Precast Concrete Market is Estimated To Witness High Growth

The Precast Concrete Market is estimated to be valued at US$ 106.12 Bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Precast concrete products are widely used in construction due to their durability, design flexibility and strength. Precast concrete has advantages like faster construction, higher quality, and lower life-cycle costs. Precast concrete products include walls, floors, roof panels, fence panels, and utility vaults that provide design freedom, sustainability, durability and economy.

Market key trends:

The growing infrastructure spending on projects such as roads, bridges, dams, railways and commercial buildings is driving the demand for precast concrete. According to the World Bank, global infrastructure spending is estimated to grow at a CAGR of 3.9% during 2016-2040 to reach US$ 94 trillion. Governments across the globe are investing heavily in infrastructure projects under various initiatives like National Infrastructure Pipeline of India, and the US infrastructure plan. This rising infrastructure spending is fueling the growth of precast concrete market. Precast concrete reduces the construction time considerably and provides a safer construction environment compared to site cast concrete. These benefits are increasing its preference among contractors and builders.

Porter’s Analysis

Threat of new entrants: The precast concrete market requires high capital investment for setting up manufacturing units which limits the threat of new entrants.

Bargaining power of buyers: The bargaining power of buyers is moderate as precast concrete products have no close substitutes and switching costs are fairly high for buyers.

Bargaining power of suppliers: Aggregate suppliers have moderate bargaining power since shifting raw materials is difficult, however cement suppliers have higher bargaining power due to consolidated supply.

Threat of new substitutes: The threat of new substitutes is low as traditional construction materials cannot completely substitute precast concrete.

Competitive rivalry: The precast concrete market has high competition due to well established global players.

SWOT Analysis

Strength: Precast concrete offers faster construction, durable, requires less labor which reduce construction cost and time.

Weakness: Transportation and handling of heavy precast concrete components require specialized equipment. Initial setup and modernization cost of precast plant are high.

Opportunity: Rising infrastructure investment in developing countries and growth in commercial construction offer lucrative opportunities. Popularity of green building also supports market growth.

Threats: Volatility in raw material prices and stringent environment regulations can hamper market revenue.

Key Takeaways

The global Precast Concrete Market Size is expected to witness high growth at a CAGR of 5.4% over the forecast period, due to increasing infrastructure development projects globally. The market size for precast concrete is anticipated to reach US$ 106.12 Bn by 2023.

Regionally, Asia Pacific dominates the global precast concrete market and is expected to grow at the fastest rate due to ongoing infrastructure development projects in China and India. Countries like China, India, Indonesia, Malaysia, and Thailand are major revenue generators in this region.

Key players operating in the precast concrete market are Oldcastle Inc., Cemex Inc., Lafarge North America, HeidelbergCement, Holcim Inc., Vulcan Materials Co., Colas S.A., Martin Marietta Materials, MDU Resources, and Buzzi Unicem. These companies have extensive manufacturing facilities and supply networks across major markets.

Read More: https://www.rapidwebwire.com/precast-concrete-market-demand-growth-drivers-and-outlook/