China, US and India to lead global construction up to 2025
More than half of the growth in global building work to 2025 will come from just three countries, according to a comprehensive report
Global Construction 2025 predicted that China, India and the US would account for almost 60 per cent of the increase in construction output in the 13 years from 2012.
The study, published by Global Construction Perspectives and Oxford Economics, said that China would still average construction growth in excess of 6 per cent per year from 2020 to 2025.
It forecast a shift from an export-led Chinese economy to consumption-based growth, with increasingly affluent consumers demanding larger homes and better retail facilities.
India will see even stronger construction growth, driven by population increases on a higher scale than China, according to the report. Some 270 million homes will be needed in China and India combined between now and 2025 to house growing and increasingly urban populations, it said.
The fledgling US construction recovery will blossom, driven by a need to build 1.5m homes per year, according to the study. North America as a continent is expected to have a construction market 40 per cent bigger in 2025 than it was before the global downturn.
Western Europe, in contrast, will be still to recover from the devastating effects of the economic crisis.
The report forecasts the region’s construction sector to be 5 per cent smaller in 2025 than in 2007. It says cash-strapped governments and the ongoing financial uncertainty in the Eurozone will keep growth to a minimum.
AJ reported earlier this year that while it offered high levels of work, India’s hugely ambitious clients and fiercely competitive local prices made the country a minefield for newcomers.
Architectstold AJ last year that China could see a second design boom for UK firms.