Global ready-mix concrete market was valued at USD 451.1 billion in 2021 and it is expected to reach at USD 571.46 billion by 2028, at a CAGR of 4.6% over the forecast period (2022-2028).
Westford, USA, Dec. 13, 2022 (GLOBE NEWSWIRE) — The global cement production and consumption demand has been on the rise in recent years. In 2021, the global cement production was pegged at 4.37 billion tons and the consumption accounted for 4.27 billion ton. This is largely due to the increasing construction activity around the world. According to a report by The Economist Intelligence Unit, the global cement production is expected to grow by 4.4% in 2022 and 4.2% in 2023. The ready-mix concrete market also states that the Asia-Pacific region will continue to lead the way in terms of ready-mix concrete production and consumption, accounting for more than 60% of the total global demand. China, India, and Vietnam are expected to be the key contributors to this growth.
The US ready-mix concrete market is worth over $38 billion, with approximately 2,000 producers serving approximately 22,000 construction sites each day.
The increasing demand for infrastructure development in many emerging markets is one of the main drivers of the growth in global concrete production and consumption. With rapid urbanization and population growth, these countries are witnessing a growing need for housing, office space, and other commercial buildings. This is leading to an increase in construction activity, which is driving up the demand for ready mix concrete.
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The report provides an in-depth analysis of the ready-mix concrete market and offers insights into the latest trends, drivers, and challenges. market is driven by factors such as the growing construction industry, rising infrastructure spending, and urbanization. However, the market is restrained by the high cost of raw materials and transportation.
Trends Shaping the Future of Global Ready-mix Concrete Market
When it comes to construction, ready-mix concrete is an important building block. SkyQuest has recently completed an in-depth analysis of the ready-mix concrete market and identified four key trends that are shaping its future.
1. Increasing urbanization: As cities continue to grow, the demand for ready-mix concrete will increase. This is especially true in Asia, where the urban population is expected to double by 2050.
2. Growing infrastructure needs: With the rise in urbanization comes the need for more infrastructure, such as roads, bridges, and dams. This increased demand will drive up the need for ready-mix concrete.
3. New technologies and applications: Producers in the global ready-mix concrete market are constantly innovating to meet the demands of the ever-changing construction industry. For example, new applications such as self-consolidating concrete are becoming more popular. With the advent of 3D printing, the possibilities are endless.
4. Sustainability concerns: As awareness grows about the environmental impact of the construction industry, ready-mix concrete producers are under pressure to reduce their carbon footprint. Fortunately, there are many ways to do this, such as using recycled materials or investing in energy-efficient technologies.
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Ready-Mix Concrete Market is Capital Intensive but Highly Fragmented
The ready-mix concrete industry is highly fragmented, with the top 50 companies accounting for only 10% of global production. The industry is capital intensive, with an average investment of $30 million per plant. The industry is also cyclical, with demand influenced by construction activity. SkyQuest has released a new analysis of the ready-mix concrete market.
The global market is made up of thousands of small and medium sized companies, with only a handful of large players. This fragmentation makes the industry very competitive, with companies constantly vying for market share. The high level of competition means that companies must invest heavily in plant and equipment in order to stay ahead of the competition. This heavy investment leads to a high level of capital intensity within the industry. In addition, the market is subject to strict environmental regulations, which add to the cost of doing business. Despite the challenges, the ready-mix concrete industry is expected to continue to grow in the coming years. This growth will be driven by the increasing demand for housing and infrastructure development in emerging markets.
The report notes that the ready-mix concrete market is benefiting from strong growth in construction activity in many parts of the world, especially in India. However, this growth is not evenly distributed, with some markets seeing slower growth or even declines. The report also identifies several other key trends shaping the market, including consolidation, increased competition from alternative products, and changing customer preferences. The report provides detailed insights on how companies can successfully navigate these challenges and capitalize on the opportunities ahead. It also includes case studies of companies that have been successful in adapting to change and thriving in today’s environment.
With the top 50 companies accounting for only 45% of total revenue of the global ready-mix concrete market. The remaining 55% is generated by hundreds of small regional players. The report also found that the industry is capital intensive, with high fixed costs and low variable costs. As a result, profitability is sensitive to changes in volume. When demand is strong, utilization rates and margins improve; when demand is weak, companies experience declining utilization and margins. Bain recommends that companies in the ready-mix concrete industry focus on three key areas to improve profitability:
Increase sales: Companies can increase sales by expanding their customer base and selling more to existing customers.
Reduce costs: Companies in the global ready-mix concrete market can reduce costs by improving operating efficiencies and negotiating better prices with suppliers.
Improve pricing: Companies can improve pricing by better aligning prices with customers’ value perceptions and implementing yield management techniques.
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Key Players in the Global Ready-Mix Concrete Market
Sika AG (Switzerland)
BASF SE (Germany)
GCP Applied Technologies Inc., (U.S.)
MAPEI S.p.A. (Italy)
Kao Corporation (Japan)
M&I Materials Limited (U.K)
W. R. Grace & Co.-Conn. (U.S.)
Setral Chemie GmbH (Germany)
Enaspol a.s (Czech Republic)
CAC Admixtures (India)
CHRYSO GROUP (France)
Ashland Inc (U.S.)
Rhein-Chemotechnik GMBH (Germany)
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