Market Research Report
Construction Market by Construction Type, by Sector - Global Opportunity Analysis and Industry Forecast 2022-2030
|Construction Market by Construction Type, by Sector - Global Opportunity Analysis and Industry Forecast 2022-2030|
Published: January 1, 2022
Next Move Strategy Consulting
Content info: 545 Pages
Delivery time: 1-2 business days
The Construction Market size was valued at USD 7.28 trillion in 2021 and is predicted to reach USD 14.41 trillion by 2030 with a CAGR of 7.3% from 2022-2030. Construction refers to erection, maintenance, and repair of buildings or other immobile structures as well as building of roads and public service facilities. It also includes structural additions and alteration such as bearing walls, beams, and exterior walls. Moreover, each type of construction project requires a unique planning, financing, design, execution, and builds, along with repairs, maintenance, and improvement of work. The construction market consists of the sales revenues earned by entities such as sole traders, organizations, and partnerships that construct buildings and engineering projects including highways and utility systems.
The demand for construction is increasing due to huge economic growth in developing countries and low interest rates in number of developed countries. . Also, factors such as increasing private sector investments in construction, technological development, and rising disposable income are expected to propel the growth of the market during the forecast period. Moreover, increased infrastructure and housing spending by governments across the globe is invigorating the market growth.
However, volatility in raw material prices and rising concern regarding the health and wellness of workers employed by construction companies at low wages are factors expected to restrain the growth of the market during the forecast period. On the other hand, rising demand for infrastructure development with the use of advanced technology, machines, and equipment for construction in developed countries with the aim to reduce overall completion time of projects is expected to create ample growth opportunities for the market players in the coming years.
The construction market size has been segmented based on construction type, sector, and geography. Based on construction type, the market is bifurcated into addition, re-development, and new constructions. Based on sector, the market is divided into commercial, residential, industrial, infrastructure, energy, and utilities construction. The commercial construction segment is further classified into office building, retail building, hospitality and luxury building, restaurant, entertainment, sports facility, and other commercial constructions. The residential construction segment is further classified into luxury, mid-tier, and affordable. The industrial construction segment is further classified into manufacturing plants, chemical & pharmaceuticals facilities, metal & material processing units and other industrial constructions. The infrastructure construction segment is further classified into marine and inland water infrastructure and inland transportation infrastructure. The infrastructure construction segment is further classified into oil and gas infrastructure, communication infrastructure, power infrastructure and water and sewer infrastructure. The geography breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.
Asia-Pacific holds the lion share of global construction market and is expected to continue dominating the market during the forecast period. This is attributed to factors such as growing population, and increasing construction activities in India, Indonesia, Vietnam, China, and Southeast Asian countries. Also, due to advancements in technology, regulatory policies, and favorable government norms, there is a significant growth potential for the construction market players in this region. In addition, presence of major players such as Tata Projects, L&T, KEC International Limited, China State Construction Engineering Corporation, China Railway Group Limited, Obayashi Corporation, and Shapoorji Pallonji Co. Pvt. Ltd. are contributing towards the growth of Asia-Pacific construction market.
However, Europe is expected to show a steady rise in the construction market due to the increasing renovation activities of residential infrastructures in this region. Also, due to rising demand for consumer-oriented construction, and increasing demand from industrial and manufacturing sectors, the market is expected to experience significant growth.
The market comprises of various players such as are China State Construction Engineering Corporation, China Railway Group Limited, Vinci SA, China Railway Construction Corporation Limited, Metallurgical Corporation of China Limited, Grupo ACS, Bouygues S.A., Skanska AB, Obayashi Corporation, and D.R. Horton, Inc. These companies are actively indulging in R&D initiatives, product & technology innovations, and industrial collaborations to enhance their construction abilities and thereby increase their growth and geographical reach. For instance, in April 2021, VINCI SA acquired ACS's energy business. This acquisition will make VINCI SA a leader in energy contracting and to develop renewables projects.