Cement Market Size, Share & Industry Analysis, By Type (Portland, Blended, and Others), By Application (Residential and Non-Residential), and Regional Forecast, 2024-2032

The global cement market size was valued at USD 491.80 billion in 2023. The market is projected to grow from USD 505.97 billion in 2024 to USD 686.41 billion by 2032, exhibiting a CAGR of 3.9% during the forecast period. Asia Pacific dominated the cement market with a market share of 62.54% in 2023. Moreover, the cement market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 17.71 billion by 2032, driven by adoption of modern and advanced practices by the construction industry including precast concrete and 3D concrete printing will further boost cement consumption.

Cement is an important material in the construction industry. It acts as a binder between the surfaces of bricks, stones, and panels. It is generally a fine powdery substance manufactured using limestone, clay, sand, iron ore, and bauxite. Some of the key players in the market include CEMEX S.A.B. de C.V., HeidelbergCement, InterCement Participações S.A., and Holcim Ltd., CRH plc.

The rising population has increased the need for residential buildings, driving the need for cement manufacturing across the globe. Additionally, the growing demand for non-residential buildings and public infrastructure, including healthcare centers and hospitals, has led to opportunities for product consumption. Hence, the rising demand from the expanding construction sector is currently one of the key market trends.

The spread of the COVID-19 pandemic negatively impacted the market owing to government regulations that limited the movement of people and goods. In addition, the shutdown of manufacturing plants in the U.S. and Germany affected the operations of key market players. However, governments in various countries enacted supportive regulations and attempted to re-establish their economies.

Cement Market Trends

Increasing Adoption of Green Cement to Boost Growth Potentials

The rising adoption of green cement to construct eco-friendly and sustainable buildings will promote market growth. As part of efforts to reduce the threat posed by emissions, the process of manufacturing can be modified to reduce emissions substantially. This product uses a carbon-negative manufacturing technique that minimizes pollution during operations. It is a sustainable solution that addresses serious environmental concerns by reducing carbon footprint during production. In 2021, Hima Cement, a subsidiary of LafargeHolcim, launched Fundi masonry products with a lower carbon footprint that finds application in bricklaying, plastering, and mortar works. Moreover, the United Nations Environment Program (UNEP) also encourages the production and use of new environmentally sustainable and cost-effective products. Hence, such factors will increase the demand for green cement in the near future.

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MARKET DYNAMICS

MARKET GROWTH/DRIVERS

Surging Demand from Construction Activities to Support Market Growth

The rising population will effectively influence market growth on account of the increasing need for residential spaces, such as apartments and private bungalows. Furthermore, the growing demand for amenities in residential spaces is expected to accelerate market growth. Moreover, the rising need for non-residential establishments, such as malls, airports, industries, roads, and office buildings, is also expected to support market expansion.

Career opportunities and a better quality of life have created a need for urbanization. Government initiatives to support construction and infrastructural activities in developing countries will further increase the demand. Moreover, the rising demand for precast products, such as blocks, panels, roof tiles, and others, will increase global product consumption. Currently, China is the dominant producer and consumer worldwide. Hence, the growth in construction activities will boost the expansion of the market in this country.

Government Investment in Infrastructure Projects Drives Market Demand

Government investment in infrastructure projects, such as building or repairing roads, bridges, airports, schools, hospitals, and other public works, can lead to a significant increase in the demand for cement and other building materials. It is a key component in construction, and as more projects are initiated and completed, the demand for this material increases. This trend positively impacts the global cement industry, and related sectors such as transportation, logistics, and manufacturing. Moreover, increased government investment in infrastructure can have a broader economic impact. It can create jobs in construction and related industries, and in the supply chain, such as cement transportation and storage. Overall, government investment in infrastructure projects can serve as a powerful driver of economic growth, job creation, and industry expansion while addressing critical societal needs.

MARKET RESTRAINTS

Government Regulations on Carbon Emissions from Manufacturing Plants to Hinder Growth

Raw materials in the production of cement include limestone, chalk, shells, shale, clay, and silica sand. However, its production causes various hazardous impacts on the environment and human health. The inhalation of dust particles can cause difficulties in breathing and irritate the nose and throat. Furthermore, the manufacturing process causes a high amount of pollution. According to the United States Environmental Protection Agency, the cement industry is the third-largest industrial polluter, releasing over 500 kilotons of nitrogen oxide, sulfur dioxide, and carbon monoxide yearly. Due to these environmental concerns, governments have imposed various regulations on the production process. Hence, these factors are anticipated to restrain the cement market growth.

