SANTA CLARA, CALIF. — Frost & Sullivan has released a paper predicting that the further adoption of innovative technology in the construction sector will lead to significant growth in the Asia-Pacific (APAC) construction market in the next year.
With rapid urbanization and suburban development in Asia-Pacific, the construction market in the region is expected to reach $14 trillion by 2021 from $10 trillion in 2017. However, it is reported in Business Model Innovations in the Building Construction Industry, 2020, the market will be impacted by COVID-19.
In a conservative scenario, there will be a long delay in the completion of projects in the commercial segment; in an optimistic scenario, there would be a short delay in the completion of ongoing projects until the COVID-19 pandemic subsides.
The analysis from Frost & Sullivan, released July 9, finds that the building construction value chain will continue to shift from the conventional sequential model to innovative business models with increased penetration of building construction technology.
Advanced technologies such as AR/VR, 3-D printing, automation and robotics are expected to play a major role in combatting industry challenges such as declined productivity, workforce scarcity and site safety issues. The move to a more modern and digital environment will also play a positive role in addressing the gap of skilled workers.
“APAC is expected to witness an infrastructure and construction boom in the next five years with a healthy distribution of projects shared between the residential, industrial and infrastructural segments,” said Frost & Sullivan analyst Wen Hui Liu. “Additionally, in this period, innovative business models such as vertical integration, anything-as-a-service and off-site construction will be impacting traditional building construction business in the region.”
Liu added, “Besides advancement in technology, sustainability trends such as prefabrication construction, sustainable construction and green building technology are likely to revolutionize the conventional way business is done in the building construction sector. Further, this trend will reduce carbon emissions and gain new revenue streams from the conventional value chain.”