The pre-engineered buildings (PEB) have gained increased acceptability across many sectors where the conventional construction technology was used. It has slowly become part of our urban landscape, and have diverse applications such as Factories, Warehouses, Cold Storages, Showrooms, Workshops, Offices, Supermarkets, Shopping Malls, High Rise Buildings - Commercial & Residential, Shipyards, Metro Stations, Aircraft Hangars, Sports Stadiums, Auditorium, Power Plants, Steel Plants, Heavy Industrial Structures, etc. Sandeep Sharma takes a look at the PEB sector in India… ADVANTAGE PEB Pre-engineered buildings (PEB) are buildings that are built in factories and are made of steel that are shipped and bolted together on the site. The advantages of having a PEB structure are numerous. The buildings can be supplied to around 80M clear spans. The time taken to construct the building is less compared to the traditional construction projects. PEB reduces the total construction cost by at least 40% and leads to saving of time due to faster deployment of factory made components and structure. The savings is accomplished in the design, manufacturing and erection cost. The PEB structure can be scaled up or expanded easily by adding additional bays. With PEB structure, you can be assured of the quality as these are manufactured under controlled conditions. An efficiently designed pre-engineered building are generally lighter than the conventional steel buildings by up to 30%. This actually translates in using less steel and saving on the price front as far as the structural framework is concerned. The PEB structures use high quality paint systems for cladding which gives long durability and low maintenance costs. The pre-engineered buildings can be supplied with polyurethane insulated panels or fiberglass blankets insulation to achieve required “U” values. U-values measure the effectiveness of the material being used as an insulator. The construction of Pre-engineered buildings is mostly a turnkey solution, the advantage here is having a single organisation responsible for providing complete solution starting from the conceptualisation, planning & design, production, supply, assembling, and erection of such structures. INDUSTRY GROWTH The Pre-engineered building segment has grown rapidly in line with the overall infrastructure push exerted by the Government of India. The growth of the industry is attributed to number of factors, the first and foremost being the cost effectiveness of the PEB structures, savings in time and effort needed, the level of customisation offered, the use of technology based solution ultimately results into optimisation of resources, low carbon footprint, and safeguarding the environment. The booming e-commerce and logistics sector in India is largely fueling growth for the PEB industry as the demand for constructing warehouses are on the rise. The next generation software technologies are helping the PEB industry players to design and offer sustainable structures at an attractive price point. CHALLENGES In a PEB structure, Steel forms a major component and the cost of the structure largely depends on its price. The steel prices are volatile in nature. As per the recent media reports, the rising prices of the raw material prices are likely to force the Indian steelmakers to increase steel prices which would ultimately impacting the cost of the PEB structures. Besides the steel cost, the availability of the manpower with required technical competence is another challenge before the industry. To handle the project execution criticalities, the industry needs experienced and skilled man power, to achieve adequate supply of trained manpower, all the stakeholders need to come together and collaborate with the Government to set up training institutions wherein the necessary skills can be imparted or upgradation of skills can be undertaken. OPPORTUNITIES Many of the Government programmes such as ‘Housing for All’ and ‘Make in India’ are pointing towards opportunities available for the PEB industry players. With such a large population, the need for mass housing cannot be met through just conventional construction techniques, and there are ample opportunities for the PEB players in the mass housing segment. The infrastructural development projects are moving in the fast lane backed with huge investments not just from the Government but from foreign investors as well. The opportunities for PEB players lies in various infrastructure projects such as station redevelopment programme, construction of airport terminals, warehouse, bridges, factories, high rises, sports infrastructure, entertainment zones, amusement parks, etc. MARKET FORECAST The Pune based research firm Markets and Markets have released a report titled, “Pre-engineered Buildings Market by Structure (Single-story, Multi-story), Application (Warehouses & industrial, Infrastructure, Commercial), & Region (North America, Asia Pacific, Europe, South America, Middle East & Africa) - Global Forecast to 2024”. According to the report, the pre-engineered buildings market