Construction will play a significant role in helping the planet cope with two defining megatrends of the 21st century – aging populations and climate change. As a result, the senior housing market will more than double to $127 billion in 2023 in the G20 nations alone, and building of next-generation sea walls will soar to a $9 billion business, according to Lux Research.
“Aging populations and rising health care costs are spurring innovations in senior housing, while warming oceans and rising sea levels are creating the need for next-generation sea walls and other climate-resilient construction,” said Aditya Ranade, Lux Research Senior Analyst and the lead author of the report titled, “Future of Construction: Influence of Megatrends.”
Lux Research analysts evaluated the impact of modern megatrends on the growth of the construction market. Among their findings:
Innovations will shape senior housing market. Driven by the need to combat unsustainable health-care costs, innovations such as building-integrated sensors, modular construction and building automation will enable the change from assisted living to aging-in-place. An example is the modular pod developed by N2 Care, an addition to existing single-family homes equipped with monitoring devices.
Emerging economies will grow at a slower rate. In 2023, emerging economies will take a 56% share of global senior housing but house 69% of the world’s senior citizens. The insurance industry and government reimbursements will help OECD countries retain a disproportionate share of the market.
North America, Asia-Pacific lead in new sea walls. Rising sea levels will require integrated coastal management from cities, notably the building of stronger sea walls and smart levees. North America and Asia-Pacific will drive this market over the next 10 years, while Europe will catch up after 2023.
The report, titled “Future of Construction: Influence of Megatrends,” is part of the Lux Research Sustainable Building Materials Intelligence service.
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