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Hot trends in construction - A new era of opportunities

Portrait of Ambroise Lecat
Partner
Paris Office, Western Europe
+33 1 7092-8944

The building sector accounts for a value of USD 10.4 trillion in 2017 and that figure is expected grow to USD 18 trillion by 2030. There are many reasons for such rapid growth, but a few hot trends are key contributors on the supply side. We take a closer look at them in this report.

  • Materials have always driven key evolutions in the building sector. Wood is now fashionable for its isolating and esthetic properties. Besides the rehabilitation of wood, the image of concrete is also changing. New concrete blocks can be imbricated easily and cut CO2 emissions in half. The European Union wants to have new buildings approach energy neutrality by 2020. Keeping up with such requirements is a challenge for many professionals in all segments of the construction value chain, in particular for smaller players.

  • Other changes are revolutionizing the construction industry. BIM (Building Information Modeling), combined with the maturing of technologies such as the IoT (Internet of Things), VR (Virtual Reality) or 3D printing, are bringing construction into a new era. Modular construction makes it possible to provide a quality response to urgent needs in record time, at a reasonable cost – e.g. temporary housing for refugees in Germany or France. Longtime constraints of the construction sector almost disappear with modular construction: accidents, bad weather, regulatory compliance issues are problems no more.

  • B2B and B2C relationships are shifting and new players like Amazon or Alibaba are challenging traditional distribution models. This is just the beginning: two in every three people will be buying online by 2020. This digital era is challenging the traditional selling business model. End customers, who are increasingly educated and demanding, play a role in this paradigm shift that also affects designers, craftsmen and retailers. These trends are structural and will permanently transform the complete value chain of the construction industry. Construction industry players who fail to adapt will most likely disappear.

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Hot trends in construction - A new era of opportunities

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Hot trends in construction A new era of opportunities

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Portrait of Kai-Stefan Schober
Senior Partner
Munich Office, Central Europe
+49 89 9230-8372
  • Photos Matt Kunz / Istock