Ready-Mix Concrete Market

Market Overview

The global ready-mix concrete market size was valued at USD 694.15 billion in 2022. It is projected to reach USD 1388.54 billion by 2031, growing at a CAGR of 7.99% during the forecast period (2023-2031). The ready-mix concrete industry is driven by rising construction activities and infrastructure development on a global scale.

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 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 the proportion of the mixture. Additionally, the use of ready-mix concrete reduces work site confusion. Ready-mix concrete is also used for customized concrete products for commercial use. This concrete is manufactured under controlled operations and transported and placed at the 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.

Market Dynamics

What are the Main Driving Factors of Ready Mix Concrete Market?

Rising Demand for Residential Buildings

The expansion of the construction industry supports the expansion of the market. The increase in income in developed and developing nations has ramped up the construction of structures and housing structures, resulting in high demand for concrete. Due to unprecedented economic growth, the construction industry is undergoing unprecedented transformations and is increasingly moving toward ready-mix concrete for its convenience and speed of application. China, India, Japan, and other Asian countries are the primary market growth drivers. The population increase in these regions has a primarily positive impact on the concrete market due to the increased need for residential buildings. In addition, the increasing transition of industrialization from western regions to Asia-Pacific is directly supporting the development of the construction industry, which is expected to result in the expansion of the RMC market. Urbanization has also resulted in the expansion of infrastructure facilities, a major factor in the growth of the market for ready-mix concrete.

Increasing Infrastructure Projects in Developing Countries

Governments, mainly in developing countries, are pursuing continuous modernization to address infrastructural deficiencies, as well as to improve their education and healthcare systems, as well as their sanitation and water standards. In accordance with this strategy, respective governments are placing emphasis on bolstering sustainable mining solutions and improving technology, productivity, and safety.

This, in turn, is anticipated to increase the global demand for ready-mix concrete. In the past years, Latin American nations such as Peru had untapped water and wind power potentials of 69,000 MW and 77,000 MW, respectively. The government has strategically prioritized capitalizing on these possibilities by increasing investments in Chilean interconnection plans. The Indian government, in the wake of the pandemic, has made efforts to enhance the liquidity in the ecosystem and has even invested in development projects, such as the "Housing for all scheme" and the "Smart Cities scheme," to name a few. A considerable share of this demand is anticipated to come from the construction of office spaces, a trend that has already begun due to the shift from work-at-home to office-based employment.

What are the Restraining Factors for Ready Mix Concrete Market?

Huge Initial Investment

The ready mix concrete requires a huge initial investment, which makes it unsuitable for small-scale construction activities. Several construction sites do not find it feasible to use ready-mix concrete, as large amounts of concrete are not required. In developing and underdeveloped countries, the majority of construction activity is done with manual concrete mixing, which can restrain the growth of the ready-mix concrete market.

What are the Growth Opportunities for Ready Mix Concrete Market?

Growing Urbanization and Increasing Investment in Real Estate

The increase in construction opportunities is a result of increasing private-sector investments and government assistance. Among them is the construction of highways, bridges, railroads, urban infrastructure, real estate, the power generation sector, and commercial buildings. This type of concrete is in high demand due to the rapid construction of the previously mentioned structures. This is also supported by the government and private sector investments in urbanization from developing economies such as China, India, Mexico, and South Korea. It is contributing to the exponential expansion of the RMC market. In addition, high labor benefits, such as the provision of proper equipment, reduced labor costs, and health benefits, have a positive effect on the construction industry, resulting in rapid expansion. This expansion of the construction industry contributes to the expansion of the market.

Regional Analysis

The global Ready Mix Concrete market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia Pacific Dominates the Global Market

Asia Pacific is the most significant shareholder in the global Ready Mix Concrete market and is expected to grow 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 as 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.

North America is expected to grow significantly, with the highest CAGR during the forecast period 2023-2031, 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 the extent of adoption of responsible sourcing by manufacturers and producers associated with high durability and efficiency levels. Growing green infrastructure projects in Europe to promote sustainable materials and concrete for construction will drive the market in the region.

The LAMEA 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.

Segmental Analysis

The global ready-mix concrete market is segmented by type and application.

Based on type, the global ready mix concrete market is bifurcated into transit mix concrete, shrink mix concrete, and central mix concrete.

The transit mix segment is the highest contributor to the market and is expected to grow during the forecast period, owing to the ease of mixing at the job site. Transit mixing prevents the early hardening and slump loss problem, which can affect the concrete in case of delayed transportation.

The shrink mix segment is expected to grow at a higher CAGR due to its property to increase the truck's load capacity. The concrete mixed at the plant is shrunk to reduce the volume of concrete and transport more quantity of concrete to the construction site.

Based on application, the global ready-mix concrete market is bifurcated into commercial, infrastructure, residential, and industrial.

The commercial segment is the highest contributor to the market and is expected to grow during the forecast period. Due to the rapid urbanization in several countries around the world, the commercial sector is the largest. It is due to the establishment of numerous private-sector businesses, such as shopping malls, hotels, and restaurants. The need for rapid construction in commercial construction increases the demand for this type of concrete. The residential segment is projected to grow steadily due to the rising demand for housing sectors in Asia-Pacific as a result of the region's expanding population. This demand is also bolstered by the rising disposable incomes of individuals in countries like China and India.

The infrastructure segment is forecasted to grow at a higher CAGR owing to urbanization. Urbanization has led to a significant rise in the migration of rural populations to urban areas, which has further led to an increase in the demand for infrastructure development. Government initiatives with a 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.

Recent Developments

• In April 2021, ACC Limited launched 4 ready-mix concrete products, ACC thermofillcrete, ACC Suraksha NX Antiwashout Concrete, ECOPact, and ACC ADMIX.
• In March 2022, ACC Limited launched ACC Airium, a thermal insulating climate control concrete system.
• September 2022, Lafarge Algeria launched Chamil reduced CO2 cement, containing domestically sourced clay and ferrous materials.