The volume of construction output is expected to increase by 85 percent to US$15.5 trillion worldwide by 2030, according to the Global Construction 2030 report, a massive research project by Global Construction Perspectives and Oxford Economics. The report noted that three countries – China, the US and India – will account for 57 percent of all global growth, but places like Indonesia could also see a significant increase as well.
This growth will be driven by developed countries that continue to recover from the economic instability of the past few years. The report also stated that emerging countries continuing to industrialize will also play a role in the surge of worldwide construction output.
“China’s share of the world construction market will increase only marginally as growth slows in the world’s largest construction market to 2030. In comparison, US construction will grow faster than China over the next 15 years – growing by an average of five percent per annum. Meanwhile, we’re due to see a surge in construction rates in India as it overtakes Japan to become the world’s third largest construction market by 2021,” Graham Robinson, Executive Director, Global Construction Perspectives, told the Associated Press.
Construction growth in China is expected to slow considerably due to the housing slump and the first ever decline in housing output that is expected to occur this year. However, the report stated that there will be new opportunities for growth in construction, with projects like healthcare, education, social infrastructure, retail and other consumer end-markets, as the country transitions to a consumer and services driven economy.
According to the report, the construction sector in India will grow almost twice as fast as China until 2030. India’s urban population could increase by as much 165 million in that time, with Delhi possibly becoming the second largest city in the world. Other growing markets for construction during this time will include Mexico and Indonesia.
“Whilst there is an interesting relationship between the top three countries, it is important not to forget that we see significant weakness in Brazil and Russia, whilst we see extraordinary growth in Indonesia. In Latin America, we expect Mexico to overtake Brazil, whilst Indonesia will overtake Japan by 2030,” said Jeremy Leonard, Director of Industry Services, Oxford Economics.
This article was first published on DDproperty.com, Thailand’s leading property site.
