- In Asia ex-China, capacity additions are expected to decline by an average of 9 percent per year in the next five years
- Europe's capacity addition to slow down due to geopolitical events
- China's regulations resulting in fewer capacity additions
Greenwich (CT), USA, April 12, 2022 – Cement equipment market in Asia ex-China region is expected to remain the largest globally by 2027, despite the fact that the region's market size is set to decline by an average of 9 percent per year over the next five years, according to CW Research's World Cement Equipment Market and Forecast Report 2022.
Cement equipment markets in Latin America and Africa are also projected to register steep declines as capacity additions are also likely to decrease sharply.
"In Asia ex-China, capacity additions are expected to decline sharply in the coming years, however, India, Vietnam, and Bangladesh are likely to remain the main drivers of demand for new cement equipment in the region. Other markets installing a significant amount of new capacity include the Philippines, Pakistan, Indonesia, and Nepal," observes Prashant Singh, Director at CW Group.
Europe's capacity addition to slow down due to geopolitical events
In the next five years, only limited greenfield expansions are anticipated in Western Europe, while in Eastern Europe & CIS, additions are expected to decline on average by 4 percent each year in the 2022-2027 period.
Some capacity expansions have been commissioned in the region in the form of greenfield and brownfield expansions in the past couple of years, particularly in CIS countries and Turkey. However, due to the Russia-Ukraine conflict, capacity additions are expected to slow down in the short-term until there is peace in the region, especially in Russia due to the imposed sanctions.
China's regulations result in fewer capacity additions
In China, the government's plan to reduce excess cement and clinker production capacity by an initial phase-out followed by a complete ban on the production of 32.5 grade cement has resulted in limited new plants being commissioned and existing plants required to undertake upgrades.
Consequently, China's market size is expected to decline over the next five years by an average of 4 percent each year. Thus, upgrade and spare parts segments are expected to account for more than 95 percent of the region's market size.
Developing markets continue to absorb the majority of capacity additions by 2027
Asia ex-China will continue to strengthen its share out of global ex-China capacity, adding in absolute terms almost 200 million tons of capacity over the next five years.
Meanwhile, Latin America and Africa are expected to see additions estimated at 30 and 60 million tons, respectively, over the next five years.
The World Cement Equipment Market and Forecast Report 2022 addresses important market dynamics and the outlook for equipment used in the production of clinker and cement as well as grinding units. Building on rigorous analysis of past and future cement plant capacity expansions (greenfield and brownfield expansions), the report covers key trends in the main production equipment segments, the cement equipment market size (USD) and capacity additions (tons), on both a regional as well as global perspective. It covers equipment required in crushing (crushers), milling (raw meal mills, fuel mills, finishing mills), power (electricity generation and waste heat recovery), pyro processing (burners, pre-heaters / cyclones, kilns, coolers, alternative fuel preparation), and dispatch (weighing, bulk loading, bagging and palletizing equipment), which are sized and forecasted.
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