is projected to reach USD 25.0 billion by 2024, to grow at a CAGR of 11.5% from 2019. As per the report, the factors that would drive the PEB market includes rapid industrialization, growth in the infrastructural investments, an increase in the use of steel in building & construction, and rising demand for sustainable buildings. The single-story segment is projected to account for the largest market share during the forecast period. The demand for single-story pre-engineered buildings is driven by their wide range of applications in the industrial sector (factories, workshops, warehouses, cold storages, steel mills, and assembly plants), the commercial sector (showrooms, supermarkets, offices, shopping centers, exhibition halls, restaurants, logistic centers, and multi-purpose buildings), public buildings (schools, hospitals, conference halls, laboratories, museums, and stadiums), and others (farms, utility centers, pump stations, aircraft hangers, and airport terminals). The warehouses & industrial segment is projected to grow at the highest CAGR during the forecast period. This is attributed to the development of factories, production plants, R&D centers, and warehouses, because of the growing manufacturing sector and industrial expansion in developed and developing regions. Further, the growth of the retail and e-commerce industry generates the demand for warehouses, supermarkets, and distribution centers, thereby supporting the pre-engineered buildings market growth. Asia Pacific accounted for the largest share in 2018 and is also projected to record the highest growth rate during the forecast period. The key factors driving the growth of the Asia Pacific pre-engineered buildings market are the growth in the residential and non-residential construction industry, huge investments in the infrastructural sector, and rapid industrialization in the developing countries of Asia Pacific. Furthermore, various benefits of these buildings, including time & cost efficiency and reduced environmental impact, as compared to cast-in-situ construction, are fueling the demand for these buildings in the developing countries of Asia Pacific. The key players operating in the pre-engineered buildings market include BlueScope Steel (Australia), NCI Building Systems (US), Nucor Corporation (US), Kirby Building Systems (Kuwait), Zamil Steel Holding Company (Saudi Arabia), ATCO (Canada), Lindab Group (Sweden), PEBS Pennar (India), PEB Steel Buildings (Vietnam), and Everest Industries (India). These players have adopted various growth strategies to expand their global presence and increase their market share.
ADVANTAGE PEB Pre-engineered buildings (PEB) are buildings that are built in factories and are made of steel that are shipped and bolted together on the site. The advantages of having a PEB structure are numerous. The buildings can be supplied to around 80M clear spans. The time taken to construct the building is less compared to the traditional construction projects. PEB reduces the total construction cost by at least 40% and leads to saving of time due to faster deployment of factory made components and structure. The savings is accomplished in the design, manufacturing and erection cost. The PEB structure can be scaled up or expanded easily by adding additional bays. With PEB structure, you can be assured of the quality as these are manufactured under controlled conditions. An efficiently designed pre-engineered building are generally lighter than the conventional steel buildings by up to 30%. This actually translates in using less steel and saving on the price front as far as the structural framework is concerned. The PEB structures use high quality paint systems for cladding which gives long durability and low maintenance costs. The pre-engineered buildings can be supplied with polyurethane insulated panels or fiberglass blankets insulation to achieve required “U” values. U-values measure the effectiveness of the material being used as an insulator. The construction of Pre-engineered buildings is mostly a turnkey solution, the advantage here is having a single organisation responsible for providing complete solution starting from the conceptualisation, planning & design, production, supply, assembling, and erection of such structures.
INDUSTRY GROWTH The Pre-engineered building segment has grown rapidly in line with the overall infrastructure push exerted by the Government of India. The growth of the industry is attributed to number of factors, the first and foremost being the cost effectiveness of the PEB structures, savings in time and effort needed, the level of customisation offered, the use of technology based solution ultimately results into optimisation of resources, low carbon footprint, and safeguarding the environment. The booming e-commerce and logistics sector in India is largely fueling growth for the PEB industry as the demand for constructing warehouses are on the rise. The next generation software technologies are helping the PEB industry players to design and offer sustainable structures at an attractive price point.
