South Africa Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026
Summary
GlobalData expects South Africa’s construction industry to remain weak in 2022 and 2023, declining by 5.6% and 1.7% in real terms, respectively, owing to soaring energy prices and disruptions in the supply of key construction materials amid the Russia-Ukraine conflict. The latest figures from the Statistics South Africa (Stats SA) showed that the construction industry’s value add declined by 5.7% year on year (YoY) in Q2 2022, following Y-o-Y declines of 6.5% in Q1 2022 and 5% in Q4 2021. Moreover, the country’s gross fixed capital formation in construction work fell by 9.6% YoY in Q2 2022, preceded by Y-o-Y declines of 9.6% in Q1 2022 and 9.3% in Q4 2021.
GlobalData expects the country’s construction industry to record an annual average growth rate of 3.6% between 2023 and 2026, supported by investment on transport, energy, and housing projects, coupled with investments as part of the government’s ZAR2.2 trillion ($147 billion) 10-year infrastructure plan that was unveiled in 2020. The plan comprises 276 projects in various sectors, including transport, energy, housing, and water. Of the total, ZAR1 trillion ($66.8 billion) will be spent until 2024 alone. According to the Center for Sustainability Transitions (CST), South Africa requires ZAR3.8 trillion ($250 billion) in investment to transform the country’s coal-powered economy into a low-carbon energy system over the next three decades.
The report provides detailed market analysis, information and insights into the South African construction industry, including -
- The South African 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 South African construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline
This report provides a comprehensive analysis of the construction industry in South Africa. It provides -
- Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in South Africa, 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
- 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.
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Context
- 3.1 Economic Performance
- 3.2 Political Environment and Policy
- 3.3 Demographics
- 3.4 COVID-19 Status
- 3.5 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants
- 6 Construction Market Data
- 7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 7.4 GlobalData Construction
- Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: South Africa, Key Economic Indicators
- Table 3: South Africa, Commercial Construction Output by Project Type (Real % Change), 2017-26
- Table 4: South Africa, Top Commercial Construction Projects by Value
- Table 5: South Africa, Industrial Construction Output by Project Type (Real % Change), 2017-26
- Table 6: South Africa, Top Industrial Construction Projects by Value
- Table 7: South Africa, Infrastructure Construction Output by Project Type (Real % Change), 2017-26
- Table 8: South Africa, Top Infrastructure Construction Projects by Value
- Table 9: South Africa, Energy and Utilities Construction Output by Project Type (Real % Change), 2017-26
- Table 10: South Africa, Top Energy and Utilities Construction Projects by Value
- Table 11: South Africa, Institutional Construction Output by Project Type (Real % Change), 2017-26
- Table 12: South Africa, Top Institutional Construction Projects by Value
- Table 13: South Africa, Residential Construction Output by Project Type (Real % Change), 2017-26
- Table 14: South Africa, Top Residential Construction Projects by Value
- Table 15: South Africa, Key Contractors
- Table 16: South Africa, Key Consultants
- Table 17: South Africa, Construction Output Value (Real, $ Million)
- Table 18: South Africa, Construction Output Value (Nominal, ZAR Million)
- Table 19: GlobalData Construction Market Definitions
- Table 20: Risk Dimensions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: Sub-Saharan Africa, Construction Output (Real % Change), 2020-26
- Figure 2: South Africa, Construction Output by Sector (Real % Change), 2020-22 and 2023-26
- Figure 3: South Africa, COVID-19 Confirmed Cases
- Figure 4: South Africa, Risk Summary
- Figure 5: South Africa, Risk Regional Comparison
- Figure 6: South Africa, Construction Output Value (Real, $ Billion, 2017 Prices and Exchange Rate), 2017-26
- Figure 7: South Africa, Construction Output Value, by Sector (Real, $ Million), 2017-26
- Figure 8: South Africa, Construction Value Add (ZAR Billion, Constant 2015 Prices)
- Figure 9: South Africa, Gross Fixed Capital Formation (ZAR Billion, Constant 2015 Prices)
- Figure 10: South Africa, Employment in the Construction Industry (In Thousands)
- Figure 11: South Africa, Value of Building Plans Passed, 2019 Constant Prices (ZAR Million)
- Figure 12: South Africa, Value of Buildings Reported as Completed, 2019 Constant Prices (ZAR Million)
- Figure 13: South Africa, Construction Projects Momentum Index
- Figure 14: Region, Construction Projects Momentum Index
- Figure 15: South Africa, Commercial Construction Output by Project Type (Real, $ Million), 2017-26
- Figure 16: South Africa, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 17: South Africa, Total Value of Building Plans Passed for Office and Banking Space and Shopping Space, Current Prices (ZAR Million)
- Figure 18: South Africa, Total Value of Building Plans for Office and Banking Space and Shopping Space Reported as Completed, Current Prices (ZAR Million)
- Figure 19: South Africa, Income from Accommodation and Food Services (ZAR Million, Current Prices)
- Figure 20: South Africa, Total Retail and Wholesale Trade Sales (Constant 2019 Prices, ZAR Billion)
- Figure 21: South Africa, Foreign Arrivals, In Thousands
- Figure 22: South Africa, Industrial Construction Output by Project Type (Real, $ Million), 2017-26
- Figure 23: South Africa, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 24: South Africa, Manufacturing Value Add (ZAR Billion, Constant 2015 Prices)
- Figure 25: South Africa, Total Value of Industrial and Warehouse Space Plans Passed, Current Prices (ZAR Million)
- Figure 26: South Africa, Volume Index of Manufacturing Production (2019=100)
- Figure 27: South Africa, Absa Purchasing Managers’ Index (PMI), Business Activity Index and New Sales Orders Index, Seasonally Adjusted
- Figure 28: South Africa, Total Merchandise Exports (ZAR Billion)
- Figure 29: South Africa, Volume Index of Mining Production (2019=100) and Mineral Sales (Current Prices, ZAR Billion)
- Figure 30: South Africa, Infrastructure Construction Output by Project Type (Real, $ Million), 2017-26
- Figure 31: South Africa, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 32: South Africa, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2017-26
- Figure 33: South Africa, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 34: South Africa, Electricity, Gas, and Water Value Add (ZAR Billion, Constant 2015 Prices)
- Figure 35: South Africa, Electricity Production (GWh)
- Figure 36: South Africa, Institutional Construction Output by Project Type (Real, $ Million), 2017-26
- Figure 37: South Africa, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 38: South Africa, Residential Construction Output by Project Type (Real, $ Million), 2017-26
- Figure 39: South Africa, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 40: South Africa, Gross Fixed Capital Formation Residential (ZAR Billion, Constant 2015 Prices)
- Figure 41: South Africa, Total Value of Residential Building Plans Passed, 2019 Constant Prices (ZAR Million)
- Figure 42: South Africa, Total Value of Residential Buildings Reported as Completed, 2019 Constant Prices (ZAR Million)
- Figure 43: South Africa, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 44: South Africa, Headquarters of Key Consultants (% of Total Project Pipeline)
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