Green Cement Market: Global Size, Share, Trends, Growth and Forecast 2022-2032
Green Cement Market Overview and Definition
The global green cement market size was reached USD 23.9 billion of valuation in 2021and is expected to cross USD 82.5 billion in valuation by 2032 end, at a CAGR of 12.7% during the forecast period 2022-2032. Green cement is a type of cement that is manufactured using environmentally sustainable practices and materials. It is designed to reduce the carbon footprint of the cement manufacturing process and make it more eco-friendly. Green cement is gaining popularity as the construction industry seeks more sustainable alternatives to traditional Portland cement.
Green Cement Market Key Drivers
Rising costs of constructions, and consequently, housing – presents a major challenge for global consumers. On one hand, housing is a necessity. On the other hand, while global population continues to increase, adding infinite pressure on finite resources like land. According to the International Monetary Fund, the global prices of housing rose by nearly 180% between 2000-2022. Moreover, the prices of housing kept rising during the pandemic, despite the fact that consumer pockets remained empty beyond the wildest predictions of economists.
Despite a slow recovery from the pandemic, and despite housing becoming unaffordable to millions; the price of housing continues to rise. This has pushed millions around the world to simply give up on their dreams to own a home, pushing potential buyers out of the market, shrinking the market, and making long-term growth forecast unreliable. For example, according to the US census bureau, in 2019, 36% of homes were occupied by renters. This is a staggering number out of total of 122.8 million households, which keeps rising every year.
Furthermore, the pandemic has been a curse for supply chains, driving infinite delays, disruption, and driving up the price of construction necessities like steel, and cement. In 2022, the price of steel, and cement rose by 35% just within the two months of February, and March in India. Similar trends of inflation across industries are witnessed globally. However, lowering prices remains a priority for both policy makers and developers as housing remains a necessity and the prices remain out of reach for a significant number of buyers.
Green cement remains a promising solution to the global housing crisis. Green cement is mostly produced by discarded waste in the industry this includes raw materials like fly ash, and slag from blast furnace. Moreover, in an increasingly green regulatory environment, the process of making green cement remains an eco-friendly, and carbon negative manufacturing process. This results in production of a far more cost-effective construction resource, and something that is bound to be more appealing from the point of potential legislative costs, and liabilities. Such potential legal liabilities continue to hover over the planning process of major industries around the world.
For example, in 2022, the Australian Cement Industry Federation (CIF) in its quest to meet targets of net zero cement targets, has set out to find alternative cements. Its current plans include procuring alternative cements, producing cement with the help of green hydrogen, using 33% renewable energy, transport and construction initiatives making up 35%. Global warming and climate change remains a pressing concern globally. Policies and legislations are likely to increase cost of doing business for global players in the cement industry.
Green Cement Market Segmentation
Global green cement market report is a detailed study of various key growth dynamics. The green cement market report is divided into slag, geopolymer, and other based on product type. Among these, the slag-based segment has captured the largest market share in recent years, thanks to its proven efficacy, and widespread awareness. The geopolymer segment continues to grow at a fast pace, thanks to high thermal insulation, and high sustainable benefits offered.
The global green cement market report is divided by application into residential, industrial, public infrastructure, and others. Among these, the residential segment is anticipated to hold the highest share of the total revenues during the forecast period. Growing availability for alternative modular homes, mobile homes, and availability of advanced technology like 3D printing promise to drive strong growth for housing in the near future. Furthermore, the infrastructure segment also remains the most lucrative segment globally as major countries like US, China, and India make trillions of dollars of investment each to drive upscaling in infrastructure globally.
Green Cement Market Regional Outlook
Global green cement market report is divided into key regions including North America, Europe, Asia Pacific, South America, Middle East & Africa. Among these, North America is anticipated to hold the highest share of revenues during the 2022-2030 period. The region remains home to some of the most technologically advanced developments including 3D printing. The technology has proven to improve construction productivity significantly. Moreover, this also remains a region, wherein housing remains shaky, as number of potential buyers keep shrinking due to high costs of housing. Furthermore, the increased green initiatives by the government promise to open new avenues of growth for key players in the region.
On the other hand, Asia Pacific is expected to grow at the fastest pace during the forecast period. The region remains home to a large population without access to homes, public parks, trade ports, and key public infrastructure like highways, bridges, among others. Growing infrastructure development by key countries like India and China in the region remain prominent drivers of growth in the Asia Pacific region.
The global green cement market is a concentrated landscape, with key players holding a significant share of the global market. Growing mergers, product launches, and acquisition remain defining competitive strategies to grow footprint in the global green cement market. Some key players in the global green cement market are Anhui Conch Cement Co., Ltd., Cemex, China National Building Material Co., Ltd. (CNBM), Italcementi, HeidelbergCement, among others.