Precast construction is a technology wherein the concrete and other construction material are mixed, cast, and cured in a controlled environment at manufacturing units. These prefabricated construction elements are then transported to the site location and assembled. Precast construction technology is used for production of custom-designed components, such as columns, slabs, walls, staircases, girders, and others. The increase in developments in precast technology along with dimensional accuracy provides architects and engineers with a choice of developing unique and breakthrough constructions of exceptional quality. The precast construction method also allows designers and engineers to plan for future construction projects as the components can be rearranged.
The global precast construction market size was estimated to be $12,133 million in 2015, and is projected to grow at a CAGR of 6.3% to reach $185,232 million by 2022. Increase in construction spending, growth in urbanization and industrialization in developing countries, growth in need for development of low cost residential units, higher efficiencies and productivity attained by precast methods, and increased speed of construction by precast technology drive the market. However, the growth of precast construction industry is restrained due to factors such as lack of customer confidence toward precast construction in earthquake prone regions and lack of proper infrastructure supporting precast construction market in the developing regions.
The global precast construction market is segmented based on product type, construction type, end users, and geography. Geographically, the market is analyzed across four regions, namely, North America, Europe, Asia-Pacific, and LAMEA along with their prominent countries. Based on product type, the precast construction market is segmented into columns & beams, floors & roofs, walls, staircases, girders, paving slabs, and others. Columns & beams are the most dominant product type constituting for around 24.5% of the overall precast construction market share in 2015. Precast columns & beams provide flexible solution to the structural component of the project. These products can be used for number of applications ranging from parking structures to the structural framework of commercial buildings. The columns & beams segment is projected to grow at the CAGR of 6.6% during the forecasted period, owing to the factors such as easier material handling and minimized need for framework.
Based on construction type, the precast construction market is bifurcated into modular construction and manufactured homes. Modular construction segment dominates the market in 2015 and is expected to maintain its dominance during the forecast period growing at a CAGR of 6.8%. The demand for modular construction market is on an increase globally mainly due to customer demand for speed of construction, improved quality, and for early return on investment. The precast construction market based on end-users is classified into residential and non-residential segments. The latter includes infrastructure projects such as tunnels, bridges, flyovers, railway sleepers, metro projects and others. It also includes stadiums, museums, supermarkets, hospitals and others. In precast non-residential constructions around 50-90% of construction of structures is completed at an off-site facility in a controlled environment and then transported to the final site. Builders can enhance he overall performance of the project using precast and pre-assembled components.
By geography, Asia-Pacific generated the maximum revenue, and is estimated to grow at a CAGR of 7.2%, followed by Europe. Asia-Pacific region is estimated to grow at the fastest CAGR mainly due to increase in urbanization and infrastructure development in the emerging countries of India, China, Indonesia, and others.
Precast Construction Market Segmentation
Top Impacting Factors for Precast Construction Market
Growing urbanization and industrialization:
Growth in urbanization and industrialization are among some of the key factors that drive the precast construction market. The rapid growth and development of urban housing demand causes for shorter construction timelines and reduced cost. Due to this, construction companies are adoptive for cost effective, proven technologies of precast to ensure the highest standards and uniform quality, which can be met by precast technology. The impact of this factor is presently moderate and it is expected to increase during the forecast period mainly due to increase in awareness of this technology with the rise in urbanization.
Demand for low cost residential units:
Affordable housing is fundamental to the health and well-being of people and the smooth functioning of economies. In developing and advanced economies, cities struggle with the dual challenges of housing their poorest citizens and providing housing at a reasonable cost for low- and middle-income populations. According to the World Bank estimates based on current trends in urban migration and income growth, it is estimated that by 2025 there would be around 440 million urban households around the world with at least 1.6 billion people. Precast solutions offer attractive alternative solutions for architects and structural engineers to meet the demand for affordable housing with more demanding building criteria, especially in terms of total cost efficiency, construction speed, high quality of works, reduced weight of the upper structure, and more environmental friendly projects. The impact of this factor is presently moderate but is expected to increase during the forecast period.
High speed for construction:
One of the top impacting factors of the precast construction market is their high performance and ability to maintain project schedule through speed in design, construction, and finishing processes. Precast products are fabricated under controlled factory conditions to exacting tolerances. Speed in construction can be attained as precast products are quickly erected on site, providing the opportunity to rapidly construct a building and speed up construction. The impact of this factor is expected to increase over the forecast period as precast construction is considered to produce better productivity and reduce completion time, cost and dependency on work force which drives the market.
Lack of skilled labor and infrastructure:
One of the key factors that restrain the market growth for precast construction includes lack of skilled labor and infrastructure. In countries, where there is a deficiency in road network it is very difficult to transport precast construction components over very long distances. Precast method can create added shipping costs, depending on the shipper, the location of the job, and the location of the precast plant. In most of the customized low volume construction jobs the usage of precast construction method is not feasible. In some of the emerging economies there is also significant lack of skilled labor, which impact the growth of precast construction in these regions.
The major players profiled in the report are ACS Group, Balfour Beatty plc, Bouygues Construction, Julius Berger Nigeria plc, Kiewit Corporation, Komatsu Ltd, Laing O’Rourke, Larsen & Toubro Limited, Red Sea Housing Services, and Taisei Corporation.
- This study provides an in-depth analysis of the global precast construction market, along with current trends and future estimations to identify the potential investment pockets.
- Key drivers, restraints, and opportunities and their impact analysis are elucidated in the report.
- Porter’s Five Forces analytical model illustrates the competitiveness of the market by analyzing various parameters such as threat of new entrants, threat of substitutes, strength of the buyers, and strength of the suppliers.
- Quantitative analysis of the current market and estimations from 2014 to 2022 is provided to highlight the financial competency of the market.
PRECAST CONSTRUCTION MARKET KEY SEGMENTATION
The global precast construction market is segmented based on product type, construction type, end-user sector, and geography.
By Product Type
- Columns & Beams
- Floors & Roofs
- Paving Slabs
By End-user Sector
By Construction Type
- Modular Construction
- Manufactured Homes
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Middle East
- Latin America
- ACS Group
- Balfour Beatty plc
- Bouygues Construction
- Julius Berger Nigeria Plc
- Kiewit Corporation
- Komatsu Ltd
- Laing O’Rourke
- Larsen & Toubro Limited
- Red Sea Housing Services
- Taisei Corporation
Other Players Mentioned in the Report
The other companies mentioned in the report include Putzmeister Holding, EBAWE, Elematic Inc. and Weckenmann Anlagentechnik GmbH & Co. KG and Spiroll Precast Services Ltd.