Global Construction Market to Grow $8 Trillion by 2030: Driven by China, US and India

PR62495

LONDON, Nov.10 /PRNewswire=KYODO JBN/ --

- US construction market to grow faster than China over next 15 years  

- Despite size, China powerhouse to drop to historic low of construction growth

in 2016  

- India to provide a new engine of global growth for construction in emerging

markets, growing at almost twice as fast as China  

- Europe will not recoup its 'lost decade' but the UK will be continental

Europe's stand-out growth market, overtaking Germany to become the world's

sixth largest construction market by 2030  

A new report released today - Global Construction 2030 - forecasts the volume

of construction output will grow by 85% to $15.5 trillion worldwide by 2030,

with three countries - China, US and India - leading the way and accounting for

57% of all global growth.

     (Photo: http://photos.prnewswire.com/prnh/20151109/285362 )

The benchmark global study - the fourth in a series from Global Construction

Perspectives and Oxford Economics - shows average global construction growth of

3.9% pa to 2030, outpacing that of global GDP by over one percentage point,

driven by developed countries recovering from economic instability and emerging

countries continuing to industrialize.

"China's share of the world construction market will increase only marginally

as growth slows in the world's largest construction market to 2030. In

comparison, US construction will grow faster than China over the next 15 years

- growing by an average of five percent per annum. Meanwhile, we're due to see

a surge in construction rates in India as it overtakes Japan to become world's

third largest construction market by 2021," says Graham Robinson, Executive

Director, Global Construction Perspectives.

China construction growth is to slow considerably with a slump in housing and

the first ever decline in housing output for China will be registered this

year. But, its transition to a consumer and services driven economy provides

opportunity for growth in new types of construction in healthcare, education

and social infrastructure, as well as retail and other consumer end-markets.

The abolition of China's one-child policy adds impetus to our long-term view.

The construction market in India will grow almost twice as fast as China to

2030, providing a new engine of global growth in emerging markets. India's

urban population is expected to grow by a staggering 165 million by 2030,

swelling Delhi by 10.4 million people to become the world's second largest city.

"Although globally we see construction growing more rapidly than the overall

economy, with developed markets forecast to rebound from their depressed

levels, many will not be back to their previous peak levels even by 2030. The

current weakness in most emerging countries is likely to be temporary, with

higher growth rates soon returning," says Mike Betts, Global Construction

Perspectives.

In the US construction growth will tilt towards the southern states, reflecting

the region's greater catch-up potential and higher population growth.

"Fed lift-off, expected as early as December, could mean a risk for

construction growth in key emerging markets - Brazil, Russia, Turkey and India

- that could all suffer from significant short-term reductions in growth for

construction, with some of these countries potentially halving growth," says

Jeremy Leonard, Director of Industry Services, Oxford Economics.

"Whilst there is an interesting relationship between the top three countries,

it is important not to forget that we see significant weakness in Brazil and

Russia, whilst we see extraordinary growth in Indonesia. In Latin America, we

expect Mexico to overtake Brazil, whilst Indonesia will overtake Japan by 2030,

says Jeremy Leonard, Director of Industry Services, Oxford Economics.

Brazil risks a 'lost decade', as the stranglehold of excessive bureaucracy and

the Petrobras scandal continues to hold back the economy and investment. The

strong demographics that supported Brazilian growth are reversing, leading to

stagnation in demand for construction over the longer-term.

When it comes to Europe, whilst it won't recover to reach pre-crisis levels

until 2025, the UK is a stand-out growth market, overtaking Germany to become

the largest in Europe and the world's sixth largest construction market by 2030.

"Construction is likely to be one of the most dynamic industrial sectors in the

next fifteen years and is utterly crucial to the evolution of prosperous

societies around the world. The numbers within this report are huge and that

translates as creating vast numbers of new jobs and creating significant wealth

for certain countries across the globe," says Fernando A. Gonzalez, Chief

Executive of global building materials company CEMEX.

NOTE TO EDITORS

For more information: visit http://www.globalconstruction2030.com/

Or contact:

Rachel Ringstead, Edelman UK +44(0)203-047-4051 rachel.ringstead@edelman.com

SOURCE: Global Construction Perspectives Ltd