Cement Market to Reach USD 463 Billion by 2026; Company Mergers are a Growing Trend Among Manufacturers and Construction Companies, says Fortune Business Insights™

The global cement market size is projected to reach USD 463.0 billion by the end of 2026. The rising construction activities will have a huge impact on the growth of the overall market in the coming years. According to a report published by Fortune Business Insights™, titled “Cement Market Size, Share and Industry Analysis, By Type (Portland, Blended, and Others), By Application (Residential, and Non-Residential), and Regional Forecast 2019-2026,” the market was worth USD 312.5 billion in 2018 and will exhibit a CAGR of 5.2% during the forecast period, 2019-2026.

The emergence of COVID-19 has brought the world to a standstill. We understand that this health crisis has brought an unprecedented impact on businesses across industries. However, this too shall pass. Rising support from governments and several companies can help in the fight against this highly contagious disease. There are some industries that are struggling and some are thriving. Overall, almost every sector is anticipated to be impacted by the pandemic.

Cement is a binding structure that is widely used in construction and building activities. The product is used on a large scale across the world. The massive demand and subsequently rising production has opened up a huge potential for the companies operating in the market. Recent advances in manufacturing techniques for cement and ingredients used will aloe improved operational capabilities.

The low cost of cement is a primary reason why it is being used on a large scale across the world. The presence of several large scale companies operating across the world will emerge in favor of market growth. The massive investments in the production of cement and cement products will bode well for the market in the foreseeable future. Moreover, the ease of availability of raw materials will emerge in favor of market growth.

Company Mergers are a Growing Trend Among Major Businesses

The report encompasses several factors that have contributed to the growth of the market in recent years. Among all factors, the increasing number of company mergers and collaborations has made the highest impact on market growth. Accounting to the constant demand for cement, construction companies are partnering with cement manufacturers on a long term-basis to ensure seamless production and availability of the product.

In March 2019, CEMEX Ventures announced that it has signed an agreement with Tefken Ventures. The collaboration is aimed at innovations in construction sites and aid startups that are looking to enter the construction industry. Hansen Holding’s acquisition of Alex Fraser Group is another example of a major M&A in recent times. The report briefly discusses the impact of such company mergers on the growth of the cement market. Furthermore, the report includes major company mergers, similar to the aforementioned developments, and highlights their impact on market growth.

Asia Pacific to Emerge Leading; Increasing Construction Activities to Aid Growth

The report analyses the ongoing market trends across fiver major regions, including North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Among these regions, the market in Asia Pacific is projected to emerge dominant, driven by the massive demand for the product in several countries across this region. The increasing construction activities in emerging countries such as India and China will contribute to market growth.

Increasing infrastructure development activities will create several growth opportunities. The constantly rising population in India as well as China has a direct impact on the rise of the construction industry and subsequently affect the cement market in this region.

Besides the Asia Pacific, North America will witness considerable growth in the coming years owing to increasing demand for the product. As of 2018, the market in North America was worth USD 12.3 billion and this value is likely to increase further in the coming years. The market in North America will derive growth from the presence of several large scale companies operating in numerous countries across this region.

Industry Developments:

June 2017: UltraTech Cement announced that it has completed the acquisition of cement plants of Jaiprakash Associates Limited. Through this acquisition, the company aims to enter the high growth markets in India.

Source:

https://www.fortunebusinessinsights.com/industry-reports/cement-market-101825