Global Concrete Block and Brick Manufacturing Market - 2023-2030

Overview

Global Concrete Block and Brick Manufacturing Market reached US$ 369.6 billion in 2022 and is expected to reach US$ 591.4 billion by 2030, growing with a CAGR of 6.4% during the forecast period 2023-2030.

Significant innovations in technology take place in the sector. Manufacturing processes are being improved, efficiency is being increased and production costs are being decreased through automation and digitalization. The technologies also allow for personalization, allowing for distinctive forms and shapes. In the building sector, sustainability is becoming more and more essential.

The demand for homes, businesses and infrastructure projects has increased due to urbanization and population expansion all across the world. There is a constant need for building supplies like concrete blocks and bricks as cities grow and more people relocate into metropolitan regions. For Instance, in 2022, HIL Ltd, a key player in India's building materials industry and the flagship company of US$ 2.8 billion CK Birla Group, acquired the complete business operations of Fast Build Blocks Pvt Ltd through a slump sale, according to the company's announcement.

North America dominates the concrete block and brick manufacturing market. The market expansion has been significantly accelerated by the region's thriving building industry. The continuous urbanization and population growth in North America have created a heightened demand for infrastructure, retail and residential development.

For Instance, in 2022, The US company EP Henry, which produces masonry and hardscaping products in the Mid-Atlantic, has been acquired by Oldcastle A.P.G., a CRH company. The company may improve its position in the masonry and building materials industries and extend its manufacturing and distribution capabilities with the help of the purchase.

Dynamics

Increasing Government Expenditure On Infrastructure Construction

The demand for construction materials, such as concrete blocks and bricks, which are essential elements of numerous infrastructure projects like roads, bridges and public buildings, is directly increased by this increase in infrastructure investment. Because of the consistent flow of orders and contracts, producers in this sector enjoy increased production capacity and market share.

According to the Brick Development Association (BDA), in 2023, the national authority on clay bricks and pavers is the Brick Development Association. The membership represents over 99% of the bricks made in UK. The BDA members are dedicated to producing goods of exceptional quality and creating one of the country's most efficient and sustainable supply chains. The BDA Guides and Technical Guides are regularly updated to reflect the newest components, devices and services created for the clay brick and paver industry.

Increasing Development in Manufacturing Technologies

The development of technology has had an important effect on the global market for the manufacture of concrete blocks and bricks. The innovations have improved manufacturing processes, which increased productivity, affordability and product quality. Additionally, the use of robots and automated systems in the manufacture of concrete blocks and bricks has proven to be a major advancement, increasing productivity and concurrently reducing labor costs.

For Instance, in 2023, BigBloc Construction Limited, one of the market leaders in the production of aerated autoclaved concrete blocks, bricks and panels, along with SCG INTERNATIONAL INDIA PVT LTD., a division of Construction and Building Materials, acquired a joint venture with Siam Cement BigBloc Construction Technologies. The shareholdings in this venture are 52% and 48%, respectively.

Additionally, this project was successful in securing land in Gujarat, India, an area with strong building value and ongoing expansion, to establish a plant to make AAC Blocks and Panels meet the production capacity of 300,000 cubic meters anticipated in 2023. The entire production capacity of BCL Group will rise to 13.75 lakh CBM annually, making it the largest in western India and producing about 125 million Rupees annually.

Increasing Raw Material Costs

The increasing cost of raw materials is a key constraint on the world market for the production of concrete blocks and bricks. Cement, aggregates and clay are key raw materials used in the manufacture of concrete blocks and bricks. Variations in the cost of these inputs can directly affect manufacturing costs, causing businesses to pass on the higher costs to consumers or absorb them themselves.

The market's potential for expansion may be constrained by this issue, particularly if unstable supply chains or adverse economic conditions result in sudden increases in the cost of raw materials. To remain profitable and competitive in the market, businesses must devise plans to minimize these cost pressures through effective supply chain management, alternate sourcing choices and creative manufacturing processes.

Availability of Inexpensive Alternatives

Concrete bricks have a comparatively low tensile strength. Concrete bricks cannot perform as they should in seismically active areas as a result. Clay bricks naturally absorb moisture because they are porous. Excessive porosity is not appropriate for sound masonry applications because bricks absorb moisture from the mortar adjacent to them.

In addition, there is a weak link between the brick and the mortar, making it difficult to align the masonry elements. The concrete block and brick production industry may be impacted by the availability of substitute building materials including wood, steel and different composite materials. The substitutes might be less priced or come with other benefits like quicker construction or better environmental outcomes.

Segment Analysis

The global concrete block and brick manufacturing market is segmented based on type, application, end-user and region.

Rising Building Activity Expansion and Increasing Demand for Concrete Blocks

Rising building activity and population expansion in emerging nations have raised the demand for concrete blocks and bricks. For a variety of construction projects, including residential, commercial and infrastructural improvements, these adaptable building materials are necessary. The market for producing concrete blocks and bricks has consistently grown as nations make investments in their infrastructure and housing sectors.

For Instance, in 2022, Aerated Autoclaved Concrete (AAC) block, brick and panel manufacturer BigBloc Construction Limited acquired the property for its joint venture with SIAM Cement Group (SCG). In Kapadvanj, Kheda District, close to Ahmedabad, Gujarat, the business has purchased property to build a 3 lakh cbm per year plant for ALC Panels and AAC Blocks.

