The Global Precast Construction Market size was valued at USD 146.19 Billion in 2022 and is expected to surpass USD 228.74 Billion by 2031, expanding at a CAGR of 5.1% during the forecast period, 2023–2031. The market growth is attributed to the increasing wave of urbanization and several infrastructural development projects in emerging economies.
Precast construction is a method of casting concrete that is reusable or easily molded. It is designed and cured off-site in a controlled environment. This involves the manufacturing of precast concrete done away from the actual site and then transport to the construction site for application.
Precast concrete products are manufactured by pouring concrete into molds of wood or steel. Wet casts such as tilt-up panels are used in off-site manufacturing. Such production, of precast through off-site casting processes is more efficient than on-site methods as the molds can be used several times before getting replaced.
The precast construction methods offer various benefits such as a reduction in air pollution, debris, and noise. Precast products provide superior sound control and fire resistance for structures. Better control over material quality is ensured as the cast concrete is manufactured in monitored environments away from construction sites.
The speedy manufacturing of concrete cuts time and costs substantially in comparison to on-site manufactured concrete. Close monitoring of the production process results in reducing manufacturing costs. Maintaining higher quality standards of precast products than that of cast-in-situ concrete products by manufacturing in a controlled environment.
Conventional formworks can be replaced by using precast elements. Standardized manufacturing processes of precast products facilitate their use at different construction sites is possible due to.
COVID-19 Impact on Precast Construction Market
The COVID-19 pandemic adversely affected the precast construction market due to sudden stoppages in construction activities globally and abrupt disruption in raw material supply chains. Development projects came to a standstill due to a lack of labor for construction impacted by the strict implementation of governments’ preventive measures such as social distancing and travel restrictions. Such an abrupt halt directly affected the revenue flow in the market. The pandemic caused damage to the value chain with cancellations and postponements of construction projects.
Precast Construction Market Dynamics
The research report presents a complete market overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global precast construction market report has up-to-date insights about market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.
Drivers
- Increasing Demand for Residential & Commercial Buildings
Increasing demand for residential real estate and commercial projects is one of the key factors driving the market. The rising investment in building developments is largely influenced by the increasing size of the population globally. Developing low-cost homes efficiently and rapidly is possible through precast construction.
Alongside new development, construction activities for refurbishing and redeveloping old buildings and their structures further boost the precast construction market. Precast products use pre-stressed materials that offer high load-bearing capacity and strength. This results in reducing the cross-sectional size of structural components increasing the clear span. This is helpful in creating open areas without structural support.
- Rapid Urbanization and Increased Facilities Development
The increased demand for residential and commercial building projects is due to rapid urbanization. Citizens are increasingly migrating to cities for work opportunities and educational pursuits, which further fuels the market. A boom in the development of malls, hospitals, hotels, sports facilities, and industrialization has bolstered market growth. Moreover, a surge in disposable incomes of the population across major economies coupled with investments in real estate is another key driver of the construction market.
- Growing Government Spends on Infrastructural Development
The rising spending on infrastructure development from governments across the globe, especially in developing countries presents another major factor propelling the market. The development of public housing schemes, flyovers, bridges, skywalks, footpaths, and necessary utilities namely dams, airports, and metro terminals are key aspects of infrastructure development in a country.
Restraints
- Fluctuating Raw Material and Transportation Costs
The price volatility of raw materials and rising transport costs are some of the major restraining factors hampering the global market. Several components used in precast construction such as concrete, sand, and aggregators have fluctuating prices globally. The high volatility in the prices of fuel plays a crucial role in the high cost of transport. Rising warehouse and handling charges for raw materials add to manufacturers’ expenses.
- Safety Concerns for Workers
Rising concerns for workers’ safety is another major challenge expected to hinder the market during the forecast period. During the production of precast construction components, several harmful toxic gases are produced in the form of carbon monoxide, nitrogen oxide, and sulfur dioxide to name some, which pose a high health risk to workers.
Opportunities
Various initiatives for sustainable environmental measures are taken by governments across the globe. With the introduction of strict government regulations, the producers of construction materials and components are required to comply with the new green initiatives. The use of green building materials is anticipated to create lucrative opportunities for market players.
Precast construction products are formed from raw materials with natural and recycled resources. It involves fewer chemical treatments and minimal processing resulting in significantly fewer carbon emissions or low embodied energy values. Green regulations of governments are adhered to by the usage of precast products. Thereby massive investment opportunities are available for manufacturing precast construction components.
Precast materials are beneficial in reducing the pollution of resources. They are responsible for a significant reduction in the contamination of air and water resources. Reduction in noise pollution and scattered debris are other major advantages. The use of precast materials maximizes thermal mass benefits that help decrease the overheating within rooms, which acts as a key growth opportunity for the market.
Scope of Precast Construction Market Report
The global precast construction market research report includes an assessment of the market trends, market segments, and regional analysis of markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Precast Construction Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Structural Component (Beams, Walls, Columns, Facade System, Floor & Roof Systems, Staircases, Girders, Lintels, Paving Slabs, and Others), Construction Type (Modular Homes and Manufactured Homes), and Application (Residential, Infrastructural, Industrial, and Commercial)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Olson Precast Company; L.B. Foster Company; Larsen & Toubro Limited; Boral; Komatsu Ltd.; TAISEI CORPORATION; LAING O’ROURKE; Tindall Corporation; CEMEX S.A.B. de C.V.; STECS; Coltman Precast Concrete Limited; Rinker Materials; SPANCRETE INDUSTRIES LTD.; Elematic Oyj; CRH; Kiewit Corporation; Balfour Beatty; and Gülermak A.Ş.
