China Construction Market by Type (Renovation and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2043

China Construction Market by Type (Renovation and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2043

The China Construction Market size was valued at USD 2.74 trillion in 2023, and is predicted to reach USD 4.11 trillion by 2030, at a CAGR of 5.4% from 2024 to 2030.

The construction sector in China is undergoing remarkable expansion, driven by a multitude of government-backed initiatives aimed at bolstering infrastructure development, particularly in railway and road transportation projects. As outlined in a 2023 report by ITA, the Chinese government pledged substantial investments in infrastructure, envisioning a total investment of USD 4.2 trillion over the 14th Five-Year Plan period (2021-2025). Key priorities include the implementation of new infrastructure projects spanning transportation, energy, water systems, and urbanization, with a notable focus on promoting green building practices and enhancing energy efficiency. Moreover, the government's issuance of USD 137 billion in sovereign debt is intended to support disaster relief efforts and construction endeavours, with local authorities moving swiftly to deploy these funds. These concerted endeavours underscore China's steadfast commitment to advancing infrastructure development, promoting environmental sustainability, and attracting foreign investment.

However, the construction industry grapples with significant obstacles stemming from the complex network of government regulations and permitting procedures. These processes often necessitate approvals from various levels of authority, including local, regional, and national bodies, and entail a wide array of requirements such as zoning regulations, environmental assessments, adherence to building codes, and safety standards. Delays in obtaining permits, bureaucratic inefficiencies, and regulatory inconsistencies across jurisdictions can substantially prolong project timelines and increase costs. Additionally, fluctuations in regulations or sudden policy changes can disrupt ongoing projects and discourage potential investments. For example, the United States Environmental Protection Agency (EPA) regulates multiple aspects of the construction sector, including air quality, waste disposal, and water regulations, offering compliance assistance resources for environmental responsibilities throughout various construction phases.

Conversely, the construction sector is undergoing a paradigm shift driven by digitalization and the widespread adoption of Building Information Modeling (BIM). These innovations are fundamentally altering project management practices by integrating cutting-edge technologies to enhance efficiency, precision, and collaboration. BIM, a sophisticated 3D modeling tool, empowers stakeholders to generate and manage digital representations of structures and infrastructure, facilitating improved coordination and communication among project teams. For instance, in September 2022, the National Institute of Building Sciences (NIBS) inaugurated the U.S. National Building Information Management (BIM) Program, with the aim of modernizing the construction industry and attaining unprecedented levels of industrial efficiency through digitalization. This initiative seeks to address the dearth of digitalization in the U.S. construction sector, which impedes the optimization of work processes to achieve heightened efficiency, cost-effectiveness, resilience, and safety in construction and maintenance endeavors.

KEY BENEFITS

The China 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.

Key Market Players

Leading players operating in the China 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 China 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 China 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.