The precast concrete market is expected to grow by 6% during the forecast period. The rise in demand for precast concrete products is due to a shift in the trend for the construction of green buildings, as well as a desire for products that reduce construction time and plant/site downtime. Raw material prices fluctuate due to volatile crude oil and energy prices used in manufacturing and transportation. As a result, finished product prices fluctuate. Precast concrete is a high-performance material that integrates easily. It is designed to meet the multi-hazard and long-term demands of building structures. This concrete is resistant to insects, mould, fires, and natural disasters. These protect against wind, rain, earthquakes, termites, and decay. It also reduces maintenance and insurance costs. In addition, precast concrete is also considered the most technologically friendly commercial building material because it does not interfere with local Wi-Fi, radio signals, or internet networks.
Non-residential sector dominating the global precast concrete industry
There are several sub-sectors within the precast concrete industry. The structural buildings segment is expected to grow significantly during the forecast period, driven by rising commercial demand. The precast concrete industry is divided into residential and non-residential. The non-residential segment is expected to dominate the global precast concrete industry, driven by increasing urbanization, industrialization, and public infrastructure construction. High product adoption in warehouse and factory construction is expected to drive segment growth. Offsite construction aids in early production facility commissioning. Product adoption has grown rapidly in the infrastructure segment, where it has allowed companies to significantly shorten project timelines and save money on both labor and raw materials.
Dominance of the Asia Pacific region in the global market for precast concrete
The primary factor driving product adoption in the Asia Pacific region is the rapid expansion of the infrastructure development industry and broad demand for commercial and residential structures. China’s Belt & Road initiative to develop and improve the connectivity and infrastructure of its key neighbours and trade partners are anticipated to increase infrastructure spending in the Asia Pacific region significantly. In addition, massive investments in developing metro rail infrastructure in India are anticipated to drive market growth. In North America, product adoption is anticipated to be caused by rising expenditures on renovating aging housing structures and infrastructures such as bridges, underpasses, and subways.
The Nordic countries were among the first to adopt offsite construction. Consequently, the products have significantly impacted the European construction industry over the past decade. The construction industry in the Middle East is increasingly adopting advanced precast concrete, resulting in rapid growth. Industrialization and urbanisation will further expand the market for precast concrete. In Australia, increasing preference for low-to mid-rise residential buildings, project homes, and public housing are the key drivers for the precast concrete market. In Brazil, the prefabricated building industry is expected to grow due to the housing crisis and demand for affordable and smart housing.
Market Structure and Competition Landscape
Major industry participants are continually investing in R&D and mergers and acquisitions to expand their global presence. Industry leaders invest in facility upgrades and capacity expansion to increase their profit margins. Some of the prominent players are Cemex S.A.B de C.V, LafargeHolcim Ltd., Boral Limited, Balfour Beatty PLC, Forterra Inc., Laing O’rourke, ACS Group, Kiewit Corporation, Komatsu Ltd., Larsen & Toubro Limited, Tindall Corporation, Devinci Precast, Crh PLC and Skanska Ab, among others.
- In June 2021, Cemex announced to invest nearly US$ 925 Mn from 2021 to 2023 to expand its cement production capacity in the Americas, Europe, and the Philippines, strengthening its market positioning in high-growth metropolitan cities.
- In Q1 of 2021, CRH reported investing around US$ 200 million in four M&A deals.
- In February 2021, Skanska signed a US$ 334.6 Mn contract with Kanta-Hame Hospital District to build a new hospital in Hameenlinna, Finland.
- In May 2020, Tesla Inc., one of the leading Electric Vehicle (EV) manufacturers globally, was one of the early adopters of precast concrete products while building its ‘Giga Berlin’ factory.
- In December 2020, as part of its R&D project, Cemex introduced Vertua, a brand of low-carbon ready-mix concrete that reduced the carbon footprint by at least 70 percent.
Key Market Segmentation
RationalStat has segmented the Indian air conditioner market on the basis of product type, structure system type, application, end user, and region
- By Structure Systems
- Water & Waste Handling Products
- Structural Building
- By Product Type
- Columns & Beams
- Floors & Roofs
- Others (pavement slabs, gliders, etc)
- By Application
- Relocatable Buildings
- Elemental Construction
- Manufactured Homes
- By End User
- Others (Agriculture, Civil works)
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, company documents, industry associations
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs
Why Buy this Report?
The report is intended for construction materials and equipment suppliers, construction and real estate companies, government organizations, market educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The global Precast Concrete market is expected to grow at a CAGR of over 6% during the forecast period 2022-2028.
Asia Pacific is dominating the global Precast Concrete market in 2021.
The global Precast Concrete market is estimated at around US$ 144.5 billion in 2021.
The construction of green buildings is the key trend in the global Precast Concrete market.
Major companies operating in the global Precast Concrete market include Sony Corporation Cemex S.A.B de C.V, LafargeHolcim Ltd., Boral Limited, Balfour Beatty PLC, Forterra Inc., Laing O’rourke, ACS Group, Kiewit Corporation, etc.