Global Cement

Jun 2, 2023

Global cement industry in is expected to grow by 3.3% on an annual basis to reach US$354,058 million in 2023. The medium to long term growth story in global growth remains intact. The cement industry is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 2.9% during 2023-2027. The cement output is expected to increase from US$342,870.6 million in 2022 to reach US$397,007.1 million by 2027. The global cement industry is projected to stabilize in 2023, after facing a difficult year in 2022, owing to higher energy prices and soaring inflation. The reopening of the Chinese economy, along with the policy measures announced by Beijing to revive the construction and real estate market, will support global cement consumption over the next 12 months. Beyond China, the demand for cement is also projected to increase at a modest rate in India in 2023. This will be driven by pre-election spending on infrastructure projects and a further recovery in urban housing. In the Middle East, public works are projected to increase, which will also assist the demand for cement in the region. In Saudi Arabia, mega construction projects such as Neom will lead the cement consumption. In the United Arab Emirates, on the other hand, a strong recovery in the tourism and housing sector will drive the demand for cement over the next 12 months. The fear of recession in Europe and America is projected to dampen cement consumption from the short to medium-term perspective. The impact of the Russia-Ukraine war, along with surging cement prices, will also affect consumption in the region. Asia-Pacific region is projected to lead the recovery of the global cement industry in 2023 While the construction industry is projected to remain under cost and inflationary pressures, increased activities in the areas of urban housing and infrastructure projects in countries such as India and China are projected to support the recovery of the global cement industry from the short to medium-term perspective. In Q4 2022, China announced various policy measures to revive the struggling real estate and construction market. This includes the US$29 billion in special loans aimed at property developers to help them finish stalled projects and the credit policy to promote urban housing sales. These policy measures announced by Beijing are expected to have a positive impact on cement consumption in China in 2023. In India, the growing investment from the government in infrastructure development will also support cement consumption in the Asia-Pacific region. This along with the affordable housing program of the Indian government will drive cement demand in India in 2023. To meet the growing demand for cement, many manufacturers have also announced their plans to expand their production capacity over the next three to four years. Beyond India and China, other countries in the Asia-Pacific region are projected to reel under the impact of rising inflation and energy prices. This will also have an effect on government spending on infrastructure projects in 2023. European markets are expected to increase their investment in the sector to meet their net-zero goals Many European countries have announced their net-zero goals and have started to initiate their steps toward achieving their goals. With the cement industry being one of the largest contributors to carbon emissions, investment in the development of innovative technologies and products in the cement industry is expected to increase significantly over the next five years. Germany, for instance, has already announced that the country will increase its investment in green cement. The Irish government has committed itself to reducing industrial carbon emissions. Along with public organizations, private firms are also increasing their investment in the space. Saint-Gobain, for instance, extended its partnership with Ecocem, the cement manufacturer that has developed technology to reduce carbon emissions. Saint-Gobain holds a 25% stake in Ecocem, which claims that the technology can reduce emissions by 70%. To decarbonize the cement and concrete industry in Europe, innovative startups are also raising funding rounds. alcemy, for instance, announced that the firm had raised €10 million in its Series A capital round. The German firm develops software that is designed to assist the cement and concrete manufacturers. The increasing investment and support from government organizations will keep driving the competitive landscape in the European cement market, thereby also supporting the industry growth from the medium to long-term perspective. Cement makers are seeking to expand their presence in the United States market to drive market share In the United States, cement imports have been on a consistent increase in 2022. Driven by public and private spending on construction projects across sectors, including infrastructure and commercial, cement demand is projected to further increase in the United States in 2023. To capitalize on the growing cement consumption trend in the North American market, cement makers are expanding their presence in the region by launching new manufacturing plants and entering into mergers and acquisition deals. In H2 2022, Calucem, the cement manufacturer based in Germany, announced that the firm will invest US$35 million towards the development of a new manufacturing plant in the United States. The investment is part of the firm's strategy to further strengthen its position in the North American market. LafargeHolcim, on the other hand, is seeking acquisition opportunities to strengthen its presence in the United States. With these global players expanding their presence in the region, The analyst expects the competitive landscape to grow significantly in the United States from the short to medium-term perspective. A bundled Research offering: 21 reports - 1 global report and 20 individual country reports (1,716 tables and 2,240 charts): 1. Global Cement Business and Investment Opportunities (2018-2027) Databook 2. Argentina Cement Business and Investment Opportunities (2018-2027) Databook 3. Australia Cement Business and Investment Opportunities (2018-2027) Databook 4. Brazil Cement Business and Investment Opportunities (2018-2027) Databook 5. Canada Cement Business and Investment Opportunities (2018-2027) Databook 6. China Cement Business and Investment Opportunities (2018-2027) Databook 7. France Cement Business and Investment Opportunities (2018-2027) Databook 8. Germany Cement Business and Investment Opportunities (2018-2027) Databook 9. India Cement Business and Investment Opportunities (2018-2027) Databook 10. Indonesia Cement Business and Investment Opportunities (2018-2027) Databook 11. Italy Cement Business and Investment Opportunities (2018-2027) Databook 12. Kenya Cement Business and Investment Opportunities (2018-2027) Databook 13. Mexico Cement Business and Investment Opportunities (2018-2027) Databook 14. Nigeria Cement Business and Investment Opportunities (2018-2027) Databook 15. Philippines Cement Business and Investment Opportunities (2018-2027) Databook 16. Russia Cement Business and Investment Opportunities (2018-2027) Databook 17. South Africa Cement Business and Investment Opportunities (2018-2027) Databook 18. Thailand Cement Business and Investment Opportunities (2018-2027) Databook 19. United Arab Emirates Cement Business and Investment Opportunities (2018-2027) Databook 20. United Kingdom Cement Business and Investment Opportunities (2018-2027) Databook 21. United States Cement Business and Investment Opportunities (2018-2027) Databook Scope for Each Report