Precast Construction Market - Forecast(2023 - 2028)

Precast Construction Market Overview

The Precast Construction Market size is expected to reach US$178.7 billion by 2027, growing at a CAGR of around 5.1% from 2022 to 2027. Precast construction is a procedure where the concrete is cast in a molded form and is then transported to the site of construction for installation. It uses precast concrete elements for various construction and infrastructural applications. The precast construction has major use in building constructions, bridges, wall panels, railroads, hollow core slabs for multi-story buildings, and others. The precast construction industry is primarily driven by the increasing development and demand in the building and construction sector due to low maintenance and cost-efficiency. According to the Office for National Statistics, the construction output level in November 2021 was 1.3% high and repair and maintenance was 6.9% high than the February 2020 output levels. Furthermore, the precast construction market will experience growth owing to high demand in residential constructions, and commercial constructions that will drive market growth during the forecast period.

COVID-19 Impact

The worldwide covid-19 outbreak created a hamper in the precast construction market. The precast construction equipment is majorly used in the residential, non-residential, and infrastructure sector. The disruptions such as raw material supply chain disturbances and production halts created a major impact on the precast construction market. The construction sector was negatively affected by the pandemic. The residential construction and buildings projects were suspended as the government implemented restrictions on the construction sites. The construction contractors also faced labor shortages, logistics errors, and a decline in residential projects in the pandemic. According to World Bank, the world construction value was USD 22.04 trillion in 2020, compared to USD 23.29 trillion in 2019, showing a decline of around USD 1.25 trillion in 2020. Thus, with disruptive and declining construction trends during the covid-19, the demand for precast construction equipment also faced major impacts due to declining applications such as buildings, bridges, railroad, wall panels, and others, thereby resulting in a fall in the growth for the global precast construction industry. However, the construction industry, majorly residential segment recovered with the growth in infrastructure projects and stabilizing the supply of construction raw material and investments on various building projects across the globe post-pandemic phase. 

Report Coverage

The precast construction market report: “Precast Construction Market– Forecast (2022-2027)” by IndustryARC covers an in-depth analysis of the following segments of the precast construction market and provides precast construction industry outlook.

By Product Type: Columns & Beams, Floor & Roofs, Staircase, Girders, Walls, Paving Slabs, and Others
By Application: Structural Building, Highway Bridges, Railroad, Flyovers, Wastewater, and Others
By End-Use Industry: Residential (Buildings, Houses, and Others), Non-Residential (Bridges & Flyovers, Railway Sleepers, Tunnels, and Others), Infrastructure, and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Middle East (Saudi Arabia, UAE, Israel, Rest of the Middle East) and Africa (South Africa, Nigeria, Rest of Africa)

Key Takeaways

• The precast construction market is driven by the rising application demand for residential construction, non-residential, infrastructure, and other industries during the forecast period.
• The Asia Pacific region holds a major share and will dominate the precast construction market due to the increasing infrastructural and construction development in nations such as India, China, and others.
• The structural building components segment is growing due to the increasing adoption of precast building piles and foundation structures during the forecast period.

Figure: Asia Pacific Precast Construction Market Revenue, 2021-2027 (US$ Billion)

Precast Construction Market Segment Analysis – By Product Type

By product type, the columns & beams segment is expected to have the largest share of more than 22% in 2021 and is expected to dominate the precast construction market in the coming years. The growth in the columns and beams is influenced by the rising application in residential as well as non-residential sectors. It provides effective solutions for the structural working in a project and is created to offer a secure load path to transfer the weight. The beams help support the weight of roofs, ceilings, and floors, whereas the columns are required to support the roof beams and the floors above. For instance, the government of India announced an investment plan worth USD 1.5 trillion in the construction sector for a period till the year 2025. The increasing building and construction are influencing the high usage of columns and beams in the market. Thus, with the rise in construction projects, the demand for columns and beams in the precast construction market will grow owing to its cost efficiency, quality control, construction speed, and fast installation in the coming years.

Precast Construction Market Segment Analysis – By Application

By application, the structural building segment is expected to hold a significant share of 18% in 2021 and is expected to boost the precast construction industry in the coming years. The structural building is growing due to increasing emphasis on saving construction time and cost-efficiency. Moreover, the demand for lightweight building structures is high due to enhanced construction performance, time-saving and cost benefits are boosting the market for precast construction techniques. The growth in residential construction projects such as houses, apartments, warehouses, and business establishments has led to the rising adoption of precast concrete, which uses expanded polystyrene for buildings. According to U.S Census Bureau, the residential building permit surges by 11.1%, along with a 7.3% rise in housing projects in 2019. Furthermore, the growth in green building projects in a nation such as China is driving the precast construction market. Thus, with increasing emphasis on high-rise building projects for land allocation and infrastructural developments across the world, the demand for precast construction in the structural building segment will lead to high growth opportunities during the forecast period.

