New York, June 11, 2018 (GLOBE NEWSWIRE) -- The global construction aggregates market has been anticipated at a value of over US$ 565.8 billion by the end of 2026. Over the course of assessment, i.e. between 2018 and 2026, the market for construction aggregates is likely to witness promising growth at a CAGR of 6.8%. Persistence Market Research projects the market to witness dynamic collaborations and partnerships among key companies, and gain significant traction due to robust growth of travel and tourism sector. Moreover, natural sand, which is among the top selling products in market, is expected to be witnessing declining demand owing to growing popularity of manufactured sand.

Strategic Mergers & Acquisitions to Become Top Strategy for Expansion

Vulcan Materials Company acquired Polaris Materials Corporation in 2017, whereas more recently, the company accomplished its acquisition of Aggregates USA LLC, in 2018. Expansion of the industrial base has been a preferred move among key companies in the construction aggregates market. However, as the market is highly fragmented, leading players are seemingly prioritizing reinforced partnerships with local EPC (engineering, procurement, & construction) companies. Moreover, companies are strategically approaching prime distributors in domestic markets. Mergers and acquisitions involving regional giants is also identified to be a prominent expansion strategy among key players in the global construction aggregates market.

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Besides focusing on establishing sand manufacturing facilities, participants are concentrating on acquiring stone quarries in and near potential high-demand locations. This is eventually anticipated to push the market growth further. Companies are also likely to conduct an assessment of building trends and material demand, considering consumer sentiments. Moreover, analyzing individual economic tier and spending power will help provide consumers with demand-specific products.

PPPs to Contribute Substantially to Growth of Regional Markets

Developing economies such as Latin America, have been practicing PPPs (Public-Private Partnerships) over the years. The Mexican Government is augmenting investments in enhancement and modernization of the infrastructural framework across the country. A total of MXN 7.8 trillion are estimated to be invested in the project by the government, besides hefty investments through PPPs. On the backdrop of such massive projects being initiated by governments of developing regions, the demand for construction materials is likely to surge between 2018 and 2028.

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Driving Capital Investment through Travel & Tourism to be the Key

Travel and tourism is among the key sectors, contributing significantly to the GDP of several economies. The WTT (World Travel & Tourism) authorities indicate the total contribution of the travel and tourism sector to the global GDP to be around US$ 11,000 Billion, in 2017. Flourishing tourism will continue to lure significant foreign direct investments in tourism-driven countries, which will eventually result in launching of several construction projects in the hospitality sector as well. Amplifying government spending in tourism and travel will reportedly remain a major factor supporting the market for construction materials, through thriving tourism. In addition to travel and tourism, increasing population opting for leisure activities, luxury sports, and tours to amusement parks will provide an additional impetus to the market growth, through creating a range of opportunities for manufacturers to introduce innovative product portfolios.

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Manufactured Sand to be the Game Changer on Competitive Landscape

As the natural sand resources are non-replenishable and further take more than million years of time to reform, they are rapidly being exhausted, which is alarming. Due to high cost and limited availability, stakeholders in the market for construction aggregates, cannot be assured about consistent supply of natural sand. Manufactured sand, on the contrary, is considered to be a viable and cheaper alternative, and also does not include any slit or organic impurities, which further makes it a convenient alternative.

In the recent years, the global market for construction aggregates is witnessing a significant shift from natural to manufactured sand. However, it still remains to be seen, whether manufactured sand will manage to completely replace natural sand in near future. Discovering the status of the competitive landscape for manufactured sand, would become more interesting through the next eight years.

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