Precast Concrete Market Size, Share & Trends Analysis Report By Product (Transportation Products, Structural Building Components), By Application (Infrastructure, Industrial), By Region, And Segment Forecasts, 2024 - 2030

Precast Concrete Market Size & Trends

The global precast concrete market size was estimated at USD 105.72 billion in 2023 and is expected to register a compound annual growth rate (CAGR) of 5.8% from 2024 to 2030. The market growth is expected to be driven by the expanding construction industry across major regions owing to increasing investments in infrastructure development. Increasing disposable income levels in developing as well as developed countries are expected to boost the residential construction segment.

In addition, increasing initiatives by various governments for the development of their respective economies are also expected to boost the construction industry, augmenting demand for precast concrete in the years to come.

Market Dynamics

The construction industry is witnessing rapid technological & architectural innovation. Airports, transportation routes & even residential projects are undergoing an immense transformation to comply with transitioning standards & specifications. Increasing applications in flexible architectural design and renovations of old buildings are some other factors driving market growth. Rapid industrialization and urbanization in emerging economies focus on the development of high-quality infrastructure worldwide, which supports industry growth. Moreover, emphasis on green building projects will drive market growth.

The interest in new construction materials, such as precast concrete, has been growing mainly considering the skilled labor shortage, requirement for shorter construction time, and demand for better development quality & durability. The U.S. offers one of the major markets for precast concrete on account of its highly developed economy, growing construction spending combined with a highly skilled workforce, and R&D initiatives to encourage product innovation. Rising demand for expansion of floor space in various industries has led to growth in new construction & renovation projects in the country. In addition, a rising number of large-scale infrastructure investment projects, including hotels and hospitals in New York, Missouri, and Los Angeles, will boost construction industry growth and drive product demand.

Product Insights

Structural building components segment is expected to register the fastest CAGR of 6.2% from 2024 to 2030. This growth can be attributed to a high demand from the construction industry. An increasing number of hotels, malls, and hospitals coupled with growing industrialization globally will likely propel demand for structural building components. Rising use of structural building components in affordable housing is anticipated to be a major factor driving segment growth. Moreover, rising demand for affordable housing on account of the rapidly growing middle-income population is expected to boost product demand.

Precast concrete walls offer design flexibility and improve profitability, which propels the demand for precast architectural building components. Expansion of cities will likely result in an increasing number of office buildings, hospitals, schools, shopping centers, apartments, and parking garages. Precast concrete is expected to gain high demand in rail applications owing to rising awareness about its benefits, such as high durability, low maintenance cost, and improved track elasticity. In addition, improved ride quality, minimum lifecycle cost, improved geometric retention of rail track, and greater weight, which is important for heavy freight lines and high speed, and environmental friendliness are likely to benefit the industry.

Application Insights

Based on application, infrastructure segment dominated the market with the highest revenue share of 32.8% in 2023. Significant investments in infrastructure and real estate development are offering lucrative growth opportunities for precast concrete. Emphasis on infrastructure and residential needs, particularly in emerging nations, has resulted in a considerable flow of private and government-led investments in these sectors. The precast concrete structures are cast and cured offsite and delivered when required. Thus, they do not need on-site storage space. Moreover, it requires a minimal number of laborers, and installation requires small cranes.

These benefits in residential applications are projected to propel market demand over the forecast period. Precast walls used in commercial buildings are manufactured off-site, which helps in saving time and space. In addition, the speed and ease of building precast structures promote its application in parking structures. Precast concrete structures are suitable for constructing noise-cancellation walls as their surface is designed to minimize ambient noise caused due to highway traffic or trains. In addition, the design flexibility offered by concrete makes it apt for outdoor applications involving climbing walls, skate parks, and fences. Moreover, infrastructure development programs in emerging economies are likely to further increase product demand.

The rising construction of dams, bridges, flyovers, and other public utility structures is anticipated to augment the product demand. The use of precast concrete products in residential construction is popular in European and North American countries. Superior strength, excellent durability, and easy installation process are also projected to promote its application in the residential sector. Increasing middle-income groups in Asia Pacific, especially in China and India, are generating huge demand for inexpensive housing. This is one of the key driving forces for residential precast concrete products. Moreover, the rise in demand for single-family homes and trends for rapid construction of homes are likely to increase product demand.

Regional Insights

Asia Pacific is anticipated to register the fastest CAGR of 6.8% from 2024 to 2030. Rapid economic performance of developing countries in the region is expected to propel growth further. Stringent regulations that limit the emission of CO2 gas are likely to drive product demand, which causes less pollution. Moreover, an increased growth rate of the industrial sector is likely to augment product demand in the U.S. Furthermore, product demand is expected to witness rapid growth owing to an inclination of building contractors and customers toward eco-friendly, cost-effective, and modern construction solutions. Europe accounted for the second-largest revenue share in 2023.

Nordic countries were among the first countries worldwide to adopt precast technology. As a result, the product is anticipated to witness high penetration in the European construction industry over the forecast period. Growth in GDP in Europe is attributed to increasing private investments in emerging economies. Significant recovery of the construction industry coupled with rising product penetration in Europe is expected to drive region’s growth. Germany is a major construction market on account of high investments in the construction sector due to factors, such as favorable government incentives, digitization, economic confidence, resource efficiency, and a circular economy.

Key Companies & Market Share Insights

The industry exhibits a large number of players providing a range of product varieties leading to intense competitive rivalry. Major players have a strong presence in developed economies like North America, Europe, and some parts of Asia Pacific, including Australia. A high degree of forward and backward integration of dominant players persists in the global industry, which, in turn, has intensified market rivalry and competition, thus making entry of new players difficult.

Key players are opting for several strategies to enhance their industry position and gain a competitive advantage over their competitors. For instance, in January 2021, LafargeHolcim signed an agreement to purchase Firestone Building Products (FSBP), a commercial roofing and building envelope solutions provider based in the United States (US). This acquisition helped strengthen LafargeHolcim's position in the industry.

Precast Concrete Market Report Scope

Global Precast Concrete Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the precast concrete market report based on product, application, and region:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Structural Building Components

  • Architectural Building Components

  • Transportation Products

  • Waste & Water Handling Products

  • Others

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Residential

  • Commercial

  • Infrastructure

  • Industrial

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Spain

    • Italy

    • Poland

    • Czech Republic

    • Croatia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Singapore

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

    • Israel