Market Overview:
The global advanced building materials market size was valued at around USD 57.2 billion in 2021 and expected to grow at a CAGR of 7.2% during the forecast period. The global advanced building materials market refers to the market for materials that are specifically designed to enhance the performance, efficiency, durability, and sustainability of buildings. These materials are usually used in the construction of high-performance buildings and are designed to improve the overall energy efficiency of the building, reduce the carbon footprint, and enhance the indoor environmental quality. Some examples of advanced building materials include advanced insulation materials, smart glass, photovoltaic glazing, green roofing, and advanced cementitious materials. These materials are designed to provide improved performance in terms of strength, durability, and insulation, and also offer sustainable and energy-efficient solutions for modern construction projects.
Covid-19 Impact:
The global advanced building materials market has been impacted by the COVID-19 pandemic in several ways. The pandemic has disrupted the global supply chain and has caused a slowdown in construction activities worldwide, which has had a significant impact on the demand for advanced building materials.
During the initial phases of the pandemic, construction activities were halted in many countries, leading to a decline in the demand for advanced building materials. The closure of manufacturing facilities and the disruption in the supply chain also caused a shortage of raw materials, leading to an increase in prices of advanced building materials.
However, with the gradual relaxation of lockdown measures and the resumption of construction activities, the demand for advanced building materials has started to recover. In addition, the pandemic has increased awareness about the importance of sustainability and energy efficiency in buildings, which has created a growing demand for advanced building materials that can help reduce the carbon footprint of buildings and improve energy efficiency.
Moreover, the pandemic has led to an increased focus on health and safety in buildings, which has created a growing demand for materials that can improve indoor air quality and reduce the risk of infection. This has led to an increased demand for advanced insulation materials and smart glass, which can help maintain indoor air quality and improve the overall health and safety of buildings.
Overall, while the COVID-19 pandemic has had a significant impact on the global advanced building materials market, the growing focus on sustainability, energy efficiency, and health and safety in buildings is expected to create new opportunities for growth in the market.
Market Dynamics:
Drivers:
Growing demand for sustainable and energy-efficient buildings: The demand for advanced building materials is being driven by the growing need to create sustainable and energy-efficient buildings. These materials can help reduce the carbon footprint of buildings, improve energy efficiency, and enhance the overall performance of buildings.
Increasing urbanization and population growth: The global population is expected to continue to grow, and with it, the demand for buildings and infrastructure. This is expected to drive the demand for advanced building materials as builders and developers seek to construct high-performance buildings that can accommodate growing populations.
Stringent regulations and standards: Governments around the world are implementing stringent regulations and standards aimed at reducing carbon emissions and improving energy efficiency in buildings. This is expected to drive the demand for advanced building materials that can help builders and developers comply with these regulations and standards.
Technological advancements: Advancements in technology have led to the development of new and innovative advanced building materials that offer superior performance and energy efficiency. These materials are expected to drive demand in the market as builders and developers seek to incorporate the latest technologies into their projects.
Increasing focus on health and safety: The COVID-19 pandemic has led to an increased focus on health and safety in buildings. This is expected to drive the demand for advanced building materials that can help improve indoor air quality and reduce the risk of infection.
Restraints:
High cost: Advanced building materials are often more expensive than traditional materials. This can make them less accessible to builders and developers who are operating on tight budgets, and could limit their adoption.
Lack of awareness: Many builders and developers are not fully aware of the benefits of advanced building materials. This lack of awareness could limit the demand for these materials, as builders and developers may be hesitant to adopt new materials they are not familiar with.
Availability of raw materials: The availability of raw materials needed to produce advanced building materials can be limited. This can lead to supply chain disruptions and price volatility, which can impact the adoption of these materials.
Regional Analysis:
North America: The North American advanced building materials market is expected to grow significantly due to the increasing focus on sustainability, energy efficiency, and green building practices. The United States is the largest market in this region, driven by the growing demand for high-performance building materials and the presence of major players in the market.
Europe: The European advanced building materials market is expected to grow due to the increasing demand for green building materials and the implementation of stringent regulations aimed at reducing carbon emissions and improving energy efficiency in buildings. Germany, France, and the UK are the major markets in this region.
Asia Pacific: The Asia Pacific region is expected to witness significant growth in the advanced building materials market due to rapid urbanization, population growth, and rising disposable income in countries such as China, India, and Japan. The increasing demand for energy-efficient buildings and the adoption of green building practices are also driving growth in this region.
Latin America: The Latin America advanced building materials market is expected to grow due to the increasing demand for high-performance building materials and the growing construction industry in countries such as Brazil and Mexico.
Middle East and Africa: The Middle East and Africa advanced building materials market is expected to grow due to the increasing demand for sustainable and energy-efficient building materials, coupled with the increasing investment in infrastructure and construction projects in the region.
Market Segmentation:
By material type: The advanced building materials market can be segmented based on material type, including concrete, bricks, insulation, roofing, flooring, and others.
By application: The advanced building materials market can be segmented based on application, including residential, commercial, and industrial construction.
By end-use: The advanced building materials market can be segmented based on end-use, including walls, floors, roofs, and others.
By geography: The advanced building materials market can be segmented based on geography, including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
Competitive Landscape:
The global advanced building materials market is highly competitive, with several global and regional players operating in the market.
Some of the key players in the market include:
LafargeHolcim Ltd.
BASF SE
Dow Chemical Company
Saint-Gobain S.A.
3M Company
Owens Corning
DuPont de Nemours, Inc.
Boral Limited
Kingspan Group
Huntsman Corporation
These companies are focusing on various growth strategies such as mergers and acquisitions, partnerships, and collaborations, product innovations, and expansions to strengthen their market position. For instance, in May 2021, BASF SE launched a new product called SLENTEX, an innovative thermal insulation material that is highly efficient and environmentally friendly. In addition, in August 2021, Saint-Gobain S.A. announced the acquisition of Phoenix Coating Resources, a company that produces high-performance coatings for industrial and construction applications, to expand its offerings in the North American market.
The key players in the market are also investing in research and development activities to develop advanced building materials that are sustainable, energy-efficient, and cost-effective. They are also focusing on expanding their production capabilities to meet the growing demand for advanced building materials across the globe. With increasing competition, companies are also focusing on building a strong distribution network and enhancing their customer services to retain their market share and gain a competitive advantage in the market.