The precast construction industry is largely dominated by government-initiated infrastructural works. Countries such as China, India, and the U.S. are major markets witnessing significant growth.
Infrastructural development is contributing to the market growth. The Asia-Pacific (APAC) region is witnessing extremely high rates of infrastructural development and construction spending due to the growth in population, urbanization, and industrial development. Smart Cities Mission, Make in India initiative, and Housing for All initiatives announced by the Government of India will remain a huge driver for the construction industry, and thereby the precast construction market.
Technavio analysts forecast the global precast construction market to grow to $165.99 billion by 2021.
Rapid population growth is creating additional infrastructural requirements in many large cities of South America, Africa, India, and others. Precast construction is proved to be a cost-efficient, fast, and sustainable building technology for the large projects. The fast-paced urbanization has made affordable housing the top priority of governments across the world. The Kenyan and Indian governments are committed to providing affordable housing for all its citizens and spending considerably to ensure the same. Such initiatives are creating revenue generation channels in the precast construction market.
In December 2015, the U.S. government passed the $305 billion five-year highway plan, which is expected to be a major driver for the precast construction industry. Since most of the manufacturers of precast supply transportation infrastructure, the passage of the bill is expected to have a favorable impact on the precast as they will start the production process. The construction of bridges, highways, and other road infrastructure demands a large amount of precast material, thereby driving the market growth.
