Market Trends of Precast Concrete Industry
Residential Sector is Expected to Dominate the Market
- Precast concrete materials are precast and prefabricated during the manufacturing process. Such structures increase construction speed and productivity while helping cost and quality control.
- The demand for precast concrete is increasing due to a significantly larger need for cost-effective and safe materials.
- Furthermore, such structures are considered sustainable building materials because they can be reused or remolded repeatedly, reducing their environmental impact.
- With significant population growth, the demand for low-cost residential properties, higher efficiencies achieved through precast methods, and increased construction speed through precast technology drove the market in recent years. Furthermore, conversion and renovation of old buildings increase investment in the construction industry, increasing demand for prefabricated parts and thus positively contributing to the growth of the precast construction market.
- China includes the world's largest construction market, accounting for 20% of all global construction investments. China is expected to spend nearly USD 13 trillion on construction by 2030, which drives the demand for the precast concrete market in China during the forecast period.
- According to NITI Aayog, the Indian real estate sector will be worth USD 1 trillion by 2030, accounting for 13% of India's GDP by 2025.
- The United States boasts a colossal construction sector with over 7.6 million employees. According to US Census Bureau, in 2022, the value of construction was USD 1,792.9 billion, a 10.2% increase over the USD 1,626.4 billion spent in 2021.
- Further, as per further statistics generated by the US Census Bureau, the annual value for new construction in the United States accounted for USD 1,657,590 million in 2022, compared to USD 1,499,822 million in 2021.
- Moreover, the annual residential construction in the United States was valued at USD 849,164 million in 2022, compared to USD 740,645 million in 2021. The annual non-residential construction in the country was valued at USD 808,427 million in 2022, compared to USD 759,177 million in 2021. It is thereby decreasing the consumption of the market studied in the short term.
- The Precast concrete market will likely grow globally during the forecast period due to all these factors.
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North America Region is Likely to Dominate the Market
- North America is expected to dominate the market owing to the increasing construction activity in the residential and commercial sectors in the region.
- The positive growth trends in countries such as the United States and Canada boosted the demand for precast concrete products and applications in recent years.
- The demand for precast concrete in the construction industry is growing rapidly as the demand for dynamic building materials and concern for strong construction increases.
- Infrastructure spending is also a key part of the Government of Canada's growth strategy, pledging more than USD 135 billion over the next 12 years. Projects include public transport connectivity, broadband, and energy infrastructure upgrades.
- According to the Canadian Construction Association, the construction sector is one of Canada's largest employers and a major contributor to the country's economic success. The industry contributes 7% of the country's Gross Domestic Product (GDP). Further, various government projects, such as New Building Canada Plan (NBCP) and Affordable Housing Initiative (AHI), are supporting the construction sector's growth.
- Canada is one of the richest countries in the world. Infrastructure and construction saw phenomenal growth in the last decade, with around 50 skyscrapers completed in major cities such as Toronto, Vancouver, and Calgary. Infrastructure Canada funded 6,500 projects to build and maintain thousands of kilometers of expressways and highways.
- The region's industrial development and favorable government policies lured several manufacturers to establish plants there, which is expected to boost demand for precast concrete.
- Due to all such factors, the market for Precast concrete in the region is expected to grow steadily during the forecast period.
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