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APAC Precasting Market Overview
The APAC Precasting Market size is forecasted
to reach US$83.6 billion by the end of 2027 after growing at a CAGR of around 7.5% from 2022 to
2027. Precasting is a process of casting concrete and other
construction materials in a reusable mold and then cured under a controlled
environment. Precast products such as girders, lintels, beams, columns and others
are utilized in the building and construction sites. The increasing
application of precasting structures in the APAC region for modular paving slabs,
floors, utility vaults, architectural buildings and others offers a major drive
in the APAC precasting industry. For instance, the Government of India planned
for the investment of US$1.5 trillion in the construction sector for a 6-year
period ending 2025, thereby boosting the demand for precasting concrete in the building and housing sector during the forecast period. Furthermore, the
slowdown in the construction sector during the COVID-19 outbreak impacted the
market negatively. However, with recovery and flourishing building projects in APAC, the APAC Precasting Industry would grow rapidly and contribute to the growing APAC Precasting Market size in the coming years.
Report Coverage
The “APAC
Precasting Market Report – Forecast (2022-2027)” by IndustryARC, covers
an in-depth analysis of the following segments in the APAC Precasting industry.
Key Takeaways
- The APAC Precasting Market size would increase owing to its major application in commercial, residential, industrial and infrastructural sectors, along with high demand for pre-constructed building products for timely completion of the projects during the forecast period.
- China is the fastest growing country in the APAC Precasting Industry due to the favorable government policies promoting construction and infrastructural development, along with a growing manufacturing base for prefabricated or precasting structures.
- The demand for columns and beams in the APAC Precasting market is high due to their major application in foundations, building structures, parking structures, bridges and others.
Figure: China Precasting Market Revenue, 2021-2027 (US$ Billion)
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APAC Precasting Market Segment Analysis – by Product
By product, the columns & beams segment held the
largest APAC Precasting Market share in 2021 and is expected to grow with a
CAGR of around 8.2% during the forecast period. The high growth of the columns
and beams or girders is influenced by its rising demand as a major precast
structure in various construction applications such as parking structures,
foundations and other building structures. Furthermore, the growing production
in the construction sector due to development in residential, commercial and infrastructural
projects is boosting the demand for precasting structures in APAC. According to
the World Bank, the value added by the construction sector in the GDP for East
Asia and the Pacific region accounted for 34.2% in 2020. With the increase in usage
of precast columns and beams for buildings and other construction spaces in Asia-Pacific,
the APAC Precasting Industry would grow rapidly during the forecast period.
APAC Precasting Market Segment Analysis – by End-use Industry
By end-use industry,
the residential segment held the largest APAC Precasting Market share in
2021 with a share of over 42%. The increasing growth of the residential
construction industry in the APAC precasting industry is influenced by its flourishing
application in residential buildings, housing, apartments, paving slabs,
foundations and others. The precasting construction products such as columns and
beams, staircases, girders and others use polystyrene for a lightweight feature
and are widely used in the residential construction sector. Moreover, the
government policies for boosting the construction activities for residential
housing and development in APAC are propelling market growth. For
instance, according to the Department of Statistics Singapore, the contracts
awarded for building work were US$20,324 million, with the residential sector at
US$9,225 million and the commercial sector at US$2,759 million in
2021. Moreover, with rising residential building and construction
activities in APAC, the demand for precast structures would grow, owing to its
superior features such as modern design, quick assembly and durability. Thus, the
APAC Precasting Market is expected to grow rapidly during the forecast period.
