China Construction Market Size
| Study Period | 2019-2028 |
| Base Year For Estimation | 2022 |
| Market Size (2023) | USD 4.74 Trillion |
| Market Size (2028) | USD 7.00 Trillion |
| CAGR (2023 - 2028) | 8.09 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Construction Market Analysis
The China Construction Market size is expected to grow from USD 4.74 trillion in 2023 to USD 7.00 trillion by 2028, at a CAGR of 8.09% during the forecast period (2023-2028).
China's economic growth has remained generally stable, the development trend of stability and progress, the main macroeconomic indicators are operating in a reasonable range, and the economic structure is being optimized and adjusted.
- China's in the middle of a massive boom in manufacturing. The nation has the largest building market in the world, accounting for 20% of all construction investments worldwide. And it is set to grow: China is expected to spend nearly USD 13 trillion on buildings by 2030. Due to the impact of COVID -19 Investments were cut as cash flow across the developer market. Developed projects and commercial businesses were subjected to large fluctuations in retail activity, rental income declined and businesses decided to shrink office space to lower rental costs.
- In 2021, the value of newly signed contracts in the construction industry was CNY 134.5 billion (USD 19.52 billion), an increase of 2.5% year-on-year, and the growth rate narrowed by 7.1% points compared with the same period last year. In January 2022, China unveiled plans to develop its construction industry during the 14th Five-Year Plan (2021-2025), paving a pillar of the country's economy on a greener, smarter and safer path.
- The Government specifically aims for the development of prefabricated buildings that are partially or fully assembled in factories and shipped to construction sites for assembly will account for more than 30% of new construction in the country. New construction sites will generate less than 300 tons of construction waste per 10,000 square meters. In addition, China's state-owned railway company plans to double the size of its high-speed rail network over the next 15 years. This will drive the growth of the infrastructure construction sector.
China Construction Market Trends
This section covers the major market trends shaping the China Construction Market according to our research experts:
Increase in Output value of China Construction Industry
- The output value of construction in China from 2011 to 2021, indicates progressive growth in the industry. In 2021, the construction output value in China achieved its peak at around CNY 29.31 trillion (USD 4.25 Trillion). Demographics are expected to continue spurring growth in residential construction in China. Rising household income rates, along with population migration from rural to urban areas, are expected to continue to drive demand for residential construction in the country. Increased emphasis on both public and private sector affordable housing would fuel development in the residential construction sector.
- Non-residential infrastructure is also projected to expand dramatically in the coming years. The ageing population in China is increasing the demand for the construction of healthcare facilities and new hospitals. Rising wages is also expected to boost consumer spending in China. This will create demand for various services including education and entertainment, and later for plant construction in the country.
- In contrast, infrastructure projects have maintained double-digit growth since June 2022, offsetting a decline in demand for construction work from developers. Investment in Power & Utilities and Hydraulics & Environment projects increased by 17.8% and 12.8% year-on-year in September 2022 respectively. As a result, overall construction activity expanded in 2022, reflected in the strength of the construction PMI.
Increase in Value of Contracts
- In 2021, approximately CNY 34.5 trillion (USD 5.01 Trillion) worth of new contracts was signed by the construction enterprises in China, accounting for more than half of the total value. Driven by rapid urbanization, the construction market in China exceeded the output of CNY 29 trillion (USD 4.21 trillion) in 2021.
- In addition to several contracts awarded to China State Construction in the past by local casino operators and hotels – such as Wynn Resorts, MGM, Melco, and The 13 the group has also been awarded several contracts for public works and urban development projects in the city. New construction contracts increased by 12% in 2021 and by 15% in the fiscal year ending August 2022. This was underpinned by 24% and 30% growth in new infrastructure contracts, respectively, as the Chinese government helped the economy.
- Building new real estate is essential to the country in many ways. For example, when people migrate to urban areas to work, the demand for housing in big cities increases. Additionally, many with investment opportunities see real estate as an attractive option to drive demand. For local governments, the sale of land use rights is an important source of income. This means that municipalities often rely on continuous property development independent of demand. In such cases, the contracts automatically increase boosting the construction market simultaneously.
China Construction Industry Overview
The Chinese Construction Market is Fragmented. However, the market holds opportunities for small and medium players due to increasing government investments in the sector. Some of the major players are China State Construction Engineering, China Railway Group, China Railway Construction, China Communications Construction Company, Power Construction Corporation of China, and many more. The Chinese construction market presents opportunities for growth during the forecast period, which is expected to further drive market competition. Large players competing with others for a significant share leave the Chinese construction market with no observable levels of consolidation.
China Construction Market Leaders
China State Construction Engineering
China Railway Group
China Railway Construction
China Communications Construction Company
Power Construction Corporation of China
*Disclaimer: Major Players sorted in no particular order
China Construction Market News
- October 2022- State-owned China State Construction Engineering Corporation (China State Construction) acquired a series of large-scale residential construction and infrastructure projects. The ten projects have a total value of CNY 33.89 billion (USD 4.89 billion).
- October 2022- Fluor Corporation was awarded two reimbursable engineering, procurement, and construction management contracts by BASF for the ethylene oxide/ethylene glycol and infrastructure, offsites, and utility packages as part of the company’s new Verbund program in Zhanjiang, Guangdong province, China. The contract value to Fluor is more than USD 2 billion and was booked in the third quarter of 2022.
China Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness- Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Value Chain / Supply Chain Analysis
4.6 Technological Innovations in the Construction Sector
4.7 Impact of Government Regulations and Initiatives on the Industry
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Sector
5.1.1 Residential
5.1.2 Commercial
5.1.3 Industrial
5.1.4 Infrastruture (Transportation)
5.1.5 Energy and Utilities
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 China State Construction Engineering
6.2.2 China Railway Group
6.2.3 China Railway Construction
6.2.4 China Communications Construction Company
6.2.5 Power Construction Corporation of China
6.2.6 China Metallurgical Group
6.2.7 China Energy Engineering Corporation
6.2.8 Shanghai Construction Group
6.2.9 China National Chemical Engineering
6.2.10 China Petroleum Engineering Corporation*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
China Construction Industry Segmentation
Construction is the installation, maintenance, and repair of buildings and other stationary structures, as well as the construction of roadways and service facilities that form fundamental components of structures and are required for their operation. A complete background analysis of the China construction Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.
The China Construction Market is segmented By Sector (Residential, Commercial, Industrial, Infrastructure (Transportation), Energy and Utilities). The report offers market size and forecasts in value (USD trillion) for all the above segments.
| By Sector | |
| Residential | |
| Commercial | |
| Industrial | |
| Infrastruture (Transportation) | |
| Energy and Utilities |
China Construction Market Research FAQs
How big is the China Construction Market?
The China Construction Market size is expected to reach USD 4,744.60 billion in 2023 and grow at a CAGR of 8.09% to reach USD 7,000.47 billion by 2028.
What is the current China Construction Market size?
In 2023, the China Construction Market size is expected to reach USD 4,744.60 billion.
Who are the key players in China Construction Market?
China State Construction Engineering, China Railway Group, China Railway Construction, China Communications Construction Company and Power Construction Corporation of China are the major companies operating in the China Construction Market.
China Construction Industry Report
Statistics for the 2023 China Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Construction analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
