Global construction activity is forecast to rise more than 70% by 2050, reaching $16.6 trillion, mainly driven by five megatrends: population growth and urbanisation; infrastructure and housing deficits; climate adaptation; sovereignty and strategic resilience; and high-tech infrastructure, according to a new report by Oxford Economics for the Global Cement and Concrete Association (GCCA).

The report, titled 'Concrete’s Enabling Role in Building a Sustainable and Resilient Future,' shows that the world already faces a significant infrastructure shortfall and this is set to increase. 

Construction activity almost doubled over the past 25 years and will continue to rise materially over the next 25 years, but delivery is failing to keep pace with demand. 

To address this will require more effective planning and procurement, committed and visible infrastructure project pipelines, deeper public-private collaboration, reliable access to essential materials such as cement and concrete, expanded construction capacity and long-term capital, it stated.

Low-carbon cement and concrete also have a vital role to play in enabling a more resilient, inclusive and sustainable future. Concrete underpins the infrastructure systems that drive economic and social outcomes, primarily due to its scalability, durability and local availability. Reflecting this, Oxford Economics estimates that annual concrete demand from utilities, transport and social building sectors alone will reach 20 billion tonnes by 2050. It also supports local economies, jobs and regional industrial capacity.

Thomas Guillot, Chief Executive of the GCCA, said: "The world faces a defining challenge: how to close the infrastructure and housing gaps and build the climate adaptation capability that we need. Concrete is already the foundation of modern life, and the industry is transforming rapidly to meet the increasing demand for sustainable construction solutions."

"Through innovation, investment and collaboration across the value chain, we are delivering lower-carbon cement and concrete that will help societies build the resilient and sustainable infrastructure needed for generations to come," he noted.

"However, to achieve the industrial scale transformation that our world needs, we need governments to help stimulate demand for low-carbon materials, enable waste-derived fuels, promote circularity, and back the deployment of carbon capture technologies," he added.

Adrian Hart, author of the report at Oxford Economics, said "The world is entering an extraordinary period of infrastructure demand. Population growth, urbanisation, climate change, geopolitical uncertainty and new technologies are fundamentally reshaping what we need to build, where we build it and how we build it."

"Our research shows global construction activity will increase by more than 70% to $16.6 trillion by 2050. Concrete will be central to meeting this challenge, not just in delivering the infrastructure and housing the world needs, but in supporting economic development, improving living standards and building more resilient communities. The challenge is to deliver more infrastructure and greater economic value, while also reducing emissions and improving sustainability," he added.

As the world's most used construction material, concrete has an essential role to play in meeting future growth in demand for infrastructure and housing. 

The report also outlines several critical strategic considerations for governments, policymakers and industry, including:

*Recognising the positive social and economic contribution of cement and concrete to local and regional communities

*Harnessing innovation to improve productivity in concrete design, production and construction integrating resilience alongside sustainability and decarbonisation; including the industry’s role in delivering durable long-life assets that can withstand growing climate and physical pressures embedding resilience into insurance frameworks and infrastructure business cases developing data systems and reporting to support evidence-based infrastructure decisions managing rising costs while maintaining capacity to meet growing global demand for infrastructure, housing, and adaptation assets.

The Oxford Economics said it is critical that the cement and concrete industry is positioned as part of the solution to a more demanding global infrastructure challenge: enabling development, supporting resilience, strengthening communities, reducing emissions across the value chain and maintaining the physical systems on which economies depend.-TradeArabia News Service