The global precast concrete market size was valued at USD 101 billion in 2021 and is expected to reach a valuation of USD 166 billion by 2030. The market is expected to grow at a CAGR of 6% during the forecast period (2022–2030). Precast concrete is primarily used in the construction and building industry. It may be used for any kind of construction, viz., residential, non-residential, industrial, etc. Although precast concrete has several advantages in its use and applications, its cost still hampers the demand. The overall cost of having precast concrete, including machinery and molds needed for its production, is very high compared to traditional concrete. With the increase in environment-friendly policies and the focus on green and energy-efficient buildings in the construction industry is driving the demand for precast concrete.
Offsite production, also known as prefabrication, is a process where the components of the civil structures are assembled at a production facility and then transported to the construction site. The precast structures are cast and hardened before being used for construction purposes. The said precast products are one the major components of the offsite construction. Offsite construction is one of the prominent sectors in the market as it is a time-saving option with minimal material wastage.
Also, another strong point regarding the precast concrete is that the entire process for precast concrete can be carried out irrespective of the weather conditions. With the current environmental scenarios in the world, it is clear that adopting environmentally sustainable and regulatory compliant construction practices is likely to boost the revenues of the precast concrete sector in the coming future.
The advantages of precast concrete are the key factors for prioritizing the precast concrete over conventional concrete methods. The use of precast concrete in the infrastructure has several advantages over the on-site cast concrete. The biggest advantage is the superior quality of concrete, which results from the technical control of the precast concrete production and the ideal factory conditions, which play a vital role in the efficient production of the precast concrete. Another advantage it comes with is the speed of construction, as when used, it can save up to one-third of the total construction time required. Also, it does not consume more time to design the precast concrete than the masonry structure, as the precast structure can be easily replicated in the structure system. Considering all the factors about the precast concrete, one of the most important is the cost incurred in using the precast concrete, which is way lesser than using the conventional casting methods.
Even though precast concrete has several advantages over conventional concrete and casting methods, the one thing that can backfire for the precast concrete market is its costs. Precast concrete involves a high amount of investment, as the costs for the machinery and the molds required for the production of the precast concrete products are way higher than the entire conventional concrete method.
The manufacturing of precast concrete products requires high-end technology with a highly-skilled labor force that can efficiently handle the production. Along with this, transportation costs also account for larger expenses. The manufactured precast concrete needs to be transported from the manufacturing site to the construction site, which incurs a high amount of transportation costs with respect to the location where it has to be delivered. So, all these factors are proving to be an obstacle to the growth of the precast concrete market, but engineers are working hard to lower these costs.
As discussed above, precast concrete is easy to install and can be replicated to the masonry structure easily. The main factor that forces the construction companies to utilize the precast concrete is the speed and longevity the precast concrete comes with. With the utilization of precast concrete, the speed of the construction can be increased as it eliminates the time required for preparing the concrete mixture. With such a pace, the construction work can be completed within the stipulated time.
This is why many key players in the global construction industry prefer precast concrete, which opens a wide range of opportunities for manufacturers and suppliers. The R&D going on to make the precast concrete comparatively less expensive can be a fruitful opportunity for manufacturers, dealers & distributors of the precast concrete.
Covid-19 outburst stopped the entire construction work for almost a year, putting huge pressure on the construction giants and builders who invested huge amounts in their buildings and construction process. These include the costs incurred for the equipment and materials, labor costs, land acquisitions, other formalities, etc. Builders mostly invest money either by finances or the amount they get from their customers. The lockdown imposed and the complete shutdown of the work created huge debts for the builders and construction companies.
The precast concrete industry was not different from this, as it is a part of the construction industry. The precast concrete manufacturing sites were dragged to stoppage with no demand from the market. At that time, cost-cutting was the main thing to consider for builders, and precast concrete comes with higher costs, which affected the growth and earnings of the precast concrete market.
Many construction sites were stopped during the pandemic and never resumed even in the pre-pandemic times amid the losses and debts incurred. But still, the construction industry is one of those few industries that can never get obsolete, and this is why the industry is standing back taller and higher than earlier with the help of technology and fast-paced work methodologies with precast concrete.
The global precast concrete market share is segmented by product and end-use. Based on product, the market is categorized into structural building components and transportation products. The structural building components segment dominated the market with a market share of USD 35 billion in 2021 and is expected to grow to USD 59 billion by 2030 at a CAGR of 6%. The structural building components segment dominates the market owing to the need for speedy construction of the buildings, including residential and commercial.
The speed of construction matters the most for the builders and the consumers who are going to use the constructed property. Precast concrete is used to replicate the masonry structure in big projects, which saves a lot of time and completes the entire building structure in less time than the conventional concrete casting method. The next category in the said segmentation is the transportation products, which account for the market share of USD 21 billion in 2021 and is anticipated to grow to USD 33 billion by 2030 at a CAGR of 5%.
The adoption of the transportation products is estimated to grow over the forecast period with the increase in the construction of bridges, highways, railways, tunnels, flyovers, etc. The government spends a lot of money on developing all such transportation facilities. Apart from this, precast concrete is expected to gain high demand in the rail applications owing to its advantages like high durability, low maintenance cost, and the improved elasticity of the track.
When segmented based on the end-use, the precast concrete market is classified into residential and commercial. The residential segment holds the maximum market share of USD 22 billion in 2021 and will reach USD 35 billion by 2030 at a CAGR of 5%. The advent of residential projects at the current times is one of the key factors for the growth of the precast concrete market.
The increasing number of residential projects in the outskirts of major cities are driving the market forward as people are looking for spacious homes nearby the major cities. When considered the commercial or non-residential segment, it accounted for a market value of USD 18 billion in 2021, growing to USD 28 billion by 2030 at a CAGR of 5%. The commercial projects include business zones, corporate offices, IT parks, industrial zones, shopping malls, supermarkets, hospitals, hotels, resorts, etc.
Geographically, the global precast concrete market share is primarily divided into North America, Europe, Asia-Pacific, and Middle-East & Africa. The Asia-Pacific region is the most dominant one, with a market share of USD 38 billion in 2021, and is expected to reach USD 67 billion by 2030 at a CAGR of 7%. With major emerging economies like India, China, and Japan in the region, the Asia-Pacific region is booming the said market segment. The continuous development of the said countries, which led to infrastructural developments, created a huge demand for such precast concrete materials to decrease the lead time and increase the construction speed with superior quality. The second most dominant region is North America accounted for a market share of USD 23 billion in 2021 and is anticipated to reach USD 37 billion in 2030 at a CAGR of 6%. North America has the presence of major developed countries like the US and Canada that have significant demand for such construction methods.
Europe being the industrial hub in the world has more commercial properties where the precast concretes are used, and that is why it accounts for a market value that stood at USD 24 billion in 2021 and reached USD 33 billion by 2030 at a CAGR of 4%. According to the International Monetary Funds (IMF), the European economy is strengthening significantly with the overall growth in GDP at 2.4%, which creates an ocean of opportunities for every sector, and precast concrete is one of those. The least dominant region in the global precast concrete market is the Middle-East & Africa region. The market in Middle East & Africa was valued at USD 8 billion in 2021 and is expected to grow to USD 14 billion in 2030 at a CAGR of 7%, owing to the revolutionary changes in the said region and other technological developments.