Rise in Green Building Construction Drives the Global Green Cement Market

Technavio’s market research analyst predicts the global green cement market to grow at a CAGR of almost 15 percent by 2020. Green cement is considered as a maintainable construction material as it requires less natural resources, releases less CO2, and reduces the water use in construction. The key factors driving growth in the global market are the availability of raw material and rising awareness of the green building concept, especially in the developing countries. Recently, CEMEX has come up with a green cement, Rizal Green, that can be used in driveways, fences, and ground-floor slabs for residential construction. Moreover, the side-effects of cement manufacturing have created environmental compliance issues, which will propel the demand for green cement during the forecast period (2016-2020).

According to this market research analysis, an interesting trend gaining momentum in the market is the use of waste as alternative fuels (AF) in cement kilns. The utilization of wastes such as used tires, solid recovered fuels, used oils, animal meal, sewage sludge, foundry sand, fly ashes, and filter cakes as AF in cement kilns helps to lower CO2 emissions during the cement production process. Moreover, the cement kilns make more efficient use of the calorific value of the waste material as they approach 100 percent efficiency in using it. An overall reduction of CO2 emissions reduces the environmental impact of the greenhouse gas (GHG) during the combustion of wastes, thereby increasing the application of waste in cement production process. The residential sector was the largest end-user of green cement in 2015 and occupied around 52 percent of the total market share. The changes in population density due to urban migration, are bringing huge investments in new residential units, especially in the urban regions. Moreover, the development of new multifamily housing projects especially in APAC and MEA regions will contribute to the growth of this segment in the coming years.

“… an interesting trend gaining momentum in the market is the use of waste as alternative fuels in cement kilns”

The Americas will continue to dominate the market by 2020 and is expected to account for more than 38 percent of the overall market share. The US will be the largest market for green cement products as stringent regulations regarding GHG emissions will push for extensive demand for such products in construction. Factors such as fast urbanization and industrialization in several developing regions such as Brazil will aid to the growth of the market in the Americas over the next four years. The market is fragmented with the presence of global and regional players. The global players dominate this market making it difficult for the local vendors to sustain especially in terms of innovation and prices. The key vendors are focusing towards technological advancements and mergers and acquisitions and are expected to expand inorganically by obtaining regional or small local players during the forecast period. Competition in the market is expected to intensify with the introduction of many innovative manufacturing processes. Key vendors in the market are Anhui Conch Cement, CEMEX, CNBM, Italcementi, LafargeHolcim. Other prominent vendors in the green cement market are CeraTech, Calera, and Kiran Global Chems.

Technavio