What Is The Definition Of The Global Industrial Real Estate Market?
Industrial real estate refers to commercial properties used primarily for industrial purposes, such as manufacturing, warehousing, distribution, research and development (R&D), and logistics. These properties are designed and equipped to support specific industrial activities and typically feature amenities such as high ceilings, large floor areas, heavy-duty flooring, loading docks, and access to transportation infrastructure.
Industrial Real Estate Global Market Report 2024 provides data on the global industrial real estate market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The industrial real estate market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global Industrial Real Estate Market Size Expected To Expand, And At What Annual Growth Rate?
The industrial real estate market has experienced strong growth in recent years, with an expected increase from $95.42 billion in 2023 to $101.66 billion in 2024, at a compound annual growth rate (CAGR) of 6.5%. The historic growth is attributed to rising demand for industrial spaces, increasing foreign direct investment, growth in manufacturing activities, the expansion of e-commerce activities, and availability of affordable land and labor. The market is projected to continue its growth, reaching $131.57 billion by 2028, at a CAGR of 6.7%. This expected growth is driven by expanding infrastructure development, increasing urbanization, higher trade volumes, rising consumer expectations, and supply chain optimization. Key trends in the forecast period include the adoption of smart technologies, automation and smart warehousing, predictive maintenance, digital twin technology, robotics adoption, and the use of big data and analytics.
What Are The Key Drivers Fueling Growth In The Industrial Real Estate Market?
The growth of construction activities is propelling the industrial real estate market. Construction involves the physical development of buildings and infrastructure and has been on the rise due to rapid urbanization, infrastructure expansion, and technological advancements. Industrial real estate plays a vital role in supporting these activities by offering essential facilities and logistical support, streamlining operations, and enhancing project efficiency. According to Eurostat in February 2024, average annual building production in the EU and the euro area increased slightly in 2022 compared to the previous year. Similarly, the United States Census Bureau reported a growth in construction value from $1,626.4 billion in 2021 to $1,792.9 billion in 2022, reflecting a 10.2% increase. These trends underscore the expanding role of industrial real estate in construction activities.
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What Are The Principal Market Segments In The Global Industrial Real Estate Industry?
The industrial real estate market covered in this report is segmented –
1) By Product: Industrial, Retail, Office, Warehousing
2) By Size: Small, Medium, Large
3) By Application: Manufacturing, Distribution, Logistics, Research And Development, Data Centers, Other Applications
Which Emerging Market Trends Are Altering The Industrial Real Estate Market?
In the industrial real estate market, leading companies are investing in large-scale projects to expand their portfolios and meet the growing demand for modern industrial spaces. These investments emphasize sustainability and strategic development. For example, in December 2023, Panattoni Development Company, a U.S.-based industrial real estate firm, announced plans to invest over $100 million annually in India to develop industrial warehouses across key markets, including Delhi NCR, Mumbai, Bengaluru, Chennai, and Pune, signaling its commitment to expanding its presence in the region.
What Is The Leading Region In The Industrial Real Estate Market?
North America was the largest region in the industrail real estate market in 2023. The regions covered in the industrial real estate market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
