Research carried out by Global Construction Perspectives has revealed global construction could grow 85 per cent by 2030…
The global construction sector is expected to grow by 85 per cent to US$ 15.5 trillion, according to new research carried out by Global Construction Perspectives and Oxford Economics.
The data suggested China, the US, and India will lead the development of the global construction industry, accounting for 57 per cent of worldwide growth. It is expected growth will outpace global GDP by over one percentage point at 3.9 per cent per year to 2030.
The main driver behind global growth will be the recovery of developed countries affected by economic instabilities, as well as emerging countries that are undergoing industrialisation.
Global Construction Perspectives’ executive director, Graham Robinson 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.”
China is expected to see a slow down as the first decline in housing output is registered this year, but this is not bad news for the nation. The transition to a consumer and service-driven economy will see growth in other construction areas such as healthcare, education, and retail.
Robinson added the US was expected to grow faster than China over the next 15 years and will see an average increase of five per cent per annum. This is due to high population increases in the southern states. However, a potential rate hike in the US could mean a risk for key emerging markets such as Brazil, Russia, Turkey, and India. Some of these nations could see growth halved as a result.
However, India is expected will see growth twice as fast as China between now and 2030. Robinson said: “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.”
Among the BRIC nations, Brazil is expected to perform poorly due to excessive bureaucracy, as well as the Petrobras scandal holding back the economy.
Europe will also continue to perform well, although it is unlikely to reach pre-crisis levels until at least 2025. However, the reported estimated the UK will stand out as a growth market, eventually overtaking Germany to become the largest in Europe and earning the position as the sixth largest construction market by 2030.
Chief executive of Cemex Fernando González 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”.