Saudi Arabia Precast Concrete Market to Grow at a CAGR of 7.9% to reach US$ 1,870.13 million from 2022 to 2030

The Saudi Arabia precast concrete market is expected to grow from US$ 1,021.56 million in 2022 to US$ 1,870.13 million by 2030; it is expected to register a CAGR of 7.9% from 2022 to 2030.

MARKET ANALYSIS 

Precast concrete is a construction material that is manufactured by casting concrete in a moldable or reusable manner, followed by curing in a controlled environment. These materials are precast and prefabricated at the time of production and are then assembled and molded at the construction site. Such structures are responsible for enhancing the construction speed, improving productivity, and helping in significantly monitoring cost and quality. Consequently, with the increasing demand for cost-effective and safe materials, the demand for precast concrete is expected to rise. Furthermore, such structures are classified as sustainable building materials as they can be reused or remolded; thus, reducing their impact on the environment. The increasing adoption of green and modular construction materials is expected to proliferate the demand for precast concrete products in the Saudi Arabia precast concrete market. Hence, owing to the factors mentioned above, a broad scope of applicability in residential and commercial structure systems is expected to dominate the Saudi Arabia precast concrete market from 2022 to 2030.

GROWTH DRIVERS AND CHALLENGES

The utilization of precast concrete can help lower construction costs and ensure significant savings in the project. In addition, unlike other materials used in traditional building components, precast components are made of locally available natural raw materials such as cement, sand, stones, and gravel. These raw materials can be reused or recycled completely, which helps minimize the environmental impact of raw materials over their life cycle. In addition, many companies focus on promoting safe and digitized construction, which can reduce the number of fatalities at the site. Hence, using precast components in construction work can ensure safety and protection at construction sites. Precast concrete is a predominant building material for office buildings and other commercial spaces. Walls of these buildings can be fabricated while the on-site foundations are being built, saving time and ensuring early occupancy. Due to the ease and speed with which precast structures can be constructed, precast concrete is a widely used building material for parking structures. In addition, it is a safe and cost-effective material that can withstand all weather conditions. It also provides large, clear, and open spaces in parking structures. In addition, precast concrete has superior quality control than on-site concrete construction. Precast concrete construction has many advantages, such as eco-friendliness, earthquake resistance, and energy efficiency, over cast-in-situ concrete structures and steel, timber, and masonry structures. Its usage leads to a faster and more efficient construction process. Thus, the increasing emphasis on cost-effective, safe, and environment-friendly products drives the Saudi Arabia precast concrete market growth.

However, cement, sand, and aggregates are among the primary raw materials required for the production of precast concrete products. Sudden increase or decrease in raw material prices often impacts the manufacturers' profit margins. The primary cause of raw material price fluctuations is volatility in energy and crude oil prices, which are used in producing and transporting these products. These fluctuations, in turn, trigger volatility in the prices of finished goods. These factors hamper the Saudi Arabia precast concrete market growth.

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Saudi Arabia Precast Concrete Market: Strategic Insights

Market Size Value in	US$ 9,940.36 million in 2022
Market Size Value by	US$ 13,841.10 million by 2030
Growth rate	CAGR of 4.2% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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REPORT SEGMENTATION AND SCOPE

The "Saudi Arabia Precast Concrete Market Analysis to 2030" is a specialized and in-depth study with a major focus on the Saudi Arabia precast concrete market trends and growth opportunities in Saudi Arabia. The report aims to provide an overview of the Saudi Arabia precast concrete market with detailed market segmentation by structure system and end-use. The Saudi Arabia precast concrete market has witnessed high growth in the recent past and is expected to continue this trend from 2022 to 2030. The report provides key statistics on the consumption of precast concrete in Saudi Arabia. In addition, the report provides a qualitative assessment of various factors affecting the precast concrete market performance in Saudi Arabia. The report also includes a comprehensive analysis of the leading players in the Saudi Arabia precast concrete market and their key strategic developments. Several analyses on the market dynamics are also included to help identify the key driving factors, market trends, and lucrative opportunities that would, in turn, aid in identifying the major revenue pockets.

Further, ecosystem analysis and PEST analysis illustrate the efficacy of buyers and suppliers operating in the industry to predict the Saudi Arabia precast concrete market growth.

