Detailed Overview On Global Construction Industry

In developed nations, the construction industry accounts for nearly six to nine percent of the GDP.  Broadly, the construction is of three types namely infrastructure, industrial and buildings.


Building construction is further bifurcated into residential and non-residential that is it’s either commercial or institutional. Infrastructure construction includes heavy public works, dams, highways, bridges, railways, etc. Industrial construction includes construction of manufacturing plants, refineries, mills etc.


Construction Industry at a Global Level


The global construction industry is quickly advancing and demonstrating new patterns, trends, and improvements. The future of the industry looks bright with increasing opportunities in the non-residential, residential and infrastructure sector.

The global construction industry is expected to grow at an exponential rate in the coming few years. The rapid urbanization and industrialization are responsible for an increase in the housing facilities and infrastructure.

Global Market Segmentation of the Construction Industry

Being divided on the basis of type and region, the global construction industry is quite fragmented. Each of these segments is further subdivided into the following:

Market Segmentation by Type

  • Residential: The residential segment is growing steadily among the developing nations. With the rise in per capita income of the people, their buying power for housing has increased as well. The U.S and Canada are the regions that observe a strong growth in this segment.
  • Infrastructure: The global demand for infrastructure projects is expected to increase over the next decade. This demand is anticipated to contribute heavily to the global construction market.
  • Non Residential: The modernization of the transport sector and the advent of new technology have facilitated the growth of the non-residential sector, however, its growth curve is not as steep as compared to residential and infrastructure segments.

Market Segmentation by Region

  • North America: The region of America is forecast to have stable growth in the construction sector in the coming few years. Construction in the non-residential sector, primarily related to education, industrial facilities, and healthcare are anticipated to determine the growth of the construction industry in this region.
  • Europe: A decline in the construction sub-segments, a rise in the labor cost and the BREXIT, have together reduced the construction output in the European region. However, the latest construction projects in Germany, U.K, France, and Italy have created more employment opportunities across the existing construction industry.
  • APAC: Globally, Asia Pacific holds the largest share of the construction industry. It includes the large markets of China, Japan, South-East Asia, and India. Among these markets, China has the largest construction market in the world. Factors like a rising number of private sector investments, high infrastructure along with housing expenditure by government and rising foreign investments in India are the key drivers in the APAC region.
  • South America: Currently, South America is undergoing a slow growth rate in the construction market, which is expected to continue in the coming years. Colombia and Argentina continue to improve their growth in the construction sector. Whereas the construction market in Brazil is shrinking steadily.

Global Construction Industry Drivers

Some of the emerging trends have directly influenced the construction industry growth rate. A rapidly improving macro-economic condition across the globe has become one of the major growth drivers for the construction industry. The private sector has also started to gain a higher investment due to the strengthening of business confidence among investors. Another striking factor that has impacted the construction industry positively is the developing economies of APAC, MEA, and the Americas, that are on their way to building a robust infrastructure which is driving a higher construction output. The emerging economies are also anticipated to boost the global construction market demand because of a higher disposable income.

Emerging Trends in the Global Construction Industry

With the emerging technology, the global construction industry dynamics are on the path of transformation. Here are some innovations that are fuelling the growth of the construction market:

3D Laser Scanning

The innovative design technologies like 3D laser scanning are being used to reproduce digital positions and dimensions of the object and then converting them into a point cloud image. Due to its cost and time-saving nature, 3D laser scanning can strongly support recommendations for the offsite design that further eases construction activities during all phases.

Building Infrastructure Management (BIM)

The BIM technology is now widely used in both large and medium scale construction projects. The BIM technology makes it possible to construct a physical building in a virtual model, which eliminates the risk of errors.

Other Engineering Design Technologies

The increasing use of innovative and emerging technologies like NavisWorks, ConSteelDataCAD, ArchiCAD, CADKEY, REVIT, Atlantis and Corel Draw have further enhanced the construction design efficiency and accuracy.

The global construction industry will continue to observe a healthy growth rate in the next few years and enjoy preference from investors. Although stringent monetary policies in major construction markets can increase the borrowing cost, they are not expected to have a strong impact on the industry.

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Emily Brantly

About the Author: Emily Brantly

Emily Brantly is a freelance writer and blogger who is passionate about music, movies and books. She enjoys writing reviews and covering stories related to the entertainment industry. Email: [email protected]