According to a new report by Allied Market Research, the offsite construction industry is expected to see rapid growth over the next ten years. The swing towards offsite construction is thanks in part to a global trend towards urbanization and an increase in industrialized activity. You can access the report in full here: https://www.alliedmarketresearch.com/offsite-construction-market-A12504
As Ireland seeks to increase its housing supply significantly, the use of offsite construction is expected to increase in line with global trends. Alongside this, the research indicates that developing nations will utilize offsite construction in their emerging built environments. While such developments will see the offsite market grow significantly, the pace of growth is expected to take time to accelerate as the industry recovers from COVID-19.
Rapid Growth of Offsite Construction
Conducted by Allied Market Research, the research points to a bright future for the offsite construction sector, with the industry set to grow by over 58 percent. According to this most recent study, the offsite construction sector generated €110 billion globally in 2020, already a thriving industry. However, after studying market trends and global policies, the market research concludes that by 2030 offsite construction will be generating €200 billion a year.
Using the standard measure of Compound Annual Growth Rate, investments in the offsite sector could therefore expect to see returns of 5.9 percent per year. Such promising returns are likely to attract investor attention, possibly accelerating the growth of the sector.
Elsewhere, the report establishes with detailed analysis why the offsite construction industry will grow so rapidly, alluding to specific market trends and indicative subsets of data associated with growth. The research also makes a note of the healthy competition that the offsite construction sector is experiencing, something it believes will further spur growth in addition to changing social policies and funding.
Residential Segment Driving Offsite Construction
In terms of application, offsite construction is still heavily geared towards the residential sector, with it now making up 60 percent of the market share. While this lead is expected to continue over the report’s forecast period, the commercial segment will likely see the highest compound annual growth rate of 6.5 percent.
The report argues that the biggest drivers of this growth will be:
● An increasing need for buildings that can withstand changeable climates and environmental impacts
● Global trends by governments to implement green building concepts that reduce carbon emissions
● The need for novel construction solutions to address space constraints in cities
By fashioning building elements in a factory, or a factory-style environment, offsite construction can address many of the industry’s most pressing demands. While the renovation of old stock is still required in order to achieve Ireland’s 2050 Net Zero targets, the need for new buildings to meet modern demands, will be achievable at scale only through the use of modern methods of construction.
Offsite construction reduces the carbon emissions of a project in several ways. One of the most significant is the ability to utilize building materials that traditional construction can not use, such as recycled pressed wood and molded forms. The embodied carbon emissions of building works are also reduced by requiring fewer deliveries and less travel to the building site.
Offsite construction can also lead to other energy efficiencies as it allows the implementation of precise tolerances. Through refined manufacturing processes, these tolerances can provide superior insulation and reduced thermal exchange in the walls and seams of buildings.
Addressing Housing Crises
With Ireland’s housing crisis now the highest priority after addressing the impacts of the pandemic, the Irish government’s reliance on offsite construction is also expected to rise. The upcoming Housing for All plan will address the nation’s diminished stock of houses, with Ireland’s population expected to grow by over 5 million in the next twenty years.
The Allied Market Research report notes that North America holds the lion’s share of the offsite construction market. However, with nations like Ireland, Germany, France, and others increasing their infrastructure spending on energy-efficient, affordable buildings, this is likely to spread. Africa and India are also noted to be growth opportunities for the offsite market, where a scarcity of housing will draw demand.
About Horizon Offsite
Horizon Offsite Ltd is one of Europe’s leading players in Offsite Construction and Modern Methods of Construction (MMC), providing a fully accredited structural light gauge steel system to the residential, industrial, commercial, healthcare and educational sectors. Contact the Horizon Offsite team at https://www.horizonoffsite.ie