Global demand for precast construction is set to grow at a rate of 6.5% a year, reaching $185.35bn in value by 2023.
Precast construction includes the likes of manufactured homes and modular constructions, buildings which are made off-site and moved to their final location.
The report by HNY Research cites the major reason for this growth as urbanisation and the resultant wave of large-scale investments.
A large segment of this industry is the precast concrete market, which another report has said will surpass $138bn in value by 2022, growing at a similar rate to the wider precast construction sector (5.96%).
The construction industry witnessed a significant change with the introduction of precast technology as it allows building more structures with reduced time and cost as compared to the conventional on-site construction method.
Being constructed under a closed and controlled facility, the precast modules are less affected by adverse environmental conditions such as excessive moisture, heat, and pollution.
Asia Pacific is the largest consumer of precast concrete products, with big markets including China, India, Japan, Indonesia and Australia.
In an interview with Construction Global magazine, Senior Market Advisor for Techcrete John Hunt explained another reason for the rise in demand.
“Developers with new capital are coming into the market developing homes and they’ve had to look beyond the existing supply chains at more productive, cost certain methods of delivering homes,” he said.
“There are newcomers in the space embracing more productive ways of delivering who are less reliant on the ebbs and flows of labour.”