Taiwan 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 Taiwan is expected to have recorded real growth of 2.5% in 2022, following the expansion of 6.5% registered in 2021. The industry’s growth in 2022 has been supported by an improvement in consumer and investor confidence, amid the relaxation of Coronavirus (COVID-19)-related business and travel restrictions. Construction industry growth has been further supported by rising foreign direct investment (FDI), the value of which soared by 152.2% year-on-year (YoY) in the first nine months of 2022, reaching TWD321.9 billion ($11.1 billion). However, the industry’s growth is expected to slow to 1.1% in 2023, as faltering demand for consumer goods in Taiwan’s largest export market - China, weighs on new construction demand. Taiwan, which has benefited from soaring consumer electronics demand over the past two years, is expected to witness a slowdown in export growth in 2023 due to rising global inflation and a softening of global economic growth. Rising inflation and the tightening of monetary policy in response are also expected to constrain housing demand in 2023, further weighing on construction industry growth in 2023. According to the Directorate General of Budget, Accounting and Statistics (DGBAS), the average Consumer Price Index (CPI) for housing rose by 2.2% YoY, while that for maintenance and repair of dwellings rose by 6% YoY in the first eleven months of 2022.
GlobalData expects the Taiwanese construction industry to rebound at an annual average growth of 3.4% from 2024 to 2026, supported by investments in the transport, electricity, and industrial sectors. The government is focusing on increasing the share of renewable energy in the total electricity mix to 20%, by 2025. According to the Ministry of Economic Affairs (MOEA), the share of renewables in Taiwan's electricity mix had increased to 6% at the end of 2021, and is expected to have reached 8% by the end of 2022. In mid-December 2022, the MOEA selected ten offshore wind projects in the first-round selection of the Phase III Zonal Development Phase. The projects have a combined capacity of 8.7GW, with the projects planned for commissioning in 2026 and 2027. Further driving renewable energy development is the government’s target to increase the country’s energy storage capacity to 1.5GW until 2025.
The report provides detailed market analysis, information, and insights into the Taiwanese construction industry, including -
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