Construction Industry Overview

The container houses market consists of sales of houses developed using shipping containers. Container house manufacturers utilize shipping containers to construct sustainable and affordable high-quality houses. These houses are considered environment friendly homes as these homes are made from used containers, which reduces the use of metal. The global container houses market is expected to decline from $50.8 billion in 2019 to $49.8 billion in 2020 at a compound annual growth rate (CAGR) of -2%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and grow at a CAGR of 7% from 2021 and reach $59.4 billion in 2023. North America is the largest market for container houses with a 39% share in the market. The space constraint issues and resulting rise in housing prices in most of the major cities across the world is driving the growth in the container houses market. Container houses make use of the old shipping containers to build their houses and require very less space compared to conventional houses, thus saving space. According to Discover containers, every time a 40 foot container is recycled and reused to construct a house close to 3500 kilograms of steel can be used again, which would otherwise be melted down. Moreover people in urban areas are opting for container houses in order to afford a cheaper living, as container houses costs less compared to tradition houses. In 2018, the affordable housing program in Alberta receiver a funding of $10 million from the US federal government. The program is aimed at using repurposed shipping containers to build houses. The container houses market is expected to benefit from increasing space constraints and housing prices during the forecast period. High possibility of corrosion is restraining the growth of the market for container houses. The life span of the container house is highly dependent on the climate in which the shipping container is located. Container houses corrode faster in coastal areas due to a large amount of salt in the air. For instance, according to the Confoot report of 2018, the average lifespan of a heavily used container house is close to 10-15 years if high maintenance is applied. For container houses that are not used as often can last up to 25 years, after which, it can no longer be used. This dependence of container houses on climatic factors and high vulnerability to corrosion is restraining the growth of the market. Companies in the container houses market are increasingly adopting artificial intelligence (AI) into manufacturing of container houses, in order to develop better designs for the houses. AI can be used in detecting and resolving any constructional issues before starting the manufacturing process. AI is an essential sketch platform that helps in generating many innovative layouts or designs. This helps companies to reduce the manufacturing cost and time and improve constructional safety. With the use of artificial intelligence, customers can also accurately correlate the size of the area to the number of goods or appliances that will fit in that respective area. The Container houses market is regulated by various regulatory bodies and gaining permission for the construction of container houses is a complex process. A container house cannot be constructed anywhere, as there are certain zoning regulations and building codes restricting such construction. According to zoning regulations, all the similar construction houses are built together at one place. Whereas the building codes state the standards to be followed for the construction of a container home. Building codes include information on the type of formation to be used, the square foot requirements of each room, minimum insulation required and other specifications. CRS Temporary Housing merged with Klein & Company on November 30, 2018. Founded in 1995 and based in Colorado, USA, Klein & Co. provides total hotel accommodations and fully furnished temporary housing for families who have been displaced from their homes. This merger will further solidify the position CRS has as one of the market leaders in the industry.

The multi-family residential green buildings market consists of sales of multi-family residential green buildings and related services for occupation or rentals by households. Green construction refers to the practice of using sustainable building materials and construction processes to create energy-efficient buildings with minimal environmental impact, throughout a building`s life-cycle from siting to design, construction, operation, maintenance, renovation, and deconstruction. The global multi-family residential green buildings market is expected to decline from $47.5 billion in 2019 and to $45.01 billion in 2020 at a compound annual growth rate (CAGR) of -5.2%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and reach $53.8 billion in 2023 at a CAGR of 6.1%. The multifamily housing green buildings market covered in this report is segmented by type into new constructions, remodeling projects. Customers are more informed of the benefits and cost savings in the long run from sustainable and net-zero homes. Homebuyers are now well informed and are acknowledging the reference to healthier homes, quality construction, and high performance. As per a report by The National Association of Home Builders’ (NAHB) authoritative in 2017, multi-family builders and remodelers said operating efficiency and long-term utility cost savings are the reason customers are convinced to invest in green construction of homes. Therefore customer awareness on factors such as environmental impacts, sustainability, and long term cost savings is driving the growth of the Multi-family residential green building market. Higher costs hinder the buyer and the supplier to invest more in Multi-family residential green buildings. Green buildings cost higher than conventional homes and requires more initial investment. High costs to construction firms would result in high costs to the buyers. As per a report of the National Association of Home Builders (NAHB) in 2017, building green homes costs 5% to 10% more than traditional homes to the builders. However, more than one-third of the remodelers reported costs higher than 10%. In addition to this, the majority of owners rent these homes and the renters enjoy the benefits of a green home for no additional premium. This perception is further restraining the homeowners to expend more on green buildings. Consumers and Builders are targeting towards achieving more sustainable homes with a focus on minimizing carbon footprint by promoting self-sustainable homes, termed as Net-zero homes. A Net Zero home produces energy through various domestic renewable energy technologies such as solar panels, micro wind turbines, sinkholes, compost gas for its requirements. It aims to produce at least as much energy as it consumes. According to a report from the National Association of Home Builders (NAHB) in 2017, the number of builders reporting to have built net-zero homes has increased from 21% in 2015 to 29% in 2017. Around 36% of multi-family home builders are building their homes green, 80% of them are dedicated green home builders with more than 90% of their projects green. The green builders are expected to grow to 47% by 2022 and are investing more in this segment. These statistics show us an increasing trend of Net-zero homes in the Residential construction market. On 17th Oct 2018, Structure Tone Inc., a New York-based green construction company, has acquired Ajax Building Corporation for an undisclosed amount. The acquisition was aimed to help Structure tone expand construction services to a global base and this acquisition expands its reach into the southeast US. Ajax Building Corporation is a construction company that offers services to build design, construction management, and building information modeling.

