First publishedon www.AggBusiness.com
The global ready-mix concrete demand is expected to increase by a CAGR (compound annual growth rate) of 7% in the years up to 2029.
The worldwide market was valued at US$59.8bn at the end of 2018, according to a new report from PMR, which adds that East Asia is likely to account for a lion's share in the market throughout the forecast years due to rising demand from China.
The healthy market outlook will be driven by rising demand from infrastructure and residential projects across various geographies. The standard concrete segment is expected to account for a prominent share of the increase through to 2029, supported by its use in sectors such as residential, commercial and infrastructure.
The construction materials market, primarily ready-mix concrete, has witnessed substantial incremental growth in recent years, which PMR says can be primarily attributed to the economic conditions in numerous countries. The construction industry across emerging economies is anticipated to witness acceleration in various large-scale infrastructural programmes which will in turn create public-private partnership opportunities. The report predicts this will lead to increasing government spending as well as favourable economic conditions which will assist the global ready-mix concrete market over the coming years
The global ready-mix market faces various challenges such as the on-time delivery of ready-mix concrete at construction sites. The uninterrupted and timely delivery of ready-mix concrete at construction sites is of utmost importance for effective construction operations. Due to the small time window available for the transportation of concrete material, delivering this material in the shortest time is imperative.
The report states that the utilisation of environmentally-friendly products for the manufacturing of ready-mix concrete is one of the key trends in the global market. For instance, the Indian Ready Mixed Concrete Manufacturers’ Association (RMCMA), the Confederation of Indian Industry, and the Quality Council of India have jointly developed a green product certification for ready-mix concrete.
Among the different concrete types, the flowable fill/CLSM segment accounted for a very small share in the market at the end of 2018, but the report predicts that demand for it will see prominent growth in the years through to 2029. The flowable fill/CLSM concrete type is comparatively an economic alternative to compacted granular fill, which saves labour costs, time and equipment.
Developing economies such as India and China are expected to witness substantial growth through to 2029, supported by various governmental initiatives towards development, such as the Bharat Mala Pariyojna, Sagarmala Project, Shanghai urban rail transit expansion, and the intercity rail network in Eastern Guangdong. The ready-mix concrete market in North America is expected to witness a below-average growth rate over the forecast period.