China 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: 29-Oct-2024 | No of Pages: 111 | No. of Tables: 78 | No. of Figures: 43 | Format: PDF | Report Code : CM2215
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China Construction Market Overview
The China Construction Market size was valued at USD 2.74 trillion in 2023, and is predicted to reach USD 4.11 trillion by 2030, at a CAGR of 5.4% from 2024 to 2030.
The construction market, referred as infrastructure, holds a pivotal position in the economy, overseeing the entire lifecycle of diverse physical structures, including infrastructure, buildings, and facilities. This industry encompasses a wide range of projects, from residential, commercial, and industrial developments to civil engineering and institutional real estate initiatives.
Collaboration among a multitude of stakeholders, such as architects, engineers, contractors, suppliers, developers, investors, and government agencies, is essential for its operation. Poised for growth, the industry is propelled by an increased emphasis on environmentally sustainable practices, including the integration of green building materials and energy-efficient designs. Furthermore, factors such as the rising per capita income in emerging economies and low-interest rates in developed nations are anticipated to further stimulate the expansion of the infrastructure market.
Government-Backed Infrastructure Initiatives Drive Growth
The construction industry in China is experiencing significant growth, propelled by numerous government-backed initiatives aimed at supporting infrastructure development, particularly in railway and road transportation projects. According to a 2023 report by ITA, the Chinese government committed substantial investments in infrastructure, projecting an overall investment of USD 4.2 trillion during the 14th Five-Year Plan period (2021-2025).
Priorities include new infrastructure projects in transportation, energy, water systems, and new urbanization, with a notable emphasis on green building and energy efficiency. Additionally, the government's sovereign debt issuance of USD 137 billion aims to support disaster relief and infrastructure efforts, with local governments expediting plans to utilize these funds. These concerted efforts underscore China's commitment to infrastructure development, environmental sustainability, and attracting foreign investment.
Burgeoning Investments Fuel Infrastructure Market Growth
The infrastructure sector in China is witnessing substantial growth, driven by burgeoning investments in infrastructure activities within the region. Data from Global Infrastructure Hub reveals that investments in infrastructure within the infrastructure sector surged to USD 942 billion in 2023. Notably, the road transport sector commands a significant portion of this investment at USD 356 billion, closely followed by the energy sector at USD 281 billion.
This ongoing investment trajectory is expected to continue, fostering sustained growth and advancement within the construction market. Moreover, reduced inflation rates further bolster consumer preference and purchasing power, potentially stimulating demand for new projects, including residential and commercial buildings. With China's inflation rate recorded at 0.97% in 2024, significantly lower compared to other nations such as India and Japan, this favourable economic indicator further drives growth in the infrastructure sector, attracting increased investment and fostering overall economic development in the country.
Regulatory Complexities is a Barrier to Market Growth
In the construction market, overcoming regulatory complexities poses a significant challenge. Infrastructure projects often encounter obstacles due to the intricate web of government regulations and permitting procedures. Infrastructure endeavours demand numerous permits and approvals from governmental bodies at local, regional, and national levels.
These mandates encompass adherence to zoning regulations, environmental assessments, compliance with building codes, safety standards, and various regulatory stipulations. The lengthy process of acquiring permits, bureaucratic inefficiencies, and disparities in regulations among different jurisdictions can substantially prolong project timelines and inflate costs. Furthermore, fluctuations in regulations or unexpected policy changes can disrupt ongoing projects and deter potential investments.
Integration of Digitalization and BIM Presents Lucrative Opportunity for Market Expansion
The construction industry is undergoing a transformative phase with the integration of digitalization and the adoption of Building Information Modeling (BIM). By leveraging advanced technologies such as BIM, efficiency, accuracy, and collaboration across diverse projects are enhanced. BIM, a sophisticated 3D modeling tool, empowers stakeholders to generate and manage digital representations 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 China National Building Information Management (BIM) Program. This program aims to revolutionize the infrastructure sector, achieving unprecedented levels of industrial efficiency through digitalization. By addressing the inadequacy of digitalization within the China infrastructure sector, the initiative seeks to streamline lifecycle work processes, making them more efficient, cost-effective, resilient, and safer for infrastructure and maintenance.
Competitive Landscape
The market players operating in the China infrastructure industry include China State Construction Engineering Corp. Ltd. (CSCEC), China Railway Group Ltd. (CREC), China Railway Construction Corp. Ltd. (CRCC), 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., Hebei Construction Group Co. Ltd., Sinoma International Engineering Co. Ltd., and others.
China 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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Affordable
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Luxury
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Commercial
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Retail Buildings
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Office Buildings
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Hospitality
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Healthcare Facilities
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Educational Institutes
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Entertainment Ventures
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Infrastructure
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Transportation
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Airport
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Port
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Rail
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Road
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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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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 Railway Construction Corp. Ltd. (CRCC)
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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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Hebei Construction Group Co. Ltd.
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Sinoma International Engineering Co. Ltd.
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 2.74 Trillion |
|
Revenue Forecast in 2030 |
USD 4.11 Trillion |
|
Growth Rate |
CAGR of 5.4% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Trillion (USD) |
|
Growth Factors |
|
|
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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