Precast Construction Market Segment Analysis- By End-Use Industry

By end-use industry, the non-residential segment is expected to have the largest share of more than 35% in 2021 and is expected to increase the precast construction market size during the forecast period. The demand for precast construction in the non-residential sector is growing due to its reduced construction costs and time, along with high efficiency. Moreover, the non-residential building and construction sector is growing due to the rise in commercial spaces, flyovers, roads, hospitals, and other infrastructural projects across the globe. The excellent features of precast construction such as deflection control, high strength-oriented materials, and low noise transmission have boosted its application in the non-residential sector. According to the U.S Census Bureau, the educational construction was USD 89.1 billion in 2020 and highway construction at USD 99.5 billion in 2020. Furthermore, the increasing offsite construction trend is driving the growth for precast construction in the non-residential sector. Thus, with rising investments and development in building construction and growing non-residential applications, the precast construction market will experience major growth and demand during the forecast period.

Precast Construction Market Segment Analysis – By Geography

By geographical analysis, the Asia pacific holds the largest share of more than 40% in the precast construction market for the year 2021 and will continue to dominate the market during the forecast period. The increasing demand for precast construction in this region is influenced by rising applications in residential, non-residential, and infrastructure sectors, thereby contributing to the global precast construction market share. The investments in building and infrastructure projects in nations such as China, Japan, India, and others are boosting the demand for precast construction equipment. Furthermore, the government’s emphasis on housing, commercial buildings, infrastructure projects such as railway networks, and others are driving the market for precast construction in the APAC. According to the National Bureau of Statistics of China, the output of construction in China was reported at 25% of the gross domestic product in the year 2020. Furthermore, the rising demand for green buildings and advanced construction techniques is anticipated to boost the application for precast concrete equipment such as hollow core slabs, wall panels, columns & beams, and others, thereby boosting the demand for precast construction in this region. Thus, with major growth and developments in the residential, non-residential, and infrastructural building and construction projects in the Asia Pacific region, the precast construction industry will grow during the forecast period.

Precast Construction Market– Drivers

Increasing emphasis on building remodeling and refurbishing

The rising trend for old building remodeling and renovation is creating a major drive in the precast construction market. The building and construction sector uses building information modelling technology as it offers efficient design, modeling, and virtual management of the models. The growing demand for housing equipped with modern architecture and aesthetic appearances is influencing the need for remodeling and renovations in housing, apartments, and buildings. The demand for precast construction is thereby increasing with a high emphasis on remodeling and refurbishing in various building and construction units. The precast construction element offers high safety, enhanced construction quality, excellent insulation due to expanded polystyrene usage, and fast project completion. The demand for precast concrete is high owing to its time efficiency, durability, environment friendly, and cost-effectiveness. For instance, the Government of Canada and Alberta committed over USD 150 million for the improvement and repair of infrastructure facilities across the world. Thus, with high application and usage in the building remodeling and refurbishing sector, the precast construction industry will experience major growth traction during the forecast period.

Growing demand in the infrastructural sector

Precast construction is a fast-growing process owing to its efficiency, construction time reduction, and cost benefits. The growth in the construction and infrastructure industry is creating a major drive in the precast construction market. Various infrastructural projects such as road and rail, apartment buildings, bridges, protective walls, and others are influencing the application demand for the precast construction market. The growth in housing structures, social infrastructures such as hospitals, educational centers, and others are adopting the precast construction products for high performance, timely construction, and less spending. For instance, the multilateral institution Asian Development Bank (ADB), announced the USD 100 million funding for the Indian infrastructure sector through government-promoted NIIF. According to World Economic Forum, the global infrastructure investments are expected to reach around USD 79 trillion by 2040. Thus, with high demand in the infrastructural and another construction sector due to reduced costs, low time consumption for construction, and overall structural performance, the precast construction market will experience a major drive and lead to high growth opportunities in the coming years.

Precast Construction Market– Challenges

High transportation costs and handling issues

The precast construction equipment is prefabricated and prepared in the plants away from the main construction site. The transportation of these precast concrete products may create challenges due to their heaviness which results in high transportation costs. The installation costs usually ranges from 15% TO 20%, with transportation costs accounting for 3% to 6% of the total costs incurred. The delivery expenses ranges around USD 800 TO USD 1120 per load at around 100 to 200 mile. Furthermore, structures more than 16 feet width can cost USD 2000 with required permits and escorts. The high costs and other handling expenses on the transportation may create a major hindrance in the overall precast construction market size. Furthermore, the installation also becomes a hectic task in highly crowded areas. Thus, with difficulties in handling, high transportation charges, and installation at the prime construction site, the precast construction market growth is likely to hamper, thereby creating a major challenge in the market.

Precast Construction Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies that are adopted by the dominant players in the precast construction market. The major precast construction top 10 companies include:

1. China National Building Material Company Limited
2.  Taisei Corporation
3. Coltman Precast Concrete Ltd.
4. Bison Manufacturing Ltd.
5. Gulermak A.S.
6. Tindall Corporation
7. CEMEX S.A.B. de C.V.
8. Olson Precast Company
9. Lafarge
10. Boral Ltd.

Recent Developments

• In January 2021, the LafargeHolcim got into an agreement for acquiring the Firestone Building Products at USD 3.4 billion from Bridgestone Americas.
• In December 2020, the ALLPLAN Company, a leader in BIM solutions and Precast Software Engineering, announced the partnership for strengthening the delivery capabilities in the construction and engineering market.

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