Australia Construction Materials Market

Australia Construction Materials Market Overview:

The Australia construction materials market size reached USD 25.43 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 35.21 Million by ​2033​, exhibiting a growth rate (CAGR) of 3.68% during ​2025-2033​. The market is fueled by strong urbanization, high government infrastructure investment, and increasing focus on sustainability. Advances in construction technology and materials further improve efficiency and performance. Such factors combined boost the Australia construction materials market share.

Australia Construction Materials Market Trends:

Adoption of Prefabricated and Modular Construction Methods

The Australian construction materials industry is witnessing an immense movement towards prefabricated and modular construction methods. These involve fabricating building elements off-site under controlled conditions, which are later assembled on-site. Prefabrication being adopted has a number of benefits associated with it, such as decreased construction time, lesser material waste, and enhanced quality control. Prefabricated construction also solves the issue of labor shortages by decreasing on-site labor requirements and allowing quicker project completion. Government campaigns and industry promotions are also encouraging the adoption of these techniques to improve efficiency and sustainability in construction work. For instance, in January 2025, Commonwealth Bank of Australia (CBA) joined prefabAUS, the peak body for Australia's off-site construction industry, to support prefabricated housing. CBA will help streamline the process for customers purchasing prefabricated homes by introducing new policies that reduce upfront costs and enable progress payments. This collaboration aims to scale the prefabricated construction sector, addressing Australia’s housing shortage by enabling faster, more efficient home building. This trend is expected to continue driving the Australia construction materials market growth as the demand for efficient and cost-effective building solutions increases.

Integration of Sustainable and Recycled Materials

Sustainability is now at the forefront of the Australian construction sector and has resulted in increased use of green and recycled products. The uptake of green building practices, as advocated by the Green Building Council of Australia, supports the incorporation of environmentally friendly materials. Recycled products, such as aggregates and bio-based materials, are being progressively used in construction activities to minimize waste and decrease carbon footprints. Moreover, advancements in material science have resulted in high-performance materials that satisfy contemporary construction requirements while being eco-friendly. Such a paradigm shift towards greener materials contributes significantly to the Australia construction materials market growth in line with national ambitions for carbon neutrality and sustainable development. For instance, as per industry reports, on World Ecolabel Day 2024, GECA and Eco Choice Aotearoa signed an MoU to streamline sustainability certification across Australia and New Zealand. The first dual-certified company is saveBOARD, a circular economy leader producing building materials from recycled waste. This partnership simplifies ecolabel access, reduces costs, and strengthens trans-Tasman sustainability efforts. saveBOARD’s certification supports its expansion and affirms its environmental and social responsibility. The MoU reflects a unified approach to sustainable production under the Global Ecolabelling Network’s rigorous standards.

Emphasis on Smart and High-Performance Building Materials

The demand for smart and high-performance building materials is on the rise in Australia, driven by the need for energy-efficient and technologically advanced structures. Materials such as self-healing concrete, thermochromic glass, and phase-change materials are being utilized to enhance building performance and sustainability. These materials offer benefits like improved energy efficiency, reduced maintenance costs, and enhanced occupant comfort. For instance, in December 2024, Boral officially opened upgraded carbon-reducing technology at its Berrima Cement Works in NSW. The key feature, a Chlorine Bypass system, enables alternative fuel use to rise to 60% within three years, up from the current 30% coal substitution. Supplying 40% of cement in NSW and ACT, Berrima is central to Boral’s net-zero strategy. The upgrade, supported by federal and state governments, marks a major step in decarbonising Australia’s cement industry.The integration of smart materials aligns with the growing trend of smart buildings, which incorporate technologies like Building Information Modeling (BIM) and Internet of Things (IoT) devices to optimize building operations. As the construction industry continues to prioritize innovation and efficiency, the adoption of smart materials is expected to contribute significantly to the Australia construction materials market growth.

Australia Construction Materials Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for ​2025-2033​. Our report has categorized the market based on material type and end user. 

Material Type Insights: 

• Aggregate 
• Cement 
• Bricks and Blocks 
• Metals 
• Others 

The report has provided a detailed breakup and analysis of the market based on the material type. This includes aggregate, cement, bricks and blocks, metals, and others. 

End User Insights: 

• Residential 
• Infrastructure 
  • Roads 
  • Bridges 
  • Waste Management 
• Commercial 
• Industrial 

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes residential, infrastructure (roads, bridges, and waste management), commercial, and industrial. 

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Construction Materials Market News:

• In March 2025, Boral secured a $24.5M Federal grant to reduce CO₂ emissions at its Berrima Cement Works by up to 100,000 tonnes annually. The project will install a new kiln feed system, increasing alternative raw materials use from 9% to 23%, cutting emissions from limestone calcination. This follows earlier upgrades, including a Chlorine Bypass system.
• In December 2024, Heidelberg Materials' joint venture, Cement Australia (with Holcim), announced the acquisition of the cementitious division of Buckeridge Group (BGC) in Perth. This includes a high-capacity, modern cement grinding unit and broad construction operations. The deal strengthens Heidelberg Materials’ presence in Western Australia and supports its sustainability goals by expanding its portfolio of innovative, low-carbon products.
• In November 2024, Hanson Australia rebranded to Heidelberg Materials Australia, aligning with its parent company’s global strategy. The change reflects a focus on innovation, sustainability, and expanded offerings in construction materials.

Australia Construction Materials Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia construction materials market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia construction materials market on the basis of material type?
• What is the breakup of the Australia construction materials market on the basis of end user?
• What is the breakup of the Australia construction materials market on the basis of region?
• What are the various stages in the value chain of the Australia construction materials market? 
• What are the key driving factors and challenges in the Australia construction materials market?
• What is the structure of the Australia construction materials market and who are the key players?
• What is the degree of competition in the Australia construction materials market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia construction materials market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia construction materials market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia construction materials industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.