Precast Concrete Market Size Report | Industry & Forecast 2028

[Research Report] The precast concrete market size is expected to grow from US$ 151.84 billion in 2022 to US$ 234.66 billion by 2028; it is estimated to grow at a CAGR of 7.5% from 2022 to 2028.

Market Insights and Analyst View

Precast concrete is defined as construction material, which is manufactured by casting concrete in a reusable or moldable framework, following which it is then cured in controlled environment. Such materials are precasted and prefabricated at the time of manufacturing and are then assembled and molded at the construction site. Such structures are responsible to enhance construction speed, improve productivity and helps to significantly monitor cost and quality. Hence, with the growing demand for cost-effective and safe material, the demand for precast concrete is expected to rise. Further, such form of structures is categorized as sustainable building materials as they can significantly be reused or remolded, thereby, reducing their impact on environment. The growing adoption of green and modular construction material is expected to proliferate the demand for precast concrete products in global market. This factor is significantly driving the precast concrete market globally.

Growth Drivers and Challenges:

Precast technology is often correlated with performance, protection, and durability, all of which are good advantages over traditional building methods. However, one of the essential advantages of precast is its potential to reduce construction costs and provide substantial savings before, during, and after the project. Moreover, unlike other materials used in conventional building components, precast components are usually made of locally available natural raw materials such as cement, stones, sand, and gravel, and they can be reused or recycled completely, which helps to reduce the environmental impact of raw materials over their life cycle. In addition to this, focus have been made to promote safe and digitized construction which could lessen the number of fatalities at the site. Furthermore, renovation involves reconstructing infrastructural facilities with modern and advanced construction materials with an aim to promote the structural properties of the building along with improving its life span and contributing to minimal environmental impact. Renovation and remodeling activities help to align infrastructural facilities which are compatible to present and future needs. With the rapid urbanization and industrialization, the demand for better residential and commercial facilities have risen. For instance, according to the World Economic Forum, the world's urban population is growing by 200,000 people every day, many of whom need affordable housing as well as social, transportation, and service infrastructure. In the face of such obstacles, the industry is almost morally obligated to transform. However, the precast concrete market is being impacted by volatile raw material prices. Sudden price increase or decrease often impacts the manufacturers' profit margins. Cement, aggregates, and sand are among the primary raw materials used in the production of precast concrete products. The key cause of raw material price fluctuations is volatility in the prices of energy and crude oil, which are used in producing and transporting these products. These fluctuations, in turn, trigger volatility in the prices of finished goods. The volatility of petroleum and crude oil prices could cause the price of raw materials to rise, increasing the cost of raw materials used in precast concrete. These factors are expected to negatively impact precast concrete consumption, hampering the demand for precast concrete over the forecast period.

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Precast Concrete Market: Strategic Insights

Market Size Value in	US$ 151.84 Billion in 2022
Market Size Value by	US$ 234.66 Billion by 2028
Growth rate	CAGR of 7.5% from 2022 to 2028
Forecast Period	2022-2028
Base Year	2022

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Report Segmentation and Scope:

The “Global Precast Concrete Market” is segmented based on structure system, end-use, and geography. Based on structure system, the precast concrete market is segmented into beam and column system, floor and roof system, bearing wall system, façade system, and others. Based on end-use, the precast concrete market is segmented into residential, commercial, and others. The precast concrete market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)

Segmental Analysis:

Based on structure system, the precast concrete market is segmented into beam and column system, floor and roof system, bearing wall system, façade system, and others. The beam and column system segment held the significant share in the precast concrete market and is expected to register the fastest growth over the forecast period. Precast structure systems primarily made up of various shapes and components including beams and columns. Beams are the structural components that are formed in one of three fundamental shapes, including rectangular, inverted tee beams, and L-beams. Beams are primarily utilized to support deck members such as solid slabs, double tees, hollow-core, and sometimes other beams. Columns consist of multilevel components which support beams and spandrels in applications such as parking structures and precast concrete structure systems of all types. Based on end-use, the precast concrete market is segmented into residential, commercial, and others. The commercial segment held the significant share in the precast concrete market and is expected to register the significant growth over the forecast period. The commercial sector includes sports facilities, schools, colleges, government institutions, hospitals, schools, offices, and other commercial spaces. Precast concrete is used for the construction of sports facilities worldwide. Precast sport specialized components allow general contractors and architects the flexibility to achieve innovative and complex designs with maximized seating. All these factors are potentially boosting the precast concrete market worldwide.

Access Data

The precast concrete market by region is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global precast concrete market was dominated by Asia Pacific which accounted for US$ 71.43 billion in 2022. Asia Pacific is a major contributor holding approximately 45% share in the global market. Asia Pacific accounts for the significant amount of precast concrete market share in global precast concrete market. Asia Pacific is expected to register the considerable growth at a CAGR of over 8.4% over the forecast period. The precast concrete market in North America is segmented into US, Canada and Mexico. In the North America region, the US is a major market for precast concrete in the North America region, followed by Canada and Mexico. The extensive use of precast concrete in the construction activities of residential and commercial buildings is anticipated to drive the precast concrete market growth in North America. The construction industry in North America is expanding tremendously due to a strong economy, combined with an increase in federal and state funding for public works and institutional buildings. Thus, the extensive use of precast concrete in the construction activities of residential and commercial buildings is expected to further boost the precast concrete market expansion in the coming years.

Industry Developments and Future Opportunities:

Various initiatives taken by the key players operating in the precast concrete market are listed below:

1. In January 2023, CEMEX have today announced the launch of their latest product innovation – a range of next-generation bio-sourced admixture solutions that utilize a natural, renewable, and locally sourced raw material to deliver a lower-carbon footprint.

Covid-19 Impact:

The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) hampered the growth of several industries, including the chemicals & materials industry. The shutdown of manufacturing units disturbed global supply chains, manufacturing activities, delivery schedules, and essential and nonessential product sales. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2020. Due to the pandemic-induced economic recession, consumers became more cautious and selective in their purchasing decisions. Non-essential purchases were significantly reduced by consumers due to lower incomes and uncertain earning prospects, especially in developing regions. Many manufacturers of precast concrete faced decline in profits due to reduced consumer demand during the initial phase of pandemic. However, by the end of 2021, many countries were fully vaccinated, and governments announced relaxation in certain regulations including lockdowns and travel bans. Construction activities initiated globally which increased the demand for precast concrete, boosting the precast concrete demand. All these factors had a positive impact in the growth of precast concrete market across different regions.

Competitive Landscape and Key Companies:

Some of the prominent players operating in the global precast concrete market include Betongindustri AB, Boral, Cemex S.A.B. DE C.V., Consolis Group SAS, Elementbau Osthessen Gmbh & Co., Elo Kg, Forterra, Gulf Precast, Lafargeholcim, Centrum Pile Ltd., and Tindall Corporation, among others. These  players offer high quality precast concrete and caters large number of consumers in the global market.