Because of stringent enforcement of energy conservation and sustainability policies in various countries, builders are expected to invest in green construction technologies, thereby giving a shot in the arm to prefabricated housing in the upcoming years. One approach is the use of precast or modular panels. Made of concrete, building panels are seeing high demand due to their ability to expedite construction projects and enable structures with enhanced green credentials due to associated energy savings.

A new market study published by Global Industry Analysts Inc., titled “Building Panels – Global Market Trajectory & Analytics”, presents opportunities and challenges in a significantly transformed post-COVID-19 marketplace. According to the report, growth in the global market will be fueled by increasing construction activity post-pandemic, rising population, need for better housing solutions, and a strong focus on energy-efficient buildings. The market will be bolstered by increasing demand from residential and non-residential construction projects along with continuing advances in construction technology as well as precast, modular, and prefabricated systems.

While rising demand for transportation facilities and other infrastructure construction is favoring uptake of building panels, increasing population and disposable income in emerging nations are bound to create new growth opportunities. The market expansion is also expected to be facilitated by rising adoption of vacuum insulated panels for cold storage facilities due to concerns regarding inadequate warehousing units, infrastructure, logistic support, and cold chains that are resulting in notable food wastage, mainly in emerging countries.

Amid the COVID-19 crisis, the global market for Building Panels, estimated at $153.3 Billion in 2020, is projected to reach a revised size of $208.4 Billion by 2026, growing at a CAGR (compound annual growth rate) of 5.2% over the period. Residential, one of the segments analyzed in the report, is projected to grow at a 5.5% CAGR to reach $139.2 billion by the end of the analysis period.

After an analysis of the business implications of the pandemic and its induced economic crisis, global growth in the non-residential segment is readjusted to a revised 4.7% CAGR for the next 7-year period. This segment currently accounts for a 37.7% share of the global building panels market. The residential segment dominates market share due to rapid urbanization and projected surge in residential construction activity. The segment’s future growth will be boosted by increasing population, low mortgage interest rates, fast regulatory approvals, and expansion of the urban transport infrastructure.

The building panels market in the U.S. is estimated at $26 billion in the year 2021. The country currently accounts for a 16.36% share in the global market. China, the world’s second largest economy, is forecast to reach an estimated market size of $51.2 billion in the year 2026, a CAGR of 6.7% through the analysis period.

Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.5% and 4.2% respectively while in Europe, Germany is forecast to grow at approximately 4% CAGR. The rest of the European market (as defined in the study) will reach $54.6 billion by the end of the analysis period. Asia-Pacific holds a strong position in the building panels market due to increasing construction activities coupled with rising remodeling and renovation activity to extend the service life of buildings and structures.

Want to tweet about this article? Use hashtags #construction #IoT #sustainability #AI #5G #cloud #edge #futureofwork #infrastructure