BUILDING CODE COMPLIANCE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

Building Code Compliance Market Drivers:

• Government regulations and stringent building codes: Government regulations and stringent building codes are major drivers for the building code compliance market. Governments worldwide are implementing and expanding building codes to ensure safety, sustainability, accessibility and resilience of buildings. For instance, the International Code Council has adopted the 2021 building codes in the U.S., introducing new energy efficiency requirements. Such regulations are creating strong demand for compliance services. Moreover, authorities are conducting rigorous inspections and levying harsh penalties for non-compliance, thus compelling stakeholders to actively seek compliance services.
• Increasing investments in construction projects: Rising number of construction activities globally is driving demand for building code compliance services. Developing nations are expected to account for over half of the market. With large-scale investments in real estate, infrastructure and energy projects, ensuring code compliance is critical. Construction companies are utilizing compliance services to avoid costly reworks, delays and lawsuits.
• Rising adoption of building information modeling (BIM): Growing adoption of BIM in architecture, engineering and construction industries is propelling the demand for building code compliance solutions. BIM enables stakeholders to integrate code requirements early in the design stage, conduct automated model checks and perform code validation through the building lifecycle. Several companies offer BIM-based compliance solutions to capitalize on this trend. For instance, Autodesk Construction Cloud connects teams and project data from design to done reducing risk, protecting profits, and increasing predictability,  provides tools for clash detection, digital plan reviews and assessing BIM models for code violations.
• Focus on sustainable and green buildings: Rising trend of sustainable and green buildings to reduce environmental impact is also spurring the need for compliance services. Green buildings have to adhere to stringent codes and rating systems such as LEED and BREEAM. Companies are offering specialized compliance solutions to help contractors and owners construct sustainable buildings and obtain certifications. These solutions ensure energy efficiency, water conservation, material sustainability and other parameters.

Building Code Compliance Market Opportunities:

• Integration of emerging technologies: There are significant opportunities for leveraging emerging technologies like (internet-of-things) IoT, big data, artificial intelligence (AI) and machine learning to enhance building code compliance processes. Drones equipped with cameras and thermal sensors can provide a bird's eye view of hard to reach areas and spots not visible from ground level. This allows inspectors to identify potential issues quickly. Computer vision algorithms can then analyze these images almost instantly and flag anomalies for closer examination. When integrated with building information modeling (BIM) models created during design, drones can even detect deviations from plans and catch issues early. For instance, in December 2021, the International Code Council is initiating the "Code on a Mission" challenge with the aim of having more than one-third of the U.S. population adhering to energy codes, derived from the 2021 IECC (International Exhibition-cum-Convention Centre) by the conclusion of 2023.
• New software-as-a-service business models: The transition from legacy on-premise compliance software to cloud-based software-as-a-service (SaaS) solutions provides new opportunities. SAAS models enable easy scalability, faster deployment, and mobile access to compliance tools. Several companies provide subscription-based compliance software with continual upgrades and support services. The scalability of cloud computing and SaaS enables expanding to new markets and reaching small and medium enterprises (SMEs) cost-effectively.
• Growth in modular and prefabricated construction: Growing use of modular and prefabricated construction presents an opportunity for compliance solutions. As modules are built offsite under controlled conditions, there is increased emphasis on design and process compliance before assembly. Prefab and modular construction companies partner with compliance providers early on to integrate protocols throughout the supply chain. Customized solutions can enhance quality control and minimize delays.
• Public private partnerships (PPP): Public private partnerships offer an avenue to develop advanced compliance capabilities and infrastructure, especially in developing nations. PPP models can help upgrade existing labs, testing facilities, and training programs through synergies between companies and governments. For instance, In November 2023, the collaboration between TÜV Rheinland, renowned for its independent inspection and testing expertise, and Texbase, which specializes in software for material innovation and compliance, was established. This strategic alliance enables brands and retailers to leverage Texbase's comprehensive data management systems, enhancing the efficiency of crucial processes that influence the quality control and advancement of product design and manufacture.