The foundation repair service market reached global revenues amounting to the US $ 3.25 Bn in 2020 and it is anticipated to grow at a CAGR of 7.3% during the forecast period of 2023 to 2030. The need for foundation repair services has been growing in recent years among homeowners undertaking remodelling and renovation projects. The demand has risen in economies where property prices have been steadily increasing over the past few decades. Repairing the foundation is essential to ensure the longevity of the property, which may be necessary either on a routine basis or in cases where cracks and crevices appear and may lead to severe structural issues. The demand for foundation repair contractors who have actively developed their competence is consistently expanding to the need for trustworthy and professional service providers. The expansion of metropolitan centres in every region of the world is driving growth in the market for foundation repair services on a global scale. In addition, the market for foundation repair services is observing enormous demand avenues as a result of the quick development occurring in the commercial and residential sectors in addition to the construction of civil infrastructures. In recent years, there has been a dramatic rise in the cost of newly constructed residences. As a direct consequence of this, a growing proportion of people all over the world are becoming interested in carrying out house improvements. The expansion of the global market for foundation repair services is being driven in part by this issue.
Market Recovering Swiftly from the Adverse Impact of the Pandemic
The pandemic caused by COVID-19 has had a negative impact on both the broader market and the supply chain. As a result of lockdowns and rigorous government laws, there was a disruption in the supply and demand for raw materials, which hindered production and had a negative impact on industrial facilities around the world. Ongoing building projects encountered setbacks as a result of a shortage of workers, lockdowns carried out around the nation and a general slowdown in economic activity. According to Lexology's findings, the severe lack of available labour has been reported as the COVID-19 effect that has received the greatest attention. For example, the building industry in China is extremely reliant on migrant labour from rural areas, and the National Bureau of Statistics in China reports that there are currently 54 million rural migrant workers employed in the construction business. After the lockdown in 2020, migrant workers who had travelled back to their hometowns to celebrate the Lunar New Year holiday were barred from returning to their places of employment. However, despite all the setbacks, the construction market is showing significant signs of recovery. The National Association of Realtors (NAR) reports that total existing house sales reached US$ 6 million as of March 2021, which is a 12.3% year-over-year gain in comparison to the year 2020. The astonishing year-over-year gain of more than 17% points brought the median sales price to a startling US$ 329,100.
Increasing Level of Urbanization in Emerging Economies Boosting the Market Growth
The rate of urbanisation in developing countries, which is marked by the migration of people from rural to urban areas in emerging economies, is a crucial trend that is supporting the prospects of the market for foundation repair services. As a result of the increased need for licenced contractors in developed markets, service providers have begun to place a greater emphasis on the skills necessary to deliver specialised services for their clients. In this extremely competitive market space, which is dominated by property dealers and real estate owners, the trend is likely to create a new channel for players to test innovative techniques for generating consumer value. This market space is inhabited by real estate owners. Because of the increasing industrialization that goes hand in hand with economic expansion and the huge investments that are made in R&D activities, these markets account for the vast majority of the demand for ceiling tiles. A direct result of the fast industrialization occurring in these economies is the rapid expansion of the building and infrastructure industry, which has resulted in an enormous demand for foundation repair services. The movement of manufacturers to these regions because of the adequate availability of raw materials and cheap labour, in addition to growing manufacturing activities and industrial bases, is also anticipated to propel the demand for foundation repair services. This is due to the fact that these regions have greater availability of raw materials. It is anticipated that the expansion of the market will be driven in part by demographic factors such as an expanding population, rising per capita disposable incomes, and an increased demand for infrastructure-related services. Alterations in the weather patterns across the world are one of the primary contributors to an increase in the number of instances in which the foundations of structures in significant areas around the world are damaged. The expansion of the global market for foundation repair services is being driven in part by this issue.
