Global cement market to reach $592.38 bn by 2032, growing at 4.3% CAGR
Cement

Global cement market to reach $592.38 bn by 2032, growing at 4.3% CAGR

The global cement market, valued at $405.99 billion in 2023, is forecasted to grow to $423.24 billion in 2024 and $592.38 billion by 2032, registering a compound annual growth rate (CAGR) of 4.3 per cent, as indicated in a report by Infometrics Ratings.

The World Cement Industry Outlook suggests that global cement consumption is likely to recover modestly, with growth estimated between one and two per cent.

In India, cement production volumes experienced a decline during the June 2024 quarter, primarily due to extreme heat and a slowdown in construction activities associated with elections. This led to subdued demand, with most manufacturers reporting reduced volumes, though a few major companies performed better.

Construction activities, however, are expected to accelerate in the September 2024 quarter, with cement consumption projected to grow by 4.1 per cent. Despite this seasonal improvement, pricing challenges persist. Cement prices, which were weak in the June 2024 quarter, are anticipated to face rollbacks despite an increase in September, driven by continued demand softness.

Regional price trends reveal significant variations, with the southern region experiencing the steepest declines. Nonetheless, prices remain one to two per cent higher than the previous year.

The profitability of the Indian cement sector has been under pressure, attributed to lower price realisations and rising input costs. Although sales volumes are expected to rise compared to the previous year, revenue growth is likely to be constrained due to reduced realisations. Operating profit margins shrank by 60 basis points to 14 per cent during the June 2024 quarter.

The cement industry plays a vital role in India’s infrastructure development, benefiting from the government’s allocation of Rs 11.11 trillion for capital expenditure in FY2024-25. Real estate and public infrastructure projects, which are significant drivers of cement consumption, are projected to sustain demand. Initiatives such as the Pradhan Mantri Awas Yojana and increased investments in highway and metro projects are also expected to support the sector’s growth.

Additionally, the Indian cement industry is addressing its substantial carbon footprint, which accounted for 5.8 per cent of the country’s CO2 emissions in 2022. In 2023, greenhouse gas emissions were reduced to 0.56 tonne of CO2 per tonne of cement, with a target to lower this further to 0.35 tonnes by 2050. Initiatives such as the Low Carbon Technology Roadmap (LCTR) and the Perform, Achieve, and Trade (PAT) Scheme highlight the sector's commitment to sustainability.

The global cement market, valued at $405.99 billion in 2023, is forecasted to grow to $423.24 billion in 2024 and $592.38 billion by 2032, registering a compound annual growth rate (CAGR) of 4.3 per cent, as indicated in a report by Infometrics Ratings. The World Cement Industry Outlook suggests that global cement consumption is likely to recover modestly, with growth estimated between one and two per cent. In India, cement production volumes experienced a decline during the June 2024 quarter, primarily due to extreme heat and a slowdown in construction activities associated with elections. This led to subdued demand, with most manufacturers reporting reduced volumes, though a few major companies performed better. Construction activities, however, are expected to accelerate in the September 2024 quarter, with cement consumption projected to grow by 4.1 per cent. Despite this seasonal improvement, pricing challenges persist. Cement prices, which were weak in the June 2024 quarter, are anticipated to face rollbacks despite an increase in September, driven by continued demand softness. Regional price trends reveal significant variations, with the southern region experiencing the steepest declines. Nonetheless, prices remain one to two per cent higher than the previous year. The profitability of the Indian cement sector has been under pressure, attributed to lower price realisations and rising input costs. Although sales volumes are expected to rise compared to the previous year, revenue growth is likely to be constrained due to reduced realisations. Operating profit margins shrank by 60 basis points to 14 per cent during the June 2024 quarter. The cement industry plays a vital role in India’s infrastructure development, benefiting from the government’s allocation of Rs 11.11 trillion for capital expenditure in FY2024-25. Real estate and public infrastructure projects, which are significant drivers of cement consumption, are projected to sustain demand. Initiatives such as the Pradhan Mantri Awas Yojana and increased investments in highway and metro projects are also expected to support the sector’s growth. Additionally, the Indian cement industry is addressing its substantial carbon footprint, which accounted for 5.8 per cent of the country’s CO2 emissions in 2022. In 2023, greenhouse gas emissions were reduced to 0.56 tonne of CO2 per tonne of cement, with a target to lower this further to 0.35 tonnes by 2050. Initiatives such as the Low Carbon Technology Roadmap (LCTR) and the Perform, Achieve, and Trade (PAT) Scheme highlight the sector's commitment to sustainability.

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train Set to Launch by 2028

India’s first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India’s infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..

Next Story
Infrastructure Transport

Mumbai-Gandhinagar Train Service Enhances Passenger Capacity

The Mumbai Central–Gandhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India’s busiest business corridors. This upgrade, effective from 11 May, raised the train’s seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai–Ahmedabad–Gandhinagar route, which regularly operates at over 150 percent seat occupancy...

Next Story
Infrastructure Urban

Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently

Delhi’s ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river’s health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?