The report focuses on a number of key regions around the world monitoring the effects of COVID-19 and predicting the trends set to shape 2020
- Expected growth in US of 2.22% by 2022 set to be impacted by COVID-19 pandemic despite government stimulus package
- US Airport improvement plan expected to set infrastructure precedent
- U-turn in Canadian workforce growth expected for 2020
- North American smart city platform market is expected to register a CAGR of 18% between 2020 and 2025.
New York, New York (April, 2020) – Asite has today launched a new research report into the trends set to impact the construction industry globally in 2020, including North America.
The report also examines the impact of the current COVID-19 pandemic and considers how this will impact the industry in the coming 12 months.
Research was conducted on different regions – namely North America, United Kingdom, Europe, the Middle East, Asia-Pacific, and India – to examine key trends in those regions and their relatedness.
The snapshot report delves into some of the most innovative insights this year. It aims to provide the construction industry with a clear view of its future and determines what the industry needs to do to move forward, overcome current challenges, and build on the progress taking place.
Nathan Doughty, Asite CEO, said:
“We are delighted to launch our first research report of 2020, focusing on the construction trends set to impact the industry this year.
When we began our research, we could not have known how drastically the world would change in such a short time. This change and the impact of the COVID-19 outbreak has impacted our findings and will continue to shape our industry long after the pandemic has passed.
Now more than ever, I believe our industry needs to come together and operate as the global industry it is to solve future challenges and build resilience. This report will hopefully mark the beginning of this new chapter.”
In its conclusion, the report demonstrates how shared trends and developments across regions might offer a solution to the current crisis. Digital engineering and the establishment of strategic operating models are suggested as key to building resilience and safeguarding the industry.
The report also calls on the industry to recognize their interdependence and develop a strategy that is both regionally engaged and globally responsive.
Key takeaways from the report include:
Steady growth impacted by COVID-19
Construction in the US was expected to have a CAGR of 2.22% by 2022. This growth is set to be affected by the COVID-19 pandemic regardless of a promised government stimulus package. The sector is witnessing a steady increase in projects stoppages, which will affect the industry overall.
Aviation upgrades to set precedent
Under the Airport Improvement Program, the US government plans to invest $3.2 billion in the development and modernization of aviation facilities in the country. We predict that this commitment will set a precedent, as according to the American Society of Civil Engineers a wide scope of repairing, upgrading and modifying works is required throughout the USA.
Declining demand for workforce
The collapsing price of oil and the impacts of COVID-19 are set to change predictions that the North America market, in particular Canada, would witness a growing labor demand. The increase was linked to major public transportation and infrastructure, utility, liquefied natural gas, pipeline, and health services projects countrywide. However, the region is now seeing a decline in demand for workers.
Despite the setback, markets are expected to bounce back. There are positive signs that the energy market’s project pipeline is growing.
North America Smart City dominance to continue
The smart city platform market is expected to register a CAGR of 18% between 2020 and 2025. North America is already the leading region in the area. We will see this dominance continue and grow as the adoption of smart building technologies becomes common practice in the US with future focus on transportation and energy, New York’s MTA will become part of this program as it continues its current transformation.
Impact of European Green Deal
Building and renovating in an energy and resource-efficient way is one of the cornerstones of the European Green Deal. We envision the construction industry will begin to feel the impact of the deal during the first months of 2020 as legislation ensuring the use of longer-lasting products and recycled materials on EU sites come into place.
Asian construction boom set to ease following COVID-19
The infrastructure and construction industries were projected to experience a boom in the coming five years, with Asia forecasting a CAGR of 8.9% by 2023. COVID-19 will impact this growth as site closures across the region result in completion delays. Although sites are beginning to reopen, the initial issues will affect the industry.
Post-Brexit Decline before Stabilizing
65% of the construction industry says that they are either concerned or highly concerned about the outlook for the UK industry post-Brexit. As a result, there is the worry that this may lead to a possible dip in construction activity in 2020. Therefore, it is pertinent that focus shifts to building resilience and preparing for this potential decline.
Substantial Infrastructure Development in Dubai in preparation for Expo 2020
Despite the global pandemic, Dubai will continue to prepare for Expo 2020, adjusting planned preparations as required. Over the coming months, numerous infrastructure projects will be completed to accommodate the needs of the huge 173-day event. Industry data shows that, as of March 2018, the total value of the top 10 active projects linked to Expo 2020 will exceeded AED 120 billion.
Growth of the Indian Modular Construction Market
Along with an increase in BIM usage, modular and prefabricated construction projects are expected to gain popularity to help expedite residential and commercial building projects. Considering the government’s focus on sustainability and energy-efficiency, this projection makes sense. Moreover, statistics indicate that the modular construction market will stand at US$157 billion by 2023.
To read the report in full please click here.