Recycled Construction Aggregates Market

Recycled Construction Aggregates Market Outlook (2022-2032)

The global recycled construction aggregates (RCA) market was valued at US$ 33.3 billion in 2021 and is forecasted to expand at a CAGR of 7.2% and reach US$ 71.9 billion by the end of 2032.

Recycled construction aggregates account for 9.1% share of the global construction aggregates market at present. Their cost-effectiveness and sustainability aspects contribute to high adoption.

Report Attributes	Details
Recycled Construction Aggregates Market Size (2021A)	US$ 33.3 Billion
Construction Aggregate Market (Parent)	US$ 387.5 Billion
Estimated Market Value (2022E)	US$ 35.6 Billion
Forecasted Market Value (2032F)	US$ 71.9 Billion
Global Market Growth Rate (2022-2032)	7.2% CAGR
North America Market Share (2022)	~10.1%
Europe Market Share (2022)	~14.3%
China Market Share (2022)	~42.7%
Top 3 Countries’ Market Share	~55.9%
Key Companies Profiled	Delta Sand & Gravel Co. HeidelbergCement AG Aggregate Industries Management, Inc. Green Stone Materials CEMEX, Vulcan Materials Company CESPA LafargeHolcim Ltd. CRH Plc. Tarmac

Rising Awareness Regarding Sustainability to Spur Market Outlook

Recycled construction aggregates are considered eco-friendly and sustainable construction materials. Manufacturing of recycled construction aggregates entails relatively lower amounts of energy and releases minimum pollutants.

Many environmental organizations, including the International Institute for Healthy Construction and the Federal Association for Healthy Building Products, propagate information about recycled construction aggregates materials.

Moreover, increased concerns about global warming and the introduction of new international environmental policies are likely to partly drive the adoption of recycled construction aggregates over the coming years.

Major market players are spreading awareness and enhancing their brand recognition among prominent buyer groups to curve the demand pool and accelerate their sales growth.

• Factors for Interim Growth: Rising awareness regarding sustainability across emerging economies such as India and China will act as a market driving factor between 2022 and 2025.
• Approach towards Medium-Term Growth: Government initiatives to use recycled materials for construction, coupled with the rising construction industry, will propel product sales from 2025 to 2028.
• Abiding Growth Factors: Innovation will play a big part in the long run. Further, the demolition of aged structures will increase the amount of debris, which will need to be eliminated from the environment, thus, leading to rising product adoption.

According to Fact.MR, a market research and competitive intelligence provider, the RCA market is projected to exhibit growth at 7.2% CAGR between 2022 and 2032, which is much higher as compared to the 1.6% CAGR during the historical period.

Global recycled construction aggregates market analysis based on market share of end use and region. Data is provided in a nutshell in the above image. Under the end-use segment, roads & bridges lead with 85.9% market share in 2022.

What are the Dynamics in the Global RCA Market?

“RCA Gaining Traction as Environment-Sustainable Construction Material”

Several studies have concluded that greenhouse gas emissions from buildings might reach alarming rates in the near future if corrective measures are not taken.

• A report from the U.S. Green Building Council revealed that the commercial and residential building sector accounts for more than one-third of the total carbon dioxide (CO2) emissions in the United States per year. Countries such as China and India are realizing the environmental implications of robust industrial development and urbanization.

Therefore, the need to check emissions and cut down energy consumption is now considered one of the top priorities across the world. As such, eco-friendly is likely to be a slogan for the industry as most companies have started to incline towards environmentally viable products such as recycled construction aggregates. Such eco-friendly efforts will spur the adoption of recycled construction materials.

“Smart City Development Driving Market’s High Demand”

As a result of rising urbanization, around 4.4 billion people live in urban settings; hence, city planning has become a necessity. The governments of several countries, such as China, Canada, India, and others, are investing substantially in smart city development.

• For instance, according to data from the India Brand Equity Foundation (IBEF), under the Union Budget 2021-22, the Smart Cities Mission Scheme in India has been awarded ~US$ 868 million as compared to ~US$ 457 million in FY21.

Smart city projects have led to the development of green buildings and effective and reliable infrastructure, which calls for recycled construction aggregates, as using these is sustainable in nature and a greener approach than using virgin material. Thus, smart city development is resulting in growing revenue generation opportunities for market players.

“Container Homes: Hurdle to Be Breached”

Container homes are those made by using recycled ship containers for living purposes. Container homes are gaining traction as they are sustainable, mobile, cost-effective in nature, and require little space. Container homes are witnessing high demand in land constriction areas or hilly areas where construction work is difficult.

