Recycled aggregates market CAGR of 9.5 percent expected

A report published by Coherent Market Insights, Seattle, projects that the global recycled construction aggregates market—with an estimated value of 42.8 billion in 2022—will return a compound aggregate growth rate (CAGR) of 9.5 percent between 2023 and 2030.

With the increasing amount of construction activity across the globe, the use and demand for recycled construction aggregates is increasing at a rapid pace. For instance, in March 2023, Holcim, Chicago, and Seqens announced plans to build Recygénie, which the research firm says is world’s first fully recycled concrete building. Drawing on its formulation expertise, Holcim’s Innovation Center developed a concrete product in which all components are made of recycled materials. Built with this unique recycled concrete solution, Recygénie represents a breakthrough in circular construction. Construction is underway, with completion expected in Q4 2024.

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Increasing adoption of sustainable construction practices is one of the key trends Coherent Market says should drive growth of the global recycled construction aggregates market. The increasing emphasis on environmental sustainability has led to more green building and regenerative construction practices, which has increased the demand for recycled construction aggregates to reduce environmental impact. In addition to market demand, regulations are also nudging the industry toward sustainability. For instance, the green building regulations of Canada, including National Energy Code for Buildings, are driving demand for sustainable construction aggregates. Such government initiatives are expected to continue to expand the market.

Governments worldwide have adopted norms to promote the use of recycled construction aggregates. In June 2023, the National Highways Authority of India (NHAI), released a sustainability report which outlines various efforts to preserve the environment and conserve energy. NHAI has been using recycled materials for highway construction.

Despite rising demand for recycled aggregates based on sustainable building practices and new standards, obstacles to wider adoption remain. Two of the key factors expected to hamper growth of the global recycled construction aggregates market are the high cost of operations and quality concerns. Recycled materials might vary in composition and properties, leading to concerns about their performance in certain construction applications, Coherent Markets Insights says. Moreover, collecting and processing construction waste to produce recycled aggregates can be logistically challenging because the need for specialized facilities and equipment can increase operational costs. These factors are expected to restrain the growth of the market during the forecast period, Coherent Markets says.

Rapid growth of the construction industry is expected to offer significant growth opportunities for players in the global recycled construction aggregates market. According to the India Brand Equity Foundation (IBEF), India is expected to become the third largest construction market by 2025. In fact, India, China and the United States are expected to account for almost 60 percent of all global growth in the sector by 2025, and almost 52 percent of all construction activities are already taking place in emerging markets. This in turn is expected to increase the demand for recycled aggregates worldwide.

Coherent Markets says concrete likely will dominate the market because of increased construction worldwide. Driven in part by infrastructure investment, North America and the Asia Pacific region are expected to hold a dominant position over the forecast period due to rapid growth of the construction industry and growing demand for recycled construction aggregates in these regions.