The "Europe Cement Industry Market Size Forecast by Value and Volume Across 80+ Market Segments by Cement Products, Distribution Channel, Market Share, Import Export, End Markets Databook Q2 2025 Update" report has been added to ResearchAndMarkets.com's offering.
The cement market in Europe is expected to grow by 5.8% annually to reach US$21.1 billion in 2025. The cement market in the region recorded strong growth during 2020-2024, achieving a CAGR of 6.1%. Growth momentum is expected to remain positive, with the market projected to expand at a CAGR of 5.4% during 2025-2029. By the end of 2029, the cement market is projected to expand from its 2024 value of US$19.9 billion to approximately US$26.0 billion.
This report provides a data-rich, forward-looking analysis of cement industry, covering market size, pricing trends, production, consumption, and segment-level performance from 2020 to 2029. It examines cement demand across key residential, non-residential, and infrastructure sectors alongside granular segmentation by cement type, distribution channel, end-user profile, and city tier.
Europe's cement industry is undergoing one of the most aggressive decarbonization transitions globally, driven by the EU Green Deal, tightening carbon market regulations, and shifting demand patterns. While residential construction has declined in several countries due to macroeconomic pressures, public infrastructure renovation and climate-resilient building programs continue to support baseline demand.
Industry leaders are prioritizing carbon capture technologies, alternative fuels, and clinker substitution to remain compliant and competitive under the EU ETS. However, smaller and mid-tier producers face mounting challenges around cost management, permit timelines, and export exposure. The future of the industry will be defined by its ability to balance climate alignment with economic viability in a highly regulated operating environment.
Europe's cement industry is transitioning from high-volume commodity production to low-emission, compliance-driven manufacturing under the pressures of climate policy, public scrutiny, and investor expectation. Companies that scale carbon capture, alternative fuels, and SCM integration while complying with ETS and CBAM rules will lead in both public procurement and private sustainability-aligned construction.
Strategic advantage will rest on firms' ability to navigate fragmented national regulations, maintain access to green finance, and localize input sourcing. Those lagging in decarbonization or digitalization risk exclusion from key infrastructure and export markets.
With the EU continuing to push its climate agenda and modernize public assets, the cement sector will remain a foundational yet transforming pillar of European infrastructure and green transition.
Infrastructure and Energy Retrofitting Sustain Cement Demand Across Europe
- Public Spending in Northern and Western Europe Offsets Private Sector Slowdown: Countries such as Germany, France, and the Netherlands are seeing cement demand supported by school renovations, transport upgrades, and flood control infrastructure. Germany's Climate Action Programme and France's France Relance initiative are leading to material demand for certified green cement.
- Southern and Eastern Europe See Infrastructure Pipeline Momentum: Spain, Poland, and Romania are leveraging EU Recovery and Resilience Facility funds for transport and urban development projects. Cement consumption is rising in road, energy, and utility projects, particularly in the Balkans, where EU pre-accession funding is active.
- Residential Sector Faces Pressure Across Most Markets: High interest rates, energy inflation, and falling homebuyer confidence have led to sharp declines in residential construction in the UK, Italy, and Scandinavia. Demand is increasingly concentrated in multi-family housing retrofits and subsidized energy-efficient refurbishment.
Cement Producers Are Accelerating Climate Innovation and Circular Partnerships
- Carbon Capture Projects Are Expanding with EU Support: Heidelberg Materials is constructing Europe's first full-scale CCS cement facility in Brevik, Norway, scheduled to go online in 2025.Holcim has launched multiple carbon capture pilots across Germany and Poland, supported by Horizon Europe and Innovation Fund grants.
- Alternative Fuels and Waste Co-Processing Are Being Scaled: Co-processing rates have surpassed 50% in countries like Austria and Germany, with cement kilns using biomass, RDF, and waste plastics. Regulatory approval for higher thermal substitution rates has improved, particularly in Eastern Europe and Benelux.
- Clinker Substitution and Green Product Certification Are Market Imperatives: CEM II/C-M and LC3 cement types are increasingly used in public procurement across the EU, supported by revised EN197-5 standards. Firms are investing in SCM sourcing agreements and partnering with steel and utility sectors for slag and fly ash access.
Production Faces Constraints from Energy, Permitting, and Supply Chain Reforms
- High Energy Prices and ETS Costs Are Reducing Profit Margins: Natural gas and electricity prices surged in 2023, especially in Italy, Germany, and the UK, raising per-ton production costs. The EU Emissions Trading Scheme (ETS) Phase IV has significantly increased carbon credit prices, prompting urgent decarbonization action.
- Environmental Permits and Land Use Approvals Are Slowing Expansions: Permit timelines for quarry operations and plant upgrades have increased due to stricter local environmental and public health reviews. In 2024, several project expansions in Belgium, Sweden, and Greece were delayed pending EU biodiversity impact assessments.
