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The global ready-mix concrete market size was USD 633.4 billion in 2019 and is projected to reach USD 1,227.2 billion by 2027, exhibiting a CAGR of 8.7% during the forecast period.
Ready-mix concrete refers to a material used in construction. It is composed of cement (cement paste), fine aggregates such as sand and coarse aggregates mixed along with water that cures with time. Aggregate consists of big chunks of material in a concrete mix that includes crushed rocks or coarse gravel such as granite or limestone, with finer material such as sand. There are various types of cement used in making concrete that includes hydraulic cement or Portland cement. Some other non-cementitious concrete exists that is made from other binding methods of aggregate together. It includes asphalt concrete having bitumen binder, frequently used in road surfaces, along with polymer concretes which are used as a binder for polymers.
Moreover, additives such as superplasticizers or pozzolans are included in the mixture to improve the properties of the wet mix or finished material. Most concrete is usually poured along with reinforcing materials such as rebar rooted to provide tensile strength and yielding strengthened concrete. Concrete is frequently used in building materials and its usage worldwide is more than that of wood, steel, plastics, and aluminum altogether.
Along with additives, admixtures are also added for enhancing the properties of the concrete material. Mineral-based admixtures are used for recycled products as a concrete ingredient. Conspicuous materials include fly ash, which is a by-product generated from coal-fired power plants, and silica fume which is a byproduct of the industrial electric arc furnaces. The growing construction industry is expected to support the ready-mix concrete market share.
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Green Construction for Sustainable Development is a Prominent Trend
Ready-mix concrete (RMC), is a major product used in the construction industry. Many significant efforts have been taken by the ready mix concrete manufacturers for the reduction of greenhouse gases (GHG) emissions by increasing the percentage of additives in this type of concrete such as fly ash/slag to reduce the ordinary Portland cement consumption and also to improve the energy efficiency of the process. The concept of green construction has been adopted by many to help with the aforementioned effects. Green construction uses the resources of water and energy efficiently. It reduces negative impacts and creates positive impacts on the climate and the natural environment. Green buildings help in the preservation of precious natural resources and improve the quality of life. The construction activities of green buildings involve planning and design with the foremost considerations such as energy and water use, environmental quality, and material selection among many others. The slow depletion in the non-renewable resources and growing expensiveness has caused green construction to become a highly adaptable concept for the construction industry.
Increasing Demand for Residential Structures from Construction Industry to Drive Growth
The expanding construction industry is supporting the market growth for ready-mix concrete. Income growth in the developed and developing countries has accelerated the construction of infrastructure and housing structures that would lead to the high consumption of RMC. In the construction industry analysis, observing tremendous and unparalleled changes due to economic growth, and is gradually shifting towards this type of concrete for easy and quick use. China, India, Japan, and other Asian nations are the major drivers for market growth. The rising population in these regions is mainly affecting the concrete market positively owing to the high demand for residential structures. Moreover, an increasing shift of industrialization from the western regions to the Asia Pacific is directly supporting the growth of the construction industry, which, in turn, is set to result in the growth of the market. Urbanization has also led to the construction of infrastructures which is a major factor for this market growth.
Labor Benefits and High Investments is Driving Market Growth
The growing investments from the private sector and help from governmental organizations are leading to increasing construction opportunities. These include construction projects of highways and bridges, railroads, urban infrastructure, real estate, power generation sector, commercial buildings, and few others. The speedy development of all the above-mentioned structures is leading to high demand for concrete. This is also supported by the high-end investments in urbanization from developing countries such as China, India, Mexico, and South Korea from both the government and private sectors. It is further causing exponential growth of the market. Coupled with these, high labor benefits such as providing proper equipment, reduced labor cost, and health benefits are affecting the construction industry positively, thereby leading to high growth. This growth in the construction industry is supporting this market growth.
