The basic elements utilised in infrastructure and building projects are construction materials. Cement, concrete, bricks, aggregates, steel, wood and glass are a few popular forms of building materials.
Turkey Construction Materials Market Driving Factors and Challenges
Turkey's construction materials market is expanding at an unprecedented rate right now because of a significant infrastructure development project that is under progress. In the construction materials sector, Turkey is a growing market. There is a strong need for infrastructure and housing projects due to the expanding population. The government's emphasis on improving the nation's logistics and transportation networks has also drawn a large number of foreign investors. Government spending on building and infrastructure projects, increasing income levels, and fast urbanisation are all predicted to contribute to the market's growth. Airports, highways, and bridges are just a few of the government-initiated infrastructure projects that propel the Turkey construction materials market. In addition, the country's 70% urbanisation rate is predicted to rise over the next several years, which would raise demand for newly constructed and updated buildings. Last but not least, the nation's increased economic stability has stimulated both domestic and foreign investment in the building industry.
The Turkish government has been pushing the market for building materials to expand through a number of programmes and initiatives. The creation of the Turkish Construction Materials Promotion Group (TMGS), whose job it is to encourage the industry to employ locally produced goods. The primary focus of this group is to increase local businesses' competitiveness on a global scale through marketing initiatives, international exhibition planning, and research. The Harmonised Availability of Building Products (HABRAS) project is another government endeavour that seeks to improve Turkey's utilisation of building materials. This estimate aims to provide quality control, save expenses, and improve material availability. It is anticipated that the HABRAS project will also present more prospects for foreign investors to enter the industry.
However, the industry faces a number of difficulties. First, intense rivalry among suppliers and producers of building materials drives price wars, which reduces their profit margins. Furthermore, a few building supplies, like cement, are imported, which has an additional impact on market pricing. Furthermore, the Turkish construction materials industry is vulnerable to changes in the global market and interruptions in the supply chain due to its reliance on foreign suppliers. Conditions that limit market expansion typically have an impact on the construction material business. Some of the primary causes are a scarcity of materials as a result of supply chain interruptions, employee safety concerns, a decline in real estate sector investment, the availability of electricity, environmental preservation, and a shortage of qualified labour. This further affects the construction schedule and material quality. Additionally, the impact of natural disasters raises construction costs and expenses overall, necessitating multiple clearances from various designated authorities in the areas of environment preservation, electricity, pollution control, land, services, utilisation, and other areas.
Impact of COVID-19 on Turkey Construction Materials Market
The construction business is susceptible to economic cycles, and the COVID-19 epidemic has had a notable negative influence on it. All construction activities were halted due to different limitations and lockdown procedures. The supply chain was disrupted and the supply side of the construction material industry was damaged by the lack of raw materials, labour shortages, and construction limitations. The end user's purchasing power also significantly declined as a result of job loss or pay reductions.
Turkey Construction Materials Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; AGT, Akcansa, Celik Kapi, Cimsa Cement, Marmo Construction, Turkey Blocks, Others.
Turkey Construction Materials Market Segmentation:
By Type: Based on the Type, Turkey Construction Materials Market is segmented as; Cement, Concrete Bricks, Construction Aggregates, Construction Metals.
By Application: Based on the Application, Turkey Construction Materials Market is segmented as; Commercial, Industrial, Residential.
By Region: This research also includes data for Central Turkey, Eastern Turkey, Western Turkey.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.