Global demand for construction aggregates is expected to grow 4.7 percent annually through 2011 to 26.8 billion metric tons, valued at $201 billion. These and other trends are presented in “World Construction Aggregates,“ a study released by The Freedonia Group Inc., a Cleveland-based market-research firm. Some of the strongest sales increases will be registered in India, already one of the largest national markets, as well as in China. Smaller markets such as Indonesia, Thailand, Iran and developing countries in Asia also will record strong gains, spurred by industrialization and continued growth in infrastructure construction. Growing environmental and land-use concerns will spur above-average sales gains for aggregates composed of recycled materials such as crushed hydraulic and asphaltic concrete and waste materials such as fly ash and blast-furnace slag.

The report also states that advances will not be as strong in the developed areas of the world, which include the United States, Japan and Western Europe. Infrastructure repair and maintenance construction will drive demand in these areas through 2011. An increase in nonbuilding construction projects in the U.S. also will contribute to overall aggregates market growth, despite a slowdown in residential building activity.

The nonbuilding construction market, which accounted for more than 70 percent of worldwide aggregates demand in 2006, is forecasted as the fastest growing segment. Gains in nonbuilding construction will predominantly be fueled by an increase in road and highway construction in developing nations.

According to the report, demand for construction aggregates used in production of asphaltic concrete will climb the fastest of all major application categories, spurred by growth in road building and maintenance construction worldwide. Aggregates used in hydraulic concrete applications, which accounted for approximately 40 percent of total 2006 product demand, are expected to rise at a slightly more moderate pace.

More information is available at www.freedoniagroup.com.

WORLD CONSTRUCTION AGGREGATES DEMAND
(million metric tons)