INDUSTRY REPORT
“ The global construction industry showed signs of recovery since the beginning of 2021 and is expected to reach a market size of US $ 13,572.4 billion in 2024 .”
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The global construction market is a more than US $ 11-trillion industry , of which residential construction forms the largest sector . It can be segmented by type into building construction ; heavy and civil engineering construction ; specialty trade contractors and land planning / development .
The market was performing well and witnessed a surge in activity across many sectors in 2020 . However , the ongoing COVID-19 pandemic created major challenges for the industry , mainly through disruption of supply chains but also through stoppages of major construction projects and the severe limiting of contractor access .
This has been exacerbated by other factors , such as the Russian invasion of Ukraine and Brexit , resulting in price and tax increases , as well as increased volatility in commodity and energy prices . These have negatively affected raw material prices , project costs and contractor profit margins as well as severely impacting labour availability in global construction markets .
The global construction market size declined from US $ 11,217.4 billion in 2019 to US $ 10,741.2 billion in 2020
Negative market impacts
INDUSTRY REPORT
MATERIAL ISSUES
Supply chain disruptions , labour and material shortages , as well as increases in raw material prices , have hit global construction markets .
The APAC region reportedly held the largest share in the construction industry in 2019 , because of increasing construction activities in China , India and south-east Asian countries . Advances in technology , regulatory policies and government norms are some of the major factors driving the construction industry in APAC . However , the COVID-19 pandemic drove a huge decline in the construction market in the region owing to continuous lockdowns across various countries in 2020 .
According to an August 2021 report ( Markets and Markets ), the global construction market value declined from US $ 11,217.4 billion in 2019 to US $ 10,741.2 billion in 2020 .
“ However ,” said the report , “ the industry showed signs of recovery since the beginning of 2021 and is expected to reach a market size of US $ 13,572.4 billion in 2024 , projecting a CAGR of 6.0 % between 2020 and 2024 . The construction industry is expected to grow [ with an ] expected economic recovery resulting in increased awareness about antibacterial construction materials .”
The COVID-19 pandemic has had a strong impact on the global construction industry .
“ Public spaces will move towards more automation to contain the spread of COVID-19 . Designers will increasingly prefer antibacterial fabrics and finishes , including those already existing ( such as copper ) and those that will inevitably be developed . Certain construction elements , which are already standard in health care , may find application in other public spaces ( such as reducing the number of flat surfaces where germs can spread and installing ventilation systems that help remove potentially contaminated air from any given area ),” said the report .
“ Health care design , too , is very likely to get an upgrade in the near future . While social distancing would seem necessary , it is reasonable to expect that concerns about possible future virus outbreaks might encourage architects to design with an eye on open spaces that enable and encourage people to spread out ,” it continued .
Raw materials and the energy used in different types of construction have volatile prices and these are set to continue up to 2024 , according to the report . Sudden increases or price decreases affect the end project cost and profit margin of manufacturers and contractors . Volatility in the price of energy and crude oil used for manufacturing and transporting these materials is the leading cause of fluctuations in the prices of these raw materials . These fluctuations , in turn , result in the volatility in price of finished buildings .
“ Furthermore , with an increase in cost of raw materials , vendors
22 | sheetmetalplus . com | ISMR May 2022