A report points to U.S. and Canada commercial and residential construction continues to grow through 2023. Research and Market’s Global Construction Industry Data Book Series predicts a CAGR (compound annual growth rate) 6.5% to reach $10,835.6 billion by 2023. For comparison, the residential construction industry, in value terms, increased at a CAGR of 6.1% during 2014-2018. The commercial building construction market is expected to record a CAGR of 8% during the period between 2014-2023. Infrastructure construction was estimated to be $2,366.4 billion in 2018, posting a CAGR of 3.9% during the review period.
Globally, continuous major economic growth in various developed and emerging markets along with lucrative financing deals backed by low interest rates are bound to boost the average revenues of the global construction industry. This makes the overall outlook on the construction sector positive.
Strong economic conditions, increased levels of confidence, and low rates of interest will help maintain the expansion of construction activities in North America, Asia Pacific, and the Middle East. Demand also remains strong in China, particularly for infrastructure in the sports segment. In US and Canada, steady growth in residential and commercial construction sectors in both value and volume terms is predicted.
Europe will show a slightly subdued growth, supported by improved construction sector conditions in various countries, allowing better residential and infrastructural spending. The UK will witness sluggish construction output owing to Brexit negotiations, especially in non-residential sectors.
Growth prospects in Latin America and Africa will improve, driven by policy reforms in key countries such as Brazil and South Africa. While the construction industry possesses an overall stable credit quality, various factors including project execution issues pose risk to overall growth.