by The Building Construction Partnership 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 civil engineering activities such as planning, designing and construction of residential and non-residential structures. It includes construction of buildings for various uses like housing, commercial spaces, warehouses, hospitality, healthcare and others. Building construction requires expertise in areas of project management, cost estimation, bidding process, material procurement, scheduling and quality control to successfully deliver a project.
Market key trends:
Growing adoption of modular construction is one of the key trends being witnessed in the building construction market. Modular construction involves pre-fabrication of building components or modules at a controlled manufacturing facility and transporting them to the construction site for assembly. This helps in reducing construction time, waste generation and improves quality. Modular construction is well suited for projects requiring repetitive designs like affordable housing, student accommodation, temporary structures and commercial/industrial buildings. Increasing focus on affordable housing and infrastructure development projects is driving the demand for modular construction, thereby supporting the growth of building construction partnership market.
Porter’s Analysis
Threat of new entrants: Entry barriers are high in the building construction partnership market, as new entrants require huge capital investment in machineries, infrastructure and establishing long term client relations.
Bargaining power of buyers: Buyers have moderate bargaining power in this market due to presence of many construction contractors and partnerships vying for projects. However, construction projects require expertise and strict compliances which limits options.
Bargaining power of suppliers: Suppliers have low bargaining power due to fragmented nature of suppliers for construction raw materials and equipment. Partnerships can easily switch to alternate suppliers.
Threat of new substitutes: Threat of substitutes is low as building construction services have no close substitutes.
Competitive rivalry: Intense competition exists among major partnerships for large infrastructure projects.
SWOT Analysis
Strength: Established industry reputation and experience in handling complex projects globally. Diversified portfolio of residential and commercial projects.
Weakness: High fixed costs incurred in operations and maintenance of heavy equipment’s. Projects exposed to delays and cost overruns due to external factors.
Opportunity: Growth in industrial and infrastructure sector driven by urbanization. Rising investments by governments in smart city projects across regions.
Threats: Stringent regulatory norms and licensing requirements impact operations. Higher inflation and volatile raw material prices affect project margins.
Key Takeaways
The global Building Construction Partnership Market Size is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing urbanization and industrialization globally. The market size is projected to reach US$ 211 Bn by 2030 from US$ 126.48 Bn in 2023.
Regional Analysis:
Asia Pacific dominates the global market currently, with China and India being the largest contributors. The region is estimated to maintain its dominance over the forecast period as well, driven by massive infrastructure development plans of governments to support economic growth.
Key players:
Key players operating in the building construction partnership market are Vinci, Bouygues, Grupo ACS, Hochtief, Balfour Beatty, Laing O’Rourke, Bechtel, Kiewit, HOCHTIEF, and Skanska. These partnerships are involved in executing large scale residential, commercial and infrastructure projects across regions globally leveraging strong financial capabilities and industry expertise.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
