Good news for C&D Industries
02 May 2008
According to the report Global Insight, the global construction market is expected grow to US$4.8 trillion in 2008, fromUS$3.5 trillion in 2003, then increase further to a of US$6.2 trillion in 2013 at annual growth rate of 2.6% corresponding figure for -2003 was 1.2%).
These are the key findings of Global Construction Study that covers the full range construction activities in countries around the study presents a detailed picture of the worldwide construction industry over the next ten years.
Global Insight predicts that it will be non-residential construction that shows the greatest growth over the next five years, with real growth of 3.6% annually through 2003-2008. North America is expected to lead the way, with growth of 7.4%. Both Eastern Europe and Asia are predicted to see strong growth as well, 3.1% and 3.8% respectively. However, North America and Asia between them accounted for 53% of the total market in 2003, while Eastern Europe only accounted for 8%.
Within the non-residential sector, the study predicts that strong growth will be seen in the demand for structures related to chemical and electrical and electronic products. Asia accounted for 73% of the global market for electrical related structures between 1998 and 2003, and is predicted to see growth of 9.5% through 2008. Western Europe will be the leader in the growth of chemical-related structures at 17% through to 2008. This region accounted for 19% of the global market in 2003 - by 2008, this figure will rise to 28%
Infrastructure construction is predicted to see a growth of 3.2% through to 2008, with Eastern Europe leading the way with a figure of 4% and Asia (excluding Japan) at 6.1%. This will result from the need of the acceding EU countries to raise the standard of their infrastructures to that of the rest of the EU. In Asia, meanwhile, growth will be fuelled by the development of transportation and energy-related infrastructures required to service a growing and maturing economy.
Residential construction is predicted to grow by 1.5% annually over 2003-2005, and is the only construction sector that will show weak growth over the period. Once again, Eastern Europe is expected to post the greatest growth over the period of the report, 2.9%. This region has a relatively low dwelling per inhabitant ratio. In addition, home ownership financing is increasingly becoming available in these countries
Asia will see growth as a result of increasing urbanisation, and Global Insight predicts this will be of the order of 2.9% through to 2008. In North America and Western Europe, urbanisation has already largely occurred and the dwelling-per-inhabitant ratios are already high. Rising per capita incomes will nevertheless still fuel growth, although North America will likely show weaker residential construction growth over the forecast period, 1.2% over 2003-2008, than it showed over the previous period, 6.4% over 1998-2003.
• Further information on the Global Construction Study 2004 annual report is available on the Global Insight's