South Korea Construction Market by Type (Renovation and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2046

South Korea Construction Market by Type (Renovation and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2046

The South Korea Construction Market size was valued at USD 303.52 billion in 2023, and is predicted to reach USD 389.89 billion by 2030, at a CAGR of 3.0% from 2024 to 2030.

The construction sector in South Korea is experiencing remarkable growth, buoyed by a surge in large-scale projects that emerged as key drivers of industry expansion. Notably, in 2022, significant initiatives such as the Samsung - Pyeongtaek P4 Chip Production Plant, Jukjeon Data Center, Equinix/GIC - Seoul xScale Data Centers, LG Chem/Tianjin B&M - Gumi Cathode Material Manufacturing Plant, and Hyundai E&C - Hyundai Sungwoo 8 Apartment Redevelopment emerged as notable contributors to this growth trajectory. These substantial endeavors underscore the construction sector's pivotal role in South Korea's economic advancement, highlighting its significance in fostering innovation, infrastructure development, and job creation within the country. This surge in construction activity reflects a robust and dynamic industry landscape, positioning South Korea as a key player in the global construction market.

However, the construction industry grapples with substantial hurdles stemming from the intricate network of government regulations and permitting procedures. These processes often necessitate numerous approvals from various levels of authority, ranging from local to national bodies. The regulatory landscape encompasses a broad spectrum of requirements, including zoning regulations, environmental assessments, adherence to building codes, and safety standards. Delays in securing permits, bureaucratic inefficiencies, and inconsistencies across different jurisdictions can significantly prolong project timelines and escalate costs. Moreover, fluctuations in regulations or sudden policy changes can disrupt ongoing projects and dissuade potential investments. For example, the United States Environmental Protection Agency (EPA) oversees multiple facets of the construction sector, such as air quality, waste disposal, and water regulations, offering compliance assistance resources throughout various construction phases.

Conversely, the construction sector is undergoing a transformative shift fueled by digitalization and the adoption of Building Information Modeling (BIM). These advancements are reshaping project management processes by integrating cutting-edge technologies to enhance efficiency, accuracy, and collaboration. BIM, a sophisticated 3D modeling tool, empowers stakeholders to create and manage digital representations of structures and infrastructure, fostering improved coordination and communication among project teams. For instance, the National Institute of Building Sciences (NIBS) introduced the U.S. National Building Information Management (BIM) Program in September 2022. This initiative aims to modernize the construction industry and achieve unparalleled levels of industrial efficiency through digitalization. By addressing the lack of digitalization in the U.S. construction sector, this program seeks to optimize work processes, enhancing efficiency, cost-effectiveness, resilience, and safety in construction and maintenance activities.

KEY BENEFITS

The South Korea 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 South Korea 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 South Korea 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 South Korea 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.