The precast construction market 2020 can reach a valuation of USD 185.45 billion by 2025, confirms the new report by Market Research Future (MRFR). The extensive study also reveals that the market can progress at a decent rate of 6.23% during the review period (2019 to 2025).
Primary Boosters and Key Challenges
With the rising prominence of offsite construction for lesser material wastage and higher efficiency, the precast construction market receives a substantial boost, in terms of growth. Rapid urbanization as well as industrialization in developing countries, rising emphasis on the improvement of infrastructure and the high focus on green building projects can also induce tremendous market growth in the following years. The market growth can also be the result of the increasing availability of cheap raw materials paired with the rampant demand from domestic and consumer industries.
It is projected that the growing prevalence of precast construction can boost the demand for cement, leading to widespread mining activities that harm the environmental health. Furthermore, the recent outbreak of COVID-19 and its debilitating effect on the global construction sector can also slow down the market growth rate to a great extent.
On a brighter note, the market is brimming with a huge number of renowned suppliers and well-known, which means reduced switching cost. Technological innovation and product differentiation are some of the top marketing hacks that can help suppliers solidify their presence in the intensely competitive industry. The market growth is also warranted by the rising deployment of concrete additives that bolsters the durability and quality of the structure, resulting in stronger demand for precast construction components.
The top segments based on which the research on the precast construction industry has been performed by analysts include product, construction type, and application.
The product types considered in the report are paving slabs, floors & roofs, columns & beams, staircase, walls, lintels, girders, and others. In the year 2018, the columns & beams segment seized the biggest portion of the global market. To cater to the architectural demands, the precast columns and beams come in different sizes and shapes. Also, precast concrete is used in column and beams to bring down the column count and offer more open space. Owing to this, the columns & beams segment is also anticipated to attain the highest growth rate in the forthcoming period.
The various construction types covered in the market study are modular construction as well as manufactured homes. The modular type of construction has gained the upper hand in the global market, on account of the soaring demand for shorter construction time, enhanced quality, as well as fast return on investment.
Residential, industrial, infrastructure and commercial are the primary applications of precast construction listed in the report. The largest share in the global market belongs to the infrastructure segment, mostly owing to the rapid advancement of the construction sector in developing countries.
The expansion graph of the precast construction market between 2019 and 2025 has been covered in the regions of North America, Asia Pacific or APAC, Europe, and the rest of the world or RoW. In 2018, the study confirmed APAC as the principal market for precast construction and North America as the second best region.
In APAC, India and China observe high investment inflow, backed by the government initiatives that help boost the infrastructure such as road, rail, irrigation canals and dams. Therefore, the swift development of the construction sector, the burgeoning population and its increasing per capita disposal income can produce great results for the precast construction market in the region. Additionally, the rising need for hotels, hospitals, corporate spaces, schools, shopping malls, and more, significantly fuels the market growth within the region.
The North American market can note sustainable growth in the coming years, since precast construction materials more in demand compared to other building components owing to the former’s superior quality, high durability, as well as longer lifespans. The mounting popularity of prefabricated components can also stimulate market growth in the years ahead. Sizeable investments in the development of real estate and infrastructure also offer attractive opportunities to the precast concrete market.
Notable competitors profiled in the report include Red Sea Housing Services (Saudi Arabia), Bouygues Construction (France), Taisei Corporation (Japan), Kiewit Corporation (US), LAING O’ROURKE (UK), Julius Berger Nigeria Plc. (Nigeria), Balfour Beatty (UK), Komatsu Ltd (Japan), Larsen & Toubro Limited (India), and others.
Forterra Building Products Limited (UK), Coltman Precast Concrete Limited (UK), Cemex S.A.B. de C.V. (Mexico), Elematic (India), CRH plc (Ireland) are some of the other companies that are also competing in the precast construction industry.