Industry Outlook
Green cement market is expected to reach US$ 46.14 Bn by 2026 with 10.2% CAGR during the forecast period from 2018 to 2026. In 2017, Europe led the green cement market and Asia Pacific is estimated to be the fastest growing region between 2018 and 2026.
Cement manufacturing is considered to be one of the highest carbon dioxide emitting industries. Global cement industry is facing many challenges related to scarcity of raw materials, growth in environmental concerns and fossil fuel reserves depletion. A single ton of Portland cement on an average releases around 6% of the overall man-made carbon emissions thereby contributing significantly to environmental issues. This leads to emission of high volume of greenhouse gasses and carbon dioxide which in turn enabled several governments, builders, and architects to adopt various greener solutions such as use and development of green cement. Hence growing focus to mitigate carbon dioxide emissions have led to the evolution of green cement. Green cement is defined as an alternative to conventional cement made from industrial waste that includes burnt clay, recycled concrete, power plant wastes, quarrying wastes and slag among others. It is considered as a sustainable construction material that aims to reduce the carbon footprint associated with manufacturing. Trend shows that green concrete manufacturing process is basically characterized by low carbon dioxide emissions in comparison to ordinary cement manufacturing. In addition, significant reduction in water consumption to the level of around 20% can be effected with the growing end-user industry of green cement.
Growing awareness of the green building concept, especially in the developing countries followed by the abundance availability of raw materials such as fly ash are the key factors driving the global green cement market during the forecast period. Growth in construction industry is another factor driving the green cement market. For example, CEMEX launched a green cement, Rizal Green, that mainly finds application in fences, driveways, and ground-floor slabs that are used for residential construction. In addition, the side-effects of cement manufacturing have led to various environmental compliance issues, which is expected to augment the demand for green cement during the forecast period. Various usage of waste as alternative fuels in cement kilns is also driving the global green cement market. Waste utilization that includes solid recovered fuels, tires, used oils, sewage sludge, animal meal, fly ashes, foundry sand, and filter cakes as alternative fuels in cement kilns aims to reduce CO2 emissions during cement production process. In addition, the cement kilns also make efficient usage of calorific value of waste materials. Environmental impact of various greenhouse gas during waste combustion is reduced by carbon dioxide emission reduction which in turn increases waste in cement production process. Hence, growing concerns over greenhouse gas emission is expected to drive the global green cement market during the forecast period. Green cement also has higher fire and thermal resistance properties followed by good resistance to alkali attack throughout season change which in turn is expected to increase its market penetration during the forecast period. Portland Cement Association members are continuously focusing on CO2 emissions reduction to 10% by 2020. Owing to this factor, the cement industry manufacturers are focusing on manufacturing green cement with an objective to minimize emissions and improve energy efficiency. Moreover, government initiatives to improve tax conditions, stringent environment regulations and subsidy grants for green materials production are other factors expected to boost the market growth. The green cement market is expected to observe expeditious technological developments owing to emergence of various technologies such as Frerrocrete and Limestone Calcinated Clay Cement technologies with an objective to increase the effectiveness of green cement. This factor is acting as an opportunity factor in the growth of green cement market during the forecast period. High performance of High Belite Cement(HBC) in developing countries that includes China followed by the continuous research and development activities conducted by cement manufacturers also serves as an opportunity for the global green cement market during the forecast period.
