Building Materials Market Analysis

The global building materials market is expected to witness spend growth of more than USD 200 billion between 2018-2023, with spend momentum accelerating at a CAGR of over 5%. This increasing procurement of building materials will be primarily driven by the steep rise in construction activities spurred by the rapid industrialization and urbanization in the developing nations. In a bid to achieve sustainability goals, organizations are exhibiting a large-scale procurement of green building materials that are expected to give a major boost to spend growth of the building materials market at a CAGR of nearly 12%.

Top Spending Regions in the Building Materials Market

The rise in construction of commercial spaces and the unveiling of a series of infrastructure construction projects will draw investments in the building materials market across geographies.

APAC

Home to the second-fastest-growing construction industry in the world, APAC will dominate the building materials market during the forecast period. The steadily increasing construction of commercial spaces in India, China, Indonesia, and South Korea will contribute to spend momentum of the market. The massive growth of the healthcare infrastructure in countries such as India and Vietnam is reflective in the number of hospitals that are mushrooming across the topography which is further supplementing the demand growth of the building materials market in APAC.

North America

North America has a series of infrastructure construction projects such as Newark liberty international airport – regional plan association, and the Plaquemines project, among others, in the pipeline. This is indicative of a promising spend growth of the building materials market in the region. Out of the market segments, cement held a significant share in the overall category in the US last year owing to the Making it In America initiative. The initiative will lead to an increase in the construction of manufacturing facilities, which will further drive the demand for cement during the forecast period.

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What are the Key Price Trends in this Market?

• An increase in the mining of gypsum is leading to a steady decline in the price of this commodity which is also impacting 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.
   
• A major boost in the production capacity of cement will also limit the chances of a sharp rise in the price of this commodity. Thereby it can be concluded that the growth in the supply market of cement will limit the chances of a hike in the overall building materials market price.
   
• However, the prevalence of protectionist trade policies pertaining to a majority of raw materials will propel the manufacturing costs of building materials that include costs of raw materials such as silica, pet coke, and limestone. This will have an inflationary impact on the procurement price for buyers.
   

Download the free sample of this report to know what the key building materials procurement best practices that you must adopt to address price dynamism in this market.
 

Insights into Building Materials Supply Market
 

• The global building materials supply market is highly fragmented with a significant number of global, regional, and local suppliers. A majority of the building materials suppliers, particularly the cement suppliers, are from countries such as China, India, and the US owing to significant availability of raw materials, such as limestone, chalk, and clay, and companies with high annual production capacity.
   
• Building materials suppliers are increasingly focusing on vertical integration as it will allow them to exert better control over their supply chain in terms of price stabilization and adequate supply of raw materials.
   
• Generally, buyers tend to segregate the supply base based on annual production capacity, type of materials, supplier location, ability to provide dedicated production capacity, and logistical capabilities, among other factors. The rationalization of the supply base will allow buyers to minimize a significant amount of transaction costs and reduce management efforts toward supplier management.

Insights into Some of the Leading Building Materials Suppliers

Volatile building materials price trends coupled with sub-optimal supplier partnership is resulting in declining ROI of a majority of buyers in this market. In view of this, the building materials market procurement intelligence report has enlisted the top suppliers, best selection criteria, and negotiation strategies for such suppliers. These insights will aid buyers to take a collaborative approach with the building materials suppliers to identify areas where they can optimize their procurement spend. The top building materials suppliers highlighted in this report include:

• Compagnie de Saint-Gobain SA 
• CEMEX SAB de CV           
• CRH Plc
• Sika AG
• HeidelbergCement AG  
• LafargeHolcim Ltd.          

Criteria to select suppliers in this dynamic building materials market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.