May 18, 2024

South Africa Formwork Market Poised For Rapid Growth Due To Rising Construction Activities

Formwork system is used for making reinforced concrete structures with the help of removable molds into which concrete is poured and compacted. It provides early strength to concrete structures and ensures dimensional accuracy. rise in infrastructure development projects in South Africa is a major driver fueling demand for formwork in the construction industry.

The Global South Africa formwork market is estimated to be valued at US$ 322.6 Bn in 2024 and is expected to exhibit a CAGR of 8.4% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the South Africa formwork are DSG International Ltd., First Quality Enterprises, Inc., Kimberly-Clark Corporation, Abena A/S, Attends Healthcare Products, Inc., Unicharm Corporation, Kao Corporation, Ontex Group, Chiaus (Fujian) Industrial Development Co Ltd and others. The growing construction industry due to rising investment in infrastructure development projects is creating several lucrative opportunities for formwork manufacturers and suppliers in South Africa. Furthermore, rapid urbanization and increasing public–private partnerships for the development of smart cities are expected to drive the future demand for formwork in South Africa.

The government of South Africa has undertaken several initiatives to boost private investment in public infrastructure and encourage public-private partnerships. This is expected to provide significant opportunities for formwork suppliers and manufacturers. Furthermore, growing international trade relations are helping South African formwork companies to expand globally.

Market drivers
The major market driver fueling the demand for formwork in South Africa is the rapid growth of the construction industry. The government of South Africa has undertaken several initiatives to boost infrastructure development through public spending and public-private partnerships. Mega projects such as stadium development for 2010 FIFA World Cup, expansion of road networks, rail infrastructure development are positively impacting the formwork market growth. Furthermore, rising urbanization and growing housing needs of the rising population are augmenting the construction of residential and commercial buildings which in turn is driving the formwork demand.

PEST Analysis
Political: The South African government’s infrastructure development plans such as housing construction projects will drive the demand for formwork. However, high inflation rate in the country poseschallenges for construction companies.

Economic: The strong economic growth in South Africa backed by rising disposable income and urbanization will support investments in commercial and residential construction sectors propelling the formwork market. However, volatility in currency exchange rates can impact material costs.

Social: Rapid urbanization and rising standards of living are increasing residential construction activities requiring formwork systems. Growth in the number of nuclear families also demands more housing units to be built.

Technological: Adoption of advanced formwork technologies such as fiber-reinforced polymer formwork, sliding formwork and climbing formwork enables faster construction at lower costs. Automation in formwork assembly boosts productivity.

Geographical regions of concentration
The South Africa Formwork Market   is concentrated majorly in Gauteng, Western Cape and KwaZulu-Natal regions owing to high population and economic activity in cities like Johannesburg, Cape Town, and Durban. Mega infrastructure projects are also driving demand in these regions.

Fastest growing region
The Eastern Cape region of South Africa is expected to witness the fastest growth in the formwork market driven by government investments to develop special economic zones and improve connectivity infrastructure in the region. Growth in wind and solar energy projects will further augment the market.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it