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The precast concrete market size is estimated to grow at a CAGR of 4.11% between 2023 and 2028. The market size is forecast to increase by USD 21.87 billion. The growth of the market depends on several factors such as growing urbanization and industrialization, the need for reduced construction time and cost-effective products and cities evolving into emergencies.
The report includes a comprehensive outlook on the precast concrete market offering forecasts for the industry segmented by End-user, which comprises non-residential and residential. Additionally, it categorizes Product into building components, transportation, water and water handling, and others, and covers Geography regions, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
Precast Concrete Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Precast concrete construction significantly speeds up construction time. A shorter duration implies less human effort, which leads to cost savings. Precast components are manufactured in factories under controlled conditions, allowing for simple modifications and real-time monitoring. Precast construction, as opposed to cast-in-situ structures, requires fewer resources such as cement, steel, water, energy, and human labor, resulting in less waste at the factory and on the building site. Parts of an entire structure can be created using precast construction before the foundation is finished.
Additionally, modular structures are built and installed in four to eight weeks, but conventional on-site constructed buildings take twice as long. Improved quality and productivity, decreased building time, and reduced waste creation make this sort of construction approach less expensive and, hence, a more appealing option for end users. All these factors drive the growth of the market during the forecast period.
In recent years, there has been a significant increase in M&A activities among companies. Companies are actively seeking out opportunities to consolidate their market positions, expand their product offerings, and gain access to new customers and markets. Through M&A, companies can combine their strengths and resources to create synergies and achieve economies of scale. This can lead to improved operational efficiencies, increased profitability, and better long-term growth prospects. M&A can help companies diversify their revenue streams and reduce their dependence on a single product or market.
Moreover, the rise in M&A activity among companies can be attributed to several factors, including favourable economic conditions, increased competition, and the need to stay ahead of technological advancements. As companies seek to strengthen their positions in the market. Such factors are expected to drive the market growth during the market growth.
Precast modular construction heavily relies on carriage infrastructure to transport raw materials from the supplier and modules from the plant to the installation site. Transportation costs include fuel costs, labour costs, warehousing costs, and handling costs. The manufacturing can go successfully as long as transportation is provided at a fair cost. Yet, shipping costs are quite changeable. If prices rise, the cost of overall manufacturing rises as well because it boosts not only the transportation cost of modules but also the raw material cost for the producer, resulting in inflated modular construction prices for end users.
However, owing to the high pricing of modular structures, end users are projected to switch to traditional construction techniques, which may stifle the growth of the precast modular construction industry. Hence, the unpredictability of transportation prices creates an unstable business climate in the precast concrete industry, which is expected to hinder the growth of the market in focus during the forecast period.
The market share growth by the non-residential segment will be significant during the forecast period. The non-residential segment includes commercial buildings, offices, hospitals, schools, warehouses, and industrial facilities. This segment represents a large and diverse market for precast concrete products, offering opportunities for manufacturers and suppliers to cater to a wide range of customers with various needs and preferences.
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The non-residential segment was the largest and was valued at USD 65.32 billion in 2018. The use of precast concrete products in non-residential construction also provides a range of design options, including custom shapes, colours, and finishes that can be tailored to the specific needs and preferences of the client. Whether it's a modern office building or an industrial warehouse, precast concrete can be used to create functional and aesthetically pleasing designs that meet the architectural requirements of the project. Furthermore, non-residential construction projects often require large quantities of building materials, making precast concrete a cost-effective solution. Manufacturers can produce precast concrete products in large quantities and deliver them to the construction site as needed, reducing transportation costs and minimizing waste. Thus, the above-mentioned factors are expected to drive the growth of the non-residential segment and will propel the growth of the global precast concrete market during the forecast period.
Based on the product, the market has been segmented into building components, transportation, water and water handling, and others. The building components segment will account for the largest share of this segment. Precast concrete in building components has become an essential part of modern construction due to its durability, safety, and cost-effectiveness. Precast concrete foundations are also known for their durability and resistance to weather conditions, making them a valuable component in disaster-prone areas. Thus, such factors are expected to drive the growth of the building components segment and fuel the growth of the global precast concrete market during the forecast period.
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APAC is estimated to contribute 32% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The construction industry in APAC is experiencing significant growth owing to the rising demand for industrial buildings, warehouses, and other infrastructure. Favourable government policies and initiatives are attracting investments in the construction industry from both public and private organizations. For instance, in India, government initiatives, such as Smart City Mission and Housing for All, are fueling the growth of the construction and infrastructure sectors. The increase in government expenditures on the development, reconstruction, and repair of infrastructures, such as the improvement of roads and bridges, drives market growth.
In addition, ready-mix concrete and precast products and elements save a lot of manufacturing, transportation, and installation time. These products are also cost-effective as wastage while manufacturing these products is less. Furthermore, development in machinery and technology to manufacture these products helps to achieve accuracy and overcome the lack of skilled labour. Thus, this will drive the growth of the regional market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Balfour Beatty Plc - The company offers precast concrete piles that can be jointed using either the UNIjoint or the Multijoint.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including Balfour Beatty Plc, Boral Ltd., CEMEX SAB de CV, Consolis Group SAS, CRH Plc, EBAWE Anlagentechnik GmbH, Elematic Oyj, Gulf Precast Concrete Co. LLC, Heidelberg Materials AG, Holcim Ltd., Julius Berger Nigeria Plc, Kiewit Corp., Larsen and Toubro Ltd., Prilhofer Consulting GmbH and Co. KG, QUIKRETE Holdings Inc., Skanska AB, Spiroll Precast Services Ltd., The Wells Companies, Tindall Corp., and Weckenmann Anlagentechnik GmbH and Co. KG
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The precast concrete market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Precast Concrete Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.11% |
Market Growth 2024-2028 |
USD 21.87 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.56 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 32% |
Key countries |
US, China, India, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Balfour Beatty Plc, Boral Ltd., CEMEX SAB de CV, Consolis Group SAS, CRH Plc, EBAWE Anlagentechnik GmbH, Elematic Oyj, Gulf Precast Concrete Co. LLC, Heidelberg Materials AG, Holcim Ltd., Julius Berger Nigeria Plc, Kiewit Corp., Larsen and Toubro Ltd., Prilhofer Consulting GmbH and Co. KG, QUIKRETE Holdings Inc., Skanska AB, Spiroll Precast Services Ltd., The Wells Companies, Tindall Corp., and Weckenmann Anlagentechnik GmbH and Co. KG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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