Rapid industrialization in developing countries will boost the building materials industry worldwide, says a new report by procurement market intelligence adviser SpendEdge. The global building materials market is poised to experience spending growth of more than $200 billion between 2018-2023, at a compounded annual growth rate of over 5% during the period.
The pressing necessity to adhere to the global environmental regulatory framework will drive enterprises to procure green building materials which will contribute to spend growth in the building materials market.
Cement held a significant share in the overall spend growth in the building materials market in the U.S last year due to the Making it In America initiative. This initiative will lead to an increase in the construction of manufacturing facilities, which will further drive the demand for cement during the forecast period. An increase in the mining of gypsum will result in a steady decline in the price of this commodity which will also impact the price of building materials. The price growth was lesser in the first quarter of this year than compared to the last year’s growth. Protectionist trade policies pertaining to a majority of raw materials will increase the manufacturing costs of building materials that include raw materials such as silica, pet coke, and limestone
In terms of regional spend growth, APAC has the largest share to claim in the global building materials market. The increase in the construction of commercial spaces in India, China, Indonesia, and South Korea will contribute to spend momentum of this market. The unveiling of a series of infrastructure construction projects such as the Newark Liberty International Airport and the Plaquemines liquified natural gas facility in Louisiana, among others, will create massive requirements and will drive spend growth in this market to a significant extent, the report said.