The field of construction is gearing up for extensive growth in the next few years.
Expansion in the area of construction has steadily grown worldwide, from 2.7 percent in 2013 to 3.1 percent in 2014. Based on the latest forecast by business information and market research company Timetric, this uptick will continue as 2015 comes to a close. The latest estimates are foreseen at 3.8 percent in 2015 and will progress to 3.9 percent going to 2020. In monetary figures, this translates to $10.3 trillion by 2020, just shy of a 40-percent jump from $7.4 trillion back in 2010.
This growth isn’t exclusive to the U.S. In fact, the growth is expected to be more evident in emerging markets than in already-established economies. By 2020, Timetric believes that the emerging markets will comprise 56 percent of the world’s construction projects. According to this report, “the construction industries in advanced economies combined are forecast to expand by 2.2 percent per year on average, while emerging markets will record a 5.3% annual expansion,” from 2016 to 2020.
The fastest growing construction market starting in 2016 is projected to be in Africa and the Middle East. This is a shift in the global construction market setting, as the Asia Pacific region has been at the top of the market share from 2011 to 2015. The market changes are brought about by the boost in investments for construction projects in Saudi Arabia, Qatar, and the United Arab Emirates. Despite this, the Asia Pacific region will continue to experience growth in the industry, from 40 percent in 2010 to 49 percent in 2020.
In other areas, Europe and the United States will be experiencing improvements in construction growth rates. However, the figures for 2020 are expected to be lower than the numbers before their respective financial crises. Learn about ProEst’s construction estimating software today!