How metals can help construct more sustainable cities around the world

The population of the world’s 1,000 largest and most important global cities is expected to increase by more than 0.5 billion by 2050. Africa and emerging countries in Asia Pacific are set to experience exponential growth in their populations, while many cities across China, Europe and advanced Asia Pacific will plateau or even decline.

By 2050, 70% of the world’s population are expected to live in cities, up from 54% in 2020, driven by both population growth and a continued shift towards urbanization. There are currently 33 megacities worldwide. By 2050, 14 more cities are set to join their ranks, with a total increased population of around 213 million people.

Economic growth, largely in the developing economies, is expected to augment this urbanization, boosting the growth of megacities and the brisk scaling up of the world’s population. In support of this, infrastructure development and the growth of the construction sector across the world is expected to continue. Minerals and metals, which play a critical role in construction, will also need to adapt to the new requirements of the world’s growing urban population.

Urbanization and the influx of populations into cities are driving growth, innovation and fresh approaches in building construction. This shift is fuelling demand for new construction methods, such as modular processes, in which buildings are constructed off-site before being transported and assembled at a final location. This makes variation in design and layout easier and is faster than traditional methods. Another growing trend towards lean construction helps construction companies improve their process efficiency and quality while minimizing waste.

At the same time as these trends are growing, rapidly expanding cities are introducing new standards and requirements, prompting the construction supply chain to evolve and become more collaborative. Increasing concerns about global warming and the construction sector’s significant greenhouse gas emissions are also growing demand for sustainable and recyclable materials. Lastly, emerging digital trends and evolving workforce patterns are accelerating the adoption of artificial intelligence (AI), machine learning (ML), robotics, and other digital tools throughout the industry.

In this context, mining and metals play essential roles in modern construction. They can support sustainable, resilient and efficient building practices. They are flexible, adaptable and easily moulded to utilize space, creating new, sustainable production pathways.

Steel, for instance, is foundational to the construction sector, especially as cities expand and require strong, durable infrastructure. Steel-intensive designs support scalable buildings, modular construction, energy systems and circularity through reuse and recycling. In countries like India, where construction and infrastructure sectors will likely account for 69% of steel demand by 2034, high-strength steel with enhanced toughness, formability and weldability is becoming vital. Steel manufacturers are also adopting greener production technologies to address global emission concerns.

Aluminum is valued for its light weight, strength and corrosion resistance. This makes it highly suitable for flexible, aesthetically appealing and recyclable construction. Its ease of moulding and durability align well with shifting construction patterns that prioritize sustainability.

Copper is essential for its durability, antimicrobial qualities and role in building safety due to its resistance to fire and corrosion. With construction accounting for nearly half of all copper usage, demand is set to rise due to increased applications in energy transition technologies like solar power.

Other materials like carbon fiber are useful for reinforcing concrete and enhancing structural durability. Its strength, resistance to corrosion and lighter footprint allows carbon fiber to support cost-efficient and environmentally friendly construction methods.

Suppliers of key metals like steel, aluminium and copper need to align their processes to address the needs of the rapidly growing infrastructure sector. And as carbon abatement and digitalization increasingly affect the industry, suppliers' assets, processes and systems must be fine-tuned to address these factors.

This is crucial, not just for the industry, but for wider economic development. The construction industry is deeply connected to the broader economy via builders, developers, suppliers and contractors. India’s construction tools and machinery market alone is valued at $14 billion. Key materials like steel, cement and wood – which are labour-intensive to produce and involve long value chains across sectors like metals and logistics – generate $25 billion annually.

While demand for its services is growing due to urbanization and the continued rise of megacities, the construction industry faces several challenges. Here is how the metals and mining sector could play a crucial role in addressing some of these issues:

Talent shortages, AI and digital invasion, fewer new hires to further enhance productivity, efficiency and worker safety are some of the concern areas for the construction sector today. Increased hire of data scientists and software developers is being considered by the industry to tackle this.

Steel and cement, the key input materials in construction, are high greenhouse gas emitters. Global manufacturers of these materials must focus on asset reconfiguration, investment in new assets and processes to embrace the key principles of sustainability, material cyclicity and emission reductions. Investments, policymaking, partnerships and collaboration are slowly making progress in developing the green steel industry.

Construction is facing a shift from tactical procurement designed to meet budgets towards strategic sourcing that reduces complexity, drives value and creates ecosystems of strategic vendors and partners. This will address continued cost pressures, supply chain risks, heightened customer demands and the need for labour, material and technology partners.

Metals and mining material suppliers must collaborate with the construction sector to support this strategic sourcing trend. They can do so by providing integrated supply chain solutions, digital platforms for improved transparency and flexible contracting models. This would streamline material flow, enhance data sharing for sustainability and compliance and stabilize costs during periods of market volatility. Construction firms would benefit from reduced complexity, mitigation of supply chain risks and more resilient partnerships.

The industry is deploying Industry 4.0 technologies like building information management (BIM), AI and ML, digital twins, as well as remote project monitoring using sensors, robotics and drones. This enables data-driven decisions, drives dynamic scheduling and reduces budget and schedule variances – often across multiple sites.

Metals suppliers can collaborate on this kind of digitalization by sharing data and knowledge. This would help improve scheduling and maintenance systems, providing visibility and operational improvements across the building lifecycle and improving overall process efficiencies.

This kind of construction leads to better design, quality control and shorter turn around times. But it requires a strategic ecosystem of collaborative vendors and partners, and the evaluation of long-term manufacturing operations. Manufacturers of flexible and adaptable metals and materials such as steel and aluminium will be a crucial part of this ecosystem as it develops to address demand for modular construction.

Urbanization – and the growing demand for infrastructure that it creates – is triggering various changes and growth opportunities for the construction sector.

Alongisde emerging trends like modular, leaner and sustainable construction, digitalization is also reshaping the industry. Metals and materials suppliers are evolving their technologies accordingly, and the industry is embracing key enablers like digital enhancements and supplier collaboration to meet these challenges head on.

Collaboration between the construction industry and metals and materials suppliers of steel, aluminium, copper and others will ensure these industry sectors can all cater to and benefit from these emerging economic trends.