Lakshmi Cement Ltd., green cement in buildings can reduce up to 40% of their carbon footprint. Moreover, growing infrastructure developments globally and increasing population create the need for residential buildings, fueling the green cement market growth during the forecast period.   

The spread of the COVID-19 pandemic in several countries, including China, India, Germany, Italy, Brazil, and Canada, led to the restricted movement of materials due to lockdown implementations. This factor severely affected the manufacturing supply chain, severely impacting the revenue generation of product manufacturers. Initially, cement manufacturers faced a supply shortage owing to trade restrictions in important industrial countries, such as China and India, for the first half of 2020. As a result, various companies’ manufacturing capacities were limited, and the demand for greener cement decreased drastically. 

However, the market recovered and stabilized within two years after the pandemic, as many operating companies and governments across the globe initiated efforts for economic revival.

Green Cement Market Trends

Growing Adoption of Green Cement over Traditional Cement to Stimulate Market Growth

The increasing use of sustainable cement in residential and non-residential projects over traditional cement is flourishing the market growth during the forecast period. Green cement is manufactured from industrial wastes, such as slag and fly ash, thereby resolving the disposal of industrial waste. Moreover, it reduces the adoption of fossil fuels, which are majorly utilized in traditional cement production.

Furthermore, factors such as rising government initiatives to reduce carbon emissions while setting standards, providing incentives, and enforcing regulations to promote green buildings are boosting the product demand. Additionally, the product is ideal for offering durability, higher tensile strength, and enhancing the mechanical strength of buildings. Also, it enables excellent early strength, durability, resilience, low chloride permeability, and crack resistance, which makes it a sustainable choice over traditional buildings. Hence, these factors and supportive government regulations will augment the market growth in the near future.

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Green Cement Market Growth Factors

Increasing Demand from Residential Sector to Fuel Market Growth

Increasing demand from residential buildings across the globe is anticipated to promote its adoption. The increasing population, urbanization, and the growing construction of residential projects due to the growth in consumer disposable income are anticipated to augment the market. The rising number of building policies and codes requiring energy-efficient structures have contributed to adopting the product in the residential sector. For instance, in Canada, several government projects, including New Building Canada Plan (NBCP) and Affordable Housing Initiative (AHI) are being set to fuel the sector's development enormously and, as a result, drive product adoption in the sector.

Furthermore, strict regulations in North America on greenhouse gas (GHG) emissions set by the Environmental Protection Agency (EPA) are accelerating consumer demand for a clean energy source. Hence, this would further lead to a surge in product adoption.

Rise in Product Consumption in Green Concrete to Drive Market Growth

The cement industry is one of the major carbon dioxide and greenhouse gas emitters among the other industries. Therefore, global environmental protection agencies, political parties, and climate experts have suggested a reduction in the amount of greenhouse gases. Thus, the Conference of Parties (COP) has decided on a five-year plan for each country to tackle global warming. The agreement included the launch of green products, sustainable production, and eco-friendly alternatives for hazardous raw materials. This has impacted the concreted sector, and concrete manufacturers have started to adopt green materials to minimize hazardous gas emissions during the mixing and settling process.  Additionally, in developed countries, such as the U.S., the consumption of green ultra-high performance materials has massively increased over the past years, which has further boosted the demand for green cement. All these factors are expected to drive the product demand over the forecast period.

RESTRAINING FACTORS

Manufacturers Switching from Conventional to Greener Cement to Restrain Market Growth 

The cement producers often consider risky ways to invest in the production technology of green cement, as it requires huge machinery, skilled labor, and a strong supply chain. As a result, changes in production technology from conventional to greener choices make it financially risky for cement manufacturers. Furthermore, the lack of knowledge of this cement type benefits in rural areas increases the demand for substitute products. Hence, lack of knowledge, advanced manufacturing, and high technology costs may hinder product adoption during the review period.

Green Cement Market Segmentation Analysis

By Type Analysis

Fly Ash Segment to be Dominant Due to Rising Adoption over Traditional Portland Cement

Based on type, the market is segmented into fly ash, slag, recycled aggregate, and others. The fly ash segment accounted for the largest green cement market share in 2023 and is anticipated to continue its dominance during the forecast period. The demand for fly ash is mainly attributed to the growing adoption as a sustainable choice over portland cement. According to the Federal Highway Administration, approximately 15-30% of the portland cement is substituted by fly ash-based slag for the mass concrete placements. As a result, the adoption of fly ash in Portland Cement Concrete (PCC) aids in improving concrete performance and workability of plastic concrete. It provides durability and strength to the concrete.

The rising adoption of slag in constructing precast concrete products, such as pipes & blocks, pavements, and foundations & structures, owing to its improved workability and eco-friendly properties will boost the segment growth. Its preference for constructing dams and retaining walls will further create growth opportunities.

