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BUSINESS REPORT

GLOBAL CONSTRUCTION MARKET
TO GROW $8 TRILLION BY 2030

• Driven by China, US and India
• 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

he report ,Global Construction year. But, its transition to a consumer that we see significant weakness in Brazil
2030 – forecasts the volume of and services driven economy provides and Russia, whilst we see extraordinary
Tconstruction output will grow by opportunity for growth in new types of growth in Indonesia. In Latin America,
85% to $15.5 trillion worldwide by 2030, construction in healthcare, education we expect Mexico to overtake Brazil,
with three countries – China, US and and social infrastructure, as well as retail whilst Indonesia will overtake Japan by
India – leading the way and accounting and other consumer end-markets. 2030, says Jeremy Leonard, Director of
for 57% of all global growth. Industry Services, Oxford Economics.
The abolition of China’s one-child policy
The benchmark global study - the fourth adds impetus to the long-term view. The Brazil risks a ‘lost decade’, as the
in a series from Global Construction construction market in India will grow stranglehold of excessive bureaucracy
Perspectives and Oxford Economics almost twice as fast as China to 2030, and the Petrobras scandal continues to
- shows average global construction providing a new engine of global growth hold back the economy and investment.
growth of 3.9% pa to 2030, outpacing in emerging markets. India’s urban The strong demographics that supported
that of global GDP by over one population is expected to grow by a Brazilian growth are reversing, leading to
percentage point, driven by developed staggering 165 million by 2030, swelling stagnation in demand for construction
countries recovering from economic Delhi by 10.4 million people to become over the longer-term. When it comes to
instability and emerging countries the world’s second largest city. Europe, whilst it won’t recover to reach
continuing to industrialize. “Although globally we see construction pre-crisis levels until 2025, the UK is a
“China’s share of the world construction growing more rapidly than the overall stand-out growth market, overtaking
market will increase only marginally economy, with developed markets Germany to become the largest in
as growth slows in the world’s largest forecast to rebound from their depressed Europe and the world’s sixth largest
construction market to 2030. In levels, many will not be back to their construction market by 2030.
comparison, US construction will grow previous peak levels even by 2030. The “Construction is likely to be one of the
faster than China over the next 15 current weakness in most emerging most dynamic industrial sectors in the
years – growing by an average of five countries is likely to be temporary, with next fifteen years and is utterly crucial
percent per annum. Meanwhile, we’re higher growth rates soon returning,” to the evolution of prosperous societies 21
due to see a surge in construction rates says Mike Betts, Global Construction around the world. The numbers within
in India as it overtakes Japan to become Perspectives. this report are huge and that translates
world’s third largest construction market as creating vast numbers of new jobs
by 2021,” says Graham Robinson, In the US construction growth will tilt and creating significant wealth for
Executive Director, Global Construction towards the southern states, reflecting certain countries across the globe”, says
Perspectives. the region’s greater catch-up potential Fernando A. González, Chief Executive | Global MDA Journal | NOV-DEC 2017
China construction growth is to slow and higher population growth. of global building materials company
considerably with a slump in housing “Whilst there is an interesting CEMEX.
and the first ever decline in housing relationship between the top three
output for China will be registered this countries, it is important not to forget www.globalconstruction2030.com

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