Market Research Report - 225123
|Published by||Freedonia Group|
|Published||Content info||492 Pages|
World demand for cement is projected to grow 4.6 percent per year to 5.2 billion metric tons in 2019. Gains will continue to be stimulated by healthy increases in construction activity in developing countries throughout the Asia/Pacific and Africa/Mideast regions. The massive Chinese market will continue to be the largest driver of growth, accounting for over half of the increase in global cement demand through 2019. North America will also register strong gains as the US construction industry continues to recover from recessionary conditions that began in 2008. In value terms, global demand for cement will advance 7.0 percent per year to $420 billion in 2019.
The Africa/Mideast region will post the fastest gains through 2019, growing 5.6 percent per year. The four largest cement consumers in the region -- Turkey, Saudi Arabia, Iran, and Egypt -- will all outperform the global average. Healthy gains in cement demand are also expected in many developing countries throughout the region as population growth and urbanization contribute to greater activity in all sectors of the construction industry. Developing countries in the Asia/Pacific region will see similarly strong growth, but a weak outlook in wealthy countries such as Japan and South Korea will constrain the pace of gains. Demand growth for cement in Central and South America will be in line with the global average, reflecting solid economic advances. Demand for cement in North America will advance at a healthy clip, primarily due to recovery in the leading US market. While US demand for cement already benefited from a rebound over the 2009- 2014 period, it will leave significant room for recovery to 2004 consumption levels. Demand for cement in both Western Europe and Eastern Europe will also benefit from recovery in countries that have experienced economic turmoil.
At the global level, consumption of cement in the residential building, nonresidential building, and nonbuilding construction markets are all expected to grow at similar rates through 2019, but there will be substantial variation across regions. The nonbuilding construction market will be the fastest growing in the Asia/Pacific region, supported by major infrastructure projects in countries such as China and India. The lack of transportation and energy infrastructure in much of the region leaves significant room for increased investment in development. Conversely, in Western Europe and North America the nonbuilding construction market will lag the others. While economic gains will support increased building construction, both regions already have extensive existing transportation infrastructure and will not require the volume of new highway construction projects that fuel nonbuilding cement demand in developing countries.
Blended cement will continue to be the most popular product at the global level, accounting for 75 percent of total demand in 2019. This product is projected to improve its market share, benefiting from its superior environmental profile. In addition to the general benefits of lower energy costs, use of blended cement will aid producers by allowing them to better meet increasingly stringent emissions standards. The market share of Portland cement will decline somewhat, but will remain a major portion of total demand. Limited availability of necessary materials will constrain the shift to blended cement in many nations. Other cements, including specialty and environmentally friendly types, will gain in popularity but remain niche products.
This Freedonia industry study, World Cement, presents historical data (2004, 2009, 2014) plus forecasts (2019, 2024) for supply and demand for six world regions and 33 countries. The study also considers key market environment factors, analyzes the industry structure, evaluates company market share and profiles global industry participants.