The picture of the world construction industry in 2020
The world construction industry in general is still recovering. China is about to overtake the US as an important highlight in the Construction industry.
According to recent research, at this rate, the construction industry will grow about 4.5% per year. Much of this growth is concentrated and most influential are the markets of the United States, China and India. Due to the current fierce competition of capital markets from China, Asian countries are attractive targets for investors. Meanwhile, European and American construction companies shifted their focus to the African and Middle Eastern markets.
Stable growth in construction market
Although some major European investors could not continue to reap much success in revenue and profit, and some even fell into near-crisis levels, 2015 is still considered a good year for them. construction companies. Taking advantage of record low interest rates, there are many construction companies that have taken advantage of this in their activities and boosted their development activities. Based on that, it is estimated that in 2025 the global Construction industry is estimated to experience a worldwide growth rate of 4.5% over the next 10 years.
Trends in some countries
Talking about the region, it can be seen that the most developed trend is in Asia, including India and China, while in other regions are some countries in Africa and the Middle East. Western European construction companies find Africa an emerging market, while American construction companies tend to focus on the Middle East. Construction companies in the Middle East and Africa region are predicted to have the strongest growth in the period 2016-2020, surpassing the Asia-Pacific region.
Europe: Currently the trend in Europe is towards sustainable construction. Especially the UK – is the third largest construction market profitable country in the world, potential investors in China and the Middle East focus their resources on real estate here. Assume that by 2025, the UK Construction industry will double the Western European average. However, sales in the Construction industry are infrastructure from Government projects. It can be said that an important factor of the success of the UK Construction industry is due to the ability to manage large projects.
United Arab Emirates (UAE): The location of the UAE is a central location for tourism and business, so it will attract a lot of attention from the construction sector. Large infrastructure projects such as Dubai’s Adventure Studios development, Dubai Water Canal project, EXPO 2020 in Dubai will especially attract the Construction industry.
Qatar: Due to large public investment in infrastructure projects, construction activity growth accelerated. Experts predict that the rate of growth will continue over the next 5 years because of several upcoming events such as the 2022 FIFA World Cup and the Vision 2030 project.
Saudi Arabia: This country is trying to strengthen its economy including investing in the development of housing and infrastructure construction. They also focus on developing sustainable, environmentally friendly buildings with modern and advanced technology applications.
Asia: Due to fierce competition with the current Chinese economy – an emerging market – a new “Asian tiger” has arisen, so smaller countries will also become important for the industry. Construction investment.
According to a study by PwC, Indonesia, Vietnam and the Philippines – are the countries that can attract the focus of many development investors. More than 50% of all the major construction companies in the world have started to attack in emerging markets.
Although political factors may partly affect construction development in some Asian countries, medium-term forecasts indicate that, by 2020, the most attractive market in Asia will be the countries Indonesia and the Philippines. Investors are very optimistic about these two markets and they have watched, surveyed before, and predicted tremendous growth. With incentives on interest rates, the development of the construction industry to 2020 is very positive.
Japan also developed many construction works for the 2020 Olympics and reconstruction of earthquake-stricken areas. A lot of new construction was built and the country had to import labor from neighboring countries. In addition, Japanese companies also aim to export ecological urban models and infrastructure development technology with the support of the government.
Infrastructure is a steadily growing construction product of Asian markets. The shares among residential, industrial and infrastructure projects are relatively evenly distributed. There are many infrastructure projects that involve government intervention, and virtually all of Asia is expected to increase their infrastructure budgets over the next five years. With a budget increase of about 7% including countries such as China, India and Vietnam. These will be the leading countries in construction in 2020.
Source: Baoxaydung.com.vn
