Market Research Reports - Ken Research Global Construction Materials Industry

Developments in the Construction Material Market Outlook: Ken Research
The global demand for construction materials is very erratic showing different levels of
demand. From extremely high demand to stagnant demand, the global construction materials
industry has witnessed it all in the recent years. This demand relates to the state of the
international economy. A strong and robust economy would imply an increasing demand for
the construction materials. The construction materials industry faces a host of challenges.
Rising environmental concerns, stricter regulations are some of them. Customers also require
improved quality in the construction materials which poses a hindrance to the growth of this
industry. In order to tackle the rising costs, companies are trying to take the advantage of
economies of scale by producing huge amounts of construction materials and dumping the
same into the market.
The recent trend has been to produce materials that not only provide efficiency but also result
in subsequent cost reduction in terms of energy consumption. Unlike the traditional principle of
business where they focus on ensuring repeat sales, the companies in this industry focus on
producing top quality goods having the capability to last at least a decade. According to the
study, ‘Construction Materials Global Industry Guide 2013-2022’, the global construction
market is segmented into cements, aggregates and bricks. The aggregates include sand, gravel,
rocks and other materials used for construction purposes. The brick segment includes all the
materials that are developed with the use of fire clay and traditionally include bricks and pipes
whereas cement includes hydraulic cements for instance – Portland cement. Some major
companies that operate in the construction material manufacturing are Saint Gobain, Cement
Roadstone Holding, Daikin Industries, LafargeHolcim and Heidelberg Cement AG. The region
wise analysis and studies have revealed that Asia-Pacific region has driven the construction
market to new heights due to presence of fast growing economies present in the region which
are also characterized by increasing foreign investments.
Over the coming years, technology shall be widely integrated in this field. The important field
being integrated here is the Internet of things which is set to make building information
modeling (BIM) into a reality. BIM is a representation of the physical characteristics of a
building according to which the decisions relating to construction can be easily made without
having to make expensive models. The introduction of technology (drones) could possible
reduce the time involved in transporting the materials from the manufacturers to the end
users. With the introduction of virtual reality, purchasing decisions can be made at an earlier
stage and not involve even slightest amount of cost. For instance – construction projects are
usually abandoned if they are not as per the requirements of the under. Companies would be
able to sell their products via online mode without maintaining huge stock of goods.