MARKET OPPORTUNITIES

Technological Innovations in Cement Formulations to Create Lucrative Opportunities in the Market

The adoption of 3D printing in construction is creating a demand for specialized cement formulations. 3D printing reduces construction time by up to 50% and minimizes material waste by depositing only the required amount. It also enables the creation of complex designs that are not feasible with traditional methods. The development of advanced cement types, such as self-healing and high-strength concrete, is creating new opportunities in emerging market segments. Moreover, the adoption of IoT, AI, and automation in cement production is improving efficiency and reducing operational costs.

MARKET CHALLENGES

Fluctuations in Raw Material and Energy Prices May Hamper the Market’s Growth

The primary raw materials used in cement production include limestone, clay, gypsum, and fuels such as coal and petcoke. The volatility in the prices of these materials poses significant challenges, impacting production costs, profitability, and supply chain stability. Additionally, its production requires significant energy input, particularly for operating kilns. Energy costs constitute a major portion of production expenses. Fluctuations in coal, natural gas, and oil prices affect production costs, creating additional challenges for cement manufacturers.

SEGMENTATION ANALYSIS

By Type

Blended Segment Exhibited the Most Significant Share Owing to Its Characteristics

On the basis of type, the market is divided into portland, blended, and others.

Among these, the blended segment accounted for the largest cement market share in 2023 owing to its characteristics, such as reduced water demand, improved workability and pump ability, and reduced crack formation from thermal stress. The blended segment consists of base Portland cement, to which other materials, such as limestone, slag, and pozzolana, are added to create different blends.

Portland cement is mainly used to produce concrete, which is further used in constructing beams, panels, and megastructures, such as dams and roads. It is also mixed with other materials, such as sand, in mortars and plasters.

Other types include composite, colored, quick-setting, low-alkali, and air-entraining cement. Hence, the increasing demand for all these types of cement across different applications will boost the market substantially.

By Application

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Non-Residential Segment to Lead Due to Rising Investment in Infrastructure Projects

On the basis of application, the market is segmented into non-residential and residential.

The non-residential segment is expected to dominate the market throughout the forecast period. The growth of the non-residential segment is associated with the rising government investments in infrastructure development projects. Megaprojects in developing countries and renovation and upgradation of old infrastructure in developing countries will significantly fuel the demand for non-residential applications.

Factors such as the rapidly growing population, urbanization activities, and increasing investments in the real estate sector are contributing to the growth of the residential segment. The migration of people from rural to urban areas for better earning and living standards has fueled the need for residential spaces, therefore leading to segment growth.

CEMENT MARKET REGIONAL OUTLOOK

On the basis of regional ground, the market is studied across North America, Asia Pacific, Europe, Latin America, and Middle East & Africa.

Asia Pacific

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Asia Pacific accounted for USD 307.57 billion in 2023 and dominates the market due to significant production and consumption. This is attributable to increased demand for the product from developing nations, such as Southeast Asia, China, and India. Growth in infrastructure and construction activities is a key driver for the market in this region. China is the major country contributing to market growth in the region as it is the dominant producer and consumer in the world. The country's dominance is attributed to factors including the rapid growth in population and infrastructure development activities. China’s cement industry is focused on reducing emissions and is also consciously trying to reduce the amount of non-renewable energy required by its cement plants. As per the Chinese Cement Association, the country has more than 60 cement kilns in operation that co-process municipal waste, with 5 million ton per annum of crude garbage disposed. This accounts for 2.5% of the total municipal waste collected.

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Europe

The market in Europe is anticipated to grow at a significant CAGR. Russia, Germany, France, and the U.K. are key countries contributing to market growth in the region. The renovation of old and potentially risky structures has increased the product demand in these countries. The European Union has some of the strictest environmental regulations in the world, which are becoming more stringent. Cement production is a major contributor to climate change, accounting for 6–8% of global CO2 emissions. The cement industry is also a major source of air pollution, emitting sulfur dioxide, nitrogen oxides, and carbon monoxide. Through the development of multiple carbon capture technologies and its strong focus on both storage and reuse, the European cement industry is a leader in research and piloting capture breakthrough technology. Furthermore, new types of clinker are being tested, produced at a temperature of about 1.200°C, which is roughly 250°C lower than the sintering temperature used in ordinary clinker manufacturing. The resulting process, if successful, would emit 30% less CO2.

