Recycled concrete aggregate market may increase over 10 years

The market for recycled concrete aggregate materials could be on a tear during the next decade, according to a report by Future Market Insights (FMI).

According to FMI, a research firm with North American offices in Newark, Delaware, the global market value for recycling concrete aggregate in 2023 is a little more than $9 billion.

Between now and 2033, FMI projects its market value could reach about $19.5 billion with a compound annual growth rate (CAGR) of 8 percent.

The CAGR over the next 10 years would be an increase over the 2018-22 rate of 7.6 percent, says FMI.

Just last year, FMI projected the 10-year outlook for recycled concrete aggregate would include a CAGR of 6.7 percent through 2032, so the research firm believes the outlook has improved significantly during the past 12 months.

Several factors are combining to fuel the demand for recycled concrete. One is what FMI calls a “rapid shift toward sustainable construction practices” which is boosted by regulatory pressure and new laws in some areas as well as increasing awareness of recycled concrete as an option in developing countries.

FMI says contractors are using recycled concrete more in road infrastructure. With its durability and ability to meet or exceed industry standards in some areas, recycled concrete has become a reliable, long-lasting material for use in road work. Its durability also makes it a good material for building foundations, adds FMI.

If it is recycled at road work sites, recycled concrete can be cost-effective for firms because it can eliminate transportation costs.

Demand for construction materials also may get a boost from the passage of the Bipartisan Infrastructure Law, which authorizes more than $100 billion for infrastructure spending in the United States. However, the timing of some of those projects that would be funded by the 2021 law is in doubt as Congressional leaders and the Biden Administration work to negotiate a deal to increase the nation’s debt ceiling, says the Bipartisan Policy Center.