Global Construction Spending to Reach $4.6 Trillion by 2015

SAN JOSE, CALIF. (Feb. 1, 2012)

The global construction industry is forecast to register consistent growth in terms of construction spending with developing countries such as China and India leading the growth chart. The global economic recession dented prospects in the construction sector due to stringent credit conditions and decreased business confidence in recent years. Residential buildingssegment remained depressed due to high unemployment rates, while industrial and commercial properties witnessed drop in occupancy rates, tenant demand, and rentals.

In 2010, the construction industry across several markets showed early signs of recovery from the steep declines registered in 2008-2009. Growth has been more consistent across the developing countries including the BRIC nations which unlike the developed world staged smart recoveries from mid-2009. Spurred by huge infrastructure investments by governments in these nations, the construction industry is set to surge at impressive growth rates. China is set to emerge as the leader in the worldwide construction market, surpassing US and Western Europe in the process. Rapid growth of construction sectors in emerging markets is largely attributed to the increased emphasis on infrastructure development activities In the US, lack of adequate funding poses further challenges for the construction sector that is growing at a sluggish pace. An increasingly cautious approach and aversion to risk among funders and borrowers continues to hamper various construction projects.

Growth in the construction industry over the long term is expected to remain steady, driven by resurgence in infrastructure spends, improvement in liquidity, softening of interest rates and continued urbanization. Modular building industry is rapidly gaining the attention of builders, investors, and property developers in several countries. Low construction cost, less waste, and reduced time compared to the conventional stick-built methods, all play an influential role in driving the demand for modular buildings in specialty structures, commercial and residential applications. China, India, Indonesia and Vietnam are expected to be frontrunners in construction spending. In the US, the residential sector is expected to lead growth, along with infrastructure projects such as the high-speed rail networks between large US cities. Saudi Arabia, the largest construction market in the Middle East, is forecast to grow robustly driven by rising oil prices across the world. The future is expected to witness increasing number of realty developers and investors going modular, spurred by economic pressures that requires them to cut down costs. Commercial modular structures are however required to adhere to the stringent regional building codes similar to traditional stick-built structures.

The research report titled “Construction Industry: A Global Outlook” announced by Global Industry Analysts, Inc., provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers an aerial view of the global construction industry, identifies major short to medium term market challenges, and growth drivers. Market discussions in the report are punctuated with fact-rich market data tables. Regional markets elaborated upon include United States, Canada, Japan, Germany, Russia, UK, Australia, New Zealand, China, India and UAE, among others. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of companies worldwide.

For more details about this comprehensive industry report, please visit –
http://www.strategyr.com/Construction_Industry_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world’s largest and reputed market research firms.