Construction set to be a global engine for economic growth and recovery from COVID-19 Global construction output in 2020 was US$10.7 trillion1 and we expect this to grow by 42% or US$4.5 trillion between 2020 and 2030 to reach US$15.2 trillion. The global construction industry is set to be a global engine for economic growth and recovery from COVID-19.

Shorter term, global construction output is expected to reach US$13.3 trillion by 2025 – adding US$2.6 trillion to output in the five years from 2020.

Asia-Pacific will account for US$2.5 trillion of growth in construction output between 2020 and 2030, up by over 50% to become a US$7.4 trillion market by 2030.

Construction output in North America will grow by 32%, or US$580 billion from 2020 to 2030, to US$2.4 trillion in 2030.

Western Europe is forecast to grow by 23% between 2020 and 2030 and is expected to push up construction output to US$2.5 trillion in 2030.

Growth in construction over the decade to 2030 will be higher than manufacturing or services Growth in construction output is forecast to average 3.6% per annum over the decade to 2030 – higher than either the manufacturing or services sectors.

Growth in construction output is forecast to average 4.5% over the five years between 2020 and 2025 – again higher than either manufacturing or services sectors and driven by sharp recovery from the effects of COVID-19 and huge stimulus support by governments. Spending of accumulated excess household savings is expected to contribute to this heightened growth.

Supply chain bottlenecks constraining activity levels and causing inflationary spikes for construction are expected to be transitory but are a risk to our forecasts.

Rising populations will drive construction demand across emerging markets Growth will be driven by rising populations and urbanisation across emerging nations driving demand for infrastructure and residential construction.

Permanent inward immigration will support construction demand across developed countries Permanent inward immigration into the Anglosphere (US, UK, Australia, Canada, and New Zealand) as well as Germany and other OECD countries will help to support demand across those developed countries.

Growing working age populations help drive need for workplace construction Growth in working age populations in countries such as India and Indonesia as well as Canada and Australia will support demand for workplace construction where, we expect higher demand for industrial and logistics space to support growth in online retailing and manufacturing.

A return to urban centers will support multifamily growth A shift towards urban centres is gradually expected to regain momentum after COVID-19 and will support growth in multifamily residential construction.

viii