Global Statistics Representing Ready-Mix Concrete Market Scenario
Ready-mix concrete (RMC) is a kind of concrete manufactured in a cement factory, typically known as a batching plant, as per a given set of proportions, and then carried to a work site by a truck riding with mixers. Ready-mix concrete is, at times, preferred over on-site concrete mixing because of the volume it can produce with precision in terms of proportion of mixture. Additionally, the use of ready-mix concrete reduces work site confusion.
Ready-mix concrete is also used for customized concrete products in commercial use. This concrete is manufactured under controlled operations and transported and placed at site using sophisticated equipment and methods. There are several benefits of ready-mix concrete; it minimizes cement wastage due to bulk handling, is relatively pollution free, and reduces project time, which results in savings in all aspects.
Ready-mix concrete is extensively used as a building material in residential & commercial buildings, manufacturing amenities, energy generation plants, roads, and runways. Infrastructure development in developing economies, coupled with growing urbanization, is a key factor propelling market growth. Additionally, increasing construction spending in light of urbanization, population growth, and government infrastructure plans is expected to boost market growth further. Furthermore, wastage reduction, low inventory costs, and efficient utilization have led to the lowering of overall project expenditures, which in turn is expected to augment demand over the forecast period. The noteworthy benefits of RMC include low labor and supervising cost, consumer awareness regarding eliminating wastage associated with bulk handling, and consistency in quality.
The global ready-mix concrete market was valued at USD 511.12 billion in 2018 and is expected to reach USD 945.35 billion by 2026 with an anticipated CAGR of 7.99 % during the forecast period, 2019–2026.
The global ready-mix concrete market can be segmented by production and application.
Based on production, the ready-mix concrete market can be segmented into on-site and off-site. The on-site segment is expected to grow at an exponential rate during the forecast period, owing to the increasing demand for RMC from the construction industry.
On the basis of application, the ready-mix concrete market can be segmented into residential, commercial, infrastructure, and industrial utilities. While RMC is extensively used in construction and building materials for commercial and residential purposes, the infrastructure segment is expected to witness significant growth, owing to urbanization. Urbanization has led to a significant rise in migration of rural population to urban areas, which has further led to an increase in the demand for infrastructure development. Government initiatives with focus on developing smart cities and restructuring established cities have led to the expansion of the infrastructure segment. The demand for RMC has been growing in tandem with the growth of the infrastructure segment.
Geographically, the ready-mix concrete market has been segmented into Asia Pacific, North America, Europe, Latin America, and Middle East & Africa.
Asia Pacific is expected to hold a major share of the ready-mix concrete market during the forecast period, owing to the increasing number of new infrastructure projects in developing economies such as India, China, and South Korea. Rapid urbanization in these regions has been driving the development of smart cities. In India, cities such as New Delhi, Mumbai and others have been listed in the top smart cities for the year 2017 by Smart Cities Index. Thus, the country has been registering increased demand for ready-mix concrete from associated constructions in these areas. China is estimated to hold a major share of smart city projects, followed by India. According to The India Brand Equity Foundation, India plans to invest USD 777.73 billion in infrastructure by 2022. Additionally, government initiatives promoting construction are among the major drivers for the ready-mix concrete market. For instance, in India, missions initiated under the Pradhan Mantri Awas Yojana, “Housing for All “and “Smart City Mission” are also propelling demand for ready-mix concrete.
The ready-mix concrete market in North America is expected to witness significant growth, owing to increasing demand for infrastructure from highly populated countries such as the United States, Mexico, and Canada. RMC exhibits superior characteristics that are widely applicable to non-residential verticals such as industrial, infrastructure, and commercial.
Europe is expected to witness substantial growth in the ready-mix concrete market, owing to rising awareness among customers regarding the properties of RMC and extent of adoption of responsible sourcing by manufacturers and producers associated with high durability and efficiency levels.
The MEA ready-mix concrete market is expected to witness steady growth, driven by the opportunities represented by infrastructure development in the Middle East. Dubai is committed to continued development in the coming years to ensure sustainability and encourage entrepreneurship in the Emirates through economic incentives that will contribute to attracting more investments.
Private investment in infrastructure across Latin America is significantly higher than that in other developing regions. For example, in Asia, only about 10% of infrastructure is privately funded, as compared to over 50% in Latin America.
Some of the major players in the global ready-mix concrete market are ACC Limited (India), Lafarge (France), CEMEX S.A.B.deC.V. (Mexico), Buzzi Unicem S.p.A. (Italy), Barney & Dickenson, Inc. (U.S.), R.W. Sidley, Inc. (U.S.), Holcim Ltd. (Switzerland), UltraTech Cement Limited (India), and Heidelberg Cement (Germany).
RMC Market Segmentation