Dublin, May 08, 2024 (GLOBE NEWSWIRE) -- The "United States Cement Industry Market Size & Forecast by Value and Volume Across 50+ Market Segments by Cement Products, Distribution Channel, Market Share, Import Export, End Markets - Q2 2023 Update" report has been added to ResearchAndMarkets.com's offering.
Cement industry in United States is expected to grow by 3.5% on an annual basis to reach US$ 9.64 billion in 2023.
The medium to long term growth story in country remains intact. The cement industry in country is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 3.6% during 2023-2027. The cement output in the country is expected to increase from US$ 9.31 billion in 2022 to reach US$ 11.10 billion by 2027.
The increasing spending on infrastructure projects, coupled with the surge in cement prices owing to higher inflation, supply chain crisis, and other macroeconomic factors, cement providers in the United States achieved strong growth in their top line. CEMEX, for instance, reported double-digit EBITDA growth, largely driven by strong pricing, in the United States.
Going forward, in 2023, the publisher expects the cement prices to cool down. However, it will remain elevated when compared to the pre-pandemic levels. The demand for cement is also projected to grow in the near time, owing to the increasing spending on infrastructure and commercial construction projects. This is also projected to lead to higher import of cement in the United States from the short to medium-term perspective. Furthermore, cement manufacturers are also projected to expand their operations and investment in the North American market.
Cement imports have recorded steady growth in the United States amid higher demand for construction material
The demand for cement has been on a steady rise in the United States, amid a significant undertaking of new infrastructure and commercial construction projects in 2022. Both public and private entities have increased their investment in the construction sector. Many manufacturing firms have announced new industrial facilities, while tech firms are expanding their data centers. As a result of these projects, the demand for cement also increased, resulting in a steady increase in cement imports.
- In H1 2022, Portland and blended cement consumption increased by 4% in the United States, according to a report from the US Geological Survey. In June 2022 alone, the demand was up 7%. Much of the demand originated from Texas, California, Florida, Ohio, and Illinois. With the construction market expanding, the total shipments of Portland and blended cement continued to rise in H2 2022. The report from US Geological Survey revealed that the total shipments increased by 5.7% in September 2022.
With the United States construction industry project to grow in 2023, the publisher expects the demand for cement to remain robust, which will subsequently lead to further growth in total shipments over the next 12 months.
Firms are investing in cement plants to enhance their presence in the United States market
With the demand for cement projected to increase over the next five years, amid the rising industrial and commercial construction, firms are investing in new cement plants to enhance their presence in the United States. For instance,
- In August 2022, Calucem, the specialty cement manufacturer, announced that the firm will invest US$35 million in a new plant, which is aimed at garnering more market share in the United States market. The operations at the new plant are projected to commence in Q3 2023. With the demand projected to rise significantly, the new manufacturing plant will allow the firm to drive its growth in the North American market.
From the short to medium-term perspective, the publisher expects more such global players to expand their presence in the United States cement market, leading to higher investment in new manufacturing facilities over the next three to four years.
Global cement makers are considering more acquisitions to expand their business in the United States
The North American market has become a big growth region for global cement makers. To further strengthen their position in the region, global players are seeking acquisition opportunities, which will subsequently help them to boost their revenue growth.
- In January 2023, LafargeHolcim, one of the leading cement groups in the world, announced that the firm is seeking more acquisition opportunities as part of its strategy to further expand in the North American region. By 2025, the firm wants to grow its solutions and products division to around 30% of the total sales. In January 2023, the group bought a fiberglass matt facility in the United States, as part of its strategy to boost the roofing business.
With the roofing business having a market volume of US$30 billion in the United States, the cement group is focusing on increasing its market share from the short to medium-term perspective in the segment. With high margins and good growth, the market represents a strong growth opportunity for LafargeHolcim over the next three to four years.
Scope
United States by Cement Markets, 2018-2027
- Residential Buildings
- Non-Residential Buildings
- Infrastructure & Other Markets
United States by Cement End-User, 2018-2027
- Ready-Mix Concrete Producers
- Consumers
- Concrete Product Manufacturers
- Other End Users
United States by Distribution Channel, 2018-2027
- Direct Channel
- Indirect Channel
United States by Cement Product, 2018-2027
- Portland cement
- Blended Cement
- Type IS (X), Portland-Slag Cement
- Type IP (X), Portland-Pozzolan Cement
- Type IL (X), Portland-Limestone Cement
- Type IT, Ternary Blended Cement
- Specialty Cement
- Rapid Hardening Cement
- High Alumina Cement
- White Cement
- Sulphate Resistant Cement
- Others
- Green Cement
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