The single-family housing green buildings market consists of construction, sales and maintenance of sustainable (green) single-family residential buildings, and related services for households. Green construction refers to the practice of using sustainable building materials and construction processes to create energy-efficient buildings with minimal environmental impact throughout a building`s life-cycle (design, construction, maintenance, operation, renovation and deconstruction). The global single-family residential green buildings market is expected to decline from $119.63 billion in 2019 and to $116.46 billion in 2020 at a compound annual growth rate (CAGR) of -2.65%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The criteria for green building constructions are expected to change in preparedness to prevent and control such pandemic diseases in the coming years. The market is expected to recover and reach $150.95 billion in 2023 at a CAGR of 9.03%. North America was the largest region in the nonresidential green building market in 2019. Asia Pacific is expected to be the fastest-growing region in the forecast period. The single-family housing green buildings market covered in this report is segmented by type into new constructions, remodeling projects. Greater consumer interest has contributed to the growth of single-family residential green buildings. Customers, particularly millennials, are showing more interest in sustainable and net-zero energy homes considering the environmental concerns as sustainable (green) building design include the use of natural and renewable sources. The increased awareness of the benefits associated with sustainable green practices such as less exposure to toxins and contaminants from building materials, reduced air pollution inside the residence, and improved environmental health/quality is propelling the market growth. Higher costs, in general, hinder the buyer and the supplier to invest more in any market. The same applies to single-family homes which are very expensive compared to other homes. The high cost associated with green features and practices is a potential barrier to the expansion of the green building market. Green features and practices add 5 to 10% to construction costs and also increase remodeling costs by more than 10 percent. Additionally, meeting high energy efficiency regulations can increase costs by $600 to $1,000 per unit. On top of these, obtaining green building certifications can also add significantly to the cost. Therefore, addressing the high costs for green features and practices will be essential to ensure that green building practices continue to expand. Consumers and builders are targeting towards achieving more sustainable homes and are focusing on minimizing carbon footprint by developing self-sustainable homes, termed as Net-zero homes. A Net-zero home produces its own energy locally and should aim to produce at least as much energy as it consumes. From 2015 to2017, the number of builders reporting to have built net-zero homes has increased from 21% to 29%, according to a report from NAHB. About 44% of builders shown interest in building a net-zero home in the next 2 years. These statistics show a trend of Net-zero homes in the residential construction market. H.I.G. European Capital Partners (“H.I.G.”), the European arm of leading global private equity investment firm H.I.G. Capital, has completed the acquisition of a majority stake in the Austro-German Hanlo Group through the newly founded Green Building Group. The aim of the Green Building Group GmbH is to become a European leader in environmentally friendly prefabricated construction through internal growth and further acquisitions. Hanlo is a market leader in prefabricated construction in the German-speaking region with a turnover of over EUR 60 million. As a pioneer in its sector, the company benefits from over 35 years of experience.

The modular and prefabricated non-residential building construction market consists of sales of modular and prefabricated buildings and related services for non-residential use.

The multifamily modular and prefabricated housing construction market consists of sales revenue earned by companies that are engaged in the construction of multifamily modular and prefabricated homes. Modular construction is a process wherein units are built and inspected offsite in a manufacturing facility while podium, foundation, and infrastructure are built onsite. This method is used to increase housing production by accelerating construction time and reducing construction costs.

The single-family smart homes market consists of sales of smart appliances and their related services used in single-family homes. Smart homes are futuristic buildings equipped with advanced electronics and wireless devices. The smart home system requires a web portal or smartphone application to interact with the automated system as a user interface. The smart home appliances include smart entertainment, smart lighting, home security and smart appliances, which are controlled by sensors, timers, switches and remote controllers.

Construction Market Definition

The construction market consists of the sales revenues earned by entities (organizations, sole traders and partnerships) that construct buildings or engineering projects (for example, highways and utility systems). Establishments that prepare sites for new construction and those that subdivide land for sale as building sites are included in this market. The construction market includes new work, additions, alterations, maintenance, and repairs The market covered in this report includes the sales of construction services, new construction, remodeling, or renovating existing residential structures, maintenance and repairs, construction of temporary buildings, on-site assembly of precut, panelized, and prefabricated buildings, construction of distribution lines and related buildings and structures for utilities, installation of specialized building equipment such as elevators, escalators, and service station equipment

The 3D printing building construction market consists of the sales revenue earned by entities (organizations, sole traders, and partnerships) that construct buildings through 3D printers and offer related services. 3D printing or additive manufacturing is a computer-controlled sequential layering of materials to create three-dimensional shapes. In the construction industry, 3D printing is used to build components of building or to create a whole building. It helps to construct faster and more accurate structures with reduced labour costs and less wastage.