New Zealand Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

New Zealand Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

Summary

GlobalData has maintained its growth forecast for New construction industry in 2022, with the industry expected to expand by 5.5% in real terms this year, before registering an annual average growth of 3.2% from 2023 to 2026. Growth will be supported by investment in the renewable energy, telecommunication, and manufacturing sectors. The construction industry registered a relatively weak performance in Q1 2022, with construction activity falling by 0.4% year on year (YoY) in Q1 2022, following an expansion of 5.1% in Q4 2021, according to Statistics New Zealand. Downside risks to the industry’s outlook include the impact of high materials and energy prices, along with supply chain disruptions that have been exacerbated by the Russia-Ukraine conflict. Labor shortages are also a factor in driving up overall construction costs, with unemployment at record lows. Investor confidence has been impacted by the uncertainty over how the Russia-Ukraine conflict will unfold, and the Reserve Bank of New Zealand (RBNZ) has aggressively tightened monetary policy in response to accelerating rates of inflation, raising the official cash rate (OCR) to 2.5% in July, from 2% in May 2022.

Over the forecast period, growth will be supported by improving economic conditions and government plans to develop land transport services across the country through the NZD34.6 billion ($24.3 billion) 2021-24 National Land Transport Program (NLTP). In May 2022, Hon. Grant Robertson announced the Wellbeing Budget 2022, which includes NZD496.6 million ($349 million) in capital funding to replace and modernize the country’s rail assets, and NZD1.8 billion ($1.3 billion) to upgrade health infrastructure to support current and future demand. Moreover, the government allocated a total of NZD3 billion ($2.1 billion) for the Climate Emergency Response and NZD2.1 billion ($1.5 billion) for the education sector over the next four years. Construction industry growth will also be supported by New Zealand’s affordable housing development plans, coupled with Green Investment Finance to achieve New Zealand’s 2035 target of 100% renewable electricity consumption. In addition to the significant outlay of public funds, the government hopes to attract private capital to develop telecommunication infrastructure and deploy 5G services, coupled with its target to achieve carbon neutrality by 2050.

The report provides detailed market analysis, information and insights into New Zealand’s construction industry, including -

• New Zealand’s 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 New Zealand’s 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 New Zealand. It provides -

• Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in New Zealand, 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.