Effect on Construction Industry Due to Novel Coronavirus May Hinder Growth
The restraining factor affecting the growth of this market is the effect of the COVID-19 outbreak on the construction industry. Many construction sites in different countries have been shut down due to the nationwide lockdown. The open sites have been facing disruptions in the supply chains and other operational restrictions. As China is a major producer of concrete, exports banned from the country due to coronavirus outbreak have caused restriction within the supply chain. This has caused many regions to shift towards other suppliers leading to a high cost of materials. This high cost is affecting the construction market and is acting as a restricting factor for market growth.
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Residential Structures Segment to Dominate Backed by High Demand for Housing Sector
Based on application, the market is classified into residential, commercial, infrastructure, and others. The residential segment is the largest segment due to the increased demand for housing sectors in Asia Pacific due to the growing population. This demand is also supported by the increasing disposable income levels of people in countries such as China and India. The commercial segment is set to grow steadily owing to the increasing urbanization in several countries worldwide. It is occurring because of the establishment of many private sector companies, such as shopping malls, hotels, and restaurants. Commercial construction requires quick construction which further increases the demand for ready-mix concrete.
The infrastructure segment is also expected to show the fastest growth in the market due to the rapid urbanization leading to the development of roads & highways, power construction, water systems, and others. Governmental schemes and investments in the construction of the above-mentioned structures are positively affecting this market growth. An increase in the construction of attractive manufacturing plants within developing economies such as India is also expected to lead to substantial market growth.
North America Ready-Mix Concrete Market Size, 2016-2027 (USD Billion)
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The Asia Pacific ready-mix concrete market is the largest and is expected to show substantial growth owing to the large-scale demand from developing economies such as China, India, and South Korea. Moreover, China is the major producer of concrete due to the availability of raw material and high demand from the population. High infrastructure development and construction of new manufacturing plants in the developing countries of the region will further drive the growth of the market.
The market in North America is expected to grow during the forecast period. This growth can be attributed to the rising demand for residential sectors in the region. The demand for single housing units, along with the strong and disposable economy is the factor propelling the market growth. Furthermore, favorable governmental regulations over the construction policies and schemes are further boosting the growth of the market considerably in this region.
The market in Europe is anticipated to show moderately high growth during the forecast period. This growth can be associated with the high demand for residential construction structures along with the growing industrialization in the region. The governmental projects on infrastructure development are also significantly supporting the market growth of ready-mix concrete in this region.
In Latin America and the Middle East and Africa (MEA), the product is in the growing stage, thus is expected to emerge as a key market during the forecast period. Growing infrastructure in the regions such as the U.A.E. and Saudi Arabia is supporting the market growth in the Middle East. Favorable governmental regulation of Saudi Arabia has included a program for infrastructure development. It is, in turn, supporting the market growth in this region. Moreover, the easy availability of raw materials will further show more attractive growth during the forecast period in the region.
Key Players are Forming Growth Strategies to Maintain Their Dominance in Market
The global market gives the competitive landscape with key players operating are CEMEX S.A.B. de C.V., M. I. Cement Factory Limited, ACC Ltd., UltraTech Cement Ltd., and others. The key players have used numerous strategies such as mergers, acquisitions, investment & divestment, partnership, and hiring suppliers and distributors for the growth of the market. Furthermore, large, medium, and small-scale companies are offering highly enhanced product portfolios which include the addition of additives and admixtures for fast curing time. This trend is expected to have a positive impact on the global market over the forecast period.
An Infographic Representation of Ready-Mix Concrete Market
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The ready-mix concrete market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, products, and leading applications of the product.
Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD Billion) and Volume (Million Tons)
Fortune Business Insights says that the global market size was USD 633.4 billion in 2019 and is projected to reach USD 1,227.2 billion by 2027.
In 2019, the market value stood at USD 633.4 billion.
Registering a CAGR of 8.7%, the market will exhibit steady growth in the forecast period (2020-2027).
The residential segment is expected to lead this market during the forecast period.
An increasing demand for residential structures is the most critical factor driving the market.
Asia Pacific held the highest market share in 2019.
The development in green construction is expected to drive the adoption of ready-mix concrete.
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