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.
The global precast construction market is estimated to witness significant growth during the forecast period. Increase in urbanization and industrialization, need for increase in speed of construction, and improved environmental performance are some of the key variables that change the landscape of the modern construction industry.
The development of innovative precast technologies enable companies to adopt this method to achieve their complex strategic goals.
One of the major challenges that impact the growth of the precast construction is its inability to be used in the development of private residential buildings.
Most of the private residential developments are unique in nature and lack repetition. In such cases, precast construction becomes highly labor intensive and costly.
If companies aim to achieve the complete advantages of precast technology, the structure has to be conceived according to specific design philosophy. The designers and production planning engineers should be communicating from the very outset of the project considering the possibilities, restrictions, and advantages of precast method.
The other key challenges associated with precast construction market is the lack of skilled labor and sufficient 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.
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.
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.
Report at: www.alliedmarketresearch.com/knowledgetree
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