The evolution of human civilization has always been synchronized with the development of building materials. The kiln fires of Qin bricks and Han tiles ignited the dawn of artificial materials, while the emergence of steel and cement laid the foundation for modern construction, propelling the industry into a new era of mass production. As a vital foundational sector for the national economy, China's building materials industry encompasses three major categories: building materials and products, non-metallic minerals and their products, and inorganic non-metallic new materials. These products directly serve the construction industry and over 150 other sectors including automotive and electronics, while driving more than 110 upstream and downstream industries such as power and coal.
The central government has attached great importance to the industry's development, implementing a series of policies that have facilitated historic leaps. From traditional sand, stone, bricks, and tiles to new growth areas like photovoltaic glass and energy-saving aluminum profiles, innovation has been the driving force behind the industry's upgrading.
In the early days of New China, the building materials industry had a weak foundation with both quantity shortages and limited variety. The 1950s saw the beginning of mass production of cement and bricks, while the 1970s marked the start of glass and ceramic production. Following reform and opening-up, meeting the robust demand for infrastructure became a major economic task. With rapid expansion, production capacity accelerated. By 1995, the supply-demand dynamic reversed, ending the era of shortages, particularly for cement.
Entering the new century, reforms of state-owned enterprises deepened, private economy emerged, and industry concentration continued to increase. With China's urbanization progression, by 2013, China had become the world's largest producer and consumer of building materials, establishing a comprehensive industrial system. During the 14th Five-Year Plan period, the number of scale-above enterprises in the building materials industry grew by 36.9%, with total assets increasing by 54.2%. Green building materials revenue exceeded 250 billion yuan with average annual growth of 20%; photovoltaic glass output grew at an average annual rate of 29.4%, accounting for over 50% of flat glass production; and glass fiber composite output grew at an average annual rate of 15%, capturing over 40% of the global market share - becoming the industry's "new three pillars."
Today, China's building materials industry leads globally across multiple dimensions. In terms of output scale, China ranks first worldwide, producing approximately half of global cement output, over 50% of flat glass, and more than 60% of building ceramics, gypsum boards, and wind turbine blades. Glass fiber production exceeds 70% of the global total. Regarding leading enterprises, Chinese companies hold four of the top ten positions globally, with CNBM's cement engineering maintaining the world's top market share for 17 consecutive years. China Jushi leads in glass fiber capacity, while Beixin Building Materials leads in gypsum board capacity. Technologically, China leads in patent applications, accounting for over 40% of global filings. The digitalization rate of key processes approaches 70%, with technologies like ultra-thin glass and OLED substrates breaking foreign monopolies. In trade, building materials exports reached approximately $33.5 billion in 2025, with high-value-added products comprising about 40% of exports.
However, rapid development has also revealed structural contradictions. During the 14th Five-Year Plan period, traditional sectors like cement and glass faced overcapacity, while the ceramics industry showed low concentration with leading enterprises holding less than 10% market share. Issues of low-level homogeneous competition persisted in new inorganic non-metallic materials and non-metallic mineral processing. The traditional high-energy-consumption, high-emission production model remained inconsistent with carbon neutrality goals. More concerningly, industry profitability continued to decline, with 2024 revenue down 12.7% and total profits down 65.5% compared to 2020.
Experts attribute this to multiple factors including demand contraction, overcapacity, and high costs. The industry faces urgent needs to address structural contradictions and declining profitability through capacity reduction, technological innovation, and green transformation. In 2025, six ministries jointly issued a work plan focusing on five major measures: strengthening industry management, enhancing technological innovation, expanding effective investment, stimulating demand, and deepening international cooperation.
Recent data shows some improvement, with the decline in revenue and profits narrowing in 2025 compared to the previous year. Throughout its development, transformation and upgrading have remained central themes. The industry has found the key to high-quality development through policy guidance and market competition, promoting intelligent and green development while adapting to domestic needs and exploring international markets.
Technological advancement has been crucial across sectors. Leading companies in glass, ceramics, and cement have transitioned from experience-driven to data-driven operations, shedding the traditional low-value-added image through digital transformation. For instance, Jidong Cement's fully digitalized production line has achieved significant efficiency improvements and cost reductions. The industry's research and development intensity reached 1.32% in 2024, up 0.44 percentage points from 2020.
Green transformation has become another priority. As a resource and energy-intensive industry, building materials account for a significant portion of industrial carbon emissions. The industry has been building a framework for carbon peak and neutrality, with innovative concepts like "six-zero" factories gaining traction. Cement companies are achieving fossil fuel substitution rates exceeding 65% through alternative fuel technologies, while glass fiber manufacturers are establishing wind-powered production bases. The ceramics industry is pioneering ammonia-hydrogen zero-carbon combustion technology.
Material innovation continues to create new market opportunities. Functional materials like graphene-enhanced boards, formaldehyde-removing cement, and temperature-regulating coatings are gaining attention. The industry is shifting from being product suppliers to solution providers for quality housing. New standards for "good materials" have been established, classifying products into three tiers based on health, safety, green, and quality criteria.
Internationally, Chinese building materials companies are expanding globally, particularly in Belt and Road countries. Instead of just exporting products, companies are establishing local production facilities and providing integrated solutions. Overseas revenue has become an important growth driver, with some companies generating over $6 billion annually from international operations.
The industry continues to deepen international cooperation through technology exchanges, standard alignment, and joint ventures. As it moves forward, the building materials industry aims to achieve intelligent, green, and internationalized development, contributing to better living standards while pursuing sustainable growth.