SEGMENTAL ANALYSIS

The Saudi Arabia precast concrete market is bifurcated on the basis of structure system and end-use. Based on structure system, the Saudi Arabia precast concrete market is segmented into structure system into beam & column system, floor & roof system, bearing wall system, façade system, structure system, and others. On the basis of end use, the Saudi Arabia precast concrete market is categorized into residential, commercial, and others. Based on end use, the residential segment accounted for a significant share of the Saudi Arabia precast concrete market. Precast concrete foundations have expansion and contraction joints in order to lessen the potential for cracking, reducing the potential for water intrusion. Further, the installation of precast concrete foundation systems is usually done with a small crane. Thus, a minimum amount of labor is necessary, generally three or four people. A precast concrete foundation system can be installed at approximately 10% of the time relative to conventional methods, depending on complexity and size. Also, the increasing demand for residential constructions owing to accelerated urbanization has surged the requirement for precast columns & beams in the residential sector. These factors are anticipated to bolster the use of precast concrete products in the residential sector from 2022 to 2030.

COUNTRY ANALYSIS

The report provides a detailed overview of the Saudi Arabia precast concrete market size. The country is one of the fastest-growing real estate markets in the world. The country is investing heavily in infrastructure, housing, and tourism projects, which are aiding the growth of the real estate sector. This has created a lucrative opportunity for foreign players to establish their presence in the country. According to a report published by BNC, US$ 819 billion has been invested in Saudi Arabia’s construction projects. The country’s largest cities, such as Riyadh and Jeddah are witnessing huge investments in the development of residential and commercial projects. Further, the penetration of precast products in real estate construction has resulted in shorter turnaround times for construction projects. The precast products offer various advantages, such as design flexibility, faster installation of structures, sustainable construction, durability, long life, low maintenance, and moisture resistance. Precast beams and columns are widely used in the residential sectors. Thus, the growing investment in residential construction is the major factor in driving the real estate sector in the country from 2022 to 2030.

INDUSTRY DEVELOPMENTS AND FUTURE OPPORTUNITIES

The report provides a detailed overview of the Saudi Arabia precast concrete market.

• In January 2021, LafargeHolcim acquired Firestone Building Products from Bridgestone Americas for US$ 3.4 billion.
• In March 2023, Holcim Ltd acquired HM Factory, thereby entering the precast market in Poland. HM Factory is positioned to capitalize on industrial and residential construction growth. The company assigns Polish construction projects as well as exporting to Scandinavian markets.
• In December 2020, Cemex launched its low-carbon ready-mix concrete brand “Vertua,” in the US after its successful introduction in Mexico and Europe.

IMPACT OF COVID-19 PANDEMIC

The Saudi Arabia precast concrete market witnessed growth before the onset of the COVID-19 pandemic due to the increased use of precast concrete in the construction of residential and commercial buildings. However, the pandemic adversely affected the chemicals & materials industry, resulting in the shutdown of construction activities and manufacturing facilities, challenges in procuring raw materials, and restrictions on logistic operations. The unprecedented rise in the number of COVID-19 cases across the country and the subsequent lockdown of numerous manufacturing facilities negatively influenced the growth of the Saudi Arabia precast concrete market. Further, the overall disruptions in manufacturing processes, research, and development activities restrained the Saudi Arabia precast concrete market growth.

Moreover, the severely decreased construction activities reduced the demand for precast concrete in the Saudi Arabia. However, the market is reviving due to the government's significant measures, such as vaccination drives. The growing demand for precast concrete from the residential & nonresidential construction sector is propelling the Saudi Arabia precast concrete market growth. Moreover, various players in the region are seeking more investment opportunities as businesses gain confidence in stabilizing economies and increasing demand, thereby providing the impetus for the Saudi Arabia precast concrete market growth.

COMPETITIVE LANDSCAPE AND KEY COMPANIES

A few of the major players operating in the Saudi Arabia precast concrete market include CEMEX, S.A.B. de C.V., Holcim Ltd., Kifah Precast, Prainsa, Zamil Industrial, RNZ (Rabiah-Nassar & Zamil Concrete Industries), Bina Precast, Red Sea International Company, Spacemaker KSA, and Gulf Precast.