United Kingdom Cement Industry Report 2023: Decarbonization, Reduce Carbon Emissions, Net-Zero Investments Dominate the Landscape - Forecasts to 2027 - ResearchAndMarkets.com

The "United Kingdom 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 Kingdom to grow by 3.2% on an annual basis to reach US$ 4.62 billion in 2023. The cement output in the country is expected to increase from US$ 4.48 billion in 2022 to reach US$ 5.14 billion by 2027. 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 2.7% during 2023-2027.

The housing market, government spending on infrastructure projects, and environmental regulations are among the various factors that are projected to influence the growth of the cement industry in 2023. Despite the drop in energy prices, the cement sector is expected to experience further increases in prices over the next 12 months.

While this will add to the revenue growth of cement makers in the United Kingdom, higher prices mean that consumption will remain under pressure due to macroeconomic factors and rising inflation in H1 2023. Although the trends were projected to improve in H2 2023 when inflation cooldowns and prices stabilize in the global market.

In 2023, the United Kingdom cement market was to benefit from increasing investment in innovative technologies, which assist cement manufacturers to reduce their carbon emissions. Investment from the government in space is also projected to increase over the next five years.

Firms are investing to build a net-zero cement factory in the United Kingdom

The cement industry is one of the biggest contributors to global carbon dioxide emissions. Consequently, as part of the efforts to decarbonize the sector, cement manufacturers are investing in the development of net-zero cement factories in the United Kingdom. For instance,

• Heidelberg Materials, formerly known as HeidelbergCement, announced that the firm aims to build the first net-zero cement plant in the United Kingdom by 2027. The new facility is part of the firm's strategy to capture 800,000 tonnes of carbon dioxide at its cement plant at Padeswood. Over the next three to four years, the firm is planning to invest £400 million to upgrade the manufacturing site for implementing carbon-capture technology.
• In 2022, Cemex, the Mexico-based cement manufacturer having operations in the United Kingdom as well, announced that the firm will operate on alternative fuel. This is part of its strategy to significantly reduce the carbon dioxide emissions from the cement plant. While the firm did not announce the cement plant's transition to alternate fuels, it is expected to be completed in a phased manner at the Rugby facility.

The net-zero cement factory is in line with the government initiatives to achieve net-zero goals by 2050 in the United Kingdom. From the short to medium-term perspective, the publisher expects more firms to invest in reducing carbon emissions in the United Kingdom.

Government investment in innovative projects to decarbonize highways will support cement industry growth

In 2023, the United Kingdom government announced an investment of £30 million for funding seven projects to decarbonize highways in the region. These projects include carbon-capturing cement and the green waste being used for making asphalt. The innovative projects will help accelerate the United Kingdom's journey to net-zero goals. The £30 million funding has been made available through the Live Labs 2: Decarbonizing Local Roads competition. Notably, Live Labs 2 has been designed to drive innovation in the public and private sectors in the United Kingdom.

Cement manufacturers are launching innovative products to reduce carbon emissions in existing plants

In line with the government initiative to become a carbon-neutral nation by 2050, many cement firms are investing in research and development to develop innovative products, which can assist them in reducing carbon emissions.

• In November 2022, Ecocem, the Irish cement manufacturer, announced the launch of an innovative alternative materials-based cement ingredient that has the potential to reduce the carbon emission of cement production by 70%. The cement manufacturer is planning to deploy the technology across all of its cement manufacturing plants in Benelux, France, Ireland, and the United Kingdom.
• The firm also claims that the technology can be easily implemented in any of the existing cement plants and therefore, there is a large commercial opportunity for the innovative technology in the global market. Global players have shown their interest in the Irish cement manufacturer. Some of its investors include France-based Saint-Gobain and United States-based Breakthrough Energy Investments.

Over the next three to four years, the publisher expects more such innovative products and technology development in the United Kingdom, which will subsequently drive the competitive landscape in the domestic cement market.

Scope

United Kingdom by Cement Markets, 2018-2027

• Residential Buildings
• Non-Residential Buildings
• Infrastructure & Other Markets

United Kingdom by Cement End-User, 2018-2027

• Ready-Mix Concrete Producers
• Consumers
• Concrete Product Manufacturers
• Other End Users

United Kingdom by Distribution Channel, 2018-2027

• Direct Channel
• Indirect Channel

United Kingdom 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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