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.
The
growth in this industry shall be considerably high because of overall
projections of global GDP to show an upward trend in the coming years alongside
an increase in the disposable income especially in the developing countries.
The global competition in this industry is intense with only big enterprises succeeding
in gaining more market share.
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Ankur
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