CHALLENGES In a PEB structure, Steel forms a major component and the cost of the structure largely depends on its price. The steel prices are volatile in nature. As per the recent media reports, the rising prices of the raw material prices are likely to force the Indian steelmakers to increase steel prices which would ultimately impacting the cost of the PEB structures. Besides the steel cost, the availability of the manpower with required technical competence is another challenge before the industry. To handle the project execution criticalities, the industry needs experienced and skilled man power, to achieve adequate supply of trained manpower, all the stakeholders need to come together and collaborate with the Government to set up training institutions wherein the necessary skills can be imparted or upgradation of skills can be undertaken.
OPPORTUNITIES Many of the Government programmes such as ‘Housing for All’ and ‘Make in India’ are pointing towards opportunities available for the PEB industry players. With such a large population, the need for mass housing cannot be met through just conventional construction techniques, and there are ample opportunities for the PEB players in the mass housing segment. The infrastructural development projects are moving in the fast lane backed with huge investments not just from the Government but from foreign investors as well. The opportunities for PEB players lies in various infrastructure projects such as station redevelopment programme, construction of airport terminals, warehouse, bridges, factories, high rises, sports infrastructure, entertainment zones, amusement parks, etc.
MARKET FORECAST
The Pune based research firm Markets and Markets have released a report titled, “Pre-engineered Buildings Market by Structure (Single-story, Multi-story), Application (Warehouses & industrial, Infrastructure, Commercial), & Region (North America, Asia Pacific, Europe, South America, Middle East & Africa) - Global Forecast to 2024”. According to the report, the pre-engineered buildings market is projected to reach USD 25.0 billion by 2024, to grow at a CAGR of 11.5% from 2019. As per the report, the factors that would drive the PEB market includes rapid industrialization, growth in the infrastructural investments, an increase in the use of steel in building & construction, and rising demand for sustainable buildings. The single-story segment is projected to account for the largest market share during the forecast period. The demand for single-story pre-engineered buildings is driven by their wide range of applications in the industrial sector (factories, workshops, warehouses, cold storages, steel mills, and assembly plants), the commercial sector (showrooms, supermarkets, offices, shopping centers, exhibition halls, restaurants, logistic centers, and multi-purpose buildings), public buildings (schools, hospitals, conference halls, laboratories, museums, and stadiums), and others (farms, utility centers, pump stations, aircraft hangers, and airport terminals).
The warehouses & industrial segment is projected to grow at the highest CAGR during the forecast period. This is attributed to the development of factories, production plants, R&D centers, and warehouses, because of the growing manufacturing sector and industrial expansion in developed and developing regions. Further, the growth of the retail and e-commerce industry generates the demand for warehouses, supermarkets, and distribution centers, thereby supporting the pre-engineered buildings market growth.
Asia Pacific accounted for the largest share in 2018 and is also projected to record the highest growth rate during the forecast period. The key factors driving the growth of the Asia Pacific pre-engineered buildings market are the growth in the residential and non-residential construction industry, huge investments in the infrastructural sector, and rapid industrialization in the developing countries of Asia Pacific. Furthermore, various benefits of these buildings, including time & cost efficiency and reduced environmental impact, as compared to cast-in-situ construction, are fueling the demand for these buildings in the developing countries of Asia Pacific.
The key players operating in the pre-engineered buildings market include BlueScope Steel (Australia), NCI Building Systems (US), Nucor Corporation (US), Kirby Building Systems (Kuwait), Zamil Steel Holding Company (Saudi Arabia), ATCO (Canada), Lindab Group (Sweden), PEBS Pennar (India), PEB Steel Buildings (Vietnam), and Everest Industries (India). These players have adopted various growth strategies to expand their global presence and increase their market share.