As Asia ex-China takes the lead in terms of new cement capacity additions, with a significant number of greenfield and brownfield projects in the pipeline, India, Vietnam and Indonesia are expected to drive demand for new equipment in the next five years, according to CW Research's 2021 update of the World Cement Bag & Bagging Equipment Industry and Forecast.
Other markets installing a significant amount of new capacity include the Philippines, Pakistan, Myanmar and Nepal.
“Asia ex-China greenfield projects have been losing relative importance compared to brownfield and upgrades, with the volume of new greenfield capacity only expected to grow by over 2 million tons per annum between 2016 and 2026 in the region. In these markets, new facilities and rising labor costs create opportunities for bagging equipment,” explains Prashant Singh, Associate Director at CW Group.
Automation remains a key trend in the long term in Asia ex-China
Major markets including India, Indonesia, and the Philippines rely heavily on bagged cement manual labor, which means that many dispatch lines are only partly automated.
Greenfield and brownfield investments are expected to drive demand for new dispatch equipment, sustaining a tendency for automation in the long term. In Asia ex-China, the dispatch market is expected to see a decline between 2021 and 2026.
Cement bagging capacity in Africa to remain sluggish over the forecast period 2026
New and upgraded cement bagging capacity is expected to remain sluggish by 2026. Once a buoyant market in terms of capacity expansions, the African cement environment is becoming oversaturated, with expansions being less frequent than in the past five years.
Nevertheless, aging cement plants, particularly in South Africa and in big northern African markets are likely to provide demand for upgrades, while some particularly strong markets including Ethiopia will be responsible for both brownfield and greenfield projects.
Dispatch equipment market size to grow boosted by palletizers in Latin America
In Brazil and Argentina, the law requires cement bags to be palletized before dispatch. Dispatch equipment market size is expected to grow led by palletizers, which is likely to increase at a CAGR of almost 3 percent in the period.
In Latin America, cement demand is witnessing an increase led mostly by housing works. New capacity is expected to be installed mostly in markets that have traditionally relied on imports and are thus focusing on becoming self-sufficient.
CW Group’s World Cement Bag & Bagging Equipment Industry and Forecast Report addresses important market dynamics and provides a five-year outlook for equipment used in the bagging of cement, including entire dispatch lines. The report provides a comprehensive view of this market segment, providing critical decision support information for cement and cement bag producers, kraft paper manufacturers, distributors, suppliers of bagging equipment and other stakeholders. The report explores demand for cement bags and related bagging equipment on a global as well as a regional basis. Additionally, shares for bag vs bulk distribution, market trends and packaging options (kraft paper, polypropylene etc.) are discussed together with an outlook for the industry.
Find out more about the report here.