Manufacturers that promote cost-effective and sustainable solutions compliant with regulations mandated by international organisations will be out in front over the next half decade, analysis from US headquartered global growth strategy consultant Frost & Sullivan’s has found.
Frost & Sullivan’s report found the global rise in construction activities and significant cost, labour, and time savings in offsite construction are key factors driving market revenues toward US $215bn by 2025.
It also found that adopting more environmentally sustainable and regulatory-compliant construction practices will grow revenues, particularly in the more mature markets of Western Europe and North America.
Frost & Sullivan expects the global market to expand at a compound annual growth rate of 6.3% from 2018-2025.
Prathmesh Limaye, senior analyst of chemicals & materials in infrastructure & mobility at Frost & Sullivan, reportedly said: “…prefabricated buildings are increasingly being perceived as sustainable solutions for construction projects due to a growing usage of materials, such as timber and aluminium composites, that are more energy-efficient than concrete.”
The report also found that growing economies including Southeast Asia, along with India, Eastern Europe and Latin America and are expected to provide strong market opportunities.
To gain a competitive advantage, the findings indicate successful players in mature markets would be likely to adopt innovative approaches such as automation and design tools to increase the quality and precision in their construction.
Additional growth opportunities participants should aim to secure include:
- Manufacturers promoting more cost-effective and environmentally sustainable solutions compliant with regulations mandated by international organisations.
- Securing wider uptake by enhancing their portfolios with products that can be customised to end-user specifications and that also promote ease of installation.
- Expanding operations into high-growth regions such as the Asia-Pacific due to the region’s growing infrastructure and construction development.
- Offering products that are comparative with those offered by regional and local manufacturers.■