Global Construction Industry Outlook

  • The global construction industry is expected to grow by an average of around 3 -4 percent between 2018 and 2022, with the US, China and India expected to hold an approximately 50 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 $9.72 trillion in 2017 to $10.15 trillion in 2018. 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: Strong non-residential construction activities (education, healthcare and industrial facilities) will be the key determinants of the construction output in the region. The region is poised for stable growth until 2019
  • Europe: Followed by the decline in the sub-segments of construction and the Brexit impact in 2016, the labor cost has increased and construction output has decreased, as majority of the UK’s workforce are immigrants, but this is expected to stabilize in 2018 with newer construction projects in the UK, Germany, France, and Italy creating employment opportunities across the sectors

Developing Regions:

  • APAC : The percentage contribution of APAC in the global construction spend is expected to reach approx. 45 percent in 2020. China has already begun to slow significantly in the near term, ceding its position as the fastest growing Asian market to India. However, increasing demand for consumer-oriented construction will the key driver for the next 3 –4 years
  • South America: The region is facing a slow growth, which is expected to continue for the  next 2 –3 years. Brazil’s construction industry is shrinking in real dollar values, while Argentina and Colombia continue to be the bright spots with better growth, driven by strong demand from the industrial and manufacturing construction activities