The overall precast concrete market is expected to grow from USD 130.6 billion in 2020 to USD 174.1 billion by 2027, at an estimated CAGR of 5.9%. Precast concrete can be described as the construction product that is made by casting concrete in a reusable mould. The reusable mould is then cured in a controlled environment, followed by transportation to the construction site to be installed. There are several types of precast concrete forming systems with various architectural applications that differ in size, price, and function. Precast elements get rid of or greatly reduces the need for conventional formworks as well as props. Apart from this, precast concrete helps lower the generation of wastage, in addition to checking many other environmental hazards, which leads to a safe working platform for the workers. It is usually used in the construction of buildings with repetitive designs & elements, for instance, schools and apartments.
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.
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.
Prominent players profiled in the precast concrete market include SKANSKA AB (Sweden), Jensen Precast (U.S.), Molin Concrete Products Company, Inc. (U.S.), Tindall Corporation (U.S.), Coreslab Structures (U.S.), CRH (U.S.), Coltman Precast Concrete Limited (U.K.), HeidelbergCement AG (Germany), Metromont Corporation (U.S.), SMEET (Qatar), Taiheiyo Cement (Tokyo), and Larsen & Toubro Limited (India) are among others.
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 xx 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 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 drive 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.
Report : Precast Concrete Market - By Product (Structural Building Components, Architectural Building Components, Transportation Products, Water & Waste Handling Products and others), By End Use (Residential, Non-residential, Infrastructure) And By Region (North America, Asia Pacific, Europe, Middle East & Africa and Latin America) - Industry Analysis, Opportunity and Forecast 2020 To 2027