Report Description
According to ConsTrack360’s, cement industry in Asia pacific region are expected to grow by 3.2% on an annual basis to reach US$256,356.8 million in 2023.
The medium to long term growth story in region remains intact. The cement industry in region is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 2.8% during 2023-2027. The cement output in the region is expected to increase from US$248,335.7 million in 2022 to reach US$286,118.8 million by 2027.
Cement consumption in the Asia Pacific region is projected to record strong growth in 2023. The reopening of the Chinese economy, along with increasing spending on an infrastructure construction project across the region, is projected to support the growth of the cement industry in Asia Pacific from the short to medium-term perspective.
The demand will be also supported by the stabilizing prices of construction materials, including cement, in the Asia Pacific market. The positive market condition will also drive revenue growth for cement manufacturers in the region. Furthermore, cement manufacturers are also projected to increase their investment toward expansion plans and drive their cement production capacity in Asia Pacific from the short to medium-term perspective. Overall, the cement market is projected to record strong growth over the next three to four years.
Spending on infrastructure and housing projects to drive cement demand in India
Although the cost pressure is expected to remain in the short-term, increased house building and other construction activities in metros, urban, and semi-urban centers will keep supporting the demand for cement in India. In the 2023 Budget, the central government is expected to further increase its infrastructure spending. This coupled with the higher private investment will keep driving the demand for cement in India from the short to medium-term perspective.
To capitalize on the growing demand, cement companies are projected to expand their manufacturing capacities. Shree Cement is projected to add 3.5 metric tonnes per annum (mtpa) cement capacity with an investment of INR 35 billion. JK Cement is also planning to invest INR 11.61 billion over the next two years to expand the capacity by 5.5 mtpa. Dalmia Bharat, on the other hand, has announced plans to invest INR 90 billion to increase its cement capacity to 48 metric tonnes by the financial year 2024. This investment from manufacturers will keep driving the growth of the cement market in the Asia Pacific region from the short to medium-term perspective.
Cement companies are reporting strong growth in revenue due to improving market conditions
Along with higher construction material prices, construction activities are strong in some Asia Pacific markets. This has resulted in strong revenue growth for some of the players in the region. For instance,
- In January 2023, Steppe Cement, based in Malaysia and focused on the Kazakhstan market, announced that the firm had reported a revenue growth of 11% in 2022. The strong demand for cement in the Kazakhstan market helped them in reporting strong revenue growth over the 12 months.
- The cement consumption during the 12 months remained at 11.6 million tonnes. In 2023, the firm is planning to continue with its capital expenditure program to increase its production capacity, despite inflation having a significant impact on its production costs.
With prices expected to remain elevated compared to the pre-pandemic levels, cement companies across the region are projected to record strong revenue growth, which will be further supported by improving market conditions.
Recovery of the Chinese construction sector to support the Asia Pacific cement industry in 2023
In Q4 2022, Beijing announced a series of policy measures that are aimed to revive the struggling construction and real estate industry in China. The credit policy, for instance, is aimed at promoting urban housing sales. The US$29 billion in special loans is aimed at property developers to help them finish stalled projects. This, along with the spending on infrastructure construction projects, is expected to also result in an increase in demand for commodities such as cement.
The government, in 2023, might also allow some of the property developers to add more leverage by easing borrowing caps. This will result in the undertaking of more construction projects, thereby supporting the demand for cement. Furthermore, the Chinese government might also push back the grace period, set by the three red lines policy, for meeting the debt targets. All of these policy measures are expected to have a positive impact on the demand for commodities like cement, thereby supporting the growth of the Asia Pacific cement industry from the short to medium-term perspective.
This market intelligence report from ConsTrack360 provides a detailed view of market opportunities in the cement industry. With over 50+ KPIs, covering construction markets, distribution channel, end-user, and products in each country, this databook offering primarily provides data-centric analysis with charts and tables.
- Cement Market Dynamics: Provides a comprehensive data-centric view of size and structure, industry dynamics, and cement opportunities in the various end-user industry a in the country
- Distribution Channel: Provides an in-depth analysis of distribution channel across products at country level in value terms.
- Cement Products: Provides demand analysis of market by 4 key products. Portland Cement, Blended Cement, Specialty Cement, and Green Cement. This segment also includes in depth analysis of further sub-segments of cement product types.
ConsTrack360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
This title from ConsTrack360 is a bundled offering, combining the following 11 reports (300 tables and 470 charts):
1. China Cement Business and Investment Opportunities (2018-2027) Databook
2. India Cement Business and Investment Opportunities (2018-2027) Databook
3. Australia Cement Business and Investment Opportunities (2018-2027) Databook
4. Indonesia Cement Business and Investment Opportunities (2018-2027) Databook
5. Thailand Cement Business and Investment Opportunities (2018-2027) Databook
6. Malaysia Cement Business and Investment Opportunities (2018-2027) Databook
7. Philippines Cement Business and Investment Opportunities (2018-2027) Databook
8. Bangladesh Cement Business and Investment Opportunities (2018-2027) Databook
9. South Korea Cement Business and Investment Opportunities (2018-2027) Databook
10. Japan Cement Business and Investment Opportunities (2018-2027) Databook
11.Asia Pacific Cement Business and Investment Opportunities (2018-2027) Databook
Scope
This report provides a detailed data-centric analysis of the cement industry, covering market opportunity, and industry dynamics by cement products and end-user, construction market and distribution channel.
In addition, it also provides market size and forecast of the cement products sub-segment and its demand analysis in Venezuela. With over 30+ KPIs at the country level, this report provides comprehensive understanding of market dynamics at a more granular level.
By Cement Markets, 2018-2027
- Residential Buildings
- Non-Residential Buildings
- Infrastructure & Other Markets
By Cement End-User, 2018-2027
- Ready-Mix Concrete Producers
- Consumers
- Concrete Product Manufacturers
- Other End Users
By Distribution Channel, 2018-2027
- Direct Channel
- Indirect Channel
By Cement Product, 2018-2027
- Portland cement
- Blended Cement
- ·Type IS (X), Portland-Slag Cement
- ·Type IP (X), Portland-Pozzolan Cement
- ·Type IL (X), Portland-Limestone Cement
- ·Type IT, Ternary Blended Cement
- Specialty Cement
- ·Rapid Hardening Cement
- ·High Alumina Cement
- ·White Cement
- ·Sulphate Resistant Cement
- ·Others
- Green Cement
- Provide In-depth Understanding of Cement Market Dynamics: market opportunity, industry dynamics, key trends, restraints and drivers across 30+ market segments.
- In detail Segmentation of Cement Product Analysis: Market size and forecast by products, end-user, distribution channel, and construction markets.
- Develop Market-Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market-specific key trends, drivers, and risks in the cement industry in Asia pacific region.
- Comparable Data: Get detailed and comparable data for the cement market size.