SPONSORS

SPONSORS

Global Construction Market to reach $15 Trillion by 2025

PM INDUSTRY NEWS 

10 July 2013 – ARCADIS has announced the results of a new report showing that the volume of construction output will grow by more than 70% to $15 trillion worldwide by 2025.  Global Construction 2025 is the third in a series of major global studies of the construction and engineering industry published by Global Construction Perspectives and Oxford Economics.

global-construction-marketGlobal Construction 2025 launched on 1 July 2013 highlights:

  • 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

The benchmark global study, sponsored by ARCADIS, shows the meteoric growth, which outpaces that of global GDP, will be concentrated in three countries – China, the US and India.

Simon Rawlinson, Head of Strategic Research at ARCADIS said: “This report confirms the continuing dynamism of the global construction market, with 70% growth forecast by 2025.  As well as rapid growth in the US, China and India, sustained opportunities continue to emerge from rapidly growing Asian Economies including Indonesia, Malaysia and the Philippines.  These markets will create huge opportunities for the financing of new assets as well as their construction.

“Overall, one thing that we can be certain about is that construction will become an even more global and more competitive business – promising to deliver more challenging projects in more innovative ways in more diverse locations.  Global Market Perspectives confirms that the future of global construction is bright.”

“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 about the report, visit http://www.globalconstruction2025.com

ARCADIS (EURONEXT: ARCAD), is a leading international consultancy, design, engineering and management services company active in infrastructure, water, environment and buildings. ARCADIS develops, designs, implements, maintains and operates projects for companies and governments. With 21,000 people and €2.4 billion in revenues, the company has an extensive international network supported by strong local market positions. ARCADIS supports UN-HABITAT with knowledge and expertise to improve the quality of life in rapidly growing cities around the world. www.arcadis.com

Source: ARCADIS