flexiblefullpage -
billboard - default
interstitial1 - interstitial
Currently Reading

Global construction set to rise to US$12.9 trillion by 2022, driven by Asia Pacific, Africa and the Middle East

Market Data

Global construction set to rise to US$12.9 trillion by 2022, driven by Asia Pacific, Africa and the Middle East

The pace of global construction growth is set to improve slightly to 3.7% between 2019 and 2020.


By GlobalData | October 8, 2018

The global construction industry is expected to grow by an average of 3.6% a year over the forecast period 2018 to 2022, according to GlobalData, a data and analytics company. 

The company’s latest report, ‘Global Construction Outlook to 2022: Q3 2018 Update’ reveals that in real value terms*, global construction output is forecast to rise to $12.9 trillion by 2022, up from $10.8 trillion in 2017. 

Danny Richards, Construction Lead Analyist at GlobalData, says, ‘‘We forecast that global construction output growth will accelerate to +3.6% in 2018, up from 3.1% in 2017, reflecting the recovery in the US as well as general improvements across emerging markets. In South and South-East Asia, for example, construction in India has regained growth momentum, while the pick-up in oil prices has supported the recovery in the Middle East and Africa.’’

The pace of global construction growth is set to improve slightly to 3.7% between 2019 and 2020, before easing back in the latter part of the forecast period, reflecting trends in some of the largest markets.

 

 

The Asia-Pacific region will continue to account for the largest share of the global construction industry, however the pace of growth will slow given the projected slowdown in China’s construction industry to an average of +4.2% between 2018 and 2022, offset by an acceleration in construction growth in India.

Construction activity is gathering momentum across Western Europe with the region’s output set to expand by 2.4% a year on average from 2018 to 2022. However, expansion in the UK is subject to major downside risks in the face of uncertainty over Brexit.

The Middle East and Africa region as a whole will be the fastest with an annual average growth of 6.4% from 2018 to 2022. Countries in the Gulf Cooperation Council (GCC) have suffered from the weakness in oil prices in recent years, greatly reducing government revenues. As oil prices pick up, however, large-scale investment in infrastructure projects - mostly related to transport - will be a key driving force behind the construction growth in the region.

 

 

Richards says, “Whilst there are intensifying downside risks for global construction related to global economic growth, notably stemming from the erupting trade war between the US and China, the global economy will continue to expand in the range of 2.5% to 3% a year from 2018 to 2022 which will support continued construction growth in key markets.’’

* ‘real value terms’ is measured from constant 2017 prices and US$ exchange rates

Related Stories

Mass Timber | Dec 1, 2022

Cross laminated timber market forecast to more than triple by end of decade

Cross laminated timber (CLT) is gaining acceptance as an eco-friendly building material, a trend that will propel its growth through the end of the 2020s. The CLT market is projected to more than triple from $1.11 billion in 2021 to $3.72 billion by 2030, according to a report from Polaris Market Research.

Market Data | Nov 15, 2022

Construction demand will be a double-edged sword in 2023

Skanska’s latest forecast sees shorter lead times and receding inflation, but the industry isn’t out of the woods yet.

Reconstruction & Renovation | Nov 8, 2022

Renovation work outpaces new construction for first time in two decades

Renovations of older buildings in U.S. cities recently hit a record high as reflected in architecture firm billings, according to the American Institute of Architects (AIA).

Market Data | Nov 3, 2022

Building material prices have become the calm in America’s economic storm

Linesight’s latest quarterly report predicts stability (mostly) through the first half of 2023

Building Team | Nov 1, 2022

Nonresidential construction spending increases slightly in September, says ABC

National nonresidential construction spending was up by 0.5% in September, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.

Hotel Facilities | Oct 31, 2022

These three hoteliers make up two-thirds of all new hotel development in the U.S.

With a combined 3,523 projects and 400,490 rooms in the pipeline, Marriott, Hilton, and InterContinental dominate the U.S. hotel construction sector.

Codes and Standards | Oct 26, 2022

‘Landmark study’ offers key recommendations for design-build delivery

The ACEC Research Institute and the University of Colorado Boulder released what the White House called a “landmark study” on the design-build delivery method.

Building Team | Oct 26, 2022

The U.S. hotel construction pipeline shows positive growth year-over-year at Q3 2022 close

According to the third quarter Construction Pipeline Trend Report for the United States from Lodging Econometrics (LE), the U.S. construction pipeline stands at 5,317 projects/629,489 rooms, up 10% by projects and 6% rooms Year-Over-Year (YOY).

Designers | Oct 19, 2022

Architecture Billings Index moderates but remains healthy

For the twentieth consecutive month architecture firms reported increasing demand for design services in September, according to a new report today from The American Institute of Architects (AIA).

Market Data | Oct 17, 2022

Calling all AEC professionals! BD+C editors need your expertise for our 2023 market forecast survey

The BD+C editorial team needs your help with an important research project. We are conducting research to understand the current state of the U.S. design and construction industry.

boombox1 - default
boombox2 -
native1 -

More In Category




halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021

 



Magazine Subscription
Subscribe

Get our Newsletters

Each day, our editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Subscribe

Follow BD+C: