The global precast concrete market size is projected to surpass USD 146 billion by 2027, according to a new report published by Vision Research Reports. Rising awareness regarding the superior quality and convenience offered by the product is expected to aid the growth.
The global precast concrete market size was estimated at USD 89.5 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 6.5% from 2020 to 2027.
Key industry participants are involved in technological innovations for developing new products in order to consolidate their market position. Rising consumer demand for high-quality products are projected to open up growth avenues for the new market entrants during the forecast period.
Asia Pacific is anticipated to remain the key regional market for precast concrete, due to the significant economic growth of the region. In addition, the presence of huge construction industry in China and India is anticipated to provide a large market for precast concrete products.
Manufacturers focusing on producing quality precast products to meet rising consumer demand for precast concrete. High competition in the residential and nonresidential construction sector has compelled market players to implement superior and low maintenance yet cost-effective solutions to gain a competitive edge.
Structural building components are projected to exhibit the fastest CAGR 6.5% 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.
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 drive 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.
Residential construction dominated the global precast concrete market in 2019 and is expected to expand at a CAGR of 5.7% over the forecast period. The growth can be attributed to the rising 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 47.5 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.
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 22.5 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 8.5% 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.
The global precast concrete market is dominated by players such as Actividades de Construcción y Servicios (Spain), Bouygues Construction (France), Larsen & Toubro (India), Taisei (Japan), and Balfour Beatty (UK). Other players include Skanska (Sweden), CRH (UK), Cemex S.A.B.DE C.V. (Mexico), Laing O’Rourke (UK), and Julius Berger Nigeria (Nigeria). These players adopted various strategies such as contracts, collaborations, agreements, partnerships, and joint ventures to expand their presence in the precast concrete market.
Structural Building Components
Architectural Building Components
Water & Waste Handling Products
Central & South America
Middle East & Africa
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