Global Aggregates Consumption Predicted to Increase
- Written by Mark Kuhar
March 14, 2011 – You can never have enough data, that's what I always say. Well, Aarkstore Enterprise just released its latest global construction aggregates market research report. And it contains a lot of data. The report provides data for 2006-2010, and forecasts from 2011 through 2015 along with growth rates. During the review period, the consumption value of global construction aggregates grew at a Compound Annual Growth Rate (CAGR) of 7.26 percent. While South America experienced the fastest growth in consumption value during the review period, Asia-Pacific and Europe led the market in terms of contribution to global construction aggregates consumption value in 2010. Until 2007, a combination of low interest rates and easy access to credit led to a boom in the global residential construction market resulting in high demand for aggregates, particularly in developed markets such as the U.S. However, the sub-prime crisis that emerged in the U.S. in late 2007 led to a fall in demand for residential properties in 2008, a trend that spread to other countries and lead to a global economic crisis towards the end of 2008. The crisis had a negative impact on the construction industries of the majority of countries worldwide. However in order to counter construction industry declines, the majority of governments across the world introduced substantial stimulus packages comprising huge investments in infrastructure projects, a move which led to increased demand for aggregates from the infrastructure construction market. The impact of the global economic crisis was comparatively less in developing nations, the majority of which recorded strong construction industry growth, and consequently demand for aggregates, despite the global crisis. The value of consumption of construction aggregates globally is expected to increase at a faster rate throughout the forecast period, with a CAGR of 10.68 percent.