The global green cement market accounted to US$ 15.55 Bn in 2017 and is expected to grow at a CAGR of 13.3% during the forecast period 2018 - 2025, to account to US$ 42.73 Bn by 2025.
The most prominent region in the green cement market accounted for Asia Pacific, pertaining to huge availability of raw materials required for preparing green cement. Another factor boosting the green cement market in the region is the rise in population in Asia Pacific countries, which demands more residential areas. Also, the developing economies of APAC are experiencing a tremendous growth in their FDIs for infrastructure and construction sector. This factor is helping the green cement market to soar over the years. For instance, the Indian government has introduced new FDI policy in 2017 under which several amendments have been done such as the RBI has announced 100% FDI under automatic route for the development of construction development sector. This limit was introduced in December 2014. Also, the Indian government relaxed FDI rules in the construction sector by reducing minimum capital requirement as well as built-up area. The government has also liberalized the exit norms. Such regulations will attract more FDI in these countries thereby, increasing the infrastructure investments, which directly impacts the green cement market. However, the green cement market is foreseen to be tending towards the European market during the forecast period, due to various governmental initiatives and increase in manufacturing facilities.
Exhibit: Lucrative Regional Markets
Penetration of Slag Cement in Global Green Cement Market is expected to continue its Dominance
In 2017, the slag sub-segment in the global green cement market captured the maximum share and the same is expected to dominate the green cement market throughout the forecast period. Slags or Ground Granulated Blast Furnace Slags (GGBFS) are environmental friendly, and is one of the appropriate substitute of Ordinary Portland Cement (OPC). The slag cement has several advantages over the conventional cements such as; it enhances workability, reduces permeability, increases performance, and improves durability among others. The usage of slag cement reduces the weight of the cement by 30% - 85% with the increase in strength of the cement. Attributing to the benefits of the slag cement, the consumers across the globe are increasingly adopting this product.
Rising Demand for CO2 Reduction
The industries across the globe are continuously engaging themselves in enhancing environmental sustainability and maintain a pollution free zone in the vicinity. The cement industry is one of the major industries in CO2 emission, accounting for more than 5% of global CO2 emission. The key reason behind the emission is the decarbonation of limestone as well as the enormous amount of energy needed to heat the raw materials.
Various initiatives have been undertaken by the developed nations and developing economies across the globe in order to manufacture high-class cement with improved energy and reduced CO2 emissions. Several organizations and cement manufacturers are continuously focusing on the development of energy efficient concrete material and lower the CO2 emission percentage. As the demand for commercial, residential and industrial infrastructure is rapidly increasing across the globe, the demand for energy efficient, low carbon content cement is also growing simultaneously. Attributing to these two factors, the fly ash cement, slag cement, limestone calcined clay cement, and recycled aggregates cement among others are gaining substantial prominence in the current scenario. Owing to less carbon content as compared to clinker (used in Ordinary Portland Cement), the cement manufacturers are increasingly opting for these raw materials as alternatives. The surge in adoption of fly ash cement, slag cement, and recycled aggregate cement among others is influencing the green cement market to bolster in the present market state.
The global green cement market is segmented on basis of various types of materials such as fly ash, recycled aggregates, slags and others. Silica fumes, red mud, burnt clay, and sawdust among others are some of the materials used for green cement are considered under the others segment. The most widely used segment is the slag, which is due to the major advantage of weight reduction of the cement. Another benefit of slag is; the substance is highly resistant to acids, resulting in better quality concrete. The second most commonly used type segment in the green cement market is the fly ash which reduces carbon dioxide emission during concrete mixing. This factor has increased the demand for fly ash cement heavily, and the trend is expected to propel over the years. Pertaining to the increasing demand, the fly ash segment is poised to surge during the forecast period from 2018 - 2025.
End User Insights
The global green cement market is categorized on basis of various end users as commercial sectors, residential sector, and industrial sector. The residential sector is the most flourished end user in green cement sector worldwide in 2017, owing to the application of the same in large quantity. Another major reason behind the dominance of residential sector in green cement market is the increasing number of applications. On the other hand, various governments in the developed economies and developing nations are investing substantial amounts in order to improve and enhance the quality of roads, highways, and fly overs with the help of green cement in the current scenario. This factor is impacting the heavily on the growth of the green cement in the commercial sector, and the trend is anticipated to continue, thereby, the green cement market
in commercial sector is foreseen to bolster during the forecast period from 2018 - 2025. Industrial sector on the hand is witnessing a fair demand of green cement as the fly ash cement or slag cement or recycled cements have the capabilities of improving workability, reducing permeability of water as well as various chemicals, and also prevents the infrastructure from acid attacks. These benefits of different types of green cement is expected to drive the green cement market in the industrial sector over the years.
Exhibit: Europe Green Cement Market, By End User, 2017 & 2025