Flourishing Commercial and Residential Sector Is the Prime Growth Driver of the Ready-Mix Concrete Market
NewYork, NY -- (SBWIRE) -- 10/06/2021 -- Ready-mix concrete market size is forecast to reach US$1.2 trillion by 2026, after growing at a CAGR of 8.1% during 2021-2026. Ready-mix concrete manufacturing and distribution through a transit mixer help the construction projects to incorporate precise concrete, making it durable, solid, and long-lasting. Ready-mix concrete is largely used in the construction sector for applications such as batching plants, asphalt concrete, concrete pumps, inline bins, and more. Globally, the flourishing commercial and residential sector is the prime growth driver of the ready-mix concrete market. In addition, the residential and commercial building sectors are booming as a result of government initiatives such as "Housing for All," "One Belt One Road," and "RIBA Action Plan", which is anticipated to play a key role in driving the ready-mix concrete industry during the forecast period.
Numerous building and construction activities in various regions have halted their operations, owing to the coronavirus pandemic. No new orders can be taken over neither the existing order production could be completed, which is adversely affecting the ready-mix concrete market growth during the outbreak. There has been a temporary suspension of building and construction activities such as batching plants, asphalt concrete, concrete pumps, inline bins, and more in various regions. Due to these factors, construction production has decreased dramatically during the pandemic; for example, the construction sector was 11.6 percent lower in July 2020 than it was in February 2020, according to the Office for National Statistics. In August 2020, building production was 10.8 percent lower than it had been in February 2020. The Corona Virus pandemic was to account for this drop in value. With the decrease in building and construction operation, the demand for concrete has significantly fallen, which is having a major impact on the ready-mix concrete market growth.
Ready-Mix Concrete Market Segment Analysis – By Type
The Transit Mix Concrete segment held the largest share in the ready-mix concrete market in 2020. All the raw materials in the transit mix concrete are loaded directly into the truck mixer. There is no plant mixer involved. Three variations of transit mixed concrete are available, such as mixed at the job site, mixed in transit, mixed in the yard. The concrete transit mix is processed under controlled conditions, thus contributing to the reduction of dust emissions. Transit-mixes isolate water from the cement and aggregate and enable rapid mixing of the concrete before use at the worksite. Transit-mixing also eliminates the issues of early hardening and slump failure. Shrink mix concrete demand is rising due to an increase in infrastructure projects and housing and commercial buildings, especially in China and India, which is further expected to provide lucrative opportunities for the ready-mix concrete market expansion.
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Ready-Mix Concrete Market Segment Analysis – By End-Use Industry
The residential construction segment held the largest share in the ready-mix concrete market in 2020 and is growing at a CAGR of 13.7% during 2021-2026, owing to increasing usage of ready-mix concrete in the residential industry for applications such as batching plant, asphalt concrete, concrete pumps, inline bins, and more. Because of the precision needed when mixing it, ready-mix concrete is a good choice of concrete for construction sites. RMC is known for its quality and longevity due to the essence of RMC being produced in particular mixing plants. The consistent production of RMC in mixing plants allows for mechanized operations. This helps the concrete to have a higher performance. The efficiency of RMC production means that it needs less energy in its production. This helps to reduce the overall energy needed for RMC output, making it a more environmentally friendly concrete alternative, which is the major factor driving the demand for ready-mix concrete in the residential construction market during the forecast period.
Ready-Mix Concrete Market Segment Analysis – By Geography
Asia-Pacific region held the largest share in the ready-mix concrete market in 2020 up to 42% and is growing at a CAGR of 10.9% during 2021-2026, owing to the increasing demand for ready-mix concrete from the residential construction industry in the region. The building and construction industry is booming in countries like India and Singapore, thanks to economic reforms, infrastructure growth, and rising individual per capita income. The growing population necessitates the expansion of the residential and commercial sectors. In India, the government has introduced initiatives such as "100 smart cities" and "Housing for All by 2022," which is expected to boost the Indian residential construction market over the forecast period. According to the International Trade Administration (ITA), China is the world's largest construction market and the Chinese construction industry is forecast to grow at an annual average of 5% in real terms between 2019 and 2023. Thus, with the expanding residential construction industry, the demand for ready-mix concrete will also subsequently increase, which is anticipated to drive the ready-mix concrete market in the APAC region during the forecast period.
