The Indian construction industry is forecast to register an annual average growth of 6.2% from 2023 to 2026, supported by a strong pipeline of infrastructure projects across various sectors. This strong growth is attributed to the favorable base set in 2020, coupled with an improvement in consumer and business confidence amid the progress in the vaccination drive and the implementation of various infrastructure projects.
According to the Infrastructure and Project Monitoring Division of the Ministry of Statistics and Program Implementation (MoSPI), the country had 1,559 projects in the pipeline, worth INR 26.7 trillion ($352.3 billion), as of May 1, 2022. Of the total, projects in the road transport and highway sector account for the highest number of projects in the pipeline, equivalent to 53.6%; this is followed by railways (13.5%), petroleum (8.7%), coal (7.6%), power (5.1%) and water resources (2.6%), among others. Moreover, government programs such as Atmanirbhar Bharat, which is expected to boost domestic industries, micro, small and medium enterprises (MSMEs) and the Pradhan Mantri Gati Shakti National Master Plan, which aims to drive economic growth through infrastructure development, are also expected to attract investment to the construction industry in the coming years.
Emerging trends that directly impact the dynamics of the construction industry include a rise in the need for green construction to reduce carbon footprint, bridge lock-up device systems to improve structure life, building information systems for efficient building management, and the use of cutting-edge technologies. Let us look at some of them in detail.
Increased use of Digital Technologies
Most construction companies are utilizing digital technologies to expand business opportunities and boost profits by reducing costs in the long run and enhancing project execution. Further, the need for digital transformation in construction has become much stronger with increased global supply chain disruptions, increased competition, worker shortages, and skyrocketing material prices. These high-tech machines have also transformed the construction industry. However, interested businesses must investigate which machines are most appropriate for assisting with time-consuming or labor-intensive tasks.
Green Building and Sustainability
Building operations and construction account for nearly 40% of global energy-related CO2 emissions. However, as global awareness of the severity of climate change grows, the construction industry is taking concrete steps to reduce its environmental impact. Many customers are becoming more sustainability-conscious and placing greater pressure on developers to lower the carbon footprint of new construction. The increasing global focus on climate change could incentivize construction companies to factor sustainability into their projects, construction processes, and designs Industry leaders are looking for ways to reduce material waste from demolitions, switch to eco-friendly building materials, and choose locally sourced building products. Construction clients are also investing in companies that provide the sustainable, environmentally friendly practises they seek.
Construction firms navigated strict safety protocols while maintaining productivity throughout 2020. Mobile construction apps have expanded the industry while keeping workers, clients, and contractors safe. As we approach 2023, construction companies recognise the value of remote work sites and mobile access to their bottom line. Many phases of construction can be completed remotely, saving both the builder and the client time and money. More technological advancements that enable work to be done offsite are expected, allowing projects to be finished faster than ever before.
Modular construction is rapidly becoming a preferred approach of constructing in the construction field. A modular building is built offsite and then assembled on-site. This process allows for a faster construction schedule, a greener building process, and smarter design. The modular building process also produces less waste. Building crews can recycle used materials and keep track of inventory. Furthermore, the buildings can be refurbished or relocated, reducing the amount of energy and materials required for a new project. According to projections, the modular construction market will be worth up to $157 billion by 2023.
Use of Rented equipment
Construction companies will continue to consider renting equipment or purchasing used merchandise rather than purchasing new items. Both of these options are construction industry trends for 2023 because they allow businesses to keep up with technological advancements at lower costs. Rented equipment, in particular, allows construction companies to test whether different machines deliver the expected results.
As can be seen, 2023 is shaping up to be a fantastic year for construction. With technological advancements and high demand for services, the only way to go is up. With an emphasis on rebuilding infrastructure, sustainable buildings, and smart cities, construction companies that embrace the industry’s changing landscape will have more opportunities.
(By Nidhi Aggarwal, Founder, Spacemantra)