Fly Ash Market - Growth, Trends, and Forecasts (2023 - 2028)

The fly ash market is estimated to register a CAGR of over 4% during the forecast period.

Key Highlights

• The market was negatively impacted by COVID-19 in 2020, as almost all the major end-user industries halted their production temporarily, leading to a decrease in demand for fly ash. However, the construction industry experienced steady growth in 2021 across all regions, which increased the demand for fly ash and helped the market to grow.
• Increasing demand from the construction industry and increasing government policies to promote the usage of fly ash are driving the market. On the flip side, the harmful properties of fly ash and its non-suitability in cold weather conditions are hindering market growth.
• The fly ash market has been growing due to the construction industry's rapid growth. When mixed with lime and water, fly ash forms a compound like Portland cement. Rising demand from waste management and precast concrete products is an opportunity for the manufacturers and helps the market's growth.
• The Asia-Pacific region is expected to dominate the market, with the largest consumption being registered in countries like India and China.

Fly Ash Market Trends

Increasing Demand from the Construction Industry

• Growing population, increasing industrialization, and living standards have driven the demand for fly ash in the construction industry. Fly ash is used for the construction of embankments and roller-compacted concrete dams. Fly ash is used as a filler in flowable and structural fills as it gives impermeability and more strength. It is also used as a filler material in asphalt road laying to fill voids.
• Globally the construction industry is increasing, generating demand for fly ash. Asia-Pacific region is growing at the fastest CAGR across the globe, followed by North America due to the promotion of fly ash by governments of various countries as it releases less carbon dioxide and is eco-friendly. Europe has the world's third-largest fly ash market.
• The emerging mega projects of expressways and highways have increased the demand for fly ash. Governments of various countries are funding the construction industry. For instance, in February 2022, France government partnered with China to build seven key infrastructure projects globally. Both countries signed the Fourth Round China-France Third-Party Market Cooperation Pilot Project List. Under the agreement, the two countries have agreed to invest in various infrastructure projects.
• According to the American Institute of Architects (AIA), construction spending on buildings increased by over 9% in 2022. It is estimated to increase further by 6% in 2023. According to the estimation by Statista, the construction industry size amounted to USD 8.2 trillion in 2022 and is expected to reach USD 17 trillion by 2029.
• Furthermore, China is experiencing massive growth in its construction sector. According to the National Bureau of Statistics (NBS), in 2021, the construction output in China was valued at approximately USD 4.5 trillion. In the United States, the construction industry is backed by good economic conditions, increasing job opportunities, and the government's commitment to boosting the construction industry. More than 50% of the concrete in the United States is manufactured using fly ash.
• Owing to the aforementioned factors, the demand for fly ash from the construction industry is projected to grow at a rapid rate during the forecast period.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region is forecasted to be the largest and the fastest-growing region over the forecast period owing to the increasing demand from countries such as China, India, and Japan.
• The demand for fly ash is increasing because various governments have emphasized ecological reasons for the consumption of fly ash. The usage of fly ash allows for a low water-cement ratio for similar mixtures when compared to non-fly ash mixes. The government of countries like Malaysia, Indonesia, China, and India is investing more in infrastructure developments from fly ash as it is less permeable and emits less carbon dioxide, contributing towards fewer emissions.
• China is investing USD 1.43 trillion in major construction projects in the next five years till 2025. According to National Development and Reform Commission (NDRC), the Shanghai plan includes an investment of USD 38.7 billion in the next three years, whereas Guangzhou signed 16 new infrastructure projects with an investment of USD 8.09 billion.
• In 2022, India contributed about USD 640 billion to the construction industry due to government initiatives in infrastructure development and affordable housing, such as housing to all, smart city plans, and others. The growing construction activities in the country are driving the demand for silicones, which, in turn, may drive the chloromethane market over the forecast period.
• The agriculture sector uses fly ash for soil stabilization, accounting for about 14% of the fly ash market. The mining industry is looking for alternative stowing materials, and fly ash has been demonstrated as the alternative, as fly ash reduces water consumption by about 50%. Asia Pacific holds about 38% of the global mining project, thus increasing the demand for fly ash.
• It is also used in water treatment to reduce total dissolved solids(TDS), total suspended solids(TSS), and the ph level of water to purify water in the region, thus propelling the demand for fly ash.
• Major companies in the region include Boral Limited and Ashtech (India) Pvt Ltd.
• The aforementioned factors and government support have helped contribute to the increasing demand for the fly ash market.

Fly Ash Industry Overview

The fly ash market is fragmented, with the major players accounting for marginal shares of the market. Some of the companies in the market include Boral, Cemex SAB de CV, Charah Solutions Inc., Separation Technologies LLC, and Cement Australia, among others.

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