The construction industry is anticipated to grow by over 1% in 2023, mainly due to the slowdown in the economic growth. The global economy is expected to slow down in 2023 owing to high inflation and tight financial conditions constraining investment growth. With the gloomy economic backdrop and additional challenges specific to the global construction industry, such as high construction material costs and labor shortages also might adversely affect infrastructure development investments. However, the construction industry is expected to regain some momentum in 2024 assuming an improvement in global economic stability.

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Construction Market FAQs

  • What will be the construction market grow rate in 2023?
    The construction market will grow by more than 1% in 2023.
  • What are the key sectors of the construction market?
    The key sectors of the construction market are residential, commercial, industrial, infrastructure, and energy and utilities sector.
  • What are the key regions in the construction market?
    The key regions in the construction market are North-East Asia, South-East Asia, South Asia, Australasia, Middle East and North Africa, Sub-saharan Africa, North America, Latin America, Western Europe, and Eastern Europe.
  • Which country dominated the construction market in 2022?
    China dominated the construction market in 2022.

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Construction Market Sector Highlights

  • The key sectors in the construction market are residential, commercial, industrial, infrastructure, and energy and utilities sector. Globally, residential construction recovered well from the downturn in 2020 amid the disruption caused by the COVID-19 pandemic. Government incentive schemes and a build-up of household savings help to drive up residential building work, particularly on the renovation side to improve energy efficiency. Investments in logistics and warehousing as well as data centers is expanding, thus, boosting the commercial construction sector.
  • Industrial construction has also been recovering post the COVID-19 pandemic due to the growth in global demand for manufactured products providing scope for renewed investment growth in manufacturing plants to improve capacity. Investment in the infrastructure and energy and utilities sectors remain a major driver of overall construction output growth. These sectors expanded in 2020 despite COVID-19 disruptions, with infrastructure expanding by 3.3% globally and energy and utilities construction rising by 2.7%, which reflected the efforts by governments and public institutions to accelerate investment to stimulate activity in the sectors.
  • In terms of regional analysis, the construction sector is mainly classified in North-East Asia, South-East Asia, South Asia, Australasia, Middle East and North Africa, Sub-saharan Africa, North America, Latin America, Western Europe, and Eastern Europe.
  • In 2023, North-East Asia will be accounting for the highest growth. The construction output in this region will be highest primarily due to the strengthening of construction activity in China owing to the increase in public infrastructure works. The construction industry is expected to record average annual growth of 4.4% between 2023 and 2026, supported by investment in infrastructure projects as part of the 14th FYP (2021–2025).
  • Meanwhile, other key countries, besides China, are contributing significantly to the increased construction output growth include Mongolia, Taiwan, Japan, Hong Kong, South Korea, and Macau among others.

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Related Reports

Table of Contents

1 Global Outlook

2 Regional Outlook: US and Canada

2.1 Overview

2.2 Key Updates

3 Regional Outlook: Latin America

3.1 Overview

3.2 Key Updates

4 Regional Outlook: Western Europe

4.1 Overview

4.2 Key Updates

5 Regional Outlook: Eastern Europe and Central Asia

5.1 Overview

5.2 Key Updates

6 Regional Outlook: South-East Asia

6.1 Overview

6.2 Key Updates

7 Regional Outlook: South Asia

7.1 Overview

7.2 Key Updates

8 Regional Outlook: Australasia

8.1 Overview

8.2 Key Updates

9 Regional Outlook: North-East Asia

9.1 Overview

9.2 Key Updates

10 Regional Outlook: Middle East and North Africa

10.1 Overview

10.2 Key Updates

11 Regional Outlook: Sub-Saharan Africa

11.1 Overview

11.2 Key Updates

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