Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Precast Concrete market.
Trusted Business Insights presents an updated and Latest Study on Precast Concrete Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Precast Concrete market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Precast Concrete Market
The global precast concrete market size was estimated at USD 78.2 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 5.2% from 2021 to 2027. The rising prominence of offsite construction to reduce the material wastage and to increase efficiency is anticipated to drive the growth. Rapid industrialization and urbanization in emerging economies focus on the development of high-quality infrastructure around the world, emphasis on green building projects are the major factors driving the market. In addition, availability of low-cost raw material and strong demand from consumer and domestic industries are expected to aid the growth.
The U.S. is expected to witness substantial growth in terms of demand for precast concrete. The segment is anticipated to register a CAGR of 4.1% over the forecast period, attributed to rising demand for the expansion of floor space in various industries leading to the rise in new construction and renovation projects. In addition, an increasing number of large-scale infrastructure investment projects are expected to aid the market growth in the country.
Rising popularity of precast construction is anticipated to generate high demand for cement, which in turn, is likely to result in extensive mining activities causing environmental issues in many countries. Furthermore, stringent government regulations and policies are expected to hamper the production of cement on large scale, which may adversely affect the market in near future.
Cement and aggregates are the primary raw materials used for the production of precast concrete. Hence, fluctuations in there are expected to have a negative impact on product prices. However, increasing use of concrete additives to strengthen durability of the structure is projected to benefit the product demand.
Presence of a large number of suppliers and regional players results in low switching costs. Factors, such as product differentiation and technological innovation are anticipated to assist suppliers to gain an advantage in the increasingly competitive market. However, the cost of switching the precast concrete product suppliers is anticipated to be low.
Product Insights: Precast Concrete Market
Structural building components are projected to exhibit the fastest CAGR 5.6% from 2020 to 2027, owing to extensive use of the product in various building and construction projects. The segment includes products such as pillars, columns, and joint that are widely used in construction and is majorly used in construction of industrial sheds and manufacturing plants.
Architectural building components are widely used in residential construction. Rising demand for affordable housing on account of rapidly growing middle-class population in developing countries such as China, India, and Indonesia is anticipated to drive the product demand over the forecast period 2021-2027.
Transportation product segment is estimated to account for USD 31.3 billion by 2027 and is expected to witness substantial growth over the forecast period. These products are widely used in construction of bridges, highway, railways, tunnels, and flyovers. The huge spending on road and rail connectivity and rising number of airports and ports is expected to spur demand for transportation products over the forecast period.
The growing demand for decorative items to enhance the aesthetic value of the interiors of residential and commercial buildings is likely to generate the demand for precast concrete over the forecast period. In addition, growing demand for precast structures in specialty construction operations is expected to drive the product demand in construction applications.
End-use Insights: Precast Concrete Market
Residential construction lead the global precast concrete market in 2019 and is expected to expand at a CAGR of 4.4% over the forecast period. The growth can be attributed to the increase in disposable income and revival of U.S. housing construction. In addition, a rise in government initiatives for affordable housing is predicted to aid the product demand over the forecast period.
Significant investment in infrastructure and real estate development is offering lucrative market opportunities for precast concrete. The emphasis on infrastructure and residential needs, particularly in emerging nations has resulted in a considerable flow of private and government investment in these sectors.
The growth in nonresidential construction sector is largely driven by the hospitality construction industry. Robust growth in the tourism industry has created demand for construction of new hotels. The segment is estimated to reach USD 47.8 billion by 2027, owing to an increase in spending on construction activities in educational institutions and office spaces.
Infrastructural construction includes construction of roads, bridges, ports, and aviation infrastructure. The segment is anticipated to witness significant growth, owing to huge spending by developing and developed countries on public infrastructure development. In addition, initiatives to connect trade routes are expected to benefit the market growth.
Regional Insights: Precast Concrete Market
Increased construction activity in Europe on account of low mortgage rates is expected to propel the demand for precast concrete. However, high labor costs may negatively influence construction industry, which, in turn, is expected to lead to sluggish market growth. The precast concrete market in Europe accounted for USD 22.2 billion and is expected to witness significant growth for the next eight years.
The rapidly growing construction industry in developed economies in North America coupled with rising demand for sustainable and advanced construction practices are anticipated to drive the product demand. Rapid commercial growth of the region is likely to open new avenues for various industries to expand markets.
The market in Asia Pacific is expected to witness the fastest CAGR of 7.2% over the projected period, on account of rising urbanization, resulting in increased investments in transport systems, ports, roadways, and mega-factories. Rapidly developing economies, along with expansion of industrial construction is expected to generate the demand for precast concrete.
The growth in construction industry in Central and South America is attributed to private capital infrastructure developments due to public-private partnerships coupled with increasing per capita income in the region. The increasing construction activities in region are anticipated to bolster the regional market growth over the forecast period.
Precast Concrete Market Share Insights
The market exhibits intense competition, with participants emphasizing on cost-efficient and superior quality product. Proximity to the customers is one of the key selection criteria for the end-users. Hence, the end users prefer procuring products from local manufacturers, encouraging key players to focus on expanding their geographical footprint.
Companies are focusing on establishing strategic partnerships with raw material suppliers as well as manufacturing companies to maintain their market presence. Many players opt to trade within the region to cut down on operational costs. This helps local companies to cater to high quality and economical products to the consumers, thereby sustaining in the competition.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Trusted Business Insights has segmented the global precast concrete market report on the basis of product, end use, and region:
Product Outlook (Revenue, USD Billion, 2016 – 2027)
- Structural Building Components
- Architectural Building Components
- Transportation Products
- Water & Waste Handling Products
End-use Outlook (Revenue, USD Billion, 2016 – 2027)
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