Mongolia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecasts, 2022-2026

Mongolia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecasts, 2022-2026

Summary

The construction industry in Mongolia is expected to expand by 10.2% in real terms in 2022, following an annual decline of 22.8% in 2021, supported by a favourable base and government investment on transport, residential and energy and utilities construction projects. According to the National Statistical Office (NSO) of Mongolia, the construction industry’s value add rose by 19.7% year on year (YoY) in Q3 2022, following a Y-o-Y growth of 1.7% in Q2 and decline of 29.9% in Q1 2022.

GlobalData expects the Mongolian construction industry to expand at an annual average rate of 4.7% between 2023 and 2026, supported by investment in the transport, electricity, housing and mining sectors. In November 2022, Mongolia's parliament, the State Great Khural, approved the 2023 State Budget of MNT20.4 trillion ($5.9 billion). Under the budget, the government expects the economy to grow by 5% and the inflation rate will fall to single-digit levels in 2023. The government allocated a budget of MNT115.4 billion ($39.4 million) for the Erdenburen hydropower plant, which will ensure long-term energy supplies, support the development of renewable sources of energy and reduce Mongolia’s dependency imported energy from China and Russia. An allocation of MNT18.6 billion ($6.3 million) was promised for the Overhead Power Transmission Lines (OHTL) project, and MNT14 billion ($4.7 million) for the expansion of a substation in Bayankhongor aimag. In November 2022, Megha Engineering & Infrastructures Limited (MEIL), an Indian infrastructure construction company, announced that it will develop Mongolia's first oil refinery. With an investment of MNT2.4 trillion ($790 million), MEIL plans to construct the EPC-2 (Open Art Units, Utilities and Offsites, Plant Buildings) and EPC-3 (Captive Power Plants). To improve connectivity and reduce logistics cost, in May 2022, the World Bank approved a loan worth MNT300.5 billion ($100 million) for the Mongolia Transport Connectivity and Logistics Improvement Project.

The report provides detailed market analysis, information and insights into the Mongolian construction industry, including -

• The Mongolian construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Mongolian construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline

Scope

This report provides a comprehensive analysis of the construction industry in Mongolia. It provides -

• Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Mongolia, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.