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Top Trends Transforming the Industrial Real Estate Market Landscape in 2025: Panattoni Expands Presence In India's Thriving Industrial Real Estate Market
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.What Will the Industrial Real Estate Industry Market Size Be by 2025?
The size of the industrial real estate market has seen a substantial increase in recent times. It is expected to expand from $265.85 billion in 2024 to $279.43 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 5.1%. The surge during the historical timespan can be associated with a growing need for industrial areas, an upswing in foreign direct investment, escalation in manufacturing operations, a boom in e-commerce activities and the accessibility of reasonably priced land and labor.
What's the Long-Term Growth Forecast for the Industrial Real Estate Market Size Through 2029?
Expectations are high for substantial expansion in the industrial real estate market over the coming years, with projections estimating it to reach $342.39 billion by 2029, incorporating a compound annual growth rate (CAGR) of 5.2%. This projected growth during the forecast period is believed to be driven by factors such as escalated development of infrastructure, urbanization, higher trade volumes, enhanced consumer expectations, and optimization of supply chains. Notable trends anticipated during this period include the implementation of advanced technologies, automation complemented by smart warehousing, use of predictive maintenance, digital twin technology, embracement of robotics, and heavy reliance on big data and analytics.
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What Are the Key Growth Drivers Fueling the Industrial Real Estate Market Expansion?
The growth of the industrial real estate market is anticipated to be fueled by the rising levels of construction. This includes the tangible development of buildings, infrastructure, and other structures. The surge in construction and real estate activities can be attributed to rapid urbanization, the development of infrastructure, as well as an emphasis on precision and accuracy in building projects. Industrial real estate contributes to construction by offering essential infrastructure, facilities, and logistical support, thereby simplifying operations, enhancing efficacy and making the construction process easier, right from planning through to completion. For example, the Office for National Statistics, a government department based in the UK, reported in November 2023 that new construction activities increased by £18,161 million ($19.96 million) in 2022, with private sector projects growing by 16.8% and public sector projects by 13.1%. Hence, the growth of the industrial real estate market is driven by the escalation in construction.
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What Are the Key Trends Driving Industrial Real Estate Market Growth?
Leading companies in the industrial real estate sector are infusing funds into real estate developments to broaden their property holdings, beef up logistics strengths, and cater to the increasing need for modern industrial areas. This investment underscores the company's strategic aim to penetrate the fast-growing industrial real estate market using large-scale, sustainable ventures. Take for example, in December 2023, US-based firm Panattoni Development Company, with a focus on industrial real estate, poured in over USD 101.4 million (€100 million) in India to considerably increase its footprint. The firm has announced a yearly investment plan of $100 million for several years in India to construct industrial warehouses in principal markets namely Delhi NCR, Mumbai, Bengaluru, Chennai, and Pune.
How Is the Industrial Real Estate Market Segmented?
The industrial real estate market covered in this report is segmented -
1) By Product: Industrial, Retail, Office, Warehousing
2) By Size: Small, Medium, Large
3) By Application: Manufacturing, Distribution, Logistics, Research And Development, Data Centers, Other Applications
Subsegments
1) By Industrial: Manufacturing Facilities, Distribution Centers, Industrial Parks
2) By Retail: Shopping Malls, Retail Stores, Hypermarkets & Supermarkets
3) By Office: Commercial Office Buildings, Co-working Spaces, Business Parks
4) By Warehousing: Cold Storage Facilities, Fulfillment Centers, Bulk Warehouses
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Which Companies Are Leading the Charge in Industrial Real Estate Market Innovation?
Major companies operating in the industrial real estate market are CBRE Group Inc., Jones Lang LaSalle Incorporated, Cushman & Wakefield, Prologis Inc., Colliers International, Sealy & Company LLC, Exeter Property Group, Duke Realty Corporation, Hillwood Development Company, Stag Industrial Inc., Rexford Industrial Realty Inc., First Industrial Realty Trust, EastGroup Properties Inc., Trammell Crow Company, Rockefeller Group, Terreno Realty Corporation, Panattoni Development Company, Dermody Properties LLC, Bridge Development Partners LLC, Conor Commercial Real Estate, Avison Young, CenterPoint Properties, Lincoln Property Company, Clarion Partners
Which Regions Are Leading the Global Industrial Real Estate Market in Revenue?
North America was the largest region in the industrial real estate market in 2024. The regions covered in the industrial real estate market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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