Global Construction Aggregate Demand to Reach 28.7 Billion Metric Tons

World demand for construction aggregates is forecast to expand 2.9 percent annually through 2013 to 28.7 billion metric tons.  This represents a significant moderation from the pace of the 2003-2008 period, reflecting a slowdown in worldwide economic and construction expenditure growth (due in part to the 2008 global recession). Nonetheless, advances in the construction aggregates market through 2013 will still be healthy. These and other trends, including market share and product segmentation, are presented in World Construction Aggregates, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

The Asia/Pacific region will experience the fastest growth, as nonbuilding, residential building and nonresidential building construction spending in the area increases rapidly.  A number of countries in the area are expected to post large gains, including China, India and Indonesia.  More than 80 percent of all global growth generated between 2008 and 2013 will occur in the region; China alone will account for almost three-fifths of all new aggregates demand.    

The Africa/Mideast region and Eastern Europe are also projected to see solid growth in construction aggregates demand, spurred by industrialization activity and infrastructure construction.  Turkey and Poland are expected to outperform their regional counterparts through 2013.  Product demand in Latin America, on the other hand, is forecast to remain relatively flat from 2008 and 2013 because of stagnant nonbuilding and nonresidential building construction expenditures. 

Growth in the developed parts of the world -- the US, Canada, Japan, Western Europe and Australia -- will not be as strong as in most industrializing areas.   A slowdown in economic activity will cause construction spending in many of these nations to grow at a much slower pace than during the 2003-2008 period (the US is an exception), limiting demand for construction aggregates.  Nonetheless, several countries will still experience a substantial increase in product sales through 2013, including Taiwan, South Korea, the Netherlands and the US, because of gains in residential construction spending. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.