The report by Global Construction Perspectives and Oxford Economics predicts that a total of $97.7 trillion will be spent on construction globally over the next 10 years.
“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,” said Global Construction Perspectives director Graham Robinson, one of the authors of the report.
The Global Construction 2020 report, sponsored by PwC, predicts that global construction will grow by 67% from $7.2 trillion today to $12 trillion by 2020.
Growth in China, India and the US will account for more than half of the predicted $4.8 trillion increase.
China, boosted by stimulus spending, overtook the US in 2010 to become the world’s largest construction market. And it will more than double in size over the decade to $2.5 trillion, or 21% of world construction, the report predicts.
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.
“Construction will become one of the exciting global growth industries of the next decade driven by emerging markets and the US rebound,” said Dr Neil Blake, director of economic analysis at Oxford Economics.
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