Asia-Pacific Construction Market by Type (Renovation and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2042

Asia-Pacific Construction Market by Type (Renovation and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2042

The Asia-Pacific Construction Market size was valued at USD 5.11 trillion in 2023, and is predicted to reach USD 8.65 trillion by 2030, at a CAGR of 7.2% from 2024 to 2030.

The infrastructure sector in the Asia-Pacific region is experiencing significant growth, primarily driven by substantial government funding for infrastructure development. Key areas of focus include transportation systems, energy, water systems, and urbanization projects. According to the latest report by the International Trade Administration (ITA), the Chinese government invested extensively in infrastructure projects, with a projected total investment of USD 4.2 trillion during the 14th Five-Year Plan period (2021-2025). This plan prioritizes new infrastructure projects in transportation, energy, water systems, and urbanization, while also promoting green building and energy efficiency.

Similarly, the Indian government is making substantial investments in the real estate sector, focusing on infrastructure development and urbanization. The National Investment Pipeline (NIP) allocated USD 1.4 trillion for infrastructure, with 24% going to renewable energy, 18% to roads and highways, 17% to urban infrastructure, and 12% to railways. However, infrastructure market faces significant challenges due to stringent regulatory frameworks. Real estate projects encounter hurdles from the complex network of government regulations and permitting processes. These projects typically require numerous permits and approvals from governmental bodies at local, regional, and national levels. These permits cover zoning regulations, environmental assessments, compliance with building codes, safety standards, and various other regulatory requirements. Lengthy permit acquisition processes, bureaucratic inefficiencies, and regulatory disparities across jurisdictions can significantly extend project timelines and increase costs.

However, the construction industry faces substantial obstacles due to the intricate nature of government regulations and permitting processes, typically require various permits and approvals from local, regional, and national authorities. These permits may involve zoning regulations, environmental assessments, building code compliance, safety standards, and other regulatory requirements. Delays in obtaining permits, bureaucratic inefficiencies, and inconsistencies in regulations across jurisdictions can significantly extend project timelines and escalate costs. Additionally, fluctuations in regulations or unforeseen policy changes can disrupt ongoing projects and disincentivize future investments. For instance, the United States Environmental Protection Agency (EPA) regulates various aspects of the construction sector, including air, lead, waste, and water regulations. The EPA's compliance assistance centers provide resources for managing environmental responsibilities during demolition, reducing and recycling construction and demolition materials, and disposing of refrigeration and air-conditioning equipment.

On the other hand, digital transformation and the adoption of Building Information Modeling (BIM) are revolutionizing the construction sector by incorporating cutting-edge technologies to enhance efficiency, precision, and collaboration across various projects. BIM, a sophisticated 3D modeling tool, enables stakeholders to generate and manage digital representations of structures and infrastructure, improving coordination and communication among project teams. For instance, in September 2022, the National Institute of Building Sciences (NIBS) launched the U.S. National Building Information Management (BIM) Program to transform the construction industry and achieve a new level of industrial efficiency through digitalization. This program aims to address the low level of digitalization in the U.S. construction industry, hinders the transformation of lifecycle work processes to become more efficient, cost-effective, resilient, and safer to build and maintain.

KEY BENEFITS

The Asia-Pacific construction industry is segmented based on type, and sector.
Based on type, the market is segmented renovation and new construction.
Based on sector, the market is divided into real estate, infrastructure, and industrial.

Regional Analysis

China Holds the Dominant Market Share in Asia-Pacific Infrastructure Market

The infrastructure industry in China is experiencing significant growth, driven by numerous government-backed initiatives supporting infrastructure development, particularly in railway and road transportation projects. According to a 2023 report by the ITA, the Chinese government committed substantial investments in infrastructure, projecting a total of USD 4.2 trillion during the 14th Five-Year Plan period (2021-2025). This plan prioritizes new projects in transportation, energy, water systems, and urbanization, while also promoting green building and energy efficiency.

Key Market Players

Leading players operating in the Asia-Pacific construction industry include:
• China State Construction Engineering Corp. Ltd. (CSCEC)
• China Railway Group Ltd. (CREC)
• China Railway Construction Corp. Ltd. (CRCC)
• China Communications Construction Group Ltd. (CCCC)
• Metallurgical Corporation of China Ltd. (MCC)
• Power Construction Corp. of China
• Vinci SA
• China Energy Engineering Corp. (CEEC)
• Shanghai Construction Group (SCG)
• Bouygues Group

KEY BENEFITS
• The Asia-Pacific construction market report provides a quantitative analysis of the current market and estimations through 2024-2030 that assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a deep dive analysis of the market trend including the current and future trends for depicting the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.
• The competitive analysis of the market players along with their market share in the Asia-Pacific construction market.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.