Wide application of scaffolding system: The newly adopted auxiliary system in construction sector and event management

Published On: February 2018

Global Scaffolding market forecast till 2023

The Scaffolding market is currently dominated by few players. Many organizations especially in Europe and Asia Pacific region have their own manufacturing units, while, some organizations outsource manufacturing to other organizations. Asia Pacific being one of the fastest growing markets, is a hub of opportunities for companies who are keen on expanding their units. Moreover, there are other small and medium scale players who are able to generate revenue from the local markets. PERI GmbH, Altrad Group, Safway Group Holding LLC and ULMA Construction have been recognized as the global leaders with a broad range of products serving marine sector for Scaffolding systems. These three companies contributed a share of more than 15% of global scaffolding market in 2016.

Scaffolding is defined as the erection, alteration or dismantling of temporary structure, specifically erected to support a platform. Scaffolds are commonly used for working at heights, and it involves the risk for a scaffolder (person working on a scaffold) to fall from an incomplete scaffold during the erection and dismantling of a scaffold.

Scaffolding is a tried and tested tool used to assist the construction industry for many years, and remains a valued structure for workers so as to carry out projects of all sizes. The biggest advantage of scaffolding is the safety it brings to any construction project. Scaffold structures provide stable platform for workers, ensuring safety, even at great heights. Many construction projects are based on the exterior of a building, which can be tricky to access without scaffold structure.

Scaffolding is a tried and tested tool used to assist the construction industry for many years, and remains a valued structure for workers so as to carry out projects of all sizes. The biggest advantage of scaffolding is the safety it brings to any construction project. Scaffold structures provide stable platform for workers, ensuring safety even at great heights. Many construction projects are based on the exterior of a building, which can be tricky to access without scaffold structure.

Merger & Acquisition— a key to sustain

Extensive research in this market has brought to light that merger & acquisition has been adopted, extensively, by the players with a share of over 50% to expand their geographical presence and achieve operational efficiencies. This strategy is widely adopted to increase the number of offerings to the customer across new regions and emerging economies.

In September 2016, PERI GmbH, manufacturer and supplier of formwork, scaffolding, and engineering services, officially inaugurated their new site in Boom near the city of Antwerp.

Supportive Government Regulations and Policies are promoting scaffolding market across the globe

The governments across all regions are seen promoting and developing their construction sector. The emerging nations are the ones that are particularly bringing various reforms and regulations to boost their infrastructure growth and real-estate market. Such growth is expected to augment the market growth of scaffolding. The government of India announced several major initiatives to boost the construction industry in the country. Some of them are the passage of the Real Estate (Regulation and Development) Act 2016, the amendment of the Benami Transactions Act, 100% deduction in profits for affordable housing construction, and change in arbitration norms for construction companies.. Similarly, in China the central policies on housing were relaxed, which resulted into lowest down payment ratio decreased in 2016. Cheaper down payments encouraged more homebuyers to borrow money from banks. This in turn has pushed the construction industry, which ultimately, leads to the increased demand for scaffolding.

There has been an increase in the global foreign direct investment (FDI) inflows. According to United States Economic and Social Commission for Asia and Pacific (UNESCAP), FDI inflow was valued at USD 1.76 trillion in 2015. This accounted for 38% increase compared to the inflow of 2014. However, this rise in FDI is mainly attributed to a surge in cross-border mergers and acquisitions that were, to a large extent, used for corporate reconfiguration including tax inversions.

Analysis of future trends in Construction Industry

The Asia Pacific region is hot for the construction industry, currently, due to the sheer number of construction projects that are set to go underway. With nations such as India and China looking to strengthen their infrastructural base, government aids and subsidies are set to attract significant investment in the construction industry. Increasing population, and inadequacy of housing structures, are set to be the driving factors for the scaffolding market in these regions. The concept of scaffolding is expected to be warmly welcomed in the Asia Pacific region, mainly due to the increasing need for new modular housing facilities to meet the increasing population in the Asia Pacific region.