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The global ready-mix concrete market size was USD 735.9 billion in 2020 and is projected to grow from USD 792.2 billion in 2021 to USD 1,374.2 billion in 2028 at a CAGR of 8.2% 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. 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 1.9% in 2020.
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. The rising consumption of products for faster and easier construction processes is supporting the market demand.
Moreover, additives such as super plasticizers 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 yield strengthened concrete. Concrete is frequently used in building materials and its usage worldwide is more than that of wood, steel, plastics, and aluminum altogether, thus improving market size for RMC.
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 industrial electric arc furnaces. The growing construction industry is expected to support market growth.
Stoppage in Construction Activities during Pandemic Affected Market Growth
The outbreak of the virus has led to a temporary stoppage in activities across various industries including construction. Implementation of global lockdown and social distancing have resulted in the shutdown of construction activities as laborers and workers were not allowed to work, and companies had to close the project due to lack of construction workers. Moreover, ban over imports and exports have resulted in a lack of raw materials, which, in turn, negatively affects the market. However, the market is quick to recover after normalization as companies are strategizing towards revenue development, which, in turn, increases the number of construction projects. This increase in construction projects boosts consumption of ready-mix concrete.
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Adoption of Ready Mix Concrete in Green Constructions for Sustainable Development to Propel Market Growth
Ready-mix Concrete (RMC), is a major product used in the construction industry. Significant efforts taken by RMC manufacturers for reduction of greenhouse gases (GHG) emissions by upping the percentage of additives such as fly ash/slag. This initiative is undertaken to reduce ordinary Portland cement consumption and also to improve the energy efficiency of the process. The concept of green construction adopted to help with the aforementioned effects has led to increased demand for eco-friendly ready mix concrete.
Green construction uses the resources of water and energy efficiency and reduces negative impacts and creates positive impacts on the climate and the natural environment. This caused producers to invest and develop in green ready-mix concrete. The construction activities of green building 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 of 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 market growth. Income growth in developed and developing countries has accelerated the construction of buildings and housing structures that would lead to the high consumption of concrete. The construction industry is observing tremendous and unparalleled changes due to economic growth and is gradually shifting towards ready-mix 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 Asia Pacific is directly supporting the growth of the construction industry, which, in turn, is set to result in the growth of the RMC market. Urbanization has also led to the development of infrastructure facilities which is a major factor for the ready-mix concrete market growth.
Labor Benefits and High Investments is Driving Market Growth
The growing investments from the private sector and help from the governmental organizations lead to the rise in construction opportunities. These include construction of highways,bridges, railroads, urban infrastructure, real estates, power generation sector, commercial buildings, and others. Speedy development of all the above-mentioned structures is leading to a high demand for this type of concrete. This is also supported by the high-end investments in urbanization from the developing countries such as China, India, Mexico, and South Korea from both the government and private sector.
It is further causing exponential growth of the RMC market. Coupled with these, high labor benefits such as provision of proper equipment, reduced labor cost, and health benefits are impacting the construction industry positively, thereby leading to high growth. This growth in the construction industry is supporting the market growth.
Effect on Construction Industry Due to Novel Coronavirus May Hinder Growth
The restraining factor affecting the growth of the RMC 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 the coronavirus outbreak have caused restrictions 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 the market growth.
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Commercial Segment to Dominate Backed by High Demand for Housing Sector
Based on application, the market is classified into residential, commercial, and infrastructure. The commercial segment is the largest 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 this type of concrete. The residential segment is set to grow steadily 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 infrastructure segment is also expected to show the fastest growth in the RMC market due to the rapid urbanization leading to the development of roads & highways, power construction, water systems, and others. Government schemes and investments in the construction of the above-mentioned structures are positively affecting the market growth. An increase in the construction of attractive manufacturing plants within the developing economies such as India is also expected to lead to substantial market growth.
Asia Pacific Ready-Mix Concrete Market Size, 2020 (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 the 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 for the product from the growing population. High infrastructural development and construction of new manufacturing plants in the developing countries 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 and commercial 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 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.
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In Latin America and the Middle East and Africa (MEA), are expected to be the key market as the product is in its key stage. 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 regulations of Saudi Arabia have included a program for infrastructure development which, in turn, supports 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 ready-mix concrete market is competitive 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 global market research report provides a detailed ready-mix concrete industry 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 industry 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); Volume (Million Ton)
By Application, and By Geography
Fortune Business Insights says that the global market worth was USD 735.9 billion in 2020 and is projected to reach USD 1,374.2 billion by 2028.
In 2020, the market size stood at USD 735.9 billion.
Growing at a CAGR of 8.2%, the market will exhibit steady growth during the forecast period (2021-2028).
The commercial segment is expected to be the leading material.
The rising construction industry in developing countries is expected to drive market growth.
CEMEX S.A.B. de C.V., M. I. Cement Factory Limited., ACC Ltd., UltraTech Cement Ltd. are the top players in market.
Asia Pacific dominated the global market in 2020.
Growing demand for residential structures is the key factor driving the product adoption.
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