Additionally, in the year 2023, the facility is anticipated to begin producing commercially. Gujarat has been chosen by the joint venture between Siam Cement Group and Big Bloc to receive the first FDI from Siam Cement Group into India.

Geographical Penetration

Increasing Demand for Residential and Commercial Construction Projects in North America

North America has been a dominant force in the global concrete block and brick manufacturing market and the region's growing construction sector has been a key driver of market expansion. Construction projects for homes, businesses and infrastructure are more in demand as North America's population and urbanization trends rise.

Additionally, building materials like concrete blocks and bricks are crucial and as the construction sector has expanded, so has consumer demand for them, driving market development. The growing focus on sustainable and energy-efficient building methods is another significant aspect driving growth. The thermal mass features of concrete blocks and bricks make them naturally energy-efficient and contribute to controlling indoor temperatures.

For Instance, in 2021, General Shale, Inc., North America's biggest distributor of brick and sustainable construction solutions, introduced a new branding approach following the company's acquisition of Meridian Brick. Three new brands will take the place of Meridian Brick manufacturing and sales facilities in U.S. and Canada, according to the Johnson City, Tennessee-based company. Canada Brick, Michigan Brick and Red River Brick are a few of these new brands.

For instance, in November 2018 with the acquisition of Glen-Gery, Brickworks Building Products, Australia's largest brick manufacturer, entered U.S. market in 2020. Simple goals included investing in people and production technology and marketing brick as a modern, innovative material. As a way to keep those promises, Brickworks revealed a US$ 10 million investment in facility improvements at Glen-Gery's Hanley Plant in Summerville, Pennsylvania.

COVID-19 Impact Analysis

The global market for the production of concrete blocks and bricks was significantly impacted by the COVID-19 outbreak. Due to lockdowns and other restrictions, several construction projects were temporarily put on hold or delayed in the early stages of the pandemic, which reduced demand for building supplies including concrete blocks and bricks.

Manufacturers had financial difficulties as a result of this demand interruption since they had to deal with lower production levels and excess inventories. The difficulties experienced by the sector were further made worse by supply chain interruptions, notably in the availability of raw materials and transportation logistics. The pandemic's development caused a change in construction behaviors.

The need for house renovations and enhancements rose as more individuals chose to work from home, which benefited the residential construction industry. As a result, the market for residential buildings was opened up to concrete block and brick producers. In addition, there was a greater emphasis on energy-efficient and sustainable building materials, such as concrete blocks and bricks, as developers and builders worked to fulfill changing environmental regulations and consumer preferences.

The pandemic highlighted the value of resilience and the capacity to respond quickly to unforeseen challenges, leading businesses in the concrete block and brick manufacturing market to reevaluate their supply chains and make investments in technology and innovation to stay competitive in a post-pandemic world.

Russia-Ukraine War Impact Analysis

The world market for the production of concrete blocks and bricks has been significantly impacted by the Russia-Ukraine conflict. The conflict hindered Russia and Ukraine's ability to produce and export goods, two major actors in the global building sector. As a consequence of disruptions in the availability of crucial raw materials such as cement, aggregates and clay, manufacturers globally are grappling with elevated costs and scarcity.

Supply chain challenges have led to the postponement or abandonment of numerous construction projects, thereby affecting the entire concrete block and brick production sector. In addition, the war caused geopolitical unrest and economic sanctions that have further hampered international trade.

Because of several international companies evaluating their commitments and relationships in this industry, the manufacturing and construction industries have seen a reduction in foreign direct investment. Businesses have found it harder to prepare for the future as a result of the sector's volatility and instability, which has caused them to be more cautious about growth and development.

By Type

• Block
  • Cellular
  • Fully Solid
  • Hollow
  • Others
• Brick
  • Clay
  • Sand Lime
  • Fly ash Clay
  • Others
• AAC Block

By Application

• Structural
• Hardscaping
• Siding
• Fireplace
• Others

By End-User

• Residential Construction
• Commercial Construction
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On February 01, 2023, Oldcastle APG, a North American company, once again opted for a highly reliable plant design when establishing their concrete block production facility in Ridgeway, South Carolina. At the core of this facility lies the cutting-edge Masa block and paver making machine XL 9.1. The main goal was to establish a hardscapes manufacturing facility that featured advanced technology, enabling customers to access face-mix capability, exceptional quality control measures and cutting-edge automation.
• On January 25, 2020, Cemex, the Mexican cement manufacturer, strengthened its footprint in U.S. through the acquisition of a concrete company located in San Antonio, Texas. The acquisition, which included Beck Readymix Concrete Co. LTD, encompassed three fixed units for ready-mix concrete and one mobile plant.
• On December 18, 2020, GENERAL SHALE, INC., a major American manufacturer of construction material solutions acquired the biggest producer of masonry solutions in the country, Meridian Brick. Upon the announcement, GENERAL SHALE, INC. rose to the position of top North American provider of cutting-edge, environmentally friendly masonry solutions.

Competitive Landscape

The major global players in the market include: CRH Plc, HeidelbergCement AG, Wienerberger AG, Cemex SAB de CV, Holcim Ltd, Acme Brick Company, Oldcastle APG, Forterra Building Products Limited, Aggregate Industries UK Ltd. and GENERAL SHALE, INC.

Why Purchase the Report?

• To visualize the global concrete block and brick manufacturing market segmentation based on type, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of concrete block and brick manufacturing market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Type mapping available as Excel consisting of key Types of all the major players.

The global concrete block and brick manufacturing market report would provide approximately 61 tables, 59 figures and 196 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies