Net Zero Industry Tracker 2024 Cement

Top countries/regions in cement production and consumption FIGURE 51DemandCEMENT Overall cement demand is expected to reduce by 6%384 by 2050. Cement production saw a significant decline in 2023, dropping by 2%385 to 4,072 Mt, although this overall figure conceals varying regional trends. China, despite experiencing a 10.5% year- on-year decrease in production due to its real estate crisis and COVID-19 pandemic-related policies, remains the world’s largest cement producer, accounting for 51% of global output.386 India is the second-largest producer, with its share of global cement production increasing from 8% in 2021 to 9% in 2022.387 In the medium-term, China’s share is expected to decline, while growth in cement output is expected from South-East Asia, Latin America and Africa, driven by these regions’ expanding infrastructure needs and development initiatives. Despite the significant 50-70%388 green premium for B2B transactions in the cement sector (stemming from the higher costs associated with producing low-carbon materials) the actual impact on the cost of end-user products is relatively modest, averaging around 3%.389 This discrepancy occurs because cement typically represents a small portion of the total cost of most final products, such as buildings or infrastructure projects. Source: United States Geological Survey (USGS) and Indexbox.Percentage of overall production (2022) 1 China 51% 2 India 9% 3 EU 7% 4 Vietnam 3% 5 US 2%Percentage of overall consumption (2019) 1 China 56% 2 India 8% 3 US 2% 4 Brazil 1.4% 5 Russia 1.3% 9 Net-Zero Industry Tracker: 2024 Edition