PUBLISHER: Daedal Research | PRODUCT CODE: 1348265
PUBLISHER: Daedal Research | PRODUCT CODE: 1348265
Ready to mix concrete is a specialized construction material produced by combining cement, aggregates (such as sand, gravel, or crushed stone), water, and often supplementary materials like admixtures at a central batching plant. The mixture is formulated according to predetermined specifications and standards to achieve desired strength, durability, workability, and other performance characteristics. In 2022, the global ready-to-mix concrete market was valued at US$718.31 billion. The market is expected to grow to US$1015.09 billion in 2028.
Three types of ready-to-mix concrete are included in the report: transit mix, central mix, and shrink mix. The Global ready to mix concrete market has experienced significant growth, driven by rapid urbanization and increased infrastructural activities. The growth in the residential complexes further increases the demand for ready to mix concrete. Moreover, as countries invest in their infrastructure to support economic development and connectivity, the ready-mix concrete market plays a pivotal role in shaping the modern built environment. The global ready-to-mix concrete market is further anticipated to witness robust growth, with two significant trends leading this surge, during the forecasted period of 2023-2028. Firstly, the concept of smart cities is gaining ground as cities continue to develop and evolve. Smart cities utilize ready-mix concrete in various ways to build the advanced infrastructure and technologically integrated systems that define their urban environments. Secondly, there has been a surge in 3D printing, leading to increased sales of ready-to-mix concrete. The ready to mix concrete market is expected to grow at a CAGR of 6.01% over the years 2023-2028.
Market Segmentation Analysis:
By Type: The report identifies three segments on the basis of type: transit mix, central mix, and shrink mix. In 2022, the transit mix segment led the market, because it is very versatile and can be customized for different projects, making it a popular choice for construction professionals. The demand for transit concrete is increasing, due to infrastructure development worldwide. The shrink mix concrete is expected to experience the highest CAGR as this particular concrete offers the potential for increased load capacity while retaining the advantages of transit-mixed concrete. A highly effective approach to optimize the supply chain for concrete production which significantly enhances efficiency and decreases costs for construction projects.
By Application: On the basis of application, the report divides the market into three segments namely, Residential, Commercial, and Others. In 2022, the residential sector dominated the market as it is being excessively demanded by homeowners and builders. With the growing residential construction, the demand for ready to mix concrete would grow in the years to come. The ready to mix concrete market in the commercial sector is expected to grow at the highest CAGR, primarily due to the increase in commercial projects. Ready-mix concrete is a popular choice in such scenarios as it significantly accelerates the construction timelines.
By Region: In the report, the global ready to mix concrete market is divided into four regions: Asia Pacific, North America, Europe, and Rest of the World. Asia Pacific dominated the market in 2022. Factors such as rapid urbanization, increasing residential complexes, and rising construction activities led to an upsurge in the demand for ready to mix concrete in the region. China's market for ready to mix concrete is experiencing rapid growth within the Asia Pacific region, which can be attributed to various factors such as the abundant availability of raw materials like cement, limestone, gravel, and water, coupled with high demand from the growing population for residential and infrastructural development. Whereas, the Indian ready to mix concrete market has been experiencing a rapid growth rate. India has made remarkable progress in enhancing its construction sector and pushing forward the ready to mixe concrete industry.
The European ready to mix concrete market has been growing significantly, driven by the potential growth of the construction segment, favored by foreign and local investments, and the rising demand for residential properties across the region. Infrastructure development, such as the construction of highways and airports, coupled with the growing trend of urbanization would further fuel the growth of European ready to mix concrete market.
Growth Drivers: The market has been growing over the past few years, due to factors such as rapid urbanization, increasing residential complexes, rising construction activities, rising demand for high-quality concrete, increased government and private expenditures, and many other factors. Urbanization leads to the construction of various infrastructure projects such as residential buildings, commercial complexes, roads, bridges, and public facilities. The controlled mixing process and consistent quality of ready-mix concrete make it an attractive choice for higher-quality buildings and infrastructure, ensuring their structural integrity and minimizing the risk of substandard construction. Thus, rapid urbanization has a profound impact on the ready-mix concrete market by driving increased demand and innovation.
Challenges: However, the market has been confronted with some challenges, specifically transit duration, environmental concerns, initial high investments, etc. Freshly mixed concrete has a limited time, known as the "open time," during which it remains workable and can be easily placed and finished. The longer the transit duration, the higher the likelihood of concrete quality degradation. This impacts the growth of the ready-to-mix concrete market negatively.
Trends: The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as 3D printing, smart city, integration of ML & AI, mechanization at sites, long-term supply contracts with end users, sustainability, acquisition activities across various value chains, etc. The concept of smart cities has been gaining ground as cities continue to develop and evolve. Smart cities utilize ready-mix concrete in various ways to build the advanced infrastructure and technologically integrated systems that define their urban environments. Additionally, 3D printing allows the creation of intricate and complex architectural designs that would be challenging or time-consuming to achieve using traditional construction methods. This is particularly advantageous for projects that require quick completion.
Impact Analysis of COVID-19 and Way Forward:
The COVID-19 pandemic, travel restrictions, and national and local lockdowns have impacted many countries across the world. Like many other industries, the global ready to mix concrete industry also experienced a slowdown, especially during the first half of 2020.
The global ready to mix concrete market is no different, and this factor impacted the supply chain which led to high costs associated with ready to mix concrete. The impact has been felt in many ways, with disruptions in construction projects being just one of them. The restrictions imposed in various countries, including lockdowns, travel restrictions, and social distancing measures, have led to temporary shutdowns or reduced capacity for many construction sites. This, in turn, has resulted in a decreased demand for ready to mix concrete. Moreover, the pandemic's ripple effect has caused significant supply chain disruptions, labor shortages, and regulatory changes. These challenges have caused delays in construction projects and led to the postponement of concrete orders. In 2022, the pandemic situation stabilized, and consumer purchasing patterns strengthened. As economies reopen and construction activities resume, the demand for ready to mix concrete has been steadily recovering.
The global ready to mix concrete market is fragmented. However, the market share of organized players has increased significantly over the last few years and is expected to continue given the wide product offerings, better service, and higher brand visibility. The key players in the global ready to mix concrete market are:
UltraTech Cement Ltd
Vulcan Materials Company
Cemex SAB de CV
Sika AG, Holcim Ltd.
Arkema Group (Arkema S.A.)
CRH PLC (CRH Americas Materials, Inc.)
Barney & Dickenson Inc.