1. Market Research
  2. > Construction Market Trends

Construction in China - Key Trends and Opportunities to 2019

  • August 2015
  • 84 pages
  • Timetric
Report ID: 928141

Summary

Table of Contents

Search Inside

Synopsis
Construction activity in China has been fairly weak since 2014, due to a slowdown in the property market, huge unsold housing stock, a relatively sluggish economy and high local government debt-to-GDP ratios. Consequently, the country’s construction industry posted growth of 6.8% in real terms that year. This was preceded by annual growth rates of 13.5%, 9.7%, 9.3% and 9.5% in real terms in 2010, 2011, 2012 and 2013 respectively.

Moreover, China’s fixed asset investment increased at the slowest pace in 15 years, from a 17.2% increase during January–May 2014, while fixed asset investment increased by 11.4% during the same period in 2015. In real terms, the industry’s output value recorded a compound annual growth rate (CAGR) of 8.85% during the review period (2010–2014), and is expected to grow at a CAGR of 4.99% over the forecast period.

Summary
Timetric’s Construction in China – Key Trends and Opportunities to 2019 report provides detailed market analysis, information and insights into the Chinese construction industry, including:

- The Chinese construction industry's growth prospects by market, project type and type of construction activity

- Analysis of equipment, material and service costs for each project type in China

- Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Chinese construction industry

- Profiles of the leading operators in the Chinese construction industry.

- Data highlights of the largest construction projects in China

Scope
This report provides a comprehensive analysis of the construction industry in China. It provides:

- Historical (2010-2014) and forecast (2015-2019) valuations of the construction industry in China using construction output and value-add methods

- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type

- Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)

- Analysis of key construction industry issues, including regulation, cost management, funding and pricing

- Detailed profiles of the leading construction companies in China

Reasons To Buy
- Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies

- Assess market growth potential at a micro-level with over 600 time-series data forecasts

- Understand the latest industry and market trends

- Formulate and validate business strategy using Timetric's critical and actionable insight

- Assess business risks, including cost, regulatory and competitive pressures

- Evaluate competitive risk and success factors

Key Highlights
- The construction industry in China is expected to grow at a slower pace over the forecast period as compared to review period, due to sliding economic growth. Expected expansion in the industry over the forecast period will be driven by huge demand for transport infrastructure and affordable housing amid the ongoing urbanization process. In an effort to boost domestic consumption – as the country’s urban population as a part of the total is expected to increase from 53.7% in 2014 to 60% by 2020 – the government released the 2014–2020 urbanization plan in 2014. Accordingly, the government is planning to expand its urban infrastructure, transport network and social housing by 2020 to handle the growing urban population.

- The Ministry of Transport (MoT) has stated that in 2015, the total investment in the country’s infrastructure construction will amount to CNY2.5 trillion (US$406.2 billion), which includes the construction of railways, roads, waterways and airports. Of the total investment, CNY800 billion (US$130.0 billion) will be spent on the construction of an 8,000km rail track, and CNY800 billion (US$130 billion) will be spent on the construction of 57 ongoing and 27 new water conservation projects.

- The residential construction market will be supported by government-led affordable housing projects. Under the 12th Five-Year Plan, the government outlined its plans to construct 36 million affordable housing units across the country between 2011 and 2015. According to the Ministry of Housing and Urban-rural Development, the government fund allocation towards the affordable housing projects grew from CNY172.9 billion (US$27.9 billion) in 2013 to CNY198 billion (US$32.4 billion) in that of 2014, at an increase of 14.5%. In 2014 alone, the government constructed 5.1 million housing units in urban areas, with 2.3 million housing units underway.

- In a bid to stem sliding economic growth, the Chinese government is making ongoing efforts to accelerate spending on the construction industry. In March 2015, the government allocated CNY1.1 trillion (US$185.8 billion) to upgrade the country’s internet infrastructure and CNY124.3 billion (US$20.2 billion) for affordable housing. These projects will drive the construction industry’s growth over the forecast period.

- Infrastructure investment remains a key strategy for supporting economic growth. In its 2015 budget, the Chinese government increased expenditure on infrastructure development by 4.4%, from CNY457.6 billion (US$74.5 billion) in 2014 to CNY477.6 billion (US$77.6 billion) in 2015. This will contribute to the continued expansion of infrastructure construction over the forecast period.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Ahmad helps you find the right report:

Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers

Global Building & Infrastructure Construction Industry Databook for 20 Countries – Market Size & Forecast by Value and Volume across 40+ Market Segments in Building Construction and Infrastructure Construction (2012 – 2021)

  • $ 8900
  • Industry report
  • April 2017
  • by ConsTrack360

The global construction industry in value terms increased at a CAGR of 9.6% during 2012-2016. Over the forecast period of 2017 to 2021, the industry is expected to record a CAGR of 9.9%, increasing from ...

Global Building Construction Industry Databook for 20 Countries – Market Size & Forecast by Value and Volume across 30+ Market Segments in Building Construction (2012 – 2021)

  • $ 6900
  • Industry report
  • April 2017
  • by ConsTrack360

During the review period, value of global building construction industry recorded a CAGR of 11.3%. CAGR during the forecast period of 2017 to 2021 is expected to be 11.2% with value reaching US$ 10,682.3 ...

Global Non-Residential Building Construction Industry Databook for 20 Countries – Market Size & Forecast by Value and Volume across 20+ Market Segments in Non-Residential Building Construction (2012 – 2021)

  • $ 5900
  • Industry report
  • April 2017
  • by ConsTrack360

The global non residential construction industry in value terms increased at a CAGR of 10.9% during 2012-2016. Over the forecast period of 2017 to 2021, the industry is expected to record a CAGR of 11.7%, ...


ref:plp2015

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.