- Supply Chain Fragmentation Is Creating SCM and Fuel Access Gaps: Regional disparities in fly ash and slag availability due to declining coal and steel production are affecting clinker substitution plans. Freight disruptions in the Red Sea and Danube river systems have further affected raw material flows and shipping costs.
Positive Outlook Tied to EU Climate Policy, Renovation Programs, and Innovation Grants
- EU Green Deal and Renovation Wave Will Sustain Medium-Term Demand: Massive funding for energy-efficient building renovation, urban greening, and sustainable mobility is creating stable demand for cement in compliant product formats. The European Green Deal and REPowerEU investment packages are expected to sustain public-sector demand through 2027.
- Carbon Finance and Innovation Grants Support Technology Investment: Cement firms are beneficiaries of EU Innovation Fund, ETS Modernisation Fund, and national climate investment programs targeting CCUS and green hydrogen. Funding is being used to build low-carbon cement production hubs in Germany, Italy, and the Nordic countries.
- Export-Driven Growth May Rebalance in Eastern and Southeastern Europe: Producers in Turkey, the Balkans, and North Africa continue to export into EU markets, but CBAM (Carbon Border Adjustment Mechanism) may realign trade flows. Cement imports into Western Europe are expected to decline post-CBAM enforcement, improving domestic utilization rates.
Risks Arise from Compliance Costs, Carbon Pricing, and Input Instability
- Carbon Pricing Mechanisms Are Impacting Competitive Balance: The rising cost of EU ETS credits is widening the gap between high- and low-carbon producers, affecting bid competitiveness in public tenders. CBAM implementation (2026 onward) will add complexity for importers and affect clinker trade from non-EU neighbors.
- Fragmented Regulatory Environments Are Slowing Innovation Deployment: While the EU provides overarching guidance, national regulations on emissions, quarrying, and SCM use remain inconsistent. This creates cost and compliance uncertainty, particularly for cross-border projects and procurement.
- Supply Chain Vulnerability Remains High for Imported Fuels and SCMs: Countries like Spain and Portugal, with high fuel import reliance, face exposure to geopolitical disruptions and freight bottlenecks. Transitioning away from coal-fired power limits domestic fly ash availability, raising the urgency of new SCM R&D.
Scope for Each Report
- Europe Cement Business and Investment Opportunities (2020-2029) Databook
- Germany Cement Business and Investment Opportunities (2020-2029) Databook
- United Kingdom Cement Business and Investment Opportunities (2020-2029) Databook
- Russia Cement Business and Investment Opportunities (2020-2029) Databook
- France Cement Business and Investment Opportunities (2020-2029) Databook
- Italy Cement Business and Investment Opportunities (2020-2029) Databook
- Netherlands Cement Business and Investment Opportunities (2020-2029) Databook
- Spain Cement Business and Investment Opportunities (2020-2029) Databook
- Switzerland Cement Business and Investment Opportunities (2020-2029) Databook
- Poland Cement Business and Investment Opportunities (2020-2029) Databook
- Greece Cement Business and Investment Opportunities (2020-2029) Databook
Cement Industry Overview
- Cement Production KPIs: Volume and Value
- Cement Consumption KPIs: Volume and Value
- Average Cement Price Trends: Tracked at overall and cement-type level
Cement Market by Type of Cement
- Portland Cement
- Blended Cement
- Specialty Cement
- Green Cement
Blended Cement Market by Subtypes of Cement
- Type IS(X) Portland-Slag Cement
- Type IP(X) Portland-Pozzolan Cement
- IL(X) Portland-Limestone Cement
- Type IT Ternary Blended Cement
Specialty Cement Cement Market by Subtypes of Cement
- Rapid Hardening Cement
- High Alumina Cement
- White Cement
- Sulfate-Resistant Cement
- Other Niche Specialty Cements
Cement Market by Key Sector
Residential Construction
- Multi-Family Housing
- Single-Family Housing
Non-Residential Construction
Commercial Buildings
- Office Buildings
- Retail Spaces
- Hospitality Facilities
- Restaurants
- Sports Complexes
- Other Commercial Properties
Industrial Buildings
- Manufacturing Units
- Chemical Pharmaceutical Facilities
- Metal and Material Processing Plants
Institutional Buildings
- Healthcare Facilities
- Educational Institutions
- Other Institutional Structures
Infrastructure Other Construction
Cement Market by Distribution Channel
- Direct Distribution (B2B Sales)
- Indirect Distribution (Retailers, Dealers)
Cement Market by End-User
- Ready-Mix Concrete Producers
- Concrete Product Manufacturers
- Individual Consumers (Self-use)
- Other Industrial/Commercial Users
Cement Market by Location Tier
- Tier-I Cities
- Tier-II Cities
- Tier-III Cities
Cement Trade Dynamics
- Key Export Destinations
- Key Import Sources
Competitive Landscape: Cement Market
- Market Share Analysis of Key Players
For more information about this report visit https://www.researchandmarkets.com/r/1z1vwh
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