According to a report by Altus Market Research titled, “Nonresidential Building Construction Global Market Research and Analysis 2022-2031 by Type(Institutional Buildings; Commercial Buildings); By End-User Sector: (Private; Public); By Building Type: (Non-Residential Smart Buildings; Traditional Buildings)“, the global nonresidential building construction market size reached a value of nearly $2,675.5 billion in 2021, having increased at a compound annual growth rate (CAGR) of 4.7% since 2016. The market is expected to grow from $2,675.5 billion in 2021 to $4,111.6 billion in 2026 at a rate of 9.0%. The market is then expected to grow at a CAGR of 7.4% from 2026 and reach $5,881.7 billion in 2031.
Market Size Analysis:
Growth in the historic period resulted from strong economic growth in emerging markets, low interest rate environment and rapid growth in the elderly population. Factors that negatively affected growth in the historic period were outbreak of coronavirus disease (COVID-19) and the Evergrande crisis in China. Going forward, rapidly growing urban population, increasing population growth, a rise in disposable income, increasing infrastructure development expenditure by governments and the resumption of work from office post COVID-19 will drive market growth. Factors that could hinder the growth of the nonresidential building construction market in the future include health and safety issues and rising material costs.
Market Growth by Key Players:
The nonresidential building construction market is highly fragmented, with a large number of small players. The top ten competitors in the market made up to 4.73% of the total market in 2021. Major players in the market are China State Construction Engineering Co., Ltd., Shanghai Construction Group Co., Ltd., Hochtief AG, Vinci S.A., Bouygues SA and Greenland Holding Group.
Player-adopted strategies in the nonresidential building construction market include focus on expanding presence through contracts and agreements, expanding product portfolio, expanding business by working on new projects globally and focus on strengthening product portfolio by introducing advanced products needed for construction.
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Market Growth by Segments:
The nonresidential building construction market is segmented by type into institutional buildings, commercial buildings. The commercial buildings market was the largest segment by type, accounting for 65.2% of the total in 2021 and commercial buildings segment is expected to be the fastest growing segment going forward, at a CAGR of 9.6% during 2021-2026.
Market Growth by End Users:
The nonresidential building construction market is segmented by end-user sector into private and public. The private market was the largest segment of the nonresidential building construction market segmented by end-user sector, accounting for 71.3% of the total in 2021 and private segment is expected to be the fastest growing segment going forward, at a CAGR of 9.3% during 2021-2026.
The nonresidential building construction market is segmented by building type into non-residential smart buildings, traditional buildings. The traditional buildings market was the largest segment by building type, accounting for 99.4% of the total in 2021 and non-residential smart buildings segment is expected to be the fastest growing segment going forward, at a CAGR of 14.0% during 2021-2026.
Market Growth by Region:
Asia Pacific was the largest region in the global nonresidential building construction market, accounting for 42.4% of the total in 2021. It was followed by North America, Western Europe, and then the other regions. Going forward, the fastest-growing regions in the nonresidential building construction market will be Africa and Asia Pacific, where growth will be at CAGRs of 17.3% and 9.2% respectively. These will be followed by Eastern Europe, and South America where the markets are expected to grow at CAGRs of 8.92% and 8.86% respectively, during 2021-2026.
Future Investment Opportunities:
The top opportunities in the nonresidential building construction market segmented by type will arise in the commercial buildings segment, which will gain $1,014.3 billion of global annual sales by 2026. The top opportunities segmented by end-user sector will arise in the private segment, which will gain $1,071.6 billion of global annual sales by 2026. The top opportunities segmented by building type will arise in the traditional buildings segment, which will gain $1,420.3 billion of global annual sales by 2026. The nonresidential building construction market size will gain the most in the USA region at $381.1 million.
Market: Trend-based Strategies
Market-trend-based strategies for the nonresidential building construction market include green construction projects, use of autonomous construction vehicles, a rise in modular construction, use of advanced building materials to improve construction, construction robotics and a rise in 3D construction printing.
Growth Strategies by Altus Market Research for Companies in the Market:
To take advantage of the opportunities, Altus Market Research recommends the nonresidential building construction companies to focus on green construction projects, use autonomous construction vehicles, focus on modular construction, use advanced building materials, expand in emerging markets, focus on mergers and acquisitions, offer value-based pricing, offer competitive pricing, continue to participate in trade shows and events, target corporates and target healthcare and education institutions.
Other Players Covered in the Report:
Greenland Holding Group, Skanska Group, Obayashi Corporation, AECOM, Bechtel Corporation, R.R.Enterprises, Ramky Infrastructure Limited, Katerra India Private Limited, Rain City Industries Pty. Ltd., J.M. Industries Pty. Ltd., Jeshy Building Concepts Pty Ltd, Dixon Construction Limited, F J Ventures Limited, BNP Paribas Fortis, Operateur de Reseaux d’Energies, Deme Offshore Be, CAJOT LORRAINE, SAS AGENCE LORRAINE DE VIABILITE, PJ Hegarty & Sons U.C., Ballast Nedam Groep N.V., Voorbij Funderingstechniek B.V., Vroom Funderingstechnieken B.V., Van Wijnen Arnhem B.V., Dana Holdings, Swietelsky, Habau, Castagner Immobiliare S.R.L., V & R Edilcons Srl, Blueair Instal Srl, Dalmata Business Srl, Quanta Ten Estate Developments Srl, Zentec Construct Srl, Turner Corp, Clark Group, Swinerton, Hensel Phelps, Lendlease, Gilbane Building Co, Battle Lake Design Group, Alberta, Renewed Materials, Inc., Eco Caminhos, Construcciones Planificadas, WTorre Empreendimentos, Line Investments & Property LLC (LIP), Emaar, AF construction, La’ Ala Al-Kuwait Real Estate Co., Gav Yam Land Corporation Ltd., Al Sraiya Holding Group, Al Futtaim Colas, Kharafi National, Baran Group, Redcon Construction Company, Estim Construction Co. Ltd, Eco-Beam , Ecomo, TSAI design studio
