The breakneck speed of population growth and urbanization in the APAC region has given a thrust to economic activities in the region, leading to a boom in the demand for residential and commercial building spaces. The regional market for building construction is expected to reach US$2.73 billion by 2025, growing at an
The breakneck speed of population growth and urbanization in the APAC region has given a thrust to economic activities in the region, leading to a boom in the demand for residential and commercial building spaces. The regional market for building construction is expected to reach US$2.73 billion by 2025, growing at an average annual growth rate of almost 7.0 percent from 2011.
New analysis from Frost & Sullivan, “Asia-Pacific Buildings Sector: Macro to Micro Implications of Mega Trends to 2025,” finds that the top driver is green development. With an expected annual growth of nearly 30 percent from 2012, the size of the green buildings market is likely to reach US$1.2 trillion in 2025.
Most of the opportunities will stem from the need to develop socioeconomic concentration in mega regions and urban areas, support migration to major cities and urban areas, construct new cities, and redevelop existing cities.
There are several challenges to contend with, however. The buildings sector is identified as one of the highest consumers of energy and emitters of carbon dioxide. This energy inefficiency points to the growth of a green trend in the building sector and eventually, the development of eco cities, eco resorts, prefabricated buildings, use of LEDs, building management and services, and buildings policy reforms.
“Green buildings will become more mainstream in many countries in APAC,” said Melvin Leong, Energy and Environmental Research Manager. “They are likely to be one of the main tools in the drive to reduce energy intensity and carbon emissions. By 2025, 35 to 45% of green buildings revenues are likely to come from green retrofit of nongreen buildings, and the rest from new green buildings.”
Building construction companies are expected to give priority to green buildings development in the construction of new eco cities and eco resorts. Subsequently, prefabricated buildings are also expected to rise in popularity, depending on the model, and contribute to the green projects in the region. Further, the buildings sector development will witness the growing relevance of both facilities management and integrated buildings management service in the building's lifecycle management.