Growing adoption of recycled aggregates from infrastructural projects such as the construction of pavement and highways will propel the segment growth. The growth is associated with its sustainable characteristics, which help reduce harmful emissions while maintaining the quality of the concrete. The others segment includes limestone-based, silica fume-based, and geopolymers. Growing government-supportive regulations will fuel the other segment's growth during the forecast timeframe. 

By Application Analysis

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Residential Segment to be Dominant Due to Rising Supportive Government Regulations

Based on application, the market is divided into residential, non-residential, and infrastructure. The residential segment accounted for the highest market share in the overall global market. The rising demand for sustainable buildings by the consumer to improve their standard of living and maintain wellness is driving the residential segment growth. Further, the government-supportive regulations for the construction of green buildings surge product adoption and augment the residential sector.

The growing expansion of offices, schools, hotels, and clubs in developing and developed countries and rising carbon emissions promote the construction of environment-friendly commercial buildings. Growing infrastructure development and rising governments' sustainable initiatives for constructing airports, roads, highways, stations, and bridges are driving the product adoption in infrastructural projects. 

REGIONAL INSIGHTS

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The North America market size stood at USD 13.25 billion in 2023, dominating the market share. Increasing infrastructure development, government-supportive environmental regulations, and urbanization fuel product adoption in this region. The U.S. accounted for the dominating share and is estimated to lead the market throughout the forecast period. Additionally, several manufacturers are undertaking research and development activities to improvise technology innovation. Also, these companies have adopted various raw materials to achieve cost-effective sustainable cement mixtures. Hence, the abovementioned factors and innovation by the producer are anticipated to offer rewarding opportunities for market growth.

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Asia Pacific is growing rapidly due to the expansion of the construction industry and increasing population. The surge in product adoption in the residential and commercial spaces drives the region’s growth. China, Japan, and India are the major countries fueling product consumption in this region.

In Europe, the rising product consumption in commercial buildings will flourish the market in the coming years. The growth is mainly attributed to the increase in its application in constructing shopping malls, office spaces, hospitals, and theaters. Further, ideal properties of cement, including short setting time, compressive strength, and greater resistance to extreme weather conditions are anticipated to boost the region’s growth.

Sustainable cement requires less natural materials during manufacturing, provides better functionality, and emits less carbon dioxide compared to traditional cement. Hence, the increasingly stringent environmental regulations in Latin America and the Middle East & Africa will fuel the product demand in the rest of the world.

List of Key Companies in Green Cement Market

Companies Plan to Reduce CO2 Emissions as a Strategic Initiative

Major players operating in the market are mainly involved in processing greener cement and reducing CO2 emissions globally. For instance, JSW Cement manufactures green cement and is initiating to reduce carbon emissions while developing sustainable solutions. Against a manufacturing of 8.82 metric tons in 2021-22, the company has emitted 2.6 metric tons less CO2 than the global average. Also, during the same period, the company’s carbon intensity decreased substantially from 522 kg to 216 kg CO2 per ton of cementitious material.

LIST OF KEY COMPANIES PROFILED:

• JSW Cement (India)


• Green Cement Inc. (U.S.)


• Holcim Ltd. (Switzerland)


• ACC Limited (India)


• UltraTech Cement Limited (India)


• Anhui Conch Cement (China)


• CEMEX S.A.B. de C.V. (Mexico)


• CRH plc (Ireland)


• CarbonCure Technologies Inc. (Nova Scotia)


• Heidelberg Cement (Germany)

KEY INDUSTRY DEVELOPMENTS:

• November 2023:  Heidelberg Cement launched the low-carbon cement brand to reduce greenhouse gas emissions during the cement manufacturing and mixing process.


• October 2022: JSW Cement planned to invest USD 390 million to begin an integrated green cement production facility in Madhya Pradesh and a split grinding unit in Uttar Pradesh. The proposed investment includes a 2.5 MTPA grinding capacity, 15 MW Waste heat recovery system, and 2.5 MTPA clinker capacity.


• July 2022: Hallett Group launched a USD 125 million valued green cement project to reduce CO2 emissions by 300,000 tons annually, located across Port Adelaide, Port Augusta, Port Pirie, and Whyalla.


• July 2021: Holcim launched ECOPlanet, a range of green cement delivering at least 30 lower carbon footprints with equal to superior performance. It is available in Romania, Germany, Switzerland, Canada, France, Spain, and Italy and will be distributed across 15 countries in 2021.


• January 2023: ACC Limited introduced ‘ACC ECOMaxX’, a range of green concrete solutions. The products are developed using a Unique Green Ready Mix Technology, which allows for maximizing green impact by reducing CO2 emissions by up to 100%.


• March 2023: Holcim Mexico commenced manufacturing its Fuerte Más reduced-CO2 cement at its cement plants in Tabasco and Macuspana at a combined rate of 60,000t/yr.

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The report provides detailed market analysis and focuses on key aspects such as leading companies, technologies, and key application areas. Moreover, the research report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market growth in recent years.

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