Factory Buildings Market Report 2025

The factory buildings market size has grown steadily in recent years. It will grow from $296.71 billion in 2024 to $304.45 billion in 2025 at a compound annual growth rate (CAGR) of 2.6%. The growth in the historic period can be attributed to industrialization and economic growth, government policies and incentives, supply chain optimization, labor availability and costs, market demand for products.

The factory buildings market size is expected to see steady growth in the next few years. It will grow to $342.83 billion in 2029 at a compound annual growth rate (CAGR) of 3%. The growth in the forecast period can be attributed to global manufacturing trends, sustainable construction practices, advanced manufacturing technologies, e-commerce growth, resilience, and risk mitigation. Major trends in the forecast period include integration of robotics and automation, customization for diverse manufacturing needs, energy-efficient building systems, advanced materials and construction techniques, globalization and regionalization strategies.

The rising government expenditures on infrastructural development are expected to drive the growth of the factory buildings market. Government funding for infrastructure projects aims to boost investment and stimulate economic growth, which in turn increases demand for industrial construction, including factory buildings. For example, in July 2024, the Office for National Statistics reported that infrastructure investment in the UK reached $18 billion (£13.8 billion) in 2023, marking a 3.9% increase from 2022. The net stocks of infrastructure in the market sector were valued at $456.9 billion (£350.2 billion), a 0.3% rise from the previous year. Additionally, general government investment in infrastructure saw a 9.6% increase, amounting to $34.1 billion (£26 billion) in 2022 compared to 2021. This increase in government expenditure on infrastructure is fueling the demand for factory buildings.

The growth of the manufacturing industry is expected to drive the expansion of the factory buildings market. Manufacturing, which involves producing goods by transforming raw materials or components, generates an increased demand for factory buildings to support production processes. For instance, in September 2024, the National Association of Manufacturers (NAM) reported that the value-added output in manufacturing in the U.S. grew from an annual rate of $2.881 trillion in Q1 to $2.91 trillion in Q2 of 2024, representing 10% of the total U.S. economic output. Additionally, real value-added output in the sector increased from $2.337 trillion in Q1 to $2.384 trillion in Q2. This rise in manufacturing activity is a key driver for the demand for factory buildings, supporting the sector's expansion during the forecast period.

The integration of advanced technology emerges as a significant trend gaining traction in the factory buildings market. Key industry players are embracing advanced technology to fortify their market standing. For instance, in June 2022, Bjarke Ingels Group completed the construction of a 7,000-square-metre sustainable furniture factory for Vestre, a Norwegian-based furniture maker. The vibrant factory, situated in the Norwegian forest, is dedicated to eco-friendly, carbon-neutral furniture manufacturing. Constructed from repurposed steel, low-carbon concrete, and locally-sourced wood, the project aims to become the first industrial structure awarded the top environmental BREEAM Outstanding grade, focusing on high-efficiency, environmentally-conscious production methodologies. This demonstrates the growing adoption of advanced and sustainable practices in the development of factory buildings.

Major companies in the factory buildings sector are dedicated to pioneering innovative solutions as a means to bolster their market standing. A notable example is the February 2022 launch by Black Buffalo 3D Corporation, an American construction equipment supplier, of its groundbreaking product, the NEXCON 1G 3D construction printer. Specifically designed for single- to three-story residential and non-residential applications, this technology has the capability to print up to three stories based on the roof design. Offering a sturdier, more sustainable, and cost-effective approach, it serves to facilitate affordable housing projects, infrastructure endeavors such as factory constructions, and various other applications. Furthermore, this technology delivers builders a remarkable 70 percent reduction in materials costs, minimal waste generation, and an impressive up to 80 percent reduction in both labor costs and construction time.

In October 2022, M. B. Kahn Construction Co. Inc., a prominent construction entity based in the United States, acquired McKenzie Construction Corp for an undisclosed sum. Through this acquisition, M. B. Kahn Construction aims to augment McKenzie's established presence in Southeast Virginia and Eastern North Carolina. McKenzie Construction specializes in commercial construction, including the construction of factory buildings, complementing M. B. Kahn Construction's portfolio and expanding its reach in these geographic areas.

Major companies operating in the factory buildings market include Pretorius Structures Ltd., FEG Global Ltd., Tasin Company Ltd., Ajinomoto Engineering Corporation, N.S.L Construction Co. Ltd., Tata Projects Limited, Larsen & Toubro Limited, Hitachi Plant Construction Ltd., Primus Builders Inc., Sika AG, AME Construction Services Ltd., Hindustan Construction Company, Dilip Buildcon Ltd., Turner Construction Co., Bechtel Corporation, Fluor Corporation, AECOM Technology Corporation, Whiting-Turner Contracting Company, Kiewit Corporation, Skanska USA, PCL Construction Enterprises Inc., Leopardo Companies, Layton Construction Company LLC, McGough Construction Company LLC, Hill & Wilkinson Construction Group Ltd., Kraus-Anderson Company, Schimenti Construction Company, LeChase Construction Services LLC, ThermalTech Engineering Inc., W.E. O'Neil Construction Company, Robins & Morton Group, Nabholz Construction Corporation, Plaza Construction LLC, Hunter Roberts Construction Group, Hill International Inc., Hoar Construction LLC, Ghafari Associates LLC, Kitchell Corporation, IMC Construction Inc., KBE Building Corporation, Joeris General Contractors Ltd., STV Group Inc., Batson-Cook Company, Cumming Corporation, HITT Contracting Inc., Holder Construction Group LLC, Brasfield & Gorrie LLC.

Asia-Pacific was the largest region in the factory buildings market in 2024. The regions covered in the factory buildings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the factory buildings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A factory building serves as a facility where products are manufactured and assembled. These industrial structures typically have less than 20% of their total area designated for office space, include truck loading docks, and feature a minimum clear height of 10 feet. Factory buildings are single-story structures used for heavy manufacturing and light assembly production, offering larger overhead spaces relative to their floor area.

Factory buildings can be categorized as either residential or non-residential, constructed using materials such as aggregates, cement, and bricks. Residential areas primarily serve housing purposes, while non-residential factory buildings are dedicated to industrial activities. The construction types for factory buildings include new construction and renovation. These buildings can be owned or rented, serving various public and private purposes.

The factory buildings market research report is one of a series of new reports that provides factory buildings market statistics, including factory buildings industry global market size, regional shares, competitors with factory buildings market share, detailed factory buildings market segments, market trends, and opportunities, and any further data you may need to thrive in the factory buildings industry. This factory buildings market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The factory buildings market includes revenues earned by entities by constructing heavy manufacturing buildings, light assembly buildings, general warehouses and distribution warehouses. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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