Asia-Pacific Construction Market by Type (Renovation and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2030
Industry: Construction & Manufacturing | Publish Date: 19-Dec-2024 | No of Pages: 138 | No. of Tables: 99 | No. of Figures: 64 | Format: PDF | Report Code : CM2228
Asia-Pacific Construction Market Overview
The Asia-Pacific Construction Market size was valued at USD 5.11 trillion in 2023, and is predicted to reach USD 8.65 trillion by 2030, at a CAGR of 7.2% from 2024 to 2030.
The construction market, also known as infrastructure, plays an essential role in the economy by overseeing the entire process from initial planning to ongoing maintenance of various physical structures, including infrastructure, buildings, and facilities. This sector is involved in a wide range of projects, spanning residential, commercial, industrial, civil engineering, and institutional infrastructure developments.
It engages numerous stakeholders, including architects, engineers, contractors, suppliers, developers, investors, and government agencies. The industry is poised for growth, fueled by an increased focus on environmentally friendly practices such as the use of green building materials and energy-efficient designs. Additionally, factors such as rising per capita income in emerging economies and low-interest rates in developed countries are expected to further drive the expansion of the infrastructure market.
Government Funding Drives Growth in the Asia-Pacific Infrastructure Sector
The construction market in the Asia-Pacific region is experiencing a significant upward trend, primarily fueled by substantial government funding directed towards infrastructure development. Key areas of focus include transportation systems, energy, water systems, and urbanization projects.
According to the latest report by the International Trade Administration (ITA), the Chinese government made extensive investments in infrastructure projects, projecting an overall investment of USD 4.2 trillion during the 14th Five-Year Plan period (2021-2025). This plan prioritizes new infrastructure projects in transportation, energy, water systems, and new urbanization. Additionally, the Chinese government is advocating for green building and energy efficiency.
Moreover, the Indian government is also heavily investing in the infrastructure sector, with a focus on infrastructure development and urbanization. The National Investment Pipeline (NIP) allocated an investment budget of USD 1.4 trillion for infrastructure, with 24% allocated to renewable energy, 18% to roads and highways, 17% to urban infrastructure, and 12% to railways.
Emphasis on Environmental Sustainability Driving Growth in the Asia-Pacific Infrastructure Market
Furthermore, there is a clear emphasis on environmentally friendly building practices and energy efficiency, expected to further drive expansion and development in the construction market in the region. For example, South Korea’s Seoul City expanded regulations to promote green buildings, aiming to reduce greenhouse gas emissions and enhance energy efficiency. This initiative aligns with the city's goal of achieving carbon neutrality by 2050.
Navigating Regulatory Complexities Impedes Infrastructure Market Growth
The infrastructure market faces significant challenges arising from stringent regulatory frameworks. Infrastructure ventures face obstacles due to the intricate network of government regulations and permitting processes. Infrastructure projects typically entail securing numerous permits and approvals from governmental bodies at local, regional, and national levels.
These permissions encompass zoning regulations, environmental assessments, adherence to building codes, safety standards, and various regulatory requirements. Lengthy permit acquisition processes, bureaucratic inefficiencies, and regulatory disparities among jurisdictions can significantly prolong project timelines and inflate costs.
Additionally, fluctuations in regulations or unexpected policy changes can disrupt ongoing projects and discourage potential investments. For example, the United States Environmental Protection Agency (EPA) oversees various aspects of the infrastructure sector, including air quality, lead management, waste disposal, and water regulations. The EPA's compliance assistance centers offer resources to facilitate environmental compliance during demolition activities, the recycling of infrastructure materials, and the proper disposal of refrigeration and air-conditioning equipment.
Integration of Digitalization and BIM Presents Lucrative Opportunity for Market Expansion
The infrastructure sector is undergoing a significant shift with the integration of digitalization and the embrace of Building Information Modeling (BIM), leveraging advanced technologies to enhance efficiency, accuracy, and collaboration across various projects. BIM, an advanced 3D modeling tool, enables stakeholders to generate and oversee digital renditions of structures and infrastructure, facilitating improved coordination and communication among project teams.
For example, in September 2022, the National Institute of Building Sciences (NIBS) initiated the U.S. National Building Information Management (BIM) Program, aiming to revolutionize the infrastructure industry and attain unprecedented levels of industrial efficiency through digitalization. This endeavor addresses the insufficient degree of digitalization within the U.S. infrastructure sector, that impedes the evolution of lifecycle work processes to become more efficient, cost-effective, resilient, and safer for infrastructure and maintenance.
