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Frost & Sullivan: Rapid Urbanization Spawns a Multi-billion Dollar Building Construction Industry in Asia-Pacific
Oct 01, 2013 (11:10 PM EDT)
KUALA LUMPUR, Malaysia, Oct. 2, 2013 /PRNewswire/ -- The breakneck speed of population growth and urbanization in Asia-Pacific has given a thrust to economic activities in the region, inevitably leading to a boom in the demand for residential and non-residential building spaces. The Asia-Pacific market for building construction is expected to reach US$2.73 billion by 2025, growing at an average annual growth rate (AAGR) of almost 7.0 percent from 2011.
New analysis from Frost & Sullivan (http://www.buildingtechnologies.frost.com), Asia-Pacific Buildings Sector: Macro to Micro Implications of Mega Trends to 2025, finds that the top global Mega Trends will propel green development in Asia-Pacific's buildings sector. With an expected annual growth of nearly 30 percent from 2012, the size of the green buildings market is likely to reach US$1.20 trillion in 2025.
Most of the opportunities in the building construction industry will stem from the need to develop socio-economic concentration in mega regions and urban areas, support migration to major cities and urban areas, construct new cities, and redevelop existing cities.
Although the industry is on a high, there are several challenges to contend with. 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, light emitting diodes (LEDs), building management and services, and buildings policy reforms.
"Green buildings will become more mainstream in many countries in Asia-Pacific," said Frost & Sullivan Energy & Environmental Research Manager Melvin Leong. "They are likely to be one of the main tools in the drive to reduce energy intensity and carbon emissions. By 2025, 35-45 percent of green buildings revenues are likely to come from green retrofit of non-green 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 Asia-Pacific.
Green lighting is another important dimension of the green trend, and the LED lights for building applications will be developed with a focus on luminous efficacy. 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.
"Over and above the industry trends, policy reforms will also go a long way in aiding the growth of the buildings market," noted Senior Consultant Vidhi Yaduvanshi. "The buildings sector will be fueled by policies on urban design and planning, renewable energy targets, and green growth frameworks such as environmental tax reforms, green accounting, environmental fiscal reforms, and green social enterprises."
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Asia-Pacific Buildings Sector: Macro to Micro Implications of Mega Trends to 2025 is part of the Building Management Technologies Growth Partnership Service program. Frost & Sullivan's related research services include: Home Automation Markets in Asia-Pacific, Residential LED Market in Asia-Pacific, Facilities Management Market in Australia, Fire and Safety Market in India, European Lighting Equipment (Luminaires) Market, European Energy Saving Contract and Performance Contracting Market, European BAS Market, Understanding the Growth Potential within the Building Technologies Market, and North American Geothermal Heating and Cooling Market, among others. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Asia-Pacific Buildings Sector: Macro to Micro Implications of Mega Trends to 2025
SOURCE Frost & Sullivan