Journal of Hotel and Business Management
Open Access

Modeling and Building of Capital Market Development

Jeffrey Spear^{* *}Correspondence: Jeffrey Spear, Department of Hotel and Business Management, Jamia Millia Islamia University, Jamia Nagar, Okhla, New Delhi, India, Email:

Author info »

Description

Only the implementation of cutting-edge BIM technologies will allow for the building industry's sustainable economic growth in Russia. The lack of finance for business development in the context of a protracted financial crisis between 2014 and 2016 is one of the major issues that the construction industry is currently facing, along with the absence of a national industry standard for using BIM technologies. Up until 2018, the Russian government plans to gradually introduce BIM technology into the country. In light of the BIM technology's introduction's positive effects on the regional economy of the Republic of Tatarstan, we propose an economic mechanism that would result in lower development's production and transaction costs.

Our opinion is that the development of the market for building information modelling services and ensuring the long-term economic growth of the construction industry in the area will be made possible by the practically well-proven mechanism of introducing innovative technologies into the regional economy in public construction companies, building infrastructure projects, and private construction firms, and by approving in practise and summarising the lessons learned. A firm will be able to adopt a strategic development programme for the success of the economy if the efficiency and transparency of building production are improved. This will foster the conditions necessary to attract local and international institutional investors.

Modeling of capital market

The COVID-19 virus outbreak in December 2019 caused the disease to quickly spread to approximately 100 nations around the world. The World Health Organization has declared it a public health emergency. The COVID-19 is anticipated to have a detrimental effect on the BIM sector as a whole. According to the Associated General Contractors of America (AGC), the outbreak is causing delays or interruptions for at least 45% of contractors. These delays are the result of a lack of building supplies, parts, and machinery. In addition, inadequate safety measures in the building industry and a shortage of skilled personnel are two other significant factors.

Also, certain construction projects are being put on hold or delayed because of asymptomatic workers since if any of them were to test positive, there would be a brief stoppage. A delay or cancellation of these projects would negatively affect the whole BIM industry because AEC professionals make up the majority of the program's end users and the software is mostly used in construction projects. The market is anticipated to gradually rebound over the following two years and to reach 8.8 billion by 2025, with a CAGR of 14.5% from 2020 to 2025.

Strategies of defense-in-depth

According to UN estimates, the world's population will reach 8.1 billion by 2025 and 10 billion by 2050. To accommodate such a sizable population, the AEC sector must provide innovative solutions for creating infrastructure for the future. As populations and economies grow, there will be a greater need for housing and infrastructure, which will fuel expansion in the global construction industry. As building activity increases, so will the requirement for efficient working techniques. Building project planners, designers, and managers can more efficiently plan, design, and manage buildings thanks to BIM. As a result, building projects are being carried out using the 3D model-based BIM method, which is becoming more and more popular everywhere.

BIM involves establishing an international framework that can provide an industry with a suitable direction and a rule-book to operate with as it grows in popularity.

Conclusion

Before COVID-19, there was an increase in demand for BIM products. In order to plan, design, and manage building projects more effectively, construction professionals will have a high need for BIM as the world's population and economies continue to expand and there is a growing need for housing and infrastructure development. Hence, the 3D model-based BIM technique to carrying out construction projects has been growing in popularity across the globe. The architecture, engineering, and construction (AEC) industry's contractors, architects, and engineers work together to effectively finish projects.