According to MarketLine, The global building materials market is expected to increase over 6% yearly through 2015 to reach almost $890 billion. The industry encompasses many items such as cement, brick, concrete, sand, aggregates and gravel manufacturers. Cement manufacturing was the most dynamic market segment in 2010, even reaching about $200 billion, or nearly a third of the overall global market. Steel, glass, wood, plastics and cement are among the most-used building materials. The industry supplies related industries, including wiring manufacturers and furniture manufacturers.
The building materials market is vibrated by green building, with this market segment worth over $60 billion in the US. Led by demand for such products as cork, bamboo and woven flooring, green building is particularly popular in the residential market. Concrete production from recycled materials is also glowing fast within the industry, along with wood from sustainable forests, energy-efficient lighting fixtures and water-efficient plumbing fixtures
According to Global Industry Analysts, the global green construction materials market is expected to exceed $405 billion by 2015. Factors that vibrate green building include falling green building material costs, rising energy costs, increasing protective environmental legislation and general consumer awareness of environmental factors. The market will expand continually because of consumer’s preference for green alternatives and the pressure to optimize energy efficiency.
In the green building materials market, the EU is the leading region followed by the US. Emerging markets are expected to show stronger growth, with Asia-Pacific taking the lead. The green building materials market will be driven by rising living standards, environmental concern, falling costs and greater efficiency. The fastest-growing segment is represented by green floor coverings, with green concrete and green roofs following. Green flooring materials include bamboo, hardwood, cork and ceramic tile. The biggest market for green construction materials is represented by residential building, with the non-residential building market seeing the fastest growth.
Key Market Segments
According to Freedonia, the global hydraulic cement market is expected to grow over 4% yearly by 2015. While developed countries will experience slower growth, emerging markets will see growth fuelled by infrastructure investment. Ready-mix concrete will keep the most dynamic growth sector through 2015, with blended cement gaining market share through 2015. China, which currently represents around 50% of global demand for cement, will see growth slow through 2015; India will see fast growth.
Freedonia predicts that the global drywall market is expected to grow more than 7.5% yearly through 2015 to over 10 billion square meters, and the US and Asia-Pacific will combined to represent around 80% of new product demand through 2015, with the US seeing 9% yearly growth. Growing populations and urban housing demand will drive Asia-Pacific to be the fastest-growing market in the next four years.
Building Materials Industry Outlook
The construction materials are impacted by market Economic growth and rising population, and profitability will be restrained by high-energy prices. Economic slowdown is also likely to cut profit as companies absorb input costs they can pass on in a stronger economic climate.
In the building materials industry, areas of innovation include specialty materials, such as those used in storm rooms to provide shelter during extreme weather conditions. In order to limit thermal loss from residential buildings to boost energy efficiency, much development is being carried out. Furthermore, environmental regulations relating to building requirements and the need to cut energy costs will remain fueling market growth, with smart buildings and green buildings established to see substantial expansion.