Join or Sign in

Register for your free asmag.com membership or if you are already a member,
sign in using your preferred method below.

To check your latest product inquiries, manage newsletter preference, update personal / company profile, or download member-exclusive reports, log in to your account now!
Login asmag.comMember Registration
https://newera17031.activehosted.com/f/88
INSIGHTS

Asia, world’s fastest growing construction market between now and 2020

Asia, world’s fastest growing construction market between now and 2020
Construction spending in Asia is forecast to account for almost one half of total global construction spending by 2020. Recent rapid growth in the region has largely been at the expense of declines in both Western Europe and North America, according to the latest Asia Construction Outlook report launched by AECOM and D
Construction spending in Asia is forecast to account for almost one half of total global construction spending by 2020. Recent rapid growth in the region has largely been at the expense of declines in both Western Europe and North America, according to the latest Asia Construction Outlook report launched by AECOM and Davis Langdon, an AECOM company. The report reveals industry activity levels in 2012 and provides near- and longer-term forecasts for construction by region, country and city. The findings are based on analysis of sector statistics combined with the results of market sentiment surveys undertaken by 41 AECOM construction experts across nine countries in Asia.

While Western economies have slowed, Asia has maintained strong growth and has been less impacted by the global economic downturn in recent years. Asia has also become increasingly dependent on domestic demand, through burgeoning affluence and urbanization, for its continued growth. Asia is the largest regional construction market worldwide, accounting for some 40% of global construction spending in 2012. Indeed, construction spending in Asia is forecast to account for almost one half of global construction spending by 2020.


AECOM's analysis highlights the following key trends:

1. New spending and funding trend in the construction sector identified.
Construction activities will shift away from nonresidential structures and, instead, move toward infrastructure and then, in the longer term, to residential projects. Funding models are also evolving in Asia, with growing use of private finance, including public-private partnerships.

2. Indonesia is identified as a strong potential growth market after China.
China accounts for some 41% of the APAC region's total construction spending, with expenditures of US$1.25 trillion in 2012. In addition, Indonesia emerges as a particularly interesting market. Construction spending in the world's fourth most populous country accounted for more than a quarter of the nation's GDP in 2012, with around half of this expenditure funding infrastructure projects. Meanwhile, the AECOM's survey also found that Jakarta is viewed as the No. 1 city in the region for potential market growth and profitability.

3. Growth in India depends on its ability to attract private finance.
Given its population size comparable to that of China, India offers a significant level of opportunity; however, its construction sector is only about one-third the size of the China market. With public investment levels likely to be constrained, India's growth will greatly depend on its ability to attract private finance.


Share to:
Comments ( 0 )