by The Building Code Compliance Market is estimated to be valued at US$ 8.16 Bn in 2023 and is expected to exhibit a CAGR of 8.8% over the forecast period 2023 – 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Building code compliance refers to the process of ensuring that buildings and infrastructure projects adhere to relevant building codes and standards during design, construction, and operation. Building codes are established by regulatory bodies or governments to ensure public safety from risks such as structural failures, fire hazards, and reduced indoor air quality. They outline the specifications and regulations for various aspects of construction including materials, structural design, plumbing, electricity, ventilation, and energy efficiency. Building code compliance services help verify if projects meet all code and safety criteria before occupancy.
Market Dynamics:
Growing urbanization and increasing number of infrastructure development projects across both commercial and residential sectors are expected to drive the demand for building code compliance services over the forecast period. According to UN estimates, 68% of the total global population is projected to live in urban areas by 2050 which is further augmenting the need for new construction. Additionally, incentives and policies promoting green building initiatives are also fueling market growth. However, the shortage of trained professionals versed in building codes and compliance standards poses a challenge. Moreover, achieving code compliance requires a substantial upfront investment and increases project costs. Varied building codes across regions also add to the complexity. Nevertheless, the introduction of advanced technologies like IoT, AI and AR/VR is helping streamline the compliance process.
Segment Analysis
The Building Code Compliance Market is segmented into testing service, inspection service and certification service. Among these, the testing service segment holds the largest share of more than 30% in the global market. This is because testing service helps in evaluating the safety requirements related to the structure and material used in construction, thereby ensuring adherence to building codes and safety regulations.
PEST Analysis
Political: Adherence to building codes and safety regulations is mandatory as per government policies across various countries. This drives the need for compliance services.
Economic: Investments in infrastructure and real estate development is increasing globally, thus boosting demand for building code compliance services during construction.
Social: With growing awareness about safety, quality and disaster prevention, social demand for building compliance is rising.
Technological: Advanced testing technologies like 3D laser scanning and drones help inspectors evaluate large projects efficiently and ensure code compliance.
Key Takeaways
The global building code compliance market is expected to witness high growth, exhibiting CAGR of 8.8% over the forecast period, due to increasing investments in infrastructure and real estate development globally.
The US dominates the North America building code compliance market with a share of over 70% due to stringent regulations and regular compliance needs of the highly developed construction sector. The Asia Pacific market is exhibiting fastest growth led by China, India and other emerging economies on account of rapid urbanization and industrialization.
Key players operating in the building code compliance market are Intertek, SGS, Bureau Veritas, DEKRA, TUV Rheinland, TUV SUD, Element Materials Technology, Applus+, UL Solutions, NSF International, MISTRAS, Building Control Alliance, SOCOTEC, QPS, Acme Analytical Laboratories, ALS, Eurofins Scientific, EnviroScience, EAG Laboratories, Engineering Systems. These players are focusing on strategies like mergers, acquisitions and technology advancements to consolidate their market presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
