The precast concrete market is expected to grow at a healthy pace in its revenue generation with a 5.3% CAGR throughout the forecast period. As per the research, the rapid growth of digital economies in East Asia, South Asia, and Oceania are responsible for almost 65% share of the total precast concrete market value. Moreover, in the period between 2020 to 2030, the infrastructure industry will be growing at a solid 6.2% CAGR contributing largely to the market. Whereas, the transportation segment is expected to rise at a 7% CAGR in the forecast period.
What are the reasons for growth in the Precast Concrete Market?
Various countries like India, China, Indonesia, and so on are experiencing exponential growth in the market. This is mainly due to the growth of successful digital start-ups in these regions. Thus, allowing their employees an increase in their disposable income which in turn results in the demand for modern facilities. To cater to all these demands, the government has taken up massive projects on improving the road infrastructure, public transport, railways, and other media of travel.
As you already know that precast concrete has important applications in the construction of transportation infrastructure, so manufacturers find lucrative opportunities in these booming digital economies. Structural building components that are an essential part of the precast concrete material production hold a total market value of over 44%. Such investments are a necessary element in developing modern commercial complexes which are solely responsible for the increased demand for architectural and structural materials. This can also be backed up by the rising demand for affordable housing by the growing middle-class population all over the world.
Impact of COVID-19 on the Precast Concrete Market
As we already know that the COVID-19 pandemic has disrupted supply chains all over the world. This is one of the reasons why the precast concrete market is facing so much reduction in their economic growth. Furthermore, this situation is getting worse with the shortage of raw materials, reduction in workforce, and low logistics rate. Also, the key players responsible for the import and export of materials have been forced to shut down their operations and depend on the cash reserves to survive.
With construction being put to a halt, most industries have stopped producing precast concrete materials and this has resulted in a steady decline in demand in the subsequent market. Projects are being pushed further away from the deadlines since there is a shortage of labor. And construction workers are staying away from construction sites following the social distancing norms.
Apart from the quick distribution of COVID-19 vaccines. At such times, the government should step in and help the market with tax exemptions, removing deadline penalties, and financial aid. The government should also monitor high growth rate regions and invest in first movers the moment when trade restrictions are lifted.
What is the regional distribution of the Precast Concrete Market?
The key regions where the precast concrete market is developing rapidly are as follows. North America, Latin America, Europe, South Asia & Oceania, East Asia, and Middle East & Africa. Of all these regions, South Asia, East Asia, and Oceania have contributed towards the most revenue growth due to their blooming digital economies and the demand for more and more precast concrete materials to support the infrastructure supporting these economies. Followed by these regions, come North America and Europe, which are experiencing a similar trend in booming economies, and rapid development in infrastructure and transport will ensure the growth in the precast concrete market too.
What is the current competitive landscape in the Precast Concrete Market?
The key players are focusing on enhancing technology and extensive research and development to create effective products and gain a competitive edge over other companies. Many businesses have invested in various industries in the market to promote innovation.
Some of the major companies in the market are Boral Limited, Lafarge, Gulf Precast Concrete Co. LLC, Olson Precast Company, CEMEX S.A.B. de C.V., Forterra, Tindall Corporation, Spancrete, and ELO Beton.
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The global market for precast concrete is expected to show growth and development in the forecasted period owing to the increase in adoption by various industries and the rise in innovation and research. The numerous benefits of precast concrete for infrastructure development and transport segment make them popular across several regions.