Global Construction Industry Outlook

  • The global construction industry is expected to grow by an average of around 4-5 percent between 2016 and 2019, with the US, China and India expected to hold an approximately 55 percent share, worth $87 trillion, in incremental construction spend over the next 15 years 
  • Integrated project delivery is expected to be an emerging trend, enabling successful implementation and potential benefits of this outsourcing model in large-scale projects in the US.Reduction in lifecycle cost and time are key factors that led to an increase in the usage of technologies like BIM (3D&4D), laser scanning , 3D printing and smart building systems in the global construction sector.

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Global Construction—Industry Overview

  • The global construction industry is projected to grow from $8.9 trillion in 2015 to $10 trillion in 2019. This increase is primarily driven by the proposed government spending on infrastructure projects, primarily in Asia 
  • LATAM and APAC accounted for more than half of the world’s construction output in 2016 and by 2020, they will have a share of ~55 percent

Developed Regions: 

  • North America—Stronger industrial and residential will be the key determinants of the construction output in the region. The region is poised for stable growth until 2019 
  • Western Europe—Followed by the decline in the sub-segments of construction and the Brexit impact in 2016, the labour cost has increased and construction output has decreased as majority of UK’s workforce has immigrants but this is expected to stabilize in 2017 with newer construction projects in UK, Germany, France and Italy creating employment opportunities

Developing Regions: 

  • APAC— The percentage contribution of APAC in the global  construction spend is expected to reach close to 45 percent in  2020. Though China’s construction faces a slowdown in growth, it  still remains the prime market, with 60 percent share in the region  
  • LATAM — The region is facing a slow growth rate, which is expected  to continue for the next 2- 3 years. Brazil’s construction industry is  shrinking in real dollar values, while Argentina and Mexico  continue to be the bright spots with better growth rate