The global precast concrete market size was valued at US$ 100.68 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 5.4 % from 2023 to 2030. The precast concrete market is gaining traction globally as an effective construction material. Its high-quality and durability are the main reasons for its wide usage across various building projects. The demand for these products is expected to increase in the future due to the rise in global population and economic growth. Furthermore, the rising per capita income across developing countries is further expected to stimulate the market growth for housing and infrastructure development. In addition, the governments of developing countries are supporting the construction industry by providing infrastructure and affordable homes to the lower-income sections.
Global Precast Concrete Market: Regional Insights
Based on geography, the global precast concrete market is segmented into North America, Europe, Asia Pacific, Central and South America, and Middle East & Africa.
The North America region is expected to dominate the global precast concrete market during the forecast period. The growing number of nuclear family and commercial buildings is driving the industry growth. This is because of the increase in population and rapid economic growth in these regions.
Europe is the second largest contributor to the global precast concrete market. This is attributed to the fact that the region is home to many key players that offer goods and services that are geared towards societal needs, offering a wide range of products and building solutions. In the United Kingdom, precast concrete plays an important role in the building and construction industry. It is used in a wide variety of applications and is particularly popular for its rapid turnaround from sign-off.
Figure 1. Global Precast Concrete Market by Region, 2022
Global Precast Concrete Market Drivers:
Growing awareness regarding the advantages of precast concrete to propel market growth
The precast concrete market has experienced significant growth over the past few years. This is because of its ability to be used in a wide variety of construction applications, and its versatility in design. The most common use for this material is for construction of large structures, such as skyscrapers, stadiums, and homes. Precast concrete consists of ready-mixed, mixed-bed concrete that is then transported and placed on a construction site. It is used for a variety of purposes, such as floor slabs, beams, walls, and columns.
Increasing reconstructing and modernizing infrastructural facilities to augment market growth
The growth of the precast concrete market is largely attributed to growing investments in commercial and industrial infrastructure in emerging markets. These investments include new commercial buildings, bridges, metros, airports, and railroads. Additionally, the deteriorating condition of some infrastructural assets is prompting governments to replace them with modern and advanced structures that are compatible with future needs.
Global Precast Concrete Market Opportunities:
Growing application in water and waste management sector is expected to provide significant growth opportunities. The water and waste management application of the precast concrete market is expected grow rapidly over the next few years, primarily owing to the increasing demand for modern stormwater runoff management systems. The industry is also impacted by the increasing use of precast concrete forming systems in wastewater treatment facilities, which offer superior durability, resiliency, and weather-resistance.
The market for precast concrete is projected to expand significantly over the next few years, driven by increasing construction activities around the world and a growing focus on the use of green building materials. Moreover, the market is gaining traction as a result of an increase in demand for high-quality building materials, as well as the development of technologically advanced processes and equipment that allow the industry to produce precast concrete products more efficiently and economically. This is expected to provide additional market opportunities.
|Base Year:||2022||Market Size in 2022:||US$ 100.68 Bn|
|Historical Data for:||2018 to 2021||Forecast Period:||2023 to 2030|
|Forecast Period 2023 to 2030 CAGR:||5.4 %||2030 Value Projection:||US$ 152.75 Bn|
Oldcastle Inc., Cemex Inc., Lafarge North America, HeidelbergCement, Holcim Inc., Vulcan Materials Co., Colas S.A., Martin Marietta Materials, MDU Resources, and Buzzi Unicem
|Restraints & Challenges:||
Global Precast Concrete Market Trends:
Growing merger and acquisition in the market
Major players in the precast concrete market are investing heavily in R&D and mergers & acquisitions to expand their presence globally. For example, LafargeHolcim, a cement manufacturer, acquired Firestone Building Products in January 2021. This deal bolstered the company's manufacturing capacity in North America and Europe. Similarly, Forterra, a renowned water and drainage pipe manufacturer, purchased Barbour Concrete Company and Barbour Building Systems in July 2021.
Increasing focus on energy-efficient building techniques
The market is mainly driven by the increasing focus on energy-efficient building techniques and life-cycle management, and the growing infrastructure development plans in emerging economies. In addition, the rising urbanization and industrialization in developing countries is also expected to drive demand for precast concrete.
Global Precast Concrete Market Restraints:
Sensitive connection works is expected to hamper the market growth
Assembling the different structural members of precast concrete structures can be complicated, especially if they are connected together. Faulty connections can lead to water leakage and poor sound insulation. This factor is expected to restrict the market growth.
High initial investment to hinder market growth
For installation of a precast concrete plant, it may require a large sum of money to set up. This is because of the expensive machinery needed to produce these types of products. However, precast concrete is durable and withstands harsh weather conditions, chemicals, and fires. It is also able to resist rust and corrosion, so it will last for years to come. This is expected to create new market growth opportunities.
Figure 2. Global Precast Concrete Market by Product, 2022
Global Precast Concrete Market Segmentation:
The global precast concrete market report is segmented into product, application, and region
Based on Product, the market is segmented into structural building components, architectural building components, transportation, waste & water handling products, and others. Out of which, the transportation segment of the precast concrete market is expected to grow rapidly over the next few years, owing to the rising demand for transport infrastructure across countries. Moreover, the segment growth is expected to be boosted by an increased demand for road and rail infrastructure in countries such as China, India, and Brazil.
Architectural building components segment of the global precast concrete market is expected to witness steady growth during the forecast period. This is because of its flexible nature in design and high profitability. Moreover, the increasing need for affordable housing and commercial spaces is also expected to drive this segment.
Based on Application, the market is segmented into residential, commercial, infrastructure, and industrial. Out of which, Residential is expected to dominate the global market over the forecast period and this is attributed to the increase in demand for new and green buildings and a decrease in rental prices.
Commercial segment is also expected to witness significant growth in the near future and this is owing to the increasing demand for commercial end-uses such as airports, sports complexes, roadways, and educational institutions.
Global Precast Concrete Market: Key Developments
In March 2021, Gülermak A.Å. received an underground metro railway civil contract for US$ 103.4 million along with a joint venture (JV) with Sam India Builtwell Pvt. Ltd. The project was awarded by the Uttar Pradesh Metro Rail Corporation Limited (UPMRCL) to build 8.62 km of underground tunnel including four stations for Kanpur city metro rail project. The contract is expected to display the company’s capability in the Indian construction and infrastructure market, thereby strengthening its market position in the Indian construction market.
In July 2019, LafargeHolcim signed an agreement to acquire Romania’s precast concrete producers, Somaco. With this acquisition, the company aims to strengthen its geographical presence in Romania where it already has a spread in aggregates and ready-mix concrete business.
In February 2019, LafargeHolcim completed acquisitions of U.S. based Transit Mix Concrete and Germany based Alfons Greten Betonwerk to enhance its business offerings in North America and a region.
In October 2021, Jogani Reinforcement launches polyfiber 3S new generation concrete and construction fiber for durable and crack free infrastructure in India
Global Precast Concrete Market: Key Companies Insights
The global precast concrete market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global precast concrete market are Oldcastle Inc., Cemex Inc., Lafarge North America, HeidelbergCement, Holcim Inc., Vulcan Materials Co., Colas S.A., Martin Marietta Materials, MDU Resources, and Buzzi Unicem
*Definition: Precast concrete is an essential part of construction, as it can be used in almost all kinds of buildings and structures, including residential, commercial, and industrial ones. It is also widely used in the manufacture of a variety of elements, such as columns, beams, and joints.