Market Trends of Construction Robots Industry
Commercial and Residential Buildings to be the Largest Application for Construction Robots
- With the growing need for new commercial and residential infrastructure, automated construction solutions are expected to gain momentum over the coming years and impact the market positively. According to Redshift, the industry must build 13,000 buildings daily from now to 2050 to support an expected population of seven billion in urban areas.
- Urbanization is rising at an exponential rate. According to World Bank data, about 55% of the world's population, or 4.2 billion people, live in cities, and the trend is expected to continue over the coming years. By 2050, the urban population worldwide is expected to double, with nearly seven out of 10 people living in cities. This is expected to bring about technological changes such as automation and artificial intelligence and rapidly deploy various technologies, including robotics, to address multiple urban challenges.
- According to the World Population Data Sheet 2021, published by the Population Reference Bureau, North America was the most urbanized continent worldwide, with 82% of the population living in cities. In Latin America and the Caribbean, the degree of urbanization stood at 79%. It is projected that the share of people living in urban areas globally will increase from 56% in 2020 to 70% in 2050.
- The need and scale of urbanization are bringing challenges that include meeting accelerated demand for affordable housing, well-connected transport systems, and other basic infrastructure for living. According to the World Bank, nearly one billion urban poor who live in informal settlements are near opportunities that result in conflicts, which is leading to 60% of them being forcibly displaced in urban areas.
- Major economies worldwide are considering building more housing solutions to control the price of homes in urban areas so that lower-income citizens can afford them. Urban planning departments across major economies in North America and Europe are looking to build more housing for the market, which will somewhat moderate some prices. This is where 3D printing solutions that consume significantly less time to build and are sustainable are expected to gain traction in demand over the coming years. The demand for infrastructure and housing solutions in growing economies, mainly situated in the Asia-Pacific region, is expected to accelerate their investment in construction technologies.
- The growing construction of residential places like homes and apartments is expected to propel the demand for construction robots over the forecast period.
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Asia-Pacific to Dominate the Market
- Asia-Pacific is one of the significant regions for the construction robotics market, with the three major countries being India, China, and Japan. The increasing development of 3D-printed houses in the region is expected to boost market growth.
- Additionally, various international companies are looking to expand their regional offerings due to the high demand for 3D printing. For instance, in June 2022, COBOD International, a Danish developer of 3D construction printing technology, signed a new distribution agreement with Fortex, an Australian company, as part of the company's strategy to bring cutting-edge concrete 3D printing technology to Australia and strengthen 3D construction printing in the Asia-Pacific region.
- Asia was already fully embracing robotics and industrial automation before the pandemic. In a post-COVID world, the adoption of these technologies and industries that integrate them, like manufacturing, logistics, and construction, will continue to rise.
- The increasing urbanization is further expected to create demand for market growth. As per the National Bureau of Statistics of China, in 2022, approximately 65.2% of the population in China lived in cities. The urbanization rate has increased significantly in the country over the last few decades.
- The prospect of the construction industry is optimistic, with a strong demand for manpower. Nevertheless, in the face of a continuous and huge amount of construction work, the industry needs to improve construction efficiency and ensure worker and site safety, thereby enhancing overall productivity and cost-effectiveness. Such trends are expected to create positive growth for the market studied over the forecast period.
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