The construction industry has been on its upward spiral since the last few years, and stakeholders adopting cost-saving strategies is bolstering the adoption of ready-mix concrete, opines a recent study published by Persistence Market Research (PMR). The study finds that the global market for ready-mix concrete accounted for nearly US$ 60 billion in 2018, and the number will increase at an impressive rate in the coming decade. The PMR study attributes the increasing growth in construction activities worldwide for the rising sales of ready-mix concrete, especially in developing countries.
According to the World Economic Forum, residential construction accounts for more than one-third of the total construction activities taking place across countries, and with the urban population increasing at the rate of 200,000 people per day will continue to boost the residential construction industry in the coming years. The PMR study finds that more than 3/5th of the revenue share in the global ready-mix concrete market came from the residential sector, as it surpassed the industrial and commercial sectors recording the highest sales.
Though the residential sector records a large share in global sales of ready-mix concrete, the demand will spread across the range of residential housing projects to large-scale industrial plants in the coming years, reflecting the impressive growth prospects of the ready-mix concrete market. PMR opines that the residential sector will continue to remain the top revenue pocket for manufacturers in the ready-mix concrete market, however the demand will also rise substantially in other segments of the constriction landscape in the coming years.
Ready-mix Concrete Feeds the Need for Reducing Expenditure in Construction Industry
Growing demand for ready-mix concrete in engineering and construction sites is mainly driven by construction companies’ need for controlling the total cost of their materials and business activities. The PMR study finds that construction sites in remote areas and large infrastructural projects have been primarily attributed for the heightened demand for ready-mix concrete as it cuts the cost down by much greater extent than traditional, labor-intensive onsite concrete production.
The key findings of PMR’s study indicate a significant change in stakeholders’ strategies in the construction industry that focus on outsourcing ready-mix concrete to save a significant amount of onsite expenses. Other factors that are enabling construction companies to reduce their onsite expenses through ready-mix concrete include improved consistency in the concrete mix and reduced wastage than mixing concrete on site. In addition, outsourcing ready-mix concrete also saves the space, labor cost, and reduces the risk of concrete theft, which are present with the option of onsite concrete mixing facilities.
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The PMR study finds that leading companies in the construction industry are becoming aware about the potential cost-saving benefits of resorting to the option of outsourcing ready-mix concrete, and this is likely to change the market dynamics in the ready-mix concrete landscape. Global cement giants are adopting strategies to enter the building materials sector, including the ready-mix concrete landscape, to attain inorganic growth in the concrete businesses. Potential for synergies between global cement companies and small-scale ready-mix concrete is likely to unlock new growth avenues in the ready-mix concrete market, opines the PMR study.