Further, the governments of numerous economies also employ containers to meet the housing demand, which is a major retraining factor for the target market's growth.

• For instance, in April 2022, the Poland government inaugurated several planned container towns in Ukraine and nearby areas that will ultimately host at least 20,000 people internally displaced by the Russian aggression.

This is estimated to be a potential restraining factor as it is cost-effective and an impressive solution in land restriction areas, thus, hampering RCA market growth to some extent.

Country-wise Insights

Why Does the U.S. Consume High Volume of Recycled Construction Aggregates?

The United States has significant factors propelling its market growth. Based on the data of Northeast Recycling Council, Inc.,

• Around one-third of available U.S. buildings are estimated to be demolished by 2050 due to aging or security purposes, or redevelopment factors to meet modern requirements.

These demolitions will lead to huge piles of generated waste that go straight into landfills. Further, a staggering 90% of construction and demolition (C&D) debris is developed by demolition activity associated with commercial and residential redevelopment.

To eliminate the debris in landfills and also promote advanced construction, the recycling process plays a crucial role. The recycling of construction material for redevelopment purposes not only reduces waste but also saves on purchasing virgin material and processing debris.

How are Construction Projects Fueling RCA Sales across GCC Countries?

GCC countries, including Saudi Arabia, are investing trillions of dollars in the development of remarkable infrastructure to attract more tourism and transform economically and socially. With the introduction of impressive infrastructures in the past, Saudi Arabia is investing a lot in new mega projects such as:

• Yas Island, a US$ 3.2 billion, mega-project under development to house 15,000 people, and with its success, the ruling authority aims to expand it further.
• Another example is the Neom project-vertical city.

Such projects not only demand high investments but also millions of tons of construction material. In such a scenario, the adoption of recycled construction material is a cost-effective and preferred sustainable solution. Hence, with growing infrastructure development across GCC countries, the market has witnessed surging demand.

Category-wise Insights

What is the Stance of the Crushed Stones Segment in the Market?

The crushed stone segment, by type, holds a major market share and is estimated to be currently valued at US$ 20.8 billion. Crushed stones are readily available at any demolition site. They are non-decomposable in nature, and hence, remain unaltered on sites and consume fewer land resources. These see high demand and consumption for the construction of pavements, rail track ballast, indoor and outdoor interior design, housing, garden beds, and others. Thus, growing construction activities remain a major driving factor for segment growth.

In addition, in emerging economies, including India, Indonesia, and China, the growing housing sector is anticipated to be a key driver for the segment's development due to the fast urbanization of these countries. Thus, the crushed stones segment is anticipated to evolve and offer high sales revenue opportunities to market players.

Why are RCAs Exhibiting High Demand from the Residential Vertical?

Recycled construction aggregates are used for the construction of buildings and houses. They are used for the development of garden beds, indoor and outdoor interiors, and others. Due to the growing population and to meet the rising demand for housing, governments of both developed and developing economies are investing heavily in house construction.

Hence, to meet the rising demand for housing, the governments of several countries are focusing on constructing houses, which will result in surging demand for recycled construction aggregates.

• For instance, in January 2021, as per the Indian government's Pradhan Mantri Awas Yojana scheme, the government authorized the housing construction of 168,000 units in urban areas, bringing the total approved houses valued at US$ 11 million.

Thus, surging demand for housing and governments’ favorable initiatives will result in high demand for RCA as this is cost-effective, readily available, and sustainable in nature.  

Competitive Landscape

Delta Sand & Gravel Co., HeidelbergCement AG, Aggregate Industries Management, Inc., Green Stone Materials, CEMEX, Vulcan Materials Company, CESPA, LafargeHolcim Ltd., CRH Plc., and Tarmac are prominent market players adopting diverse strategies to outwit the competition.

Manufacturers are focusing on creating sustainable values by providing recycled construction aggregates and other solutions to satisfy their clients’ construction requirements. Companies aim to provide customized solutions to clients to build long-term trade relations. In addition, they also emphasize the enhancement of their supply chains to increase their footprints. Hence, global expansion and building trade relations are key strategies being witnessed in this space.

• In August 2022, Turmec was awarded a US$ 29.9 million contract with Australia's Rino Recycling to design, develop, and install a construction waste processing solution.

Fact.MR has provided detailed information about the price points of key manufacturers of recycled construction aggregates positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

RCA Industry Research Segmentation

• By Type :

  • Sand and Gravel
  • Crushed Stones
  • Cement Concrete
  • Asphalt Pavement Debris

• By End Use :

  • Roads and Bridges
  • Residential
  • Industrial

• By Region :

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA