Global Cement Market Outlook to 2028

Global Cement Market Overview

• The global cement market is valued at USD 360 Bn, based on a detailed five-year historical analysis. This valuation is driven by rapid urbanization and industrialization, which have spurred significant investments in infrastructure projects across emerging economies. The growing demand for residential and commercial construction, coupled with advancements in cement production technologies, continues to fuel market growth.

• Countries like China, India, and the United States dominate the global cement market due to their expansive infrastructure projects, high levels of construction activity, and supportive government initiatives. China leads as the worlds largest producer and consumer of cement, driven by its urban development policies. India follows closely, supported by its ambitious housing schemes and Smart Cities Mission.
• Malaysia'sRahmah Cement Scheme Initiative, announced in 2023. This initiative aims to provide affordable cement prices to developers of low-cost housing, specifically targeting the Middle 40% (M40) and Bottom 40% (B40) income groups. The Malaysian government, under Prime Minister Anwar Ibrahim, is collaborating with private real estate developers and the Malaysian Cement and Concrete Association (C&CA) to implement this program.

Global Cement Market Segmentation

The Global Cement Market is divided into further segments:

• By Product Type: The global cement market is segmented by product type into ordinary Portland cement, blended cement, white cement, and others. Among these, ordinary Portland cement dominates the market, owing to its extensive use in construction activities. Its high strength, versatility, and widespread availability make it the go-to choice for infrastructure and housing projects globally.

• By Region: Geographically, the market is divided into Asia-Pacific, Europe, North America, the Middle East & Africa, and Latin America. Asia-Pacific leads the market, driven by rapid urbanization and significant infrastructure investments in countries like China and India.

• By End-Use Sector: The market is segmented by end-use sectors into residential, commercial, infrastructure, and industrial. Infrastructure holds the largest market share due to the ongoing development of highways, bridges, and public utilities in emerging economies. Government initiatives focused on infrastructure modernization further strengthen this segments dominance.

Global Cement Market Competitive Landscape

The global cement market is dominated by both regional and multinational players, with intense competition among the top producers. Key companies are investing in advanced manufacturing techniques, sustainability initiatives, and expanding their geographic presence to strengthen their market position.

Global Cement Industry Analysis

Market Growth Drivers

• Increased construction activities: The global urban population is indeed increasing, with the United Nations reporting approximately4.4 billionpeople living in urban areas as of 2022. This urban expansion drives substantial construction activities, thereby increasing cement demand for various developments.Urban areas in regions like East Asia are expanding at an average rate of2.4% annually, necessitating significant infrastructure projects that require cement
• Infrastructure Development: The World Bank estimates that developing countries need to invest over$1.3 trillion annuallyin infrastructure to support growth and reduce poverty, which includes cement-intensive projects such as roads and bridges. Initiatives like China'sBelt and Road Initiativefurther exemplify large-scale infrastructure investments that significantly boost global cement demand.
• Industrialization: Industrial growth in emerging economies correlates with increased cement demand due to the construction of factories and warehouses. The International Finance Corporation notes that cement consumption closely follows GDP growth patterns, indicating that countries experiencing rapid industrialization see corresponding increases in cement demand

Market Challenges

• Energy Consumption: Cement production is energy-intensive, requiring high temperatures for clinker production. The reliance on energy exposes manufacturers to fluctuations in energy prices and availability, impacting production costs and operational efficiency. Efforts to shift to alternative fuels are underway, but challenges remain in achieving the necessary temperatures and maintaining consistent energy supply.
• Supply Chain Disruptions: Global events, such as the COVID-19 pandemic, have exposed vulnerabilities in supply chains, affecting the availability of raw materials and distribution networks in the cement industry. Such challenges can lead to production delays and increased costs, affecting market stability and profitability.

Global Cement Market Future Outlook

Over the next five years, the global cement market is expected to experience significant growth, driven by ongoing urbanization, government investments in infrastructure, and increased adoption of green building materials. Technological advancements in cement production, such as carbon capture and utilization, are anticipated to play a pivotal role in shaping the future of the industry.

Market Opportunities

• Green Cement Technologies: The push for sustainability has led to the development of green cement technologies aimed at reducing carbon emissions. The International Finance Corporation has introduced a decarbonization tool to help cement manufacturers develop abatement strategies and expand their capacity for low-carbon products. Companies like Votorantim Cimentos have applied this tool to increase their use of alternative fuels, currently constituting more than 30% of their energy mix, and plan to double this capacity to meet customer demands for low-carbon products.
• Emerging Markets: Emerging economies present significant growth opportunities for the cement industry. As these countries invest in housing and infrastructure to support their growing populations, the demand for cement is expected to increase, offering substantial market potential for manufacturers.