US demand for precast concrete products is forecast to rise 6.4 percent per year to $12.2 billion in 2018, spurred by rebounding construction activity. Demand for precast concrete products will be boosted by their ability to reduce the time and expense of construction projects while also improving quality. This will enable precast concrete products to take market share from more established materials, such as the site-poured ready-mix concrete and steel often used in construction projects. These and other trends are presented in Precast Concrete Products, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Nonresidential building construction applications accounted for the largest share of precast concrete products demand in 2013 and are expected to see the most rapid gains in demand going forward. According to analyst Matt Zielenski, “Advances will be fueled by rebounding nonresidential building construction expenditures and rising interest in precast concrete products because of their performance properties, such as their ability to support the roofs of large-sized structures.” Demand will also benefit from precast concrete products’ ability to mimic building materials that are more expensive and difficult to install, such as brick and natural stone.
The residential market for precast concrete is forecast to see above average growth, rising 7.9 percent annually to $2.3 billion in 2018. Strong gains in housing completions will spur demand for structural building components, while a more favorable lending environment will make it easier for homeowners to take out home equity loans to fund home improvement projects. This will boost demand for roofing tiles, siding, and fencing for improvement and repair projects.
Demand for precast concrete products in the nonbuilding market is expected to rise modestly through 2018. Overall gains will be restrained by tepid growth in government spending, which will limit the funds available for infrastructure construction. However, advances will be supported by the need to repair the nation’s aging network of bridges, highways, roads, water and sewer systems, and power distribution grids. Precast concrete products–such as bridge components, paving slabs, and manholes–are often specified due to their desirable performance properties.
Precast Concrete Products (published 01/2015, 329 pages) is available for $5200 from The Freedonia Group, Inc. For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by phone 440.684.9600 or e-mail [email protected]. Information may also be obtained through www.freedoniagroup.com.