Fly Ash Based Green Cement Segment propelling the growth of Green Cement Market
By product type, fly ash based segment is expected to be the fastest growing segment during the forecast period from 2018 to 2026. Fly ash which is basically a byproduct of burning pulverized coal mainly finds application in various electric generation power plants. It is basically a waste product of coal combustion that is basically used as recycled product used as a substitute for concrete cement. Trend shows that manufacturers mixes 5 to 20 % fly ash in cement to make it green. Abundant availability from thermal plants is basically driving this segment in the global green cement market during the forecast period. In addition, various government initiatives and regulations towards better utilization of fly ash rather than open land dumping is also expected to spur the market demand during the forecast period. For example, In February 2018, the government of India launched fly ash based mobile application named ASH TRACK that aims at proper and efficient management of fly ash produced by various thermal plants. This application also helps to provide interface between potential ash users that includes road contractors, cement plants and ash producers (thermal power plants). In addition, the application will also help in top soil protection, reduction of fugitive emissions thereby protecting the environment and land conservation for sustainable development. In addition, growing application of fly ash in construction industry is also expected to propel the market demand. Slag based green cement held the largest market share in 2017 owing to its growing usage in various residential concrete application that includes basement walls, footings, basement floor slabs, driveways, sidewalks and garages among others.
Residential Segment Identified as the Dominant End-user Industry Segment in 2017
In 2017, residential segment held the largest market share both in terms of value and volume owing to the rising demand for green home and increasing demand in green roof construction. In addition, growing urbanization in developing countries that includes China and India followed by increasing awareness regarding the need for environmental safety building has increased the number of residential projects worldwide which in turn is expected to bolster the demand for green cement during the forecast period. Trend shows that manufacturers are focusing on launching green cement to address the growing demand from commercial and residential sectors. For example, in July 2018, Vicat Group in India launched a green cement for residential purpose with robotic technology under its brand name BharathiUltraFast. Non-residential segment is expected to be the fastest growing segment in the global green cement market owing to its high demand in various commercial applications that includes construction of pavements, office buildings, car parking, exterior walkways and retail stores among others. In addition, rise in adoption of green cement in commercial construction in Asia Pacific and Latin America region is also expected to augment the market demand during the forecast period.
Europe is the Largest Region in the Global Green Cement Market
Increasing demand for recycle products used as a raw material for cement production followed by growing investment in infrastructural developments is basically driving the Europe green cement market during the forecast period. Increasing taxes on industrial emission followed by stringent government regulations related to carbon emission are other factors driving the market. In November 2016, the European Commission has approved an investment package of €222.7 million from the EU budget. This approval was aimed at supporting Europe's transition to a more low-carbon and sustainable future. This in turn is expected to augment the market demand for green cement in this region. North America also held significant share in the global green cement market. Growing consumer demand for clean source of energy followed by stringent rules and regulation by the Environmental Protection Agency (EPA) to support environment friendly materials are basically driving the North America green cement market. Asia Pacific is estimated to be the fastest growing region during the forecast period owing to the growing demand of construction industry in various developing countries that includes China and India among others. Increasing investment in supporting technologies and renewable energy followed by growing demand for recycled products in the cement industry is also expected to propel the market demand for green cement in Asia Pacific region. Middle East and Africa is also expected to grow during the forecast period owing to growing demand for sustainable products followed by increasing demand of green cement in the growing construction industry.
Product Innovation Followed by Research and Development are the Key Strategies Adopted by the manufacturers
Key notable players operating in the global green cement market includes BASF SE, CarbonCure, Taiwan Cement Corporation, CEMEX, Navrattan Blue Crete Industries Pvt. Ltd., Votorantim cimentos S.A., China National Building Material (CNBM), Zuari Group, LafargeHolcim, Calera, Heidelberg Cement, Siam Cement Public Company (SCG), UltraTech Cement Ltd. and Kiran Global Chems among others. Product innovation is the key strategy adopted by the green cement manufacturers. For example, in January 2016, Kiran Global Chems Ltd, the flagship company of M S Jain Group, launched an environment friendly cement with patented technology under its brand name Geocement. This launch will facilitate the company to cut down construction time and reduce carbon dioxide emission. The company is also focusing on investing around INR 200 crores to establish manufacturing plants for this green cement. In addition, Birla Corporation also launched Birla Samrat Ultimate, which is basically a fly ash blended double refined green cement brand.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Green Cement market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Product
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End-user Industry
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
