by The building construction partnership market refers to collaboration or partnerships between construction companies, architects, engineers and various other building service providers to undertake large-scale construction projects. Partnership enables cost-effective project delivery through economies of scale, pooling of human and capital resources, as well as risk sharing. Building construction has become increasingly complex over the years to meet growing needs of the urban population such as housing, commercial and industrial infrastructure. Partnership helps partners leverage each other’s capabilities to successfully deliver projects on-schedule and on-budget.
The global Building Construction Partnership Market is estimated to be valued at US$ 126.4 billion in 2024 and is expected to exhibit a CAGR of 3.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key Trends:
Integrated Project Delivery (IPD) is gaining popularity as a key trend in the building construction partnership market. IPD involves integrated teams comprising owners, architects, engineers and contractors that collaborate early in design processes. By bringing all the project stakeholders together in the preconstruction phase, IPD streamlines workflows and facilitates value engineering. It also helps achieve sustainability goals through innovative design-build solutions. With benefits such as lower risks, improved quality, reduced conflicts and lesser change orders, IPD is being adopted by leading construction organizations and emerging as an effective collaboration model.
Porter’s Analysis
Threat of new entrants: Building construction is a capital-intensive market to enter, requiring significant investments in infrastructure, machinery, and skilled workforce. Established players enjoy significant economies of scale making it difficult for new players to enter.
Bargaining power of buyers: Buyers in the building construction market have moderate bargaining power as there are many construction players. However, skilled labor shortages can increase buyers’ bargaining power.
Bargaining power of suppliers: Key raw material suppliers in construction have moderate bargaining power due to availability of substitutes and dependence of suppliers on construction players for business.
Threat of new substitutes: No major substitute threats exist for traditional construction services. However, there is a moderate threat from newer pre-engineered, prefabricated, and modular construction techniques.
Competitive rivalry: The building construction market has few large players operating globally, regionally, and locally. Intense competition exists on pricing, quality, health & safety standards, and timely project delivery.
Key Takeaways
The global Building Construction Partnership Market Growth is expected to witness high growth. The global Building Construction Partnership Market is estimated to be valued at US$ 126.4 billion in 2024 and is expected to exhibit a CAGR of 3.8% over the forecast period 2023 to 2030.
North America dominates the global market currently due to high infrastructure investments and a large number of ongoing construction projects in commercial and residential buildings. Asia Pacific is expected to grow at the fastest pace during the forecast period due to rapid urbanization and increasing construction spending in major countries like China and India.
Key players related content comprises Key players related content- Key players operating in the Building Construction Partnership Market are Turner Construction Co., Clark Construction, AECOM, Jacobs, and Hensel Phelps.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