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Ready-Mix Concrete Market Drivers
Government Initiatives Bolstering the Market Growth
Due to its features and properties, such as longevity, durability, fire resistance, wind resistance, and low long-term cost, ready-mix concrete is favored in residential construction. For example, in June 2020, the Government of Canada launched a US$30 million rebate program that will help homeowners save large sums of money on building and renovation projects. Also, the goal of the European Construction 2020 Action Plan was to stimulate favorable investment conditions. Furthermore, the Dutch construction industry is benefiting from the Government-wide Circular Economy Initiative, which aims to create a circular economy in the country by 2050. Building and development activities are also increasing as a result of various government initiatives, such as Foreign Direct Investments (FDI). Government investments like these are propelling the building industry in different parts of the world. Thus, the expanding building and construction sector acts as a driver for the market.
Flourishing Commercial Construction Sector
China is also attempting to move away from large-scale infrastructure projects and into projects that are more oriented to the local community. Projects including water supply and treatment plants, road improvements, urban metro systems, and public parks are all part of the 13th Five-Year Plan (FYP), which aims to reduce traffic and emissions, rebuild dilapidated housing, and encourage the growth of small and medium-sized towns. Japan's Kansai International Airport is preparing to spend around 100 billion yen (US$911 million) by 2025 to upgrade the larger terminal, hoping to improve capacity for foreign flights at the country's No. 2 hub. Furthermore, the objective of the Indian Government is to make air travel accessible, boost regional connectivity and establish regional airports. The Union Budget presented in February 2020 proposed the development by 2024 of 100 new airports to help boost air traffic under the Centre's Udan scheme. Thus, it is anticipated that with the flourishing commercial construction industry, there will be an upsurge in the demand for ready-mix concrete, which will subsequently drive the ready-mix concrete market growth.
Ready-Mix Concrete Market Challenges
Drawbacks Associated with the Ready-Mix Concretes
The ready-mix concrete requires a huge initial investment, and they are often not suitable for small projects as less quantity of concrete is required in minor projects. The ready-mix concrete posses' problems as labor should be ready at the site to cast the concrete in position without any delay to avoid slumps in the mixture. In addition, ready-mix concrete has limited time and should be used within 210 minutes of batching the plant, which limits its applications and usage. Furthermore, ready-mix concrete needs an effective transportation system from the batching plant to the job site. These factors are expected to hinder the growth of the ready-mix concrete market during the forecast period.
Ready-Mix Concrete Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the ready-mix concrete market. Major players in the ready-mix concrete market are CEMEX S.A.B. de C.V., ACC Ltd., Barney and Dickenson Inc., UltraTech Cement, Buzzi Unicem S.p.A., Vicat S.A., Lafarge R.W., Sidley Inc., and Holcim Ltd.
Asia-Pacific dominates the ready-mix concrete market, owing to the increasing foreign direct investment (FDI) in the region. In completed projects for operations and management of townships, malls/shopping complexes, and business constructions in India, 100 percent FDI under the automatic route is permitted.
With the rising migration of people towards urban areas, there is a strong need to develop residential homes, which will have a positive impact on the construction industry and thereby accelerating the demand for the ready-mix concrete market.
The Covid-19 outbreak has severely affected the construction industry as the majority of the workers have migrated to their hometown and governments have temporarily suspended construction of batching plant, asphalt concrete, concrete pumps, inline bins, and more, which is affecting the ready-mix concrete market growth.
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