The market for high-strength concrete is expected to grow at a CAGR of above 6% during the forecast period. Major factors driving the market studied are the increased construction of high-rise buildings, improved long term performance and reduced MRO costs, and superior features such as resistivity to natural & chemical damagers and high early strength advantage. On the flip side, premium pricing and limited usage in emerging economies are likely to hinder the growth of the studied market.
- The residential segment dominated the market and is expected to grow during the forecast period with robust housing demand and construction in regions, such as Asia-Pacific, North America, and Europe.
- The use in rapidly increasing offshore structures, the growing popularity of high-strength lightweight concrete, and growing use in precast work in the NORDIC countries are likely to provide opportunities for the studied market during the forecast period.
- North America dominated the market across the globe with high usage of high-strength concrete in the construction sector due to the trend of high-rise buildings in the region for past many decades.
Key Market Trends
Residential Construction to Witness Noticeable Growth
- Residential sector has been witnessing the strong influence of the trend of living in flats due to ease in living, township benefits of safety, and increasing real estate prices, across the globe.
- With this, the construction of high-rise buildings is also increasing, which further is creating demand for construction materials with high strength for long life and safety of the building structures.
- High-strength concrete owing to their superior compressive strength, low shrinkage, low permeability, high modulus of elasticity, discontinuous pores, and the resulting smooth fracture surface; are hugely preferred in the construction of high-rise buildings, which has been driving the growth of the high-strength concrete market with the growing residential construction, globally.
- Residential construction is increasing at a robust pace in the regions, such as Asia-Pacific, North America, and Europe.
- In North America, residential construction is increasing in countries such as Canada, United States, etc. The increase is owing to various policies, immigrants shifting towards these countries, etc.
- According to the US Census Bureau, in 2018, the residential construction in United States increased by 2.5% from the previous year.
- Furthermore, in Asia-Pacific, the residential construction grew at a robust rate in countries, such as India, Singapore, Vietnam, and Indonesia. Besides, the trend of high-rise buildings has been increasing rapidly in countries like India, Vietnam, and Indonesia.
- Similarly, the housing demand has increased significantly in North America, in countries, such as Canada, United States, and Mexico, driven by the increased immigrants, growing population, and trend of nuclear families.
- In Europe, with economic recovery, construction activities have been increasing in countries, such as Germany, Spain, and France.
- Hence, such trends are likely to drive the demand for high-strength concrete for residential applications during the forecast period.
North America Region to Dominate the Market
- North America region dominated the global market share. The need for high-strength concrete to support high-rise building construction in countries such as the United States, Canada, and Mexico, the demand for high-strength concrete is increasing significantly in the region.
- In Canada, two of Canada's three largest cities have become a hotspot for construction. The construction activities have been booming again in Toronto and Vancouver. Developers' outlook regarding good returns on investment, particularly with high-density residential projects, has been driving the construction activities in the country.
- Mexico has also been witnessing high housing demand, for which the country is attracting noticeable investment into construction.
- For instance, in January 2019, IDB Invest, a private sector institution of the Inter-American Development Bank (IDB) Group, granted a local currency financing program for 150 million Mexican pesos to the Mexican company Process, in order to finance for land acquisition, development and commercialization of housing for low & middle income families in the country.
- Hence, with such a positive scenario of the construction market, and high demand for high-strength materials from the construction sector in the region is likely to drive the demand for the high-strength concrete market during the forecast period.
The high-strength concrete market is a fragmented market, where numerous players hold insignificant share to influence the market demand, individually. Some of the noticeable players in the market include BASF SE, CEMEX Group, LafargeHolcim, Sika AG, and UltraTech Cement Limited, amongst others.
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