INDUSTRY REPORT
“ Increasing investments in renewable power generation capacities and urbanisation will drive growth in global construction markets .”
A typical operating theatre .
INDUSTRY REPORT
On Strong Foundations
We analyse growth forecasts and key trends in global construction markets .
Construction of ‘ The Pod ’ in Nottingham , UK .
According to analyst , The Business Research Company , the global construction market reached a value of nearly US $ 12,744.4- billion in 2019 , having increased at a compound annual growth rate ( CAGR ) of 6.1 % since 2015 .
“ The market is expected to decline from US $ 12,744.4 billion in 2019 to US $ 12,633.9 billion in 2020 at a growth rate of -0.9%. The growth decline is mainly due to lockdown and social distancing norms imposed by various countries and economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it . The market is then expected to recover and grow at a CAGR of 7.5 % from 2021 and reach US $ 15,482.0 billion in 2023 ,” it told ISMR .
Growth in the historic period resulted from strong economic growth in emerging markets , low interest rates in most developed countries , increasing demand for ‘ elderly-friendly ’ infrastructure and technological development . Factors that negatively affected growth were geo-political tensions and rising material costs . Going forward , said the analyst , increasing investments in renewable power generation capacities and urbanisation will drive growth . Factors that could hinder the growth of the construction market in the future include the outbreak of coronavirus disease ( COVID-19 ) and health and safety measures , it added .
Construction market segmentation
The construction market can be segmented by type into building construction ; heavy and civil engineering construction ; specialty trade contractors and land planning / development .
In the report , the buildings construction market was the largest segment of the construction market segmented by type , accounting for 51.7 % of the total in 2019 . Going forward , the land planning and development segment is expected by the analyst to be the fastest growing segment in the construction market , at a CAGR of 8.6 % from 2019-2023 .
24 | sheetmetalplus . com | ISMR May 2021