Green Cement Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Green Cement Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

During the time of the forecast, the green cement market is expected to grow at a CAGR of more than 6%.

• COVID-19 negatively impacted the market in 2020. Construction work and other activities were put on hold to curb the virus's spread, negatively affecting the market. However, in 2021, the market grew steadily, owing to increased building and construction activities. The market is expected to follow a similar projection during the forecast period.
• The major factors driving the market include favorable government policies for green buildings and increasing concern about greenhouse gas (GHG) emissions from cement production. The abundance availability of raw materials, such as fly ash, is also expected to drive the market forward.
• On the contrary, the iconoclastic nature of the construction market is expected to hinder the market's growth significantly. Over the next few years, the encouraging performance of high belite cement (HBC) in China will likely act as an opportunity for growth.
• North America is expected to dominate the global market during the forecast period due to the exponentially increasing construction activities in the region.

• The residential sector is one of the significant demanding markets for white cement across the globe. Increasing construction of new residential buildings owing to the rise in disposable income of the middle class is expected to drive the market studied.
• The rising number of building codes and policies mandating energy-efficient structures have led to the growth of green cement in the residential sector. In Canada, various government projects, including the Affordable Housing Initiative (AHI), New Building Canada Plan (NBCP), and Made in Canada, are set to support the expansion of the sector hugely, thereby driving the use of green cement in the residential sector.
• Manchester City Council (MCC) approved a nine-year scheme to build four skyscrapers in February 2022. The apartment blocks, ranging from 39 to 60 storeys in height, are planned for two parcels of land on the banks of the River Irwell, known as Trinity Islands. The buildings, featuring 1,950 flats, would be located on land between Regent Road, Liverpool Road, and Water Street, which is currently a car park.
• In its recent publication, the Ministry of Construction of Vietnam also stated that the People’s Committee of Ha Long City in Quang Ninh Province commenced construction of a social housing project of nearly 1,000 apartments in Ha Long City’s Hong Hai Ward and Cao Thang Ward in the early November of 2022.
• Furthermore, Germany also approved the construction of 25,399 homes for October 2022. According to the Federal Statistical Office (German: Statistisches Bundesamt, shortened Destatis), this represented a drop of 4,198 building permits, or 14.2%, from October 2021. Further, between January and October 2022, a total of 297,453 residential building permits were issued.
• Additionally, in North America, stringent regulations of the US Environmental Protection Agency (EPA) regarding greenhouse gas (GHG) emissions are accelerating consumer demand for a clean energy source, which in turn would lead to an increase in the demand for green cement.
• Furthermore, growing awareness among consumers, especially in developed nations, regarding the energy benefits associated with green homes is expected to drive the green cement market in the residential sector over the forecast period.

• The demand for new homes in the United States has been steadily increasing in recent years, owing to the country's growing population and rising consumer incomes. With the expanding trend of multi-family construction and the increase in migration to cities, the US Census Bureau has issued more permits for the construction of new residential buildings.
• During the first eleven months of 2022, construction spending amounted to USD 1,657.6 billion, 10.5% above the USD 1,499.8 billion for the same period in 2021. In 2022, residential construction was at a seasonally adjusted annual rate of USD 868.0 billion in November, 0.5% below the revised October estimate of USD 872.4 billion. Non-residential construction was at a seasonally adjusted annual rate of USD 558.3 billion in November, 1.7% above the revised October estimate of USD 549.2 billion.
• According to the US Census Bureau, in January 2023, the seasonally adjusted annual rate of privately owned dwelling units authorized by building permits was 1,339,000, which is a mere 0.1% higher than the revised December rate of 1,337,000.
• The statistics by the US Census Bureau also stated that the privately owned housing completions were at a seasonally adjusted annual rate of 1,406,000 in January 2023, which is 1.0% more than the revised December estimate of 1,392,000 and 12.8% higher than the January 2022 rate of 1,247,000.
• Aside from new home development, the United States is investing heavily in home improvements. The necessity for rehabilitation has become increasingly critical as the country's migrant population has grown. In addition, the increased awareness of the importance of sustainability and high-efficiency constructions has fueled the restoration trend. The availability of many government loans also encourages home upgrading in the country.
• Moreover, the aforementioned factors, along with a growing focus on green buildings, are providing opportunities for green cement to be used in the construction sector at a healthy rate during the forecast period.

The green cement market is partially consolidated in nature. Some of the major players in the market studied include Heidelberg cement AG, Kiran Global Chem Limited, Ecocem, NavrattanGroup, and Holcim, among others.

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