China Holds the Dominant Market Share in Asia-Pacific Infrastructure Market
The infrastructure industry in China is experiencing a notable surge in growth, driven by an increasing number of government-backed initiatives supporting infrastructure development, particularly in railway and road transportation projects. According to a 2023 report by ITA, the Chinese government made substantial investments in infrastructure projects, projecting an overall investment of USD 4.2 trillion during the 14th Five-Year Plan period (2021-2025). This plan prioritizes new infrastructure projects in transportation, energy, water systems, and new urbanization. Additionally, the Chinese government is advocating for green building and energy efficiency.
Additionally, the burgeoning investments directed towards infrastructure activities within the region are playing a pivotal role in driving substantial growth within the infrastructure market. According to data from the Global Infrastructure Hub, investments in infrastructure within the infrastructure sector surged to USD 942 billion in 2023. Noteworthy is the dominance of the road transport sector, commanding a substantial USD 356 billion, closely followed by the energy sector with USD 281 billion. This ongoing investment trajectory is anticipated to persist, fostering continued growth and advancement within the infrastructure market.
India to Witness Substantial Growth in the Asia-Pacific Infrastructure Market
The infrastructure industry in India is witnessing significant expansion, fuelled by government-supported initiatives aimed at infrastructure development and urbanization. Additionally, the Indian government is making substantial investments in the infrastructure sector, particularly focusing on infrastructure development and urbanization.
The National Investment Pipeline (NIP) earmarked a budget of USD 1.4 trillion for infrastructure projects, with allocations of 24% for renewable energy, 18% for roads and highways, 17% for urban infrastructure, and 12% for railways. By 2025, the infrastructure industry is projected to reach USD 1.4 trillion, driven by escalating demand for residential and urban infrastructure projects due to population growth and urbanization.
Moreover, as India's population continues to increase, there is an anticipated surge in demand for residential and commercial infrastructure. This demand not only fuels growth in the infrastructure sector but also stimulates innovation in infrastructure techniques and materials to meet the requirements of a burgeoning population. According to the World Data Report, India witnessed significant population growth, with a growth rate of 216.5% over the past 63 years, outpacing other Asian countries such as Japan and South Korea.
Competitive Landscape
The market players operating in the Asia-Pacific infrastructure industry include China State Construction Engineering Corp. Ltd. (CSCEC), China Railway Group Ltd. (CREC), China Communications Construction Group Ltd. (CCCC), Power Construction Corp. of China, China Energy Engineering Corporation (CEEC), Shanghai Construction Group (SCG), Sichuan Road And Bridge (Group) Co. Ltd., Kajima Corporation, Shimizu Corporation, Taisei Corporation, Larsen & Toubro (L&T), DLF Limited, GMR Group, Samsung C&T Corporation, Hyundai Engineering & Construction Co., Ltd., and others.
Asia-Pacific Construction Market Key Segments
By Type
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Renovation
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New Construction
By Sector
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Real Estate
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Residential
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Commercial
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Infrastructure
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Transportation
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Water and Wastewater
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Energy
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Telecommunication
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Industrial
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Manufacturing Plant
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Warehouses
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Power Plants
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Oil Refineries
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Chemical Plants
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By Country
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China
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Japan
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India
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South Korea
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Australia
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Indonesia
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Singapore
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Taiwan
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Thailand
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Rest of Asia Pacific
Key Players
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China State Construction Engineering Corp. Ltd. (CSCEC)
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China Railway Group Ltd. (CREC)
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China Communications Construction Group Ltd. (CCCC)
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Power Construction Corp. of China
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China Energy Engineering Corporation (CEEC)
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Shanghai Construction Group (SCG)
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Sichuan Road And Bridge (Group) Co. Ltd.
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Kajima Corporation
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Shimizu Corporation
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Taisei Corporation
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Larsen & Toubro (L&T)
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DLF Limited
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GMR Group
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Samsung C&T Corporation
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Hyundai Engineering & Construction Co., Ltd.
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 5.11 Trillion |
|
Revenue Forecast in 2030 |
USD 8.65 Trillion |
|
Growth Rate |
CAGR of 7.2% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Trillion (USD) |
|
Growth Factors |
|
|
Countries Covered |
10 |
|
Companies Profiled |
10 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
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