Global Building Materials Market - 2023-2030

Global Building Materials Market - 2023-2030

The Global Building Materials Market reached US$ 1.3 trillion in 2022 and is expected to reach US$ 1.7 trillion by 2030 growing with a CAGR of 3.9% during the forecast period 2023-2030.

During the forecast period, the construction industry's rapid expansion is expected to boost demand for global building materials. Given that consumers and developers are putting a strong emphasis on affordable, environmentally friendly and energy-efficient houses, the construction sector is predicted to experience significant demand. The government's increased focus on energy efficiency and green construction as a remedy to the recent global crisis is expected to have an impact on product demand.

The U.S. Green construction Council (USGBC) granted certification to Canada, China, India, Brazil and South Korea for adopting green construction rules. The U.S. and the European Union's adoption of green construction regulations will probably encourage other nations to do the same in an effort to cut carbon emissions, which will fuel the growth of the global building materials market.

Market Dynamics

Rising Demand for Green Building Materials

The market is expected to grow as a result of the increasing concerns about the environment, which will boost demand for building materials. A building's sustainability and efficiency can be improved by using green building materials. It is because they generate fewer carbon emissions, consume less water and are simpler to maintain than comparable products. They are also easy to maintain and economical because they are sustainable and energy-efficient.

Governments in industrialized countries have also introduced incentives and legislation to promote green building, which is expected to increase demand for building materials. For instance, incentives for the construction of green residential buildings exist in U.S., Spain, Singapore and New Zealand. The initiatives are expected to boost the global building materials market.

Rising Renovations

In the building and construction industry, repair and renovation projects have grown significantly. It is because of things like changing fashion trends in terms of look, contemporary modular architecture and increased income. Due to reasons like the need for home improvement projects, construction work and urbanization, both the residential and commercial sectors have experienced substantial increases in renovation activity.

For instance, the Union Minister of Power approved 22.5 crores for rehabilitation and restoration projects in 478 schools and 8 districts of Uttarakhand in 2021–2022, according to the Make in India program. The use of construction fabrics in architecture tensile structures, green roofing, canopies and other applications are increasing. It is a driving component of the global building materials market as there are more renovation and remodeling projects being undertaken.

Environmental Regulations and Sustainability Concerns

Many regulations set in place to regulate the construction industry are one of the biggest obstacles affecting the global building materials market. Construction and maintenance of low-energy buildings are mandated by building energy codes, such as the CARICOM Regional Energy Efficiency Building Code (CREEBC), which is used in the Caribbean. For planning authorization, a building must comply with the regulations, which address energy norms, carbon footprints of materials, integrated design and more.

Other laws, like UK's The Construction (Design and Management) Regulations 2015, employ a collaborative risk management method to identify hazards and make sure that measures are taken to reduce recognized risks. Although these health and safety laws are crucial for people's welfare, they impose severe constraints and pressure on the building industry, which slows the expansion of the market.

COVID-19 Impact Analysis

Building materials demand patterns have shifted as a result of the COVID-19 epidemic, which has had significant impacts on the global building materials market. The demand for home remodeling projects increased as more people preferred to work from home and spent more time there. On the other hand, because of the decline in activity in such areas, the demand for materials fell in industries including hospitality, retail and office buildings.

Imports will also experience problems at this time, thus a variety of price changes should be anticipated. However, long-term supply chain issues may lead to an increase in the price of construction and building materials. Building construction companies may encounter a supply chain bottleneck as they seek to resume normal operations as a result of an increase in demand globally.

Russia-Ukraine War Impact Analysis

The consequence of the conflict between Russia and Ukraine has caused a global shortage of building materials. The key elements of the industry are raw resources, labor, energy and goods. Russia and Ukraine are their main exporters, resulting in a global shortage of raw resources. Metals like nickel, copper and iron are produced in large quantities globally by Russia and Ukraine.

Steel production across the globe has been halted by the war. As a result, having an effect on the manufacturing of Alucopanel, hardware, sanitary fittings and electrical goods. The war has caused price increases in wood goods, wood pulp, softwood, beech wood, oak, chipboard and MDF because Russia provides 20% of the world's softwood.

AI Impact Analysis

The design of building materials has plenty of room for advancement owing to artificial intelligence (AI). Engineers and architects may produce materials that are more effective, economical and ecologically healthy with the support of AI. By maximizing the usage of materials, AI-driven design can lessen the environmental impact of the building.

AI-driven design can assist engineers and architects in creating materials that are more long-lasting and durable. AI-driven design can also aid in minimizing the energy consumption of the building process. In order to develop materials that are more energy-efficient, AI-based algorithms can be used to analyze data from numerous sources, such as the characteristics of various materials.

Segment Analysis

The global building materials market is segmented based on type, end-user and region.

The Rising Government Assistance in Residential Sector

The residential segment accounted for around 1/4th of the global building materials market in 2022. The global building materials market in the residential sector will continue to be driven by the increased government assistance for housing to provide affordable homes. In December 2022, the House and Senate passed a US$ 1.7 trillion yearlong federal government spending bill, which the President of the U.S. then signed into law.

In comparison to FY22, the final spending bill increases funds for numerous programs, including significant financing for NLIHC's top priorities. Housing Choice Vouchers (US$ 30.3 billion) and Project-Based Rental Assistance (US$ 14.9 billion) have enough funding to renew all current contracts and the bill also extends rental assistance vouchers to an additional 12,000 households targeted at people and families who are experiencing homelessness.

Geographical Analysis

The Growing Demand for Innovative Building Materials in Asia-Pacific

During the forecast period, the Asia-Pacific building materials market will be the fastest-growing region. Strong competition along with rapid innovation are additional highlights of the Asia-Pacific building materials market, which is driven by the region's increasing demand for green and innovative building materials.

In order to develop new and inventive building materials that offer better performance and cheaper costs, many companies in the region have made significant investments in research and development. For instance, Saint-Gobain invested over US$ 320 dollars in India in May 2021 to produce advanced building materials including 3D-printed concrete and more. In such a case, the construction period is shortened and the project is finished earlier than expected.

Competitive Landscape

The major global players include CEMEX, China National Building Material Company, Lafarge Holcim, Boral Limited, Buzzi Unicem SpA, Dyckerhoff AG, CRH Plc, CSR Limited, Aditya Birla Group and Ambuja Cements.

Why Purchase the Report?
• To visualize the global building materials market segmentation based on type, 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 building materials market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global building materials market report would provide approximately 53 tables, 50 figures and 207 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies