Limestone is a sedimentary rock composed primarily of calcium carbonate in the form of the mineral calcite. It is one of the most abundant rocks present on earth and has a wide range of industrial applications. Limestone finds extensive use in construction industry where it is used as building material, road construction, agricultural purposes etc. The global construction industry has been witnessing steady growth fueled by infrastructural development and growing urbanization across both emerging and developed economies. Moreover, limestone is used as a fluxing agent for iron and steel production. It is also used as a sorbent for removing sulfur dioxide from power plant flue gases.
The global limestone Market is estimated to be valued at US$ 856089.93 Mn in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing construction industry opens lucrative opportunities for growth of the limestone market during the forecast period. According to the Global Construction 2030 report, the global construction output is projected to grow by 85% to $15.5 trillion worldwide by 2030. Steady growing urbanization across developing nations is escalating the demand for infrastructure development such as roadways, housing, commercial buildings and public facilities. Limestone finds extensive use as aggregate in road construction and as cement raw material in the construction of buildings and infrastructure. The growing construction industry especially in Asia Pacific region including China and India provides impetus for limestone consumption over the forecast period.
Porter's Analysis:
Threat of new entrants: The limestone market requires high capital investments for setting up mining operations and processing facilities which acts as a barrier for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power as limestone has applications across diverse industries. However, the presence of numerous suppliers limits buyers' influence over prices.
Bargaining power of suppliers: Limestone suppliers have low to moderate bargaining power due to abundant global reserves and ease of switching between suppliers. However, suppliers that own mining rights or have integrated operations enjoy greater influence.
Threat of new substitutes: Limestone faces competition from substitute materials like cement, calcium carbonate, and dolomite in certain applications. However, the availability and cost-effectiveness of limestone restricts the impact of substitutes.
Competitive rivalry: The limestone industry experiences moderate to high competitive pressure due to the large number of players globally and availability of limestone reserves with various companies.
SWOT Analysis:
Strengths: Wide applications of limestone across sectors like construction, steel, paper, and environment protection. Abundant global reserves of limestone ensure strong supply.
Weaknesses: Fluctuating limestone prices depend on demand-supply dynamics impacting revenue planning. Heavy dependence on weather conditions during mining.
Opportunities: Rising infrastructure development worldwide is expected to boost demand for limestone in construction activities. Growing steel and cement industries in developing nations offer new markets.
Threats: stringent environment regulations can limit limestone quarrying. Substitute materials present competition in select applications.
Key Takeaways:
The Global Limestone Market Growth is expected to witness high over the forecast period supported by rising construction activities and expanding end-use industries worldwide. The Asia Pacific region currently dominates global limestone production and consumption led by China, accounting for over 60% share. China has the largest limestone reserves and is a major exporter globally.
Regional analysis:
The Asia Pacific region leads global limestone production and demand with China as the highest producer and consumer globally. Abundant reserves and growth of infrastructure, construction and cement sectors have propelled China’s dominance. India also has significant limestone resources and the market is growing due to government initiatives for infrastructure development and housing projects. Going forward, rising construction of roads, bridges, airports and buildings will continue driving regional limestone consumption in Asia Pacific.
Key players:
Key players operating in the limestone market are AMR India Limited, Carmeuse, GLC Minerals LLC, Graymont Limited, Gujarat Mineral Development Corporation Ltd, Imerys, Kerford Limestone, LafargeHolcim, Lhoist Group, Minerals Technologies Inc., Okutama Kogyo Co. Ltd, Omya AG, RSMM Limited, Ryokolime Industry Co. Ltd (Mitsubishi Materials Corporation), SCHAEFER KALK GmbH & Co. KG, The National Lime & Stone Company, and United States Lime & Minerals Inc.
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