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Precast Concrete Construction Market - Forecast(2024 - 2030)
Precast Concrete Construction Market Overview
Precast concrete construction market size is forecast to reach US$156.5 billion by 2027, after growing at a CAGR of 4.5% during the year 2022-2027. Precast concrete is a type of construction product that is made by concrete mixing, casting concrete in a reusable mold, and then curing it in a controlled environment before transporting it to the construction site and lifting it into place. Precast concrete containing expanded polystyrene is beneficial for construction activities as they are lightweight and thermally insulated. The precast concrete market is majorly driven by the surging commercial construction activities across various regions. For instance, in March 2022, commercial construction projects such as the Paris Olympics facilities construction 2024, the CIBC Square office building in Canada, 2024, and more such commercial projects are under construction. Additionally, the increasing infrastructure development projects including bridges, airports, and more are expected to fuel the demand for precast concrete, thereby, propelling the precast concrete construction industry growth over the forecast period.
COVID-19 Impact
The Covid-19 pandemic hampered the precast concrete construction market growth in the year 2020. Governments all across the world imposed stringent lockdown regulations, which resulted in a temporary halt on commercial, residential, and other types of construction activities. For instance, in March 2020, the Mayor of Boston restricted the construction activities in Boston, U.S related to commercial, residential, and other types. Likewise, such temporary halts related to construction activities in other regions negatively impacted the precast concrete demand because it is utilized in the floor, beams, and other such applications. This resulted in revenue losses for the precast concrete construction market. However, in 2021, the surge in construction activities due to increased safety measures facilitated the precast concrete construction market growth. Moreover, it is predicted during the upcoming years the impact of the Covid-19 pandemic will be restrictive, which will lead to a precast concrete construction industry growth trend similar to the pre-Covid time.
Report Coverage
The "Precast Concrete Construction Market Report –Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Precast Concrete Construction Industry.
Key Takeaways
- Asia-Pacific region dominated the precast concrete construction market, owing to the increasing commercial construction activities in the region. For instance, in August 2021, Hotel Okura Co., Ltd based in Japan announced the construction of the Hotel Okura Shanghai Sheshan, which will be completed in 2024.
- Building Information Modeling (BIM) is increasingly being used in precast concrete projects because it allows for more efficient design, manufacture, and construction by generating and managing virtual models that include both physical properties and functional behavior. The implementation of contemporary systems is benefiting the market growth.
- Moreover, modern precast concrete sandwich systems utilizing expanded polystyrene (EPS) are gradually replacing traditional blockwork systems due to their lightweight, improved insulating features, and quick construction, this is creating an opportunity for the precast concrete market.
- However, the availability of many substitutes in the market such as reinforced concrete, prefabrication concrete, and more is restricting the precast concrete construction market. Asia-PacificPrecast Concrete Construction MarketRevenue, 2021-2027 (US$ Billion)
Precast Concrete Construction Market Segment Analysis – By Type
The beam segment held the largest share in the precast concrete construction market in 2021 and is forecasted to grow at a CAGR of 4.8% during the year 2022-2027. Precast concrete has several benefits such as lower material and labor costs, faster construction schedules, an inherent fire rating, and a longer service life; these benefits make precast concrete appropriate for beam construction. Furthermore, the precast concrete used in beam production reduces CO2 and greenhouse gas emissions while generating a high-quality, extraordinarily strong product, this ensures extensive beam strength. To attract more foreign direct investments (FDI) major economies are focusing on developing the construction sector, owing to these construction activities across the world are surging. For instance, according to the Germany Trade & Invest (GTA), in 2020, the construction activities in Germany were £459 billion (approximately US$524.3 billion), and in 2021 it was £485 billion (approximately US$573.6 billion). As a result of the surge in construction activities the demand for beams is increasing, this is further expected to boost the demand for precast concrete, which will fuel the market growth during the upcoming years.
Precast Concrete Construction Market Segment Analysis – By End-Use Industry
The commercial segment held the largest share in the precast concrete construction market in 2021 and is forecasted to grow at a CAGR of 5.6% during the year 2022-2027. Precast concrete features durability, low maintenance, is cost-effective, and takes less time to create; as a result, it is a quick and cost-effective method of construction that is well-suited to the establishment of commercial buildings. The increasing tourism, rising disposal income, and more such factors at the global are leading to a surge in the development of commercial construction projects related to hotels, shopping centers, and more. For instance, in Q4 of 2021, construction works started on the US$ 507million Althan Quartier Mixed-Use Complex, which includes the construction hotel, commercial facilities, and more, this project will be completed by 2024. Thus, the surging commercial construction activities are propelling the demand for precast concrete, which is expanding the market growth.
