The COVID-19 pandemic has led to steadfast technological upgrades that could have taken years or decades otherwise to take fruition. Construction companies in India have already started making rapid changes in their operations, the year 2022 will spring up even more opportunities for the construction companies as they embrace digitization and sustainability as their survival & success strategies.

Leading Real Estate Advisory firm JLL has highlighted that in 2021, demand for real estate trailed economic rebounds in the region as governments relaxed restrictions slower than expected and leasing decisions were deferred. Real estate investments rose 30% year-on-year in the first nine months of 2021. For 2022, investment volumes are expected to rise 15%, boosted by 5% regional economic growth, portfolio reallocation and a drive towards sustainable and better-quality buildings. Logistics investments are expected to double from 2019’s level to US$50 billion in 2022, driven by portfolio reallocation, relative value and strong demand tailwinds.

As per the research estimates, the demand for Grade A offices is set to rise 20% while the prime logistics stock is set to grow by 17% between 2021 and 2022 — the fastest pace of annual growth on record — with 20.8 mn sqm of new prime stock expected to be delivered. As we move ahead, there would be a greater demand for prime space. The need to maximize operational capacity, while at the same time increasing flexibility and future-proofing facilities against higher sustainability requirements, will help ensure sufficient demand for the high levels of upcoming new supply.

Here are the few factors that are slated to change the construction landscape in the year 2022…

Industry 4.0

Industry 4.0 is one of the most important construction trends of the future, which has many applications in the field of large-scale construction such as high-rise buildings, car parks, office buildings, sports and entertainment facilities, etc. As the construction industry moves towards productization to take advantage of economies of scale and better integrate the supply chain, offsite & prefab construction affiliates well with that shift. Augmented Reality (AR) and Virtual Reality (VR) are fast making crossroads in the construction world as well like other tech-savvy industries. For prefab construction, AR can prove to be a boon. For example, in the planning process, all the specialists working on the project could leverage an AR device as a building model to discuss the project with an accurate visual and, most importantly, have identical representation for all of them. It would also give project managers a better insight into how the works onsite should be planned and coordinated before the modules are transported onsite.

In 2022, connected construction is going to be a real achievement for major digital investments to connect, integrate, and automate operations and bring the entire value chain onto a secure, intelligent infrastructure. Investing in connected construction technologies pays off throughout the construction lifecycle by reducing:

• Engineering hours by 10–30%;
• Building costs by 5-10%;
• Operating costs by 10-20%;
• Decommissioning hours by 5-10%

Product-based approach

In the future, an increasing share of structures and surrounding services will be delivered and marketed as standardized products. This includes developers promoting branded offerings, with standardized but customizable designs that can improve from one product generation to the next, and delivery using modularized elements and standardized components produced in offsite factories. The modules and elements will be shipped and assembled on site. Production will consist of assembly line–like processes in safe, non-hostile environments with a large degree of repeatability.

Specialization

To improve their margins and levels of differentiation, companies will start to specialize in target niches and segments (such as luxury single-family housing, multi storey residential buildings, hospitals, or processing plants) in which they can build competitive advantages. And they will specialize in using different materials, subsegments, or methods of construction. The shift toward specialization will also require companies to develop and retain knowledge and capabilities to maintain their competitive advantages. Obviously, players will need to carefully weigh the effectiveness, efficiency, and brand positioning that greater specialization enables against the potential risk or cyclicality benefits of a more diversified portfolio.

The FUTURE is PREFAB

Cheaper, faster to build, safe and sustainable – these are some of the most appealing factors that are making prefab construction one of the most favored methods for the companies and the users as well. Technology will become the mainstay in modern, high specification buildings. Finding the right mix of smart technology and automation & robotics across the most productive building footprint will grow its prominence alongside Internet of Things (IoT) and 5G. At Steelion, we are armed with new-age technology solutions to deliver our customers an impeccable construction facility, which is far superior in quality and extremely sustainable.

In a few years, if construction companies don’t opt for modular and off-site fabrication as a significant portion of their business model, they will find it increasingly difficult to survive. Recent research has estimated that by 2025, if a large construction player hasn’t incorporated offsite construction for at least 25% of their business, that company will cease to exist by 2030. Prefab construction will capture at least 25% to 30% of the market in dense urban areas in the next 10 years. As we step into the year 2022, the future of prefab is crystal clear and forward-looking companies will find it easier to embrace the change and lead the change.

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Sources: Archdesk, JLL, Construction Dive, McKinsey