The South Africa Formwork Market is estimated to be valued at US$ 280.03 Mn in 2023 and is expected to exhibit a CAGR of 4.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Formwork systems are used for constructing concrete walls, columns, beams and floors. It provides support and required shape to wet concrete until it gets hardened. Formwork plays a key role in building durable structures as it helps to control concrete pouring and helps improve surface finish. Rising construction of commercial and residential buildings is boosting demand for formwork in South Africa.
Market key trends:-
The rising construction activities in South Africa owing to growing urbanization is a major factor driving growth of the formwork market. According to the South African government, an estimated investment of ZAR 100 billion is earmarked for public infrastructure projects over the next 3 years. This growing government spending on infrastructure development is expected to boost demand for formwork during the forecast period. Furthermore, rapid industrialization in the country is also creating need for industrial infrastructure like warehouses, manufacturing facilities etc. which is further augmenting the sales of formwork systems in South Africa.
- Threat of new entrants: New entrants face high capital requirements to have the necessary manufacturing plants and equipment. They also need to deal with strong economies of scale of existing players.
- Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and presence of several contractors operating in the market.
- Bargaining power of suppliers: Suppliers of raw materials like wood, steel have moderate bargaining power due to availability of substitutes.
- Threat of new substitutes: Threat from substitutes like precast concrete, aluminium formwork is low due presence of high switching costs for contractors
- Competitive rivalry: Intense competition among existing players.
- Strengths: Strong regional presence of key players, technological advancements improving efficiency.
- Weaknesses: Fluctuations in raw material prices, high initial investment requirements.
- Opportunities: Increasing infrastructure spending, growth in commercial and industrial construction sectors.
- Threats: Slowdown in economic activity affecting construction sector, stringent environment regulations.
The South Africa Formwork Market Growth is expected to witness high, exhibiting CAGR of 4.3% over the forecast period, due to increasing public and private investments in infrastructure development projects. Government initiatives like National Development Plan aimed at reducing poverty and unemployment are driving infrastructural investments.
Regionally, South Africa dominates the formwork market with over 60% share supported by large scale projects in transport, energy and commercial construction sectors. The country is witnessing improved demand from suburbs in major cities undergoing rapid development.
Key players operating in the South Africa formwork market are PERI Group, Doka Group, ULMA Construction, Waco International, RMD Kwikform, MESA Imalat Sanayii ve Ticaret A.S, Uni-Span Holdings (Pty) Ltd., Acrow, Faresin Formwork S.p.A, Pilosio S.p.A, Staluform (Pty) Ltd., and Pre-Form (Pty) Ltd. Players are focusing on R&D to develop customized solutions, expanding product portfolios and strengthening regional presence through merger & acquisition strategies.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it