Cement Market Trends

Growth Drivers

• Increasing Urban Population - A large number of people from rural areas are moving to the cities in search of a better life. This increases the demand for housing and infrastructure. The growing urban population is a significant driver of the global cement market. As more people relocate to cities, there is a greater need for housing, infrastructure, and commercial structures. This increases the demand for cement, which is a fundamental construction material utilized in the construction of large structures. By 2050, 68% of the world's population is expected to reside in cities, up from 55% in 2018.

• Rising Number of Residential Projects- Residential housing construction, which includes single and multi-floor buildings, and houses, is a significant end-user of cement. As the population rises and urbanization increases, so does the need for houses, resulting in a rising demand for cement. Between 2002 and 2021, public residential building investment in the US increased dramatically in value. Approximately USD 10 Billion were spent on residential development projects by the public sector in 2021.

• Rising Adoption of Green Cement - Green cement is a form of cement that has a lesser environmental effect than standard cement. It is also known as environmentally friendly cement or low-carbon cement. It is often created from alternative raw materials such as industrial by-products or debris, and it produces fewer emissions of greenhouse gases throughout the manufacturing process. In 2021, Hima Cement, a LafargeHolcim subsidiary, introduced Fundi, a masonry product used in bricklaying, plastering, and mortar operations that has a lower carbon footprint.

• Rising Population-The population of the world is projected to rise by 2 billion people during the next 30 years, from 7.7 billion people today to 9.7 billion in 2050, with a potential peak of approximately 11 billion people around the year 2100.

• Significant Rise in Remodeling -About 50% of respondents to a study taken in 2020 stated that they had remodeled their homes, and the median amount spent on renovations by a household increased to more than USD 13,000 in 2020 globally.

Challenges

• Hazardous Impact on Environment & Human Health - Limestone, chalk, shells, shale, clay, and silica sand are used as primary ingredients in the manufacture. The environment and human health are both negatively impacted by its manufacture in several dangerous ways. Particles of dust can irritate the nose and throat while also making breathing difficult. In addition, there is significant pollution generated during the production of this product. Hence this factor is estimated to hinder the growth of the market.
• High Energy Consumption During Manufacturing Procedure
• Stringent Government Regulations