0 items USD 0.00Global Construction Industry Update: Market Status and Forecast
According to various research data, it has been predicted that the global construction market to grow around USD 8 trillion in the next 10 years, the growth will be spearheaded by China, US and, India.
COVID-19 and its Impact on Construction Market
Having suffered a historic collapse in construction activity during Q2 2020 amid widespread disruption caused by restrictions imposed to contain the spread of COVID-19, there are signs that the global construction industry is poised for a recovery. In many major markets, construction output levels bounced back in Q3 2020 as sites were reopened and operations resumed.
Global Construction Market report provides analysis of the outlook for the construction industry in major global regions: North America, Latin America, Western Europe, Eastern Europe, South and South-East Asia, North-East Asia, Australasia, the Middle East and North Africa, and Sub-Saharan Africa.
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Although a renewed spike in (or continued high levels of) COVID-19 infections has resulted in new restrictions in the latter part of 2020, the construction industry, in general, has been permitted to continue. There are challenges in the short term in terms of getting back to a normal level of activity, not least those related to making sites COVID-19 secure and adhering to local regulations, notably social distancing rules and self-quarantining of workers.
However, with the distribution of vaccines on the horizon, the risk of a repeat of the severe disruption that occurred in 2020 has diminished. Reflecting this, forecast expects that global construction output will expand by 4.5% in 2021, following the estimated contraction of 2.9% recorded in 2020. Global construction output excluding China is estimated to have shrunk by 5.3% and is projected to grow by 3.6% in 2021.
Global construction output value in 2021 will be marginally above the 2019 level in real terms, but there are marked differences among the major regions in terms of how soon they will return to pre-COVID-19 levels.
In addition to China, the US’s construction industry has surprised by the upside in 2020; it is expected that the US to post positive growth of 1.5% in 2020, with its residential sector continuing to grow at a fast pace. This means that construction output in both North America and North-East Asia will increase in real terms in 2020.
Eastern Europe will surpass 2019 output levels in 2021, but for Australasia, the Middle East and North Africa, Sub-Saharan Africa, and South and South-East Asia, it will take three years to get back to 2019 levels, while for Western Europe it will be four years.
Latin America has been the worst-hit region in terms of the disruption that the COVID-19 pandemic has inflicted on the construction industry, and currently, we do not expect construction output in the region to return to pre-COVID-19 levels until beyond 2024.
Other Construction Industry Related Reports
According to Global Port Construction Project report, port construction projects with a total value of USD 441.3 billion, which includes all projects from the early stages of pre-planning (announcement and study) through to the execution stage. The pipeline of projects is relatively advanced, with USD 197.4 billion relating to projects that are already in execution and USD 52.4 billion for projects in pre-execution (which includes the design, tender, award stages). Projects in planning amount to USD 146.9 billion, with a further USD 44.6 billion in pre-planning.
According to Global Road Construction Project report, the global road construction project pipeline, stands at USD 2.54 trillion. Asia-Pacific accounts for the major share of project value, with USD 1.38 trillion of road-related projects. Europe, being a mature economic region, lags behind Asia-Pacific for investment in road projects, although large value road tunnel projects in Norway and the UK and road infrastructure projects in Russia and Romania are making significant contributions to road investment in the region. The Middle East and Africa has a project pipeline of USD 216.7 billion, while in the Americas it totals USD 327.1 billion. In the US, which has been underinvesting in its road system over the past decades, the pipeline totals USD 191.9 billion.
According to Global Power Generation Construction report, the global power generation projects pipeline, based on all projects being tracked us from the early stages of announcement and study through to execution, is worth USD 3.7 trillion. Asia-Pacific dominates, with a project pipeline valued at USD 1.84 trillion, followed by Europe, with a pipeline of USD 697.1 billion, and the Middle East and Africa with USD 495.3 billion. The Americas has a pipeline of power generation projects with a value of USD 703.5 billion, with North America’s pipeline of USD 357.6 billion slightly higher than that of Latin America with USD 345.9 billion.
According to Global Airport Construction report, the COVID-19 crisis has created severe short-term financial pressure on airport operators, however, the potential for a recovery in global demand in the long-term and a return of any pre-COVID-19 challenges in capacity means that airports expansions will still proceed in many markets. Currently airport construction projects globally with a combined value of USD 826.5 billion. Asia-Pacific accounts for the major share of the project's value, with USD 283.9 billion of airport projects, ahead of the Middle East and Africa (MEA) with USD 226.3 billion. Europe accounts for projects valued at USD 145.7 billion, while the Americas has a project pipeline of USD 170.3 billion, with the US dominating the region with projects valued at USD 138.6 billion.
According to Global Airport Construction report, healthcare construction projects with a total value of USD 504.5 billion (including all projects from announced to execution stage). The North America region accounts for the highest share, with a combined project pipeline valued at USD 159.3 billion, ahead of Asia-Pacific with USD 110.3 billion. Western Europe’s pipeline is valued at USD 105.9 billion, followed by the Middle East and Africa (USD 77.2 billion), Eastern Europe (USD 31.9 billion) and Latin America (USD 19.9 billion).
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