Surging Government Measure to Improve Building Sector in Several Nations to Support Precast Concrete Market Growth
The precast concrete market was valued at USD 118.4 billion in 2021 and is anticipated to grow to USD 159.8 billion by 2028, recording a CAGR of 4.4% during the forecast period. Precast concrete is a type of concrete that is mixed, cast, and dried off-site using reusable molds, as the name implies. The precast concrete components can be put together to form an entire structure during this entire process, which is typically carried out in a controlled factory setting. When compared to the traditional building materials utilized, precast concrete can be more affordable and often more useful.
As a result of the rising investments in infrastructure development, the market is anticipated to be driven by the developing construction sector across key regions. As disposable income levels increase in both developed and emerging countries, the residential construction sector is projected to grow. In the years to come, it is also projected that expanding government initiatives for the development of their respective economies will enhance the building industry and boost product demand.
Building Components Segment to Grow Significantly Owing to Rising Demand From Construction Industry
On the basis of product, the precast concrete market segmentation comprises building components, water & waste handling, and transportation. The building components segment is anticipated to develop at the quickest rate throughout the projected period, increasing at a sizable CAGR. The rising demand from the construction industry is to account for this substantial growth.
The growth of the product segment is anticipated to be fueled by the rising number of hotels, shopping centers, and hospitals as well as the global industrialization process. This market segment is expected to be significantly influenced by the growing use of structural construction components in inexpensive housing. Product demand is anticipated to be driven by the growing need for affordable housing as a result of the rapidly expanding middle-income population over the projection period.
Rapid Urbanization and Population Growth to Drive Precast Concrete Demand
The two primary factors driving market growth are rapid urbanization and exponential population growth. The increased demand for non-residential buildings such as airports, sports facilities, shopping centers, and office buildings will have a significant impact on the supply chain due to how quickly and inexpensively they can be built.
The demand for precast concrete will increase further as a result of the rising need for residential space spurred on by the expanding population and the government’s attempts to provide homes for the Economically Weaker Section (EWS). Its use in offices and other commercial areas has also increased due to increased urbanization activities driven by people looking for better employment prospects.
Recent Industry Developments
- Barbour Concrete Company and Barbour Building Systems were acquired by Forterra in July 2021 in order to increase its customer base and diversify its product line.
- LafargeHolcim invested USD 3.4 billion in January 2021 to acquire Firestone Building Products, a provider of commercial roofing and building envelope solutions. It is anticipated that the acquisition will boost the company’s foothold in the United States and broaden its roofing range.
Asia Pacific to Dominate Precast Concrete Market Owing to New Construction Projects for Residential Sectors
As a result of the region’s industry blooming, which is supported by a growing population, developing urbanization, and the building sector, Asia Pacific is anticipated to dominate the global precast concrete market share. Precast concrete demand is increasing in several APAC nations due to new construction projects featuring better energy-efficient solutions for the residential and commercial sectors.
As nations such as China, India, and Japan invest more in infrastructure development, demand for the products will increase. Additionally, the growing residential sector in these nations would increase demand for precast concrete due to its cost-effectiveness, boosting the industry. However, during the course of the projected period, North America is expected to become the region with the quickest growth.
Key Market Players to Implement Partnerships to Maintain Their Standing
Significant amounts of money have been invested in producing sustainable construction materials by major companies in the precast concrete market. The market participants use partnerships with construction firms and raw material suppliers to broaden their footprint globally and stay competitive.
Prominent players operating in the global precast concrete market are Olson Precast Company, LafargeHolcim, Larsen & Toubro Limited, Boral, Forterra, Gulf Precast, Spancrete, CEMEX, ELO KG, Tindall Corporation, Elementbau Osthessen GmbH & Co., Balfour Beatty, Bouygues Construction, and Oldcastle Precast.
