The worldwide building and construction market was predicted to be valued at more than three trillion dollars in year 2015. This market sector has occupied itself in the business of building & construction activities of schools, roads, housing, bridges and factories. Apart from building new structures and buildings , the market also includes setting up of new building sites, maintenance, repairs and changes in current structures.
Many of the contractors have expertise in one type of construction activities. For example, construction of residential and commercial buildings. Along with the job performed by the team who are hired on contractual basis to perform a particular task, contractors also sub contract parts of the task to outside crews like field trade contractors, who perform particular tasks like painting, carpentry and heating. The common contractor remains only responsible for the task that is performed.
General infrastructural projects come under the abate of heavy construction workers and civil engineers. This section comprises the construction of edifices like roads, bridges,tunnels and sewers produced across the business sector.
Increase in the rate of population in fast emerging economies like India and China, rise in per capita income, increase in disposable income and low rate of unemployment in developed economies are the key aspects adding to the growth and development of the building and construction market all across the globe.
Economic growth will usually demand for considerable amount of business investments in new constructions and developments within the current infrastructure. Nations promoting tourism as a business and having such tourist places or destinations need more of such infrastructures for accommodating the tourists and thus they are likely to contribute to the growth of this building and construction industry.
Key Market Sections
The building and construction market includes home buildings, building materials and construction device.
Home buildings includes windows and doors. Building materials include non residential as well as residential constructions while construction equipment includes escalators.
The worldwide demand for doors and windows was predicted to grow at a rate of 7% annually through year 2015 as per the reports provided by a reputed market research agency. China was the global market leader in year 2015 and was projected to register about 30% growth (from 2% growth) during that year. Fiscal growth and larger housing units are predicted to propel the demand for doors and windows in future. USA was expected to observe high growth and expansion of about 9% annually through year 2015. Plastic doors and windows will comprise of the most active industry sub section in growth & development terms although the doors made up from plastic material will not violate ten percent margin of the overall demand for doors. Windows made from vinyl material will see enhanced demand owing to its less cost, power efficacy, low cost of maintenance and durability.
Aluminum which is one of the building materials used for purpose of carrying out construction activities was projected to be evaluated for under 100 billion US dollars in year 2011 as per the reports provided by a reputed market research agency. Recycling has a key role to play in industrial changes taking place both in non residential construction activities as well as residential construction segments. The industry is expected to witness an active expansion and growth in emerging economies where industrialization mean enormous developments of key building & construction activities as well as key projects on buildings & constructions.
Geographical Market Share
As per the reports provided by an reputed market research firm over more than 2.5 million people were employed in the general as well as specialty business activities of the building & construction market sector in year 2010. The market sector provides jobs to about 5.5 million people all across the globe.
Non residential construction section amassed more than 285 billion dollars in year 2010. While non building construction touched the total income margin or total revenue margin of about 270 billion dollars. Residential buildings sector touched the revenue margin of almost about 250 billion US dollars.
As per the reports provided by a reputed market research firm, APAC region represented more than twenty five percent of the global construction and engineering business sector in relation to its market value.
European countries like Romania, Spain and Ireland are witnessing a large scale growth in the building and construction sector these days. APAC region is predicted to lead the building and construction industry in future with nations like India and China stimulating its expansion and growth. Growing markets like Indonesia, India and China as well as developed economies of Russia and USA are forecasted to contribute nearly about 75% of the overall building and construction market share in future.
The universal economic downturn took a strong toll on the building and construction sector, primarily due to the dependence of new housing building & construction activities upon the favorable economic environment. The building & construction industry also suffers a knock out effect from various other industrial sectors. For example a slack in profit of dealers prevents them from investing in new building & construction business activity. Thus, it adversely affects the growth of the building & construction industry sector.
Building & construction these days are becoming more power sufficient and power efficient owing to high costs of power supply. Further, the demand for greater amount of building & construction activities with minimal adverse effects on the surroundings will continue to grow facilitating and enhancing the greater utilization of recyclable materials.
Commercial building & construction activities is expected to lead the market in future. Fiscal growth in nations like China and Middle East regions are few of the aspects behind the growth of the commercial business industry.