South Korea 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 : CM2219
South Korea Construction Market Overview
The South Korea Construction Market size was valued at USD 303.52 billion in 2023, and is predicted to reach USD 389.89 billion by 2030, at a CAGR of 3.0% from 2024 to 2030.
The construction market, known interchangeably as infrastructure market, plays a crucial role in the economy, overseeing the entire lifecycle of diverse physical structures, encompassing infrastructure, buildings, and facilities. This industry undertakes a broad spectrum of projects, spanning from residential, commercial, and industrial developments to civil engineering and institutional infrastructure ventures.
Collaboration among numerous stakeholders, including architects, engineers, contractors, suppliers, developers, investors, and government agencies, is indispensable for its functioning. Positioned for growth, the industry is being propelled by an increased focus on environmentally sustainable practices, such as the incorporation of green building materials and energy-efficient designs. Additionally, factors such as the rising per capita income in emerging economies and low-interest rates in developed nations are expected to further drive the expansion of the infrastructure market.
Significant Market Expansion Driven by Large-Scale Projects
The construction industry in South Korea is witnessing remarkable growth, propelled by a surge in large-scale projects. Notably, in 2022, prominent initiatives such as the Samsung - Pyeongtaek P4 Chip Production Plant, Jukjeon Data Center, Equinix/GIC - Seoul xScale Data Centers, LG Chem/Tianjin B&M - Gumi Cathode Material Manufacturing Plant, and Hyundai E&C - Hyundai Sungwoo 8 Apartment Redevelopment played pivotal roles in driving sectoral expansion.
These substantial endeavors underscore the infrastructure sector's essential contribution to South Korea's economic advancement.
Surge in Investment in Infrastructure Activities Fuels Market Growth
Increasing investments in infrastructure activities are significantly boosting the construction market in South Korea. According to the data from the Global Infrastructure Hub, infrastructure investment in the infrastructure sector surged to USD 51 billion in 2023. Notably, the energy sector claimed the largest portion of this investment with USD 13 billion, followed closely by the road transport sector with USD 12 billion.
This ongoing investment trend is expected to continue, further accelerating the growth and development of the market in the region.
Regulatory Complexities in the Construction Market Barriers the Market Growth
Navigating through regulatory complexities presents a formidable challenge in the construction market. Infrastructure projects often face hurdles due to the intricate network of government regulations and permitting procedures. Infrastructure initiatives require obtaining numerous permits and approvals from governmental bodies at local, regional, and national levels. These mandates entail adherence to zoning regulations, environmental assessments, compliance with building codes, safety standards, and various regulatory requirements.
Lengthy permit acquisition processes, bureaucratic inefficiencies, and regulatory disparities among different jurisdictions can significantly extend project timelines and inflate costs. Moreover, 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 market is undergoing a significant transformation through the integration of digitalization and the adoption of Building Information Modeling (BIM). Advanced technologies like BIM are enhancing efficiency, accuracy, and collaboration across diverse projects. 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 instance, in September 2022, the National Institute of Building Sciences (NIBS) launched the South Korea National Building Information Management (BIM) Program. This initiative aims to revolutionize the infrastructure sector, achieving unprecedented levels of industrial efficiency through digitalization. By addressing the inadequacy of digitalization within the South Korea infrastructure sector, the program seeks to streamline lifecycle work processes, enhancing efficiency, cost-effectiveness, resilience, and safety for infrastructure and maintenance projects.
Competitive Landscape
The market players operating in the South Korea infrastructure industry include Samsung C&T Corporation, Hyundai Engineering & Construction Co., Ltd., Daewoo E&C, GS E&C, SK Engineering & Construction Co., Ltd., Lotte Engineering & Construction Co., Ltd., Hanjin Heavy Industries & Construction Co., Ltd., POSCO Eco & Challenge, DL E&C, Doosan, and others.
South Korea 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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-
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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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Samsung C&T Corporation
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Hyundai Engineering & Construction Co.
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Ltd., Daewoo E&C
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GS E&C
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SK Engineering & Construction Co., Ltd.
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Lotte Engineering & Construction Co., Ltd.
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Hanjin Heavy Industries & Construction Co., Ltd.
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POSCO Eco & Challenge
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DL E&C
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Doosan
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 303.52 Billion |
|
Revenue Forecast in 2030 |
USD 389.89 Billion |
|
Growth Rate |
CAGR of 3.0% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (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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