Building Code Compliance Market Is Estimated To Soar at 8.8% CAGR Projected- Coherent Market Insights

A newly published report by Coherent Market Insights reveals a sustainable growth in opportunities in the building code compliance market.

Coherent Market Insights analyst projected the Building Code Compliance Market is estimated to be valued at US$ 8.16 Bn in 2023. It is expected to exhibit a CAGR of 8.8% over the forecast period 2023-2030.

Market Dynamics: The Building Code Compliance Market is primarily driven by increased construction activities across both residential and commercial sectors globally. According to the Global Construction 2030 report, the worldwide construction output is projected to grow by 85% to US$ 15.5 trillion by 2030.

Moreover, rapid urbanization due to growing population is further augmenting the need for new residential and commercial constructions compliant with local building codes and regulations in place. Additionally, implementation of stringent norms and standards pertaining to public safety, energy-efficiency, and minimal environmental impact are positively influencing the demand for building code compliance services.

Market Trends: Growing emphasis on digital compliance management: Digital technologies such as cloud-based applications, Building Information Modeling (BIM), Augmented Reality/Virtual Reality are increasingly being adopted by building code compliance service providers to streamline their operations and improve project management. This enables real-time status tracking, remote inspections, and automated compliance checks throughout the project lifecycle.

Rising demand for third-party certification: With growing awareness regarding the significance of adhering to building codes, construction firms are outsourcing compliance management to specialized third-party vendors. Their expertise in interpreting codes along with certification of compliance is helping constructors comply with regulations and quality standards with ease.

Building Code Compliance Market Opportunities

Testing & Inspection Services

Testing and inspection services form one of the major segments in the building code compliance market. These services ensure that buildings are assessed for compliance with safety, accessibility, energy efficiency, and other codes at various stages of construction and renovation. The testing & inspection segment accounts for over 30% of the global market share due to mandatory safety checks required by regulations.

Project Management Services: Project management services help owners and developers navigate the entire compliance process efficiently. They provide expertise to oversee all compliance activities from planning and permitting to Post-construction inspections. With increasing construction of complex infrastructure projects, the demand for integrated project management is on the rise. Project managers help coordinate between contractors, inspectors, and authority bodies to streamline compliance workflows.

Key Market Takeaways: The global building code compliance market is anticipated to witness a CAGR of 8.8% during the forecast period 2023-2030. This is owing to the implementation of stricter building standards worldwide. On the basis of service type, the testing & inspection segment is expected to hold a dominant position, accounting for over 30% of the market share due to mandatory safety checks required by regulations.

On the basis of end-user, the residential segment dominates the market owing to housing reconstruction activities and real estate development projects across regions. On the basis of region, North America is expected to hold a dominant position over the forecast period, due to the presence of leading players and strict energy codes for buildings in the US and Canada.

Competitors Insights: Key players in the building code compliance market include: 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

Recent developments:

In May 2023, UpCodes announced the launch of Copilot. It is an AI-powered tool which is designed to simply to problems of building codes. In October 2023, Bureau Veritas, announced its acquisition of PreScience.