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Global Demand for Aggregates to Reach 30B Tons in 2011

Wed January 23, 2008 - National Edition
Construction Equipment Guide

Global demand for construction aggregates is expected to grow 4.7 percent annually through 2011 to 30 billion tons (26.8 billion t), valued at $201 billion. Some of the strongest sales increases will be registered in India, which is already one of the largest national markets, as well as in the huge Chinese market.

Smaller markets such as Indonesia, Thailand, a number of developing countries in Asia, and Iran also will record strong gains, spurred by industrialization activity and continued growth in infrastructure construction.

Growing environmental and land use concerns will spur above-average sales gains for aggregates composed of recycled materials like crushed hydraulic and asphaltic concrete and waste materials such as fly ash and blast-furnace slag.

These and other trends are presented in World Construction Aggregates, a new study from The Freedonia Group Inc., a Cleveland-based industry market research firm.

Advances will not be as strong in the developed areas of the world, including the United States, Japan and Western Europe. Infrastructure repair and maintenance construction will drive demand in these areas through 2011. An increase in nonbuilding construction projects in the United States also will contribute to overall aggregates market growth, despite a slowdown in residential building activity.

The nonbuilding construction market, which accounted for more than 70 percent of worldwide aggregates demand in 2006, is forecast to be the fastest growing. Gains in nonbuilding construction will predominantly be fueled by an increase in road and highway development in developing nations.

Demand for construction aggregates used in the production of asphaltic concrete will climb the fastest of all major application categories, spurred by growth in road building and maintenance construction around the world. Aggregates used in hydraulic concrete applications, which accounted for approximately 40 percent of total 2006 product demand, are expected to rise at a slightly more moderate pace.

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