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Wider Acceptance Propels Growth of Indian Pre-Engineered Steel Buildings Market Says Frost & Sullivan - The Indian Pre-Engineered Steel Buildings (PEB) market is experiencing robust growth fuelled by infrastructure development and the increasing popularity of PEB systems in the industrial sector - BuildingTechnologies.Frost.com
Wider Acceptance Propels Growth of Indian Pre-Engineered Steel Buildings Market Says Frost & Sullivan

 

PRZOOM - /newswire/ - Mumbai, India, 2013/02/05 - The Indian Pre-Engineered Steel Buildings (PEB) market is experiencing robust growth fuelled by infrastructure development and the increasing popularity of PEB systems in the industrial sector - BuildingTechnologies.Frost.com.

   
 
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Sectors such as automotive, power, logistics, pharma, FMCG, and capital goods provide huge growth opportunity for PEB in India.

New analysis from Frost & Sullivan (buildingtechnologies.frost.com) Analysis of the Indian Pre-engineered Buildings Market, finds that the market earned revenues of INR 52,970 million in 2012 and estimates this to reach INR 136,120 million in 2016, growing at a compound annual growth rate (CAGR) of 26.6 percent.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Ravinder Kaur/ Priya George, Corporate Communications, at ravinder.kaur[.]frost.com/ priyag[.]frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.

The structural steel buildings market in India was around 5.0 to 5.5 million MT in 2011, of which around 9.5-10 percent i.e. 537,176 MT accounted for the PEB market in India. It is expected that the market in terms of volumes will reach 900,000 MT by 2016, growing at a CAGR of 11.1 percent.

Key challenges include increasing cost & shortage of skilled manpower, presence of alternative building structure (both steel and concrete) and fluctuating raw material (steel) prices which account for 55 to 60 percent of the overall cost, will certainly affect the price trend and impact the profit margin of the supplier in the long run as competition intensifies. These challenges shall be directly attributed to the lower penetration of PEB in India.

"The PEB market is strongly associated with investments and growth in the industrial and commercial sectors. "The new potential application areas for PEB in the next few years will include power plant structures, factory buildings, commercial buildings (offices and retail malls), warehouses, and metro stations," noted Frost & Sullivan's Senior Research Analyst.

The Government of India has set a massive target for developing infrastructure in the 12th FYP (2012-17) at an estimated cost of INR 40,900, 000 million, of which nearly 33-34 percent have been allocated for the power sector, with an additional target of 90,000 MW. Currently the thermal power capacity stands at 140,976 MW, with the proposed capacity addition of 50,000 MW during the 12th FYP, it will provide huge growth opportunity for PEB in this sector.

The commercial building sector in India is estimated to reach a target of 20.44 billion square feet by 2030 from 7 billion square feet in 2010. It is expected that nearly 34 percent of 2030 target had already been constructed and about 66 percent of the building stock is yet to be constructed.

With manufacturing activity increasing in the last few years, logistics has gained equal importance in order to provide better goods at lesser cost. It is also observed that India has around 7500 cold storage facilities with a capacity of 35.0 million tons. The addition in capacity to the cold store and warehousing would also trigger the PEB market in India.

With the onset and speedy progress of the Metro rail system in the next 10 years, the scope of PEB is immense. Increase in technical competence plays a crucial role, and many market participants have introduced high-grade steel conforming to ASTM Grade 50 steel (light weight and recyclable) without compromising on the product quality, which attracted many customers to pay high prices for quality jobs.

The heightened emphasis on green building construction is also poised to push market expansion. For instance, to increase energy-efficiency, many PEB manufacturers have developed high efficiency windows and insulation for roofs, walls, ceilings & floors. The use of sky lights and solar panels on rooftops will meet daylight and captive power requirements, while, at the same time, reducing emissions and gaining carbon credits under clean development mechanism (CDM).

Many leading international and domestic market participants are increasingly scouting for opportunities by adopting multiple business strategies such as venturing into engineering design, project contracting, manufacturing heavy structural steel buildings, and focusing on vertical integration whereas, merger & acquisition strategy will support them to grow inorganically and enable them to broaden their geographic reach and product portfolios.

Analysis of the Indian Pre-engineered Buildings Market is part of the Building Management Technologies Growth Partnership Service program. Frost & Sullivan's related research services include: Select HVAC Products Market in India, Integrated Building Management Systems Market in India, Indian Fire & Safety Products Market and, Indian Facility Management Services (FMS) Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Analysis of the Indian Pre-engineered Buildings Market / P6B9-19

Media Contact:
Nimisha Iyer, Corporate Communications South Asia, Middle East & North Africa
M: +91 98200 50519 / P: +91 22 6607 2004 - E: niyer[.]frost.com.

 
 
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Wider Acceptance Propels Growth of Indian Pre-Engineered Steel Buildings Market Says Frost & Sullivan

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