Global Construction Market to Reach $15 Trillion by 2025

AsiaNet 53578

LONDON, July 1 /PRN=KYODO JBN/ --

   - China, India and U.S. will account for almost 60% of all global growth

   - Emerging Asian markets taking advantage of China slowdown

   - Construction market in Western Europe will be almost 5% smaller by 2025

     than 2007

    A new report released today forecasts the volume of construction output

will grow by more than 70% to $15 trillion worldwide by 2025.

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

Perspectives and Oxford Economics - shows the meteoric growth, which outpaces

that of global GDP, will be concentrated in three countries - China, the US and

India.

    "World construction markets are at a tipping point already with 52% of all

construction activity in emerging markets today. We expect to see this

increasing to 63% by 2025, with China and India contributing most to growth in

emerging markets," says Graham Robinson, Executive Director, Global

Construction Perspectives.

    China overtook the US to become the world's largest construction market in

2010, and is expected to increase its global share from 18% today to 26% in

2025, despite an expected slowdown.

    "China and India will need to build another 270 million new homes by 2025 -

mostly affordable homes", says Mike Betts from Global Construction Perspectives.

    Significant opportunities have arisen for a new generation of 'Asian

Tigers'.  Indonesia, Vietnam and the Philippines are becoming increasingly

attractive for export-oriented manufacturing and represent a $350 billion

construction market growing at more than 6% annually.

    "While China is the key market, it would be a mistake to ignore the

transformations happening elsewhere in Asia, which will help boost construction

in Asia Pacific" says Jeremy Leonard, Director of Industry Services at Oxford

Economics.

    India will overtake Japan as the third-largest construction market with

annual growth averaging 7.4% annually in construction expected to exceed that

of China.

    The construction market in Western Europe is expected to be almost 5%

smaller in 2025 than its pre-recession peak in 2007, whilst North America is

forecast to be almost 40% larger.

    "By 2050, there'll be two billion additional city dwellers - sustainable

urbanization will be a major construction challenge and the industry must

strive to find innovative new products and solutions, to contribute to building

better cities", says Bruno Lafont, Chairman and Chief Executive of global

building products Lafarge.

    For more information: visit http://www.globalconstruction2025.com

    Or CONTACT:

    Shauna McCarthy

    +44(0)203-047-2287

    SOURCE: Global Construction Perspectives Ltd