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The global precast concrete market size was USD 114.78 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the product witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 1.04% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 118.48 billion in 2021 to USD 159.85 billion in 2028, at a CAGR of 4.4% during the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.
Precast concrete is prepared by casting concrete using a reusable mold, which is cured off-site in a controlled environment, and then conveyed to the construction site. The molds are used several times before getting replaced, making this process more efficient than on-site casting. The controlled environment allows the casted concrete products to cure properly and be monitored closely. This casting process offers various advantages, such as control over material quality, better workmanship, and safety, as the production is done at ground level.
The popularity of this type of concrete is increasing with the rising urbanization and construction activities. The shift of the construction industry towards incorporating sustainable, eco-friendly, cost-effective, and modern construction techniques has resulted in the growth of the market. Therefore, the rising construction projects in developing countries to update their existing infrastructure will further boost the market.
Halted Construction Activities amid COVID-19 Led to Restrained Market Growth
The effect of the COVID-19 pandemic is estimated to be significant on the building & construction industry. The pandemic inflicted abrupt termination of building & construction and infrastructure development activities. The market was hampered due to the slowed raw material production, supply chain disruptions, restrictions on man and material movement, and disturbances in the trade movements. The pandemic has reduced the demand for precast products resulting in overcapacity.
According to the Ministry of Industry and Information Technology of China, from January 2020 to May 2020, China’s cement production was 769 million tons, down by 8.2% year on year. However, the increasing number of COVID-19 cases boosted the demand for modular buildings from the healthcare industry. The government’s initiative to set up new healthcare facilities to provide treatment to the rising number of patients has fueled the consumption of precast concrete components, thereby slowing the effect of the pandemic.
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Incorporation of Precast Concrete Products in Residential Buildings to Add Impetus
Precast concrete products such as walls, beams, columns, and stairs are incorporated in residential buildings. The ease and speed with which these products can be built has led to their high demand in the building & construction industry. Casted concrete products offer efficient and economical construction in varied weather conditions. These products are manufactured off-site in a meticulous manner, which improves their overall quality. The use of pre-casted products significantly reduces overall cost, construction time, and waste reduction.
Rapid Urbanization Activities and Increase in Population to Fuel Demand
Rapid urbanization and the exponential rise in population are the key factors promoting market growth. The rising need for non-residential establishments such as airports, sports complexes, malls, and commercial spaces will effectively influence an escalated supply chain due to reduced construction time and cost-effectiveness. The rising demand for residential spaces due to the growing population, coupled with the initiatives by the government to provide housing for the Economically Weaker Section (EWS), will further boost the demand for precast concrete. Moreover, the pursuit of better career opportunities has led to more urbanization activities, increasing its use in offices and other commercial spaces.
Rising Environmental Concerns Regarding Cement Manufacturing to Hamper Growth
Cement is an important constituent of concrete. The production of cement is one of the major contributors to global warming and several types of pollution. Cement manufacturing sites are significant sources of toxic gases such as nitrogen oxide, sulfur dioxide, and carbon monoxide. These gases are associated with health issues such as asthma, visual impairment, and cardiovascular diseases. Moreover, the environmental impacts of these gases include acid rain, depletion in water quality, and global warming. The environmental concerns and health issues related to cement manufacturing are likely to restrain the precast concrete market growth. Additionally, regulations enforced by the governments to reduce emissions from cement production sites will further slowdown the CAGR of the market.
Building Components to Hold Large Share Owing to Need for Affordable Construction Projects
Based on product type, the market is classified into building components, transportation, water & waste handling, and others.
The building components segment holds the major share due to its widespread use in different construction and building projects. This segment includes columns, beams, and joints used in constructions, including manufacturing plants and industries. Moreover, the growing population and high demand for cheap and affordable houses will augment growth in the coming years.
The transportation segment will register significant growth during the forecast period. Precast transportation products are used for the construction of tunnels, flyovers, metro pillars, and railways. The growing construction activities in the emerging economies to improve connectivity will further boost the market for precast concrete.
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Non-Residential to be Fastest Growing Segment Owing to Increasing Investments in Commercial Spaces
In terms of end-use, the market is segmented into residential and non-residential.
Among these, the non-residential segment accounted for the largest precast concrete market share attributed to the increased investments by countries in commercial spaces, flyovers, roads, educational institutes, and hospitals. Moreover, the high demand for sports complexes, stadiums, and airports will support the growth of the non-residential segment during the forecast period.
The residential segment witnessed significant growth during the forecast period. The rising global population and investments in developing real estate and infrastructure will contribute to the growth of the market. Proactive Initiatives by governments to develop affordable housing for the lower economic group of the society will lead to substantial growth of the market.
Asia Pacific Precast Concrete Market Size, 2020 (USD Billion)
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The market size in Asia Pacific stood at USD 46.43 billion in 2020. It is anticipated to be the fastest-growing region during the forecast period. Rising investments by countries such as China, India, and Japan to develop infrastructure will increase the demand for the product. Additionally, the growing residential sector in these countries will increase demand for precast concrete due to its cost efficiency, thereby adding impetus to the market.
The growth of the market in North America is attributed to advanced and sustainable construction practices that are propelling the demand for advanced products.
The market in Europe is expected to showcase significant growth during the forecast period. This is owing to the increasing usage of these concrete products for non-residential and infrastructural development. Implementation of precast concrete products has reduced the time needed for construction and labor costs, thereby boosting the market in the region.
The market in Latin America will rise due to the high demand for residential construction. The development of infrastructure in Latin America is another factor responsible for the regional market growth.
The Middle East & Africa market is expected to showcase substantial growth during the forecast period. Investment by countries to develop commercial spaces such as malls, airports, hotels, and public places due to high demand from the tourism industry has propelled demand in this region. Additionally, upcoming projects of high-rise buildings and sports complexes will aid in expanding the regional market.
Key Players Adopting Organic and Inorganic Strategies to Maintain Dominance in Market
Key players in this market have invested a sizable amount in developing sustainable construction products. Partnerships with raw material suppliers and construction companies are the strategies used by the market players to increase their presence globally and maintain their mark in the competition.
An Infographic Representation of Precast Concrete Market
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The report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, product types, the compositions used to produce these products, and end-users of the product. Besides this, the report offers insights into the market, current precast concrete industry trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the market's growth over recent years.
Value (USD Billion)
By Product Type, End-Use, Geography
By Product Type
Fortune Business Insights says that the global market size was USD 114.78 billion in 2020 and is projected to reach USD 159.85 billion by 2028.
In 2020, the market value stood at USD 114.78 billion.
Growing at a CAGR of 4.4%, the market will exhibit steady growth during the forecast period (2021-2028).
The building components segment is expected to be the leading segment in this market during the forecast period.
Rapid urbanization activities and an increase in population will drive the growth of the market.
Asia Pacific held the highest market share in 2020.
The increasing demand for cost-effective and sustainable concrete products will drive product adoption.
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