Construction Market by Type (Renovation and New Construction), by Sector (Real Estate, Infrastructure, and Industrial) - Global Opportunity Analysis and Industry Forecast, 2024–2030
The construction Market size was valued at USD 10.43 trillion in 2023, and is predicted to reach USD 16.10 trillion by 2030, with a CAGR of 5.9% during the forecast period, 2024–2030.
The construction industry, includes planning to maintenance of physical structures, plays a vital economic role. The sector includes residential, commercial, industrial, civil engineering, and institutional projects, involving architects, engineers, contractors, suppliers, developers, investors, and government agencies. With a focus on green practices and rising incomes/low-interest rates, the construction market is poised for growth.
Infrastructure investment plays a crucial role in driving the worldwide construction sector, involving funding from government organizations to improve and expand vital infrastructure elements such as transportation systems, utilities, and public amenities. These investments cover a wide range of sectors, including transportation infrastructure such as roads and airports, as well as essential utilities including water and energy distribution networks. Moreover, the U.S. government announced an investment of USD 400 billion in 40,000 projects across various sectors, including transportation, energy, and rural America in 2023. This includes investments in constructing new buildings for snow removal equipment, acquiring new wheel loaders with ramp plows and buckets, and upgrading snow-removal equipment and facilities.
Moreover, the implementation of Intelligent Transport Systems (ITS) in Poland witnessed a significant growth which plays an essential role in the enhancement of highway and road networks. As per the report by International Trade Administration (ITA), the government plans to invest USD 17.5 billion in railway infrastructure and USD 36.6 billion in highway infrastructure from 2014 to 2023, with a perspective until 2025, under the current EU funding scheme.
However, the construction industry faces challenges from rising raw material costs, which increase production costs and final product prices, reducing consumer demand and supply. The PPI report shows a 1.4% rise in residential construction raw materials (excluding energy) in March 2022, with consistent growth since January, leading to an 8% surge in prices since the start of the year.
On the contrary, construction is being revolutionized by digitalization and BIM, using advanced tech to boost efficiency, accuracy, and collaboration. BIM, a 3D modeling tool, allows stakeholders to manage digital representations of structures and infrastructure, improving coordination and communication. In September 2022, NIBS launched the U.S. National BIM Program to drive digital transformation in construction, targeting limited digitalization and aiming to optimize lifecycle processes for efficiency, cost-effectiveness, resilience, safety, and maintenance.
Segment OverviewThe global construction industry is segmented on the basis of type, sector, and region.
By type, the market is divided into renovation and new construction.
By sector, the market is segmented into real estate, infrastructure, and industrial.
By region, the market is segmented into North America, Europe, Asia-Pacific, and the rest of the world (RoW).
Regional AnalysisAsia-Pacific holds the dominant market share in the construction industry
The construction sector in the Asia-Pacific region is experiencing robust growth, driven by substantial government investment in infrastructure development. Key investment areas include transportation, energy, water systems, and urbanization projects. China's 14th Five-Year Plan (2021-2025) includes a projected overall investment of USD 4.2 trillion, prioritizing new infrastructure projects in transportation, energy, water systems, and urbanization. The Chinese government also supports green building and energy efficiency.
Moreover, rapidly developing countries such as India is heavily investing in the construction sector, with a focus on infrastructure development and urbanization, allocating 24% of the National Investment Pipeline (NIP)'s USD 1.4 trillion budget to renewable energy, 18% to roads and highways, 17% to urban infrastructure, and 12% to railways.
Furthermore, environmentally friendly building practices and energy efficiency are encouraged, driving the expansion and development of the construction market in the region. For example, Seoul City in South Korea has expanded regulations to promote green buildings, aiming to reduce greenhouse gas emissions and enhance energy efficiency, aligning with the city's goal of achieving carbon neutrality by 2050.
Key Market PlayersThe key players in the global construction market 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
Recent DevelopmentsFebruary 2024CSCEC and SK Ecoplant have partnered to invest USD 1.9 billion in a green hydrogen project in Egypt, aiming to ignite a renewable energy revolution. This collaboration seeks to develop renewable energy, green hydrogen, and green ammonia projects in Egypt, driving the growth of sustainable energy sources in the region.
December 2023Power Construction Corporation of China (POWERCHINA) completed the construction of the Cirata floating photovoltaic (PV) power generation project in Indonesia, located in the Cirata reservoir in West Java province. The floating solar power plant generates 300,000MWh of clean energy annually and help reduce coal usage by 117,000 tons per year.
September 2023CEEC has broadened its business scope by constructing a 640MW ammonia/methanol facility in Songyuan, Jilin province, intending to generate green ammonia and methanol using renewable energy sources like wind and solar power.
September 2023Bouygues Construction has entered the reuse sector by establishing Cyneo, a subsidiary focused on the reuse of construction materials to promote the circular economy in the building industry. This initiative seeks to enhance the reuse of materials in the sector.
KEY BENEFITS• The report provides quantitative analysis and estimations of the construction market from 2024 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a detailed analysis of the construction market trends, including the current and future trends to depict the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the construction market is provided in the report.
• The competitive analysis of the market players along with their market share in the construction market is provided in the report.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• The value chain analysis in the market study provides a clear picture of the roles of stakeholders.