MRO Magazine

Growing Construction Activities in APAC Will Substantially Drive the Global Cement Mixer Market Through 2020

June 30, 2016
By Business Wire News


Technavio’s latest global cement mixer market report highlights three key emerging trends predicted to impact market growth through 2020. Technavio defines an emerging trend as something that has potential for significant impact on the market and contributes to its growth or decline.

“In APAC countries, the construction market is growing at a rate of nearly 12% annually. It consists of the fastest growing and emerging markets in countries such as China, India, Indonesia, Malaysia and Vietnam, which are also considered to exhibit great potential for cement mixers,” said Soumya Mutsuddi, one of Technavio’s lead industry analysts for construction.

Technavio’s market research study identifies the following three emerging trends expected to further propel the global cement mixer market:

  • Use of alternative fuel for cement production
  • Increased use of blended cement
  • Growth in equipment rental and leasing business

Use of alternative fuel for cement production

Coal has been a primary source of energy in the production of electricity via thermal power plants. Approximately 65% of the coal produced globally is used by the power industry. The remaining 35% of coal is used in manufacturing steel and cement in the construction market. However, the supply of coal to the cement industry is inadequate, making it an expensive fuel. The coal supplied to the cement companies is in accordance with the Fuel and Supply Agreement (FSA) signed between the coal and cement manufacturing companies. Due to a shortage in the global supply of coal supply, coal companies are only able to provide manufacturers with 50% of the total requirement.

Pet coke is an alternative fuel that is being adopted globally. It is a solid, carbonaceous residue that is produced either by thermal decomposition of heavy petroleum fractions or cracked stocks.

Increased use of blended cement

The trend of using blended cement is increasing, globally. Construction companies and contractors are becoming more aware of environmental issues and diminishing natural resources while producing cement. Hence, they prefer the use of blended cement in large-scale construction projects. Some of the construction companies executing projects prefer to blend cement at the construction site using ordinary Portland cement (OPC) and fly ash or ground-granulated blast-furnace slag (GBBS). Selection of fly ash or GGBS by the construction companies depends on the commercial and technical factors required for particular construction project.

Blended cement is manufactured with the addition of pozzolanic materials, such as silica fume, fly ash, and slag to cement clinker and gypsum. This improves the overall quality of the concrete structure, making it resistant to high-temperature and corrosion.

OPC is considered to be an efficient blending material for concrete. The raw material used in the construction of power plants needs to withstand high temperatures. Blended cement reduces water demand, leading to reduced water-cement ratio, which in turn, improves workability. Cement is said to be usable if it is easily transported, placed, and compacted. Blended cement is finer as compared to OPC, resulting in reduced permeability of concrete and improved durability. Therefore, the use of blended cement has been increasing rapidly, especially for construction projects.

Growth in equipment rental and leasing business

Ownership of construction equipment involves heavy expenditure. Due to the high initial investment involved, smaller firms are hesitant to invest in new equipment, despite the need for replacement. This has resulted in manufacturers striving to promote their equipment through renting and leasing.

Leading vendors, such as Liebherr and Sany Heavy Industries, are offering rental and lease services to customers. Equipment can be rented on a daily or annual basis, and the lease period is often less than the average lifetime of the equipment. This allows construction companies to utilize the equipment without incurring heavy investment costs, which further contributes to the growth of earthmoving equipment manufacturers.

Auxiliary services such as specialist consultation and proactive maintenance are also increasingly offered for rental or lease customers. Therefore, equipment rental helps construction companies utilize the most recent innovations in construction equipment without spending on equipment ownership. Growth in equipment rental business is expected to fuel market growth during the forecast period.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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