Despite unfavourable economic conditions the global construction market continues to defy the odds, witnessing growth over the past five years, with the market is forecast to reach US $8,929 billion in 2017, experiencing a compound annual growth rate (CAGR) of 7.3% over that time.
Market growth looks set to be predominantly driven by the organisation of major global events such as the 2014 FIFA World Cup, the 2016 Olympic Games in Brazil, the 2014 Winter Olympic Games, and 2018 FIFA World Cup in Russia, which are all expected to provide impetus to the global construction market through to 2017.
The rising cost of material, financial crisis in developed regions and cancellation of large numbers of projects are some of the challenges but increase in urbanisation and increase in public as well as private spending are also factors that look to drive growth within the global construction market.
The global construction market is highly fragmented in terms of suppliers and buyers and highly dependent on consumer spending, interest rates, and government spending across different countries.
The global construction market is dominated by APAC, with the region forecast to witness the highest growth over the next five years. The high GDP growth rate of APAC countries is also encouraging leading companies to invest in developing countries.
Brazil, Russia, India, and China are expected to register robust growth and the infrastructure segment is anticipated to drive the market with highest growth rate.
For more information on the global construction market, see the latest research: Global Construction Market Report
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