New Delhi, Oct 16 (UNI) Driven by the construction boom, the demand for building solutions and its convergence with mainstream IT network is likely to increase from the present 389 million dollars to 1,293 million dollars in 2012, global consulting firm Frost and Sullivan today said.
''The demand for building technologies appear to be driven by India Inc's wish to lower operation cost, increase energy efficiency, manage facilities and address safety and security,'' Frost and Sullivan Industry Manager (Environment and Building Technologies Practice) Mushtaq Md Khan said.
The demand also seems to be spurred by terrorist attacks and insecurities, which in turn gives a fillip to the market, he added.
The Frost and Sullivan research shows that the sector will show a CAGR of 27 per cent over the next year but has all potential to grow at a faster rate and even touch revenues of 1,745 million dollars by 2012.
''Given the market potential, size and capacity, the growth rate can be much more. Growing at 27 per cent the industry will achieve 1,293 million dollars but can easily add another 450 million dollars in revenue,'' Mr Khan said.
India accounts for a meagre 0.21 per cent of the world's Building Technology market.
However, over the next few years the commercial sector is expected to be the main contributor to the sectors growth followed by retail, industry, airports, defence, temples and schools.
Mr Khan said the main thrust for the sector will come from the consistent economic growth of the country and the ability to create wealth.
Retail sector is expected to grow 25 per cent, hotel 11 per cent and industrial sector is expected to grow by nine per cent, which should fuel the growth for the sector.
''Increasing awareness among end-users and trend towards globalistion will further contribute to the story,'' Mr Khan said.
However, lack of standards and codes for products and systems coupled with the price sensitivity of the user means that at times low profile system is used with low system performence, Mr khan said.
Mr Khan added that the delays in projects was adding to the investments the players in the sector had to make and the lack of regulatory framework in the form of supportive government legislations was hampering the potential of the sector.
''Fly-By-Night-Operators have also adversely affected the sector,'' Mr Khan said.