by Shane Henson — August 2, 2013—Global construction will grow by more than 70% to reach $15 trillion by 2025, according to information within the Global Construction 2025 report, which was based on a benchmark global study published by Global Construction Perspectives and Oxford Economics, and sponsored by Textura Corporation, a provider of collaboration solutions for the construction industry.
“World construction markets are at a tipping point already with 52% of all construction activity in emerging markets today,” said Graham Robinson, executive director of Global Construction Perspectives. “We expect to see this increasing to 63% by 2025, with China and India contributing most to growth in emerging markets.”
Other findings from the study include:
- Construction globally will increase its share of world output to account for over 13.5% of gross domestic product by 2025.
- North America will see the highest growth in developed country regions and is forecast to be almost 40% larger by 2025 than in 2007.
- The United States has several strong positive drivers for construction growth not shared elsewhere in the developed world, including growth in population, a newly competitive manufacturing sector that points to a strong trend toward “re-shoring” of manufacturing operations and strong growth prospects for firms already producing domestically. This leads to a forecast of a 75% increase in U.S. construction output between 2012 and 2025.
- The outlook for Canada also is robust, not only because of its tight trade links with the United States, but also because of population growth, continued activity driven by mining and natural resources extraction, and investment in infrastructure.
- As extraction capacity moves to the production phase, infrastructure development in Australia is likely to slow overall.
- Recovery in Western Europe is forecast to be weak; however the U.K. construction market is forecast to grow at more than double the average rate to 2025 and come to rival Germany.
Global Construction 2025 is the third in a series of major global studies of the construction and engineering industry to be published by Global Construction Perspectives and Oxford Economics.
