Europe Ready-Mix Concrete Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• The potential growth of the construction segment favored by foreign and local investments and the rising demand for residential properties across the region are expected to drive the industry growth.
• However, the rising concerns amid the Russia-Ukraine war and the potential implications of the aftermath could undermine the development of the construction segment. Known disadvantages of RMC, like the requirement of high initial investment and challenges associated with transportation of the same may likely hamper the demand in the market.
• On the other hand, growing rehabilitation and maintenance activities associated with residential properties across Europe may potentially help strengthen the ready-mix concrete demand in the future.
• The growth of the construction sector looks promising for the United Kingdom across the European region, with the sharp rise in new residential development and rehabilitation and maintenance activities across the country, which may potentially drive regional market growth.

Europe Ready-Mix Concrete Market Trends

Growing Construction Activities in the European Region

• The construction sector across Europe is witnessing strong growth post-pandemic, with a major contributor to this growth being the rise in rehabilitation and maintenance activities associated with residential properties.
• According to FIEC, the total investment in construction amounted to EUR 1.6 trillion (USD 1.9 billion) in 2021. Housebuilding represented around one-fifth of the total investment into construction, whereas investment in rehabilitation and maintenance activities was slightly under one-third of the total investment.
• The housebuilding segment rose by over 7.2% in 2021, with France and Italy recording substantial growth of 24.1% and 12.05%, respectively.
• According to Eurostat, the household savings rate witnessed an increase from 14.1% in Q4 2021 to 15.0% in Q1 2022. This trend may potentially imply higher expenditure on house renovations and property purchases.
• The investment in renovation across the European Union grew by around 5.7% year-on-year, with Bulgaria, Italy, and Slovenia witnessing over 20% growth.
• Also, according to the European Commission, additional annual investments amounting to over EUR 275 billion (USD 325 billion) are required to attend to the renovation and decarbonization requirements of the existing building stock.
• These indicators show great promise for the residential construction sector across the European region and can potentially strengthen the demand for RMC during the forecast period.

France Expected to Dominate the EU Region

• France witnessed strong construction activity growth in 2021, registering a year-on-year growth of 10.5% in volume.
• According to FIEC, in 2021, the country witnessed a total investment of EUR 324 billion (USD 383 billion) into the construction sector.
• Housebuilding production registered a strong year-on-year growth of 24.1% in 2021 after witnessing a drastic drop of -24.2% in 2020 in the aftermath of the COVID-19 pandemic. It is further expected to grow at a rate of over 7.3% in 2022.
• Housing rehabilitation and maintenance activities witnessed an increase of 7.8% in 2021 and are expected to show steady growth at around 4.3% in 2022.
• Similar to residential construction, infrastructure construction is expected to further drive the growth of the construction sector in the region. Many large projects have already been initiated in the first quarter of 2022.
• For instance, the proposed Nantes New CHU Hospital Development is being built at an investment of around USD 1.4 billion and is expected to cover a total area of 225,000 sq. mt. of land. The project is expected to be completed by 2027 end with construction activities already commenced in Q1 2022.
• Similarly, other mega projects like Paris Tour Triangle High-Rise Building, Yves-du-Manoir Stadium Renovation, Entre-Deux-Mers High School, and Eco-Pole Waste Sorting Plant, among others, are expected to drive the construction sector across the region.
• The strong growth potential for the construction segment could lead to high demand for RMC in the country during the forecast period.

Europe Ready-Mix Concrete Market Competitor Analysis

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