Precast Concrete Construction MarketSegment Analysis – By Geography
The Asia-Pacific region is the dominating region as it holds the largest share in the precast concrete construction market in 2021 up to 37%. Due to the rapid pace of industrialization in the Asia-Pacific region, there is a surge in the development of office buildings, and more commercial buildings such as hospitals, schools, and more. Due to these factors, the development of commercial construction projects in the Asia-Pacific region is increasing. For instance, according to Invest India, there is a total of 115 future construction projects which are under the planning phase in India, and the value of these projects is about US$11.63 million, these projects include the construction of hotels, offices buildings, shopping complex, and more. Also, as of 2021, the construction of new facilities at three regional general hospitals in Ho chin Minh City, Vietnam is under construction, the construction of this project will be completed by 2023. Therefore, the increasing commercial construction activities in the Asia-Pacific region will benefit the growth of the precast concrete construction market.
Precast Concrete Construction Market Drivers
Increasing Infrastructure Development Projects
Higher durability is crucial for infrastructure development projects such as airports, bridges, and more because there are higher chances of weathering, which may damage the structure creating causalities. Precast concrete has several advantages such as expedited construction, reduced time on site, reduced site defects, and more, owing to which it is often utilized in infrastructure development projects. To significantly boost economic activity, employment, attract foreign direct investment, and more, there is a surge in infrastructure development projects. For instance, in December 2021, the construction of the Bach Dang 2 bridge project began in Bien Hoa city, Vietnam, and the project is anticipated to be completed by the end of 2022. Furthermore, several airport development projects commenced in the third quarter of 2021 in Europe, such as the US$1,000 million Keflavik Airport Expansion, which will be completed by 2024, US$167million Innsbruck Airport Redevelopment, Austria, which will be completed by 2028. Hence, the surging infrastructure development projects worldwide are projected to increase the demand for precast concrete, this will drive market growth.
Surging Green Building Initiatives
Precast concrete is used in green building construction because precast concrete has low water-cement ratios -0.36 to 0.38-, owing to this the construction elements such as beams, roof, and more become highly robust. Green buildings are more energy efficient as produce lower greenhouse gas emissions as opposed to conventional buildings. These properties are driving its demand in multiple regions, due to which government initiatives are been adopted across various regions to promote green buildings. For instance, in January 2021, the government of the United Kingdom formed strict targets for the green construction revolution, all houses and companies in the United Kingdom will be required to satisfy stringent new energy efficiency requirements to reduce energy usage and expenses. Also, according to the Rajasthan Investment Promotion Scheme - 2019, (India) provides MSME enterprises with a subsidy in the form of reimbursement of 50% of the amount paid to suppliers for the plant, excluding civil work, for adopting Green Building Measures for buildings with a minimum floor space of 2,000 sq meters, up to a maximum of Rs Fifty Lakhs. Thus, such initiatives in the development of green buildings are expected to fuel the growth of the precast concrete construction market.
Precast Concrete Construction Market Challenges
Availability of Substitutes
The advantage of precast concrete is that while precast installation begins, on-site and off-site manufacturing can be combined, lowering overall site construction time. However, on the flip side, there are certain substitutes for precast concrete such as reinforced concrete, prefabrication concrete, and more is restricting the precast concrete construction market. Moreover, when compared with reinforced concrete, precast concrete construction is more costly because it requires good quality control and skilled labor. Furthermore, when compared to prefabrication concrete construction, precast construction has fewer design options. Due to the general pre-determined nature of the molds, this process allows for a few changes. Therefore, the availability of substitutes is posing a major challenge for market growth.
Precast Concrete Construction Industry Outlook
Technology launches, acquisitions, and increased R&D activities are key strategies adopted by players in the precast concrete construction market. Precast concrete construction top 10 companies are:
- HOLCIM
- CEMEX S.A.B. de C.V.
- Boral
- CRH plc
- Laing O’Rourke
- Balfour Beatty
- Julius Berger Nigeria Plc.
- Gulf Precast Concrete Co., LLC
- Tindall Corporation
- Olson Precast Company
Recent Developments
- In March 2022, India Cements, a cement manufacturer based in India has launched Halo Super King, cement designed specifically for the construction of precast hollow dense concrete blocks.
- In February 2022, Soluciones Modulares Argos, a precast concrete manufacturer in Columbia launched its new modular concrete solutions division. The company will manufacture precast concrete pieces for use in the construction of houses and infrastructure development projects.
- In February 2022, EIM Capital, Mexico acquired the precast concrete division of Bonna Sabla, France. The new ownership will enable EIM Capital to leverage its commercial, economic, and social condition by undergoing an ecological, energy, and technological change.
Report Code: CMR 1119
Report Code: CMR 1187
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