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The growing adoption of green construction practices is anticipated to open up new avenues for the building construction market

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Gauri Cmi
The growing adoption of green construction practices is anticipated to open up new avenues for the building construction market


The building construction market is estimated to be valued at US$ 126.48 Bn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Building construction involves activities related to erection or renovation of infrastructure required for habitation including residential, commercial and industrial structures. Key products involved include concrete, steel, wood, glass, asphalt roofing material and other construction components. Rapid urbanization coupled with the need for modern infrastructure has been a major growth driver for the global building construction market.

Market Dynamics:

The market is primarily driven by rapid growth of the real estate sector globally. According to United Nations, the urban population is expected to increase by 1.5 times by 2045 which will spur demand for housing and commercial infrastructure development. Secondly, rising disposable incomes in developing economies has increased spending on residential and commercial construction. This is facilitating upgrading of existing infrastructure and new construction projects. Government initiatives aimed at infrastructure development to boost economic growth are another key factor augmenting demand. However, volatile raw material prices and shortage of skilled labor pose challenges to market growth.

Segment Analysis

The Building Construction Partnership Market Size can be segmented into residential and non-residential construction. The residential construction segment currently dominates the market and accounts for around 60% share due to rising population and increasing construction of residential buildings globally.

PEST Analysis

Political: Partnership models help in complying with various government regulations and construction permits easily.

Economic: Growing GDP and economic growth is increasing private and public construction spending which is driving the market.

Social: Changes in demographics and lifestyle are increasing demand for residential and commercial buildings.

Technological: Adoption of advanced technologies like BIM and modular construction is improving efficiency of construction partnerships.

Key Takeaways

The global building construction partnership market is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing urbanization and infrastructure development globally.

The Asia Pacific region is expected to dominate the market and grow at the fastest rate during the forecast period due to rapid urbanization and increasing investments in construction sector by governments in countries like China and India. China accounts for over 30% share of global construction output.

Key players operating in the building construction partnership are Vinci, Bouygues, Grupo ACS, Hochtief, Balfour Beatty, Laing O’Rourke, Bechtel, Kiewit, HOCHTIEF and Skanska. Major players are forming partnerships and strategic alliances to undertake large infrastructure projects and strengthen their position in growing markets.

 

Read More: https://www.rapidwebwire.com/building-construction-partnership-market-share/


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