European construction market

Construction activity is steadily rising across all of the EU countries, supported by low interest rates and stable economic growth.

Africa, construction, infrastructure, nigeria, ghana, kenya, morocco, egypt, Residential, multi family, single family, office, commercial, non-residential,

The anticipated growth in the Middle East construction market comes with GCC (Gulf Cooperation Council) countries offering long terms plans that focus on social infrastructure, tourism and transportation.

Constrack360 expects, the construction industry in value terms increased at a CAGR of 3.5% during 2014-2018. Over the forecast period of 2019 to 2023, the industry is expected to record a CAGR of 3.8%, increasing from ARS 478 billion in 2019 to reach ARS 556 billion by 2023.

The construction activity shows slower activity than the economy largely due to fall in public spend by nearly 11% since Q3 2017 to Q2 2018. Public investment is expected to rebound as the new government, plans to bridge the infrastructure gap of over US$ 600 billion is expected to improve the condition of the industry.

The construction industry in value terms increased at a CAGR of 8.7% during 2014-2018. Over the forecast period of 2019 to 2023, the industry is expected to record a CAGR of 4.9%, increasing from US$ 1,489 billion in 2019 to reach US$ 1,805 billion by 2023.

Economic growth across key Latin American economies is expected to improve in 2019 and over the forecast period, resulting in positive outlook across building and infrastructure construction sectors.

The projection comes in line with the growing need for greener environment and reduced carbon footprint along the imperative need for better energy efficiency system in the industries such as construction, transportation, automotive and solar panel.

The construction industry is struggling to manage its growth momentum due to the ongoing coronavirus outbreak. The large construction projects are going on hold or getting suspended due to government-imposed nationwide lockdown, to control the spread of the virus.

ConsTrack360 expects the residential building construction sector to improve, driven by improved access to credit. In addition to this, the Reserve Bank of Australia has cut interest rates, making credit cheaper in the country.

According to ConsTrack360, the construction industry in Singapore is expected to register a V-shaped recovery during 2021. The ongoing coronavirus pandemic has affected the construction industry growth in Singapore.

Globally, the data center industry continues to experience historic demand for more capacity, in its bid to support the growth in cloud computing. The shift to the cloud and the rapid adoption of digitalization during the pandemic resulted in a demand-supply gap.

The commercial construction industry has suffered project and revenue losses in 2020 due to COVID-19 related shutdowns.

Qatar was experiencing a boom in the infrastructure construction sector before the pandemic struck the country. Qatar’s construction activities suffered delays due to COVID related restrictions.

The residential construction sector in India is growing rapidly due to urbanization and growing population in the country. Despite the COVID-19 headwinds, the residential sector recorded strong growth in Q3 and Q4 2020, as sales of homes increased across major cities.

Prefabricated construction in Germany has been growing over the past few years with the penetration of prefab around 30% in the country as compared to only 3% in the US.

Prefabricated homes are gaining traction in Indonesia due to its low impact construction and environment as well as their support in mitigating urban sprawl effects. Jakarta is expected to benefit the most from prefabricated construction given its high rate of population growth and urbanization.

Vietnam’s economy recorded GDP growth of 2.91% in 2020, the lowest during 2011-2020, due to impact of the pandemic. The economic growth in 2020 was mainly due to public investment, with several public-funded infrastructure projects playing a significant role in improving demand, assisting enterprise development, and creating jobs. Infrastructure has been a key factor in Vietnam’s economic development.

Overall construction industry in Qatar has flourished over the years to become a growth engine driven by public investments related to Qatar National Vision 2030 and the 2022 FIFA World Cup. COVID-19 has crippled many industries including construction industry in Qatar delaying projects due to movement restriction and supply chain disruptions.

On the back of increased infrastructure spending announced by government organizations globally, especially in Asian countries like China and India, the construction market fared well in H1 2023. The trend is projected to further continue in H2 2023 as ConsTrack360 maintains a steady growth outlook

In the global construction market, prefabrication is gaining strong popularity. From private players to government organizations, investment in the sector has surged significantly over the last three to four years.

After the effects of the pandemic outbreak started to subside, the Indian construction market has posted a strong growth recovery. The trend has further continued in H1 2023 on the back of higher government spending and housing construction activities.

The ongoing housing shortage faced in the European market is expected to aid the growth of the prefabricated construction industry over the next five years. Many prefabricated firms are expanding their manufacturing capacities and entering into strategic partnerships to tap into the growing market, according to a European prefabricated construction market report from ConsTrack360.

The residential construction sector in India is growing rapidly due to urbanization and growing population in the country. Despite the COVID-19 headwinds, the residential sector recorded strong growth in Q3 and Q4 2020, as sales of homes increased across major cities.