Global construction market expected to grow 85% to $17.5 trillion by 2030
In its latest analysis of global construction markets, professional services consultancy Procorre has identified five construction ‘hotspots’ that will drive demand for specialist contractors over the next six months.
The company, which manages the life cycle of construction projects across the world, has found that emerging markets such as India, Mexico, Qatar and Egypt are joining more established construction markets like the UK to become hotbeds of investment, project launches and better infrastructure. This in turn is creating a raft of job opportunities for contractors across a variety of specialisms.
Procorre has identified the following construction hotspots, which are ranked based on how much their construction industries are expected to be worth in 2020:
1. India: predicted to be worth US$563.4 billion by 2020. The construction industry in India employs more than 35 million people and is currently valued at more than $126 billion. It is expected to be the world’s third largest construction market by 2030, fuelled largely by plans to build 170 million new homes over the next 14 years.
2. UK: predicted to be worth US$208 billion by 2020. Growth in the UK construction industry is expected to stay at around 3 per cent in the period 2015-2019. Construction employment rose in 2014 for the first time since 2008 and is expected to continue at an annual rate of 1.5 per cent until 2019, with employment projections reaching 2.74 million in 2019.
3. Mexico: predicted to be worth US$144.9 billion by 2020. Mexico’s construction industry is recovering from a period of weakness and will be supported by significant investments in infrastructure and residential projects. It is currently experiencing its eighteenth month of consecutive growth, which is expected to sit between 2-3 per cent over the next few years.
4. Qatar: predicted to be worth US$59 billion by 2020. Buoyed by huge government investment, a stable business environment and growing consumer demand, Qatar is the fastest growing construction and infrastructure market in the Middle East. The 2022 FIFA World Cup is expected to create around $135bn worth of contracts in the next five years.
5. Egypt: predicted to be worth US$12 billion by 2020. The construction industry in Egypt has been projected to grow by eight per cent this year (2016) after an estimated 9.8 per cent in 2015. The strong government support for infrastructure development has gathered momentum with the announcement that Egypt will tender 12 public private partnerships (PPPs) in the next 15 months - worth around $4 billion.
James Alexander, director of Global Mobility at Procorre, said, “These five geographical hotspots have seen the most impressive growth since the global recession hit in 2008 and are continuing to see high levels of government and private investment. This in turn is sparking an employment boom which is helping projects get off the ground, as well as complete on time and on budget.
“Countries like India, Mexico and Egypt are calling out for industry professionals with project management skills, as well as quantity surveyors, architects and civil engineers, all of which lend themselves to contracting. We understand that people are cautious about getting back into construction, but contracting is a great way of testing the waters before committing to permanent work.”