Wall Repair Segment Dominating in terms of Global Revenues
The market by repair type is further segmented as settlement repair, wall repair, chimney repair, floor slab repair, and others. In 2021, the wall repair segment held the greatest percentage of the global revenue share. The breakdown of a shallow foundation has the most noticeable effect on the walls of a building, which then develops cracks as a result, therefore, the wall repair segment held a dominant position across the globe. In addition, it is anticipated that the wall repair segment will demonstrate a considerably high growth rate during the forecast period of 2023 to 2030, which will make it an extremely lucrative market to invest in.
Residential Segment to Continue its Dominant Revenue Share
The end-user market is segmented based on residential and commercial customers. In 2021, the residential sector held more than 70% of the global revenue share. In addition, it is anticipated that this specific sector would display a higher growth rate over the forecast period. As a result of the predominantly deep foundations in commercial construction (pier foundation and pile foundation), the frequency of foundation repair required is significantly less and the longevity of construction of commercial buildings is comparatively high. In addition to this, the planning and construction of commercial buildings are carried out under the supervision of qualified specialist engineers, which makes the structures significantly less prone to errors and breakdowns. This makes the commercial segment less lucrative in comparison to the residential segment with less revenue share as well as a lesser growth rate during the forecast period.
North America Remains as the Global Leader, While APAC Promising Significant Opportunities
North America held the most dominant market position in 2021 by contributing over 35% of the global revenue share. The key reason for this revenue share is the comparatively higher disposable income of residents in North America which allows them to spend higher on home repairs, renovations, and restoration projects. It is anticipated that the implementation of stringent government laws for buildings safety and, as a result, an increase in government spending on building restoration and repairs will fuel the expansion of the market during the forecast period. The U.S. Government initiatives such as provisioning low-interest rate for infrastructural projects coupled with incentive grants, rural & federal capital revolving funds, and streamlined permits will accelerate the demand for foundation repair services in North America. However, Asia Pacific is expected to register the highest CAGR during the forecast period of 2023 to 2030, thereby will be the fastest growing geographic segment. One of the primary reasons for focusing on the renovation of old construction in India and China. As human activities continue to leave their mark on the environment, natural disasters that are caused by humans have become increasingly common in India over the course of the previous several decades. Some of the natural catastrophes that have occurred as a direct result of human error include the explosion at the Bhopal gas plant, and the flooding in Uttarakhand, Chennai, Hyderabad and Mumbai. As a result of the region's susceptibility to natural disasters, there is a significant demand for foundation repair services in Japan. The Foundation Repair Services business in Japan is anticipated to grow at a phenomenal CAGR during the forecast period. In Japan, several of the country's major cities, including Osaka, Kobe, and Tokyo, are frequently struck by natural disasters. It is anticipated that there will be a significant demand for the services offered by businesses that repair foundations in these regions. In addition to this, the majority of coastal areas are frequently vulnerable to natural disasters. All such combined factors are expected to significantly boost the market growth in APAC.
Presence of Well-Established Players is Intensifying the Level of Competitiveness in the Market
The global foundation repair services market is fairly fragmented. The level of competitive intensity is significantly high due to the presence of well-established market players across the globe. The top vendors in this market are adopting multiple strategies in order to enhance their market share. Tier 1 players are focusing on mergers and acquisitions as their key strategy. This enables them to expand the scope of the services offered and increase the market position. The report reveals primary, secondary and tertiary strategies followed by market players in tier 1, tier 2 and tier 3 levels. Some of the key strategies discussed in the report include geographic expansions, strategic collaborations, product launches, technology innovations and so on. Key companies covered in the report include Acculift Foundation Repair, Longview Foundation Repair, DFW Foundation Repair Services, Home Services Foundation Repair, Huntsville Foundation Repair, Windler Foundation Repair Systems, Grapevine Foundation Repair, Alfa Foundations, Kent Foundation Repair, Tyler Foundation Repair, Groundworks, Advanced Foundation Repair and others.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Foundation Repair Services market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Billion |
| Segmentation | |
Repair Type
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End-use
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Region Segment (2022-2032; US$ Billion)
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Key questions answered in this report