North America

In North America, the increasing demand for public infrastructure is one of the major factors influencing market growth. Adoption of modern and advanced practices by the construction industry, including precast concrete and 3D concrete printing, to boost product consumption in the region. The rising investment from the government in the repair of potentially risky bridges and structures will augment market growth during the forecast period. The U.S. cement market size was valued at USD 18.40 billion in 2023. According to the U.S. Geological Survey, in 2023, U.S. Portland (including blended) cement production decreased slightly to an estimated 88 million tons, while masonry cement production decreased to an estimated 2.4 million tons.

Latin America

Latin America will exhibit development in the market owing to rising urbanization. Government initiatives, such as housing schemes, the establishment of hospitals and school facilities, and the development and maintenance of transportation infrastructure, are other key factors that would lead to the growth of this market globally. The Brazilian government announced a round of private and public investment in urban infrastructure amounting to USD 280 billion to support the Brazilian industry.

Middle East & Africa

The Middle East & Africa is projected to witness substantial growth, driven by the increasing demand for the product from the rising infrastructural activities in the region. Moreover, its use in mining and oil exploration activities is another key factor driving market growth in the Middle East & Africa. In Egypt, the New Administrative Capital (NAC) project, part of the larger Egypt Vision 2030 initiative, is a major driver of cement demand. The project includes the 400m-high Iconic Tower, set to become Africa’s tallest skyscraper.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Major Players Focus on Product Offerings to Strengthen their Market Position

Major producers of the product across the globe, leading to a diversified market structure. Producers located in North America and Europe are aiming to increase their presence in China and other countries in the Asia Pacific region in order to strengthen their market positions and drive business growth. Key players in the market have developed a strong regional presence, developed distribution channels, and diversified their product offerings. Strategies, such as new product development, acquisition, and initiatives focused on zero-carbon construction materials to increase their presence in the market and enable them to serve customer needs efficiently. For instance, HeidelbergCement aims to produce CO₂-neutral concrete by 2050.

LIST OF KEY COMPANIES PROFILED:

• CEMEX S.A.B. de C.V. (Mexico)


• HeidelbergCement (Germany)


• InterCement Participações S.A. (Brazil)


• Holcim Ltd. (Switzerland)


• CRH plc (Ireland)


• The Siam Cement Group (Thailand)


• Titan Cement Company S.A. (Greece)


• UltraTech Cement Limited (India)


• Votorantim Cimentos (Brazil)


• Buzzi Unicem S.p.A. (Italy)


• Mitsubishi Material Corporation (U.S.)


• Argos USA LLC (U.S.)


• China National Building Material Co., Ltd. (China)


• Taiheiyo Cement Corporation (Japan)


• Drake Cement LLC (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2024- Adani Group has acquired Germany’s Heidelberg Materials' Indian cement operations. The estimated value of the deal is $1.2 billion. This acquisition is part of the Gautam Adani-led conglomerate’s ongoing expansion in the cement sector.


• September 2024- CEMEX announced that it has acquired a majority stake in RC-Baustoffe Berlin GmbH & Co. KG, a recycling company and part of the Heim Group, as part of its ongoing efforts to grow its circularity business. The Berlin-based company processes mineral construction, demolition, and excavation materials (CDEM).


• April 2023- CEMEX Philippines (CHP) achieved the milestone of a 50% reduction in carbon dioxide emissions generated by two of its cement subsidiaries, APO Cement Corporation and Solid Cement Corporation. Cemex Philippines reduced 18% of its carbon dioxide emissions, with the ambition of reducing emissions to less than 430 kg of CO2 per ton of cement signifies a 67 percent reduction by 2030.


• December 2022- Siam Cement Group, a pioneer in manufacturing bricks, blocks, and autoclaved concrete panels, announced a Joint venture with Bigbloc Construction. The vaenture aimed to build a facility for producing 3 lakh cubic meters of lightweight concrete panels and AAC blocks in Kapadvanj, Kheda district, near Ahmedabad, Gujarat. The plant  began commercial production in September 2024.


• December 2022- CRH plc, a pioneer in building materials solutions, announced the launch of CRH ventures to support new technologies and solutions to meet customers' growing needs in the construction industry. The company invested USD 250 million to partner with construction and climate technology companies across the value chain. The company aimed to develop next-generation sustainable building products by expanding off-site construction more efficiently and safely.

REPORT COVERAGE

The research report provides qualitative and quantitative insights and a detailed analysis of the market size & growth rate for all possible segments in the market. It focuses on crucial aspects such as types, applications, and competitive landscape. Also, the report offers insights into market dynamics and emerging trends and highlights industry developments. In addition to the factors mentioned above, it encompasses various factors that have contributed to the market's growth over recent years.

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