Global construction could grow by +85% to US$ 15.5 trillion worldwide by 2030, according to research by Global Construction Perspectives.
The research stated that China, US and India will lead the way, accounting for 57% of worldwide growth.
The study shows an average global construction growth of +3.9% per year to 2030, outpacing that of global GDP by over +1%, driven by developed countries recovering from economic instability and emerging countries continuing to industrialise.
China construction growth will slow considerably with a slump in housing - the first ever decline in housing output for China will be registered this year. But, its transition to a consumer and services driven economy provides opportunity for growth in new types of construction in healthcare, education and social infrastructure, as well as retail and other consumer end-markets, according to the research.
Graham Robinson, executive director, Global Construction Perspectives, said, “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 +5% per annum. Meanwhile, we’re due to see a surge in construction rates in India as it overtakes Japan to become world’s third largest construction market by 2021.”
The construction market in India will grow almost twice as fast as China to 2030, providing a new engine of global growth in emerging markets. And, US construction growth will tilt towards the southern states, reflecting the region’s greater catch-up potential and higher population growth.
Brazil risks a lost decade, as the stranglehold of excessive bureaucracy and the Petrobras scandal continues to hold back the economy and investment, said Global Construction Perspectives.
As for Europe, whilst it won’t recover to reach pre-crisis levels until 2025, the UK is a stand-out growth market, overtaking Germany to become the largest in Europe and the world’s sixth largest construction market by 2030.
Fernando González, chief executive of Cemex, said, “Construction is likely to be one of the most dynamic industrial sectors in the next fifteen years and is utterly crucial to the evolution of prosperous societies around the world. The numbers within this report are huge and that translates as creating vast numbers of new jobs and creating significant wealth for certain countries across the globe”.