Rider Levett Bucknall is sponsoring the Global Construction 2020 report – a global forecast for the construction industry over the next decade to 2020.
The report predicts that growth in global construction will outpace world GDP growth over the next decade. “Construction has never seen such rapid growth above GDP, fuelled by the emerging super powers of China and India and a rebound in US construction”, says Graham Robinson, Director, Global Construction Perspectives, an author of the report.
The Global Construction 2020 report, a major global study into construction, predicts that global construction will grow by 67% from $7.2 trillion today to $12 trillion by 2020. A total of $97.7 trillion will be spent on construction globally over the next ten years.
Growth in China, India and the US will account for over half of the predicted increase.
Lance Taylor, chief executive of Rider Levett Bucknall, said: “Working with Global Construction Perspectives and Oxford Economics on the Global Construction 2020 study has helped to give us valuable evidence and perspectives on the future direction of the construction industry globally.
“For example, the report highlights the key areas of development. It’s no surprise that China and India will drive growth because they are two of the largest emerging markets in the world. Both are seeing rising populations, rapid urbanisation and strong economic growth, which are key drivers for construction.”
China, boosted by stimulus spending, overtook the US in 2010 to become the world’s largest construction market. China’s construction market will more than double in size over the decade to $2.5 trillion by 2020, or 21% of world construction.
“Construction will become one of the exciting global growth industries of the next decade, driven by the emerging markets and the US rebound” says Dr Neil Blake, Director of Economic Analysis at Oxford Economics.
The report predicts that India will overtake Japan to become the world’s third largest construction market by 2018. The US will register a sharp cyclical rebound in construction with short term double digit growth in both residential and non-residential building sectors.
Seven countries, China, US, India, Indonesia, Canada, Australia and Russia account for two thirds of growth in global construction to 2020.
“Corporates need to work out how to deploy skills and develop the best alliances to benefit from the exciting growth opportunities that exist”, says Jonathan Hook, Global Leader, Engineering and Construction, PwC, who is a key sponsor of the Global Construction 2020 report.
Visit http://www.globalconstruction2020.com for further information.