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Precast Construction Market Segment Insights
Based on structural components, the precast construction market is segmented into beams, walls, columns, facade systems, floor & roof systems, staircases, girders, lintels, paving slabs, and others. The floor & roof system segment is expected to expand at a significant growth rate during the projected period due to the massive use of precast materials in flooring and roofing as they offer excellent insulation and heat resistance characteristics.
The use of precast products in floor and roof systems ensures even load distribution and is ideal for developing gymnasiums, mills, garages, and commercial establishments such as hotels, manufacturing units, and education institutes. Thermal mass properties in precast components reduce overheating within a room and subsequently reduce the carbon emissions of a building.
The walls segment is anticipated to hold a key share of the market in the coming years owing to the easy processes and less time required for building walls using pre-manufactured concrete slabs. Space utilization of the interior part of the building can be maximized using precast concrete, enhancing the design flexibilities of the room structure.
Wall panels made using precast concrete provide a single cladding assembly. They hang from a structure’s exterior in the form of cladding. They allow for quick and straightforward exterior finish wall application for a building. Durable precast concrete panels provide good structural framing, and heat, air, and moisture control. Precast concrete components aid in building noise-cancellation walls as it is designed to minimize ambient noise by making use of the excellent properties of sound transmission resistance.
Based on construction type, the global precast construction market is divided into modular homes and manufactured homes. The modular construction segment is expected to expand at a significant growth rate during the projected period due to the ease of developing structures with design flexibilities. Modular homes are majorly built with permanent foundations by putting together different modules manufactured off-site.
The manufactured homes segment is anticipated to hold a key share of the market in the coming years as the components are manufactured piece by piece in factories. The developed structures are carried from the factory source to the home site and fixed on permanent or temporary foundations.
On the basis of application, the market is segmented into residential, infrastructural, industrial, and commercial. The residential segment is projected to register a considerable CAGR during the forecast period due to the development of affordable housing schemes for high and middle-income groups. A steady increase in the incomes of higher and middle-income groups around the world has increased investments in real estate strengthening the economic backgrounds of investors.
The esthetic value of precast products is enhanced with prefabrication in a factory-controlled environment. This eliminates the need for rectification work during assembly thereby rendering high-quality finishing. Enhanced aesthetics thereby augment the demand for precast components in construction.
The infrastructural segment is anticipated to account for a major market share in the coming years. The rise can be owed to government-driven infrastructure development is rapidly increasing in emerging economies. Infrastructure development projects for public usage, require fast-paced developments and adherence to project completion deadlines. Precast products cured offsite save on-site storage space. The onsite time required for manufacturing concrete products using construction machinery is reduced considerably by precast components.
Off-site manufactured precast products are delivered as per the construction requirement on-site. Their transportation to the site requires very less machinery and labor strength. Precast products aid in reducing project costs for the building of mega projects such as flyovers, bridges, dams, metro stations, and airports.
In terms of region, the global precast construction market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to hold the largest market share in the precast construction market during the forecast period, due to rapid industrialization augmenting the demand for precast products. Increasing demand for modern precast construction solutions that are eco-friendly and cost-saving has brought about this extensive growth in the region.
The market in Europe is anticipated to record the second-largest market growth during the forecast period due to an increase in private investments in real estate in developed and emerging economies of the region. Government-aided incentivization for construction projects and growth in the GDP of European nations are major factors that have driven the positive upswing.
Segments
The global precast construction market has been segmented based on:
Structural Component
- Beams
- Walls
- Columns
- Facade System
- Floor and Roof Systems
- Staircases
- Girders
- Lintels
- Paving Slabs
- Others
Construction Type
- Modular Homes
- Manufactured Homes
Application
- Residential
- Infrastructural
- Industrial
- Commercial
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Olson Precast Company
- L.B. Foster Company
- Larsen & Toubro Limited
- Boral
- Komatsu Ltd.
- TAISEI CORPORATION
- LAING O’ROURKE
- Tindall Corporation
- CEMEX S.A.B. de C.V.
- STECS
- Coltman Precast Concrete Limited
- Rinker Materials
- SPANCRETE INDUSTRIES LTD.
- Elematic Oyj
- CRH
- Kiewit Corporation
- Balfour Beatty
- Gülermak A.Ş.
Competitive Landscape
The competitive landscape of the global precast construction market report provides key insights into the growth strategies and development initiatives implemented by the key players in the market.
Key players competing in the precast construction market are Olson Precast Company; L.B. Foster Company; Larsen & Toubro Limited; Boral; Komatsu Ltd.; TAISEI CORPORATION; LAING O’ROURKE; Tindall Corporation; CEMEX S.A.B. de C.V.; STECS; Coltman Precast Concrete Limited; Rinker Materials; SPANCRETE INDUSTRIES LTD.; Elematic Oyj; CRH; Kiewit Corporation; Balfour Beatty; and Gülermak A.Ş.
- In September 2022, a US-based precast and prestressed concrete solutions manufacturer, Tindall Corporation, opened a dedicated production line for manufacturing precast concrete floor slab system T-SLAB which are superior lightweight all-purpose beams offering robust performance and constructability for precast concrete solutions.
- In August 2022, a US-based infrastructure company, L.B. Foster Company, through its wholly-owned subsidiary CXT Incorporated, acquired the assets of a Tennessee-based precast concrete products manufacturer VanHooseCo Precast LLC.
- On January 12, 2022, a US-based precast concrete solutions provider, Tindall Corporation announced its split into two distinct business groups, namely, Tindall Infrastructure Group and Tindall Building Systems Group.
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