Construction in China - Key Trends and Opportunities to 2023
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China's construction industry is expected to expand at a relatively slower pace over the forecast period (2019-2023), as the government steadily shifts away from a policy of driving economic growth by investing huge sums in infrastructure developments. The heady days of double-digit growth in China's construction industry have long gone, with the authorities reining in excessive debt-driven investment in infrastructure and urban development.
The construction industry in China grew by 4.5% in real terms in 2018, up marginally from 4.3% in 2017; increasing from US$3.2 trillion in 2017 to US$3.3 trillion in 2018, measured at constant 2017 US dollar exchange rates. This growth was driven by investment in real estate and an increase in fixed asset investment. In 2018, fixed-asset investment grew by 5.9% compared to 2017, and the National Development and Reform Commission (NRDC) approved 189 fixed-asset investment projects, particularly in the energy, transport and water infrastructure sectors.
The industry's output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 4.54% over the forecast period, compared to 5.69% during the review period. The industry is consequently expected to rise from a value of US$3.3 trillion in 2018 to US$4.1 trillion in 2023, measured at constant 2017 US dollar exchange rates.
Residential construction was the largest market in the Chinese construction industry during the review period, accounting for 48.4% of its total value in 2018. The market is expected to account for 43.3% of the industry's total value in 2023. Infrastructure construction accounted for 15.6% of the industry's total output in 2018, followed by energy and utilities construction with 14.1%, commercial construction with 10.9%, industrial construction with 6.5% and institutional construction with 4.6%.
The total construction project pipeline in China including all mega projects with a value above US$25 million - stands at CNY21.4 trillion (US$3.2 trillion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 77.4% of the pipeline value being in projects in the pre-execution and execution stages as of November 2019.
The report "Construction in China - Key Trends and Opportunities to 2023" provides detailed market analysis, information and insights into the Chinese construction industry, including -
This report provides a comprehensive analysis of the construction industry in China. It provides -