Extensive research carried out by the market research analysts at Technavio has shown that the pre-engineered buildings (PEBs) market in India will witness staggering growth and will post an impressive CAGR of more than 16% over the forecast period. PEBs are eco-friendly as the majority of its components are manufactured from cold formed sheet steel. Since steel is one of the world’s most recycled material, close to 95% of the components of a newly manufactured steel product can be recycled. Moreover, at the end of any steel product’s life, almost 100% of it can be recycled without losing its engineering properties, making PEB technology one of the greenest construction methods. Furthermore, most PEBs use skylights and solar panels on rooftops to meet the daylight and captive power requirements. So, they reduce emissions and gain carbon credits unlike the conventional methods for powering these buildings. As the manufacturers design PEBs using advanced software likeAutoCAD, STAADPro, and ProSteel, it helps the vendors to customize products according to the customer’s requirements and reduce wastage of raw materials and natural resources.
In this industry research report, the analysts have deduced factors such as the increasing demand forwarehouses to propel the growth prospects for this market during the predicted period. With a rise in the number of e-retailers, the demand for warehouses is also increasing. During 2015, online sales accounted for 7.5% of the total retail sales globally and is likely to reach close to 13% by 2020. Therefore, to meet the supply demand, these e-retailers are constructing warehouses to enhance their distribution. As PEBs offer the fastest method to build warehouses compared to conventional methods, its demand for a broad range of construction activities will increase over the next four years.
Competitive landscape and key vendors
The PEB market in India is highly competitive and is characterized by the presence of several well-established vendors. The majority of PEB companies have in-house R&D facilities. However, companies that cannot invest in in-house R&D facilities form alliances with other reputed companies to develop quality products. PEBs still have low penetration in some developing countries so vendors can expand their business in these countries by creating awareness about the advantages of PEB construction method.
Growth drivers, challenges, and upcoming trends: Smart Cities
Upcoming trends such as the development of smart cities in India is gaining popularity as they are highly advanced in terms of sustainable real estate, infrastructure, communication technology, and market viability. Moreover, in these cities, IT, automated sensor networks, and data centers will constitute the central infrastructure to provide the residents with all the essential services. The government has declared 98 cities as smart cities, which include 24 capital cities, 18 cities of cultural and touristic importance, 24 business and industrial centers, three education and healthcare hubs, and five port cities. These smart cities are being developed in collaboration with foreign governments that are interested in developing new private enterprises in India. For example, the UK, through domestic private companies, is collaborating with India to develop the Bangalore-Mumbai economic corridor project. The development of smart cities in India will lead to an augmented demand for construction across residential and commercial sectors, which in turn will drive this market over the next four years.
This report provides a number of factors contributing to the adoption, limitations, and opportunities of the pre-engineered buildings market in India. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.