APAC Precasting Market Segment Analysis – by Country
By country, China held the largest APAC Precasting Market share in 2021 and is expected to grow with a CAGR of around 8.6% during the forecast period. The robust growth of the precasting market in this country is influenced by the flourishing application of precasting structures in infrastructure, residential, commercial and other areas. The major developments by the government in building and infrastructure projects are propelling the growth of construction activities in this country, thereby offering growth opportunities for precasting construction options. According to the World Bank data and OECD national accounts data, the value added by the construction sector in China accounted for 37.8% of the GDP in 2020. Moreover, the growth of precasting factories in China is influencing the growth in the market. For instance, as per the 9th International Building Industrialisation of Construction Exhibition Asia, the number of precast concrete manufacturers in China was 200, which reached around 600 in 2020-21. Thus, with the major application and demand for precasting in China, the APAC Precasting Market is forecast to grow rapidly during the forecast period.
APAC Precasting Market Drivers:
Growing development for affordable housing constructions:
The demand for Precasting Construction structures such as lintels, girders, paving slabs and others is high in the APAC region due to major development and investments for projects involving residential housing construction, building and infrastructure development and others. Furthermore, under the PMAY-G, the "Housing for All" targets 2.95 crore houses in India by 2024. The affordable housing schemes by the government are propelling the demand for prefabricated or precast concrete structures due to their strength, fast construction and time-saving properties which help complete the construction within a determined time. Thus, with the increasing number of housing construction and building activities in APAC, the precasting application is witnessing steady growth in the APAC Precasting Industry.
Rising infrastructural and construction projects:
The APAC Precasting Market witnesses major growth and demand for various infrastructural
applications. The flourishing infrastructural development projects in the
Asia Pacific region are offering a major drive in the market. For instance, the
Make in India Initiative by the Government of India proposes investments
worth US$964.5 million in the infrastructure sector in India by the year
2040. According to the Indian Brand Equity Foundation (IBEF), an
investment worth US$50 trillion is required in India for infrastructure
development by 2022 in order to get sustainable development in the country.
The major construction and infrastructural development in APAC are driving the
demand for precasting construction structures, owing to flourishing
application in building structures, foundations, bridges, flyovers and others.
Thus, the APAC Precasting Market witnesses high demand and major growth
opportunities.
APAC Precasting Market Challenge:
Shipping costs and transportation issues:
Precast Construction products are pre-constructed items and often face challenges in the
initial investment or setup. The precast products are prepared at a distant
location from the construction site. The shipping and transportation of
prefabricated construction products such as lintels, girders, columns, beams
and others are costly as the expenses increase with respect to
handling, loading and offloading since they are significantly large and heavy. As per the Locke solutions, the delivery charges may range from USD 850 to USD 1,125 per load at a 100 to 200 miles range and further increase
with miles. The weight of precast structures above 175,000lbs has a shipping cost ranging from USD 5000 to USD 20,000 per load, depending on height, weight
and length. Thus, the delivery charges and high shipping costs increase the
overall precast structure cost, thereby restricting the growth in the APAC Precasting industry.
APAC Precasting Industry Outlook
The Technology launches, acquisitions and R&D
activities are key strategies adopted by players in the APAC Precasting Market.
The top 10 companies in APAC Precasting Market are:
- China National Building Material Company Limited
- Taisei Corporation
- Abetong AB.
- ELO Beton
- Consolis
- CEMEX S. A. B. de C. V.
- Shandong Anteky Construction Materials Co. Limited
- Precast India Infrastructures Private Limited
- Nippon Concrete Industries Co. Limited
- Boral Limited
Recent Developments:
- In December 2021, Cementos Molins acquired a 100% stake in the precast concrete company named Pretersa Prenavisa, owned by the European group Kartesia, thereby offering innovative solutions and growth in the construction sector.
- In July 2021, Forterra announced the acquisition of the business of Barbour Concrete Company & Barbour Building Systems, a manufacturer of precast concrete products used in infrastructure applications, thereby boosting the growth opportunities for the firm.
- In July 2019, LafargeHolcim signed an agreement with ORESA for the acquisition of Somaco, a leading precast concrete producer. This acquisition would develop the position of the company in ready-mix concrete and aggregate segments.
- Relevant Reports
Report Code: CMR 1187
Report Code: CMR 47141
Report Code: CMR 23921