Construction in China – Key Trends and Opportunities to 2024

The outbreak of the Coronavirus (COVID-19) pandemic severely disrupted the country’s construction industry in Q1 2020, with projects being temporarily suspended in line with the lockdown restrictions. Subsequently, the industry’s value-add recorded a double-digit contraction in the first quarter of the year, according to the National Bureau of Statistics (NBS). With the gradual resumption of construction activities, the industry picked up pace, and recorded an improvement in the second quarter; however, it contracted by 1.9% year-on-year in H1 2020.

The Chinese construction industry is still expected to grow in 2020, despite the temporary slowdown in construction activities. However, there will only be a marginal expansion compared to the performance in recent years. China’s construction industry value-add grew by 5.6% in real terms in 2019, following growth of 4.8% in the previous year, driven by strong growth in real estate investment, and an increase in fixed asset investments. To mitigate the economic impact of the pandemic, the country fast-tracked the implementation of major infrastructure projects (except the hard-hit Hubei region), resuming 89.1% of major infrastructure projects as of mid-March 2020. In another positive development, real estate and fixed-asset investments have regained growth momentum, following temporary disruption in the first quarter of the year. Moreover, in the first seven months of the year, the National Development and Reform Commission (NDRC) approved 65 fixed-asset investment projects worth CNY532.8 billion (US$78.4 billion).

GlobalData expects the country’s construction industry to grow by 1.9% in 2020, and record an average annual growth of 4.7% between 2021-2024. The industry’s growth over the forecast period is expected to be driven by investments on new infrastructure projects, which includes investments in the areas of 5G networks, Artificial Intelligence, Internet of Things and data centers. According to the government-backed think tank, the China Electronic Information Industry Development (CCID), the country is expected to spend CNY10 trillion (US$1.4 trillion) on new infrastructure projects between 2020-2025. The industry’s growth will also be driven by investments on transport, renewable energy and residential infrastructure projects

This report provides detailed market analysis, information and insights into the Chinese construction industry, including –

– The Chinese construction industry's growth prospects by market, project type and construction activity

– Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Chinese construction industry

– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline

Scope

This report provides a comprehensive analysis of the construction industry in China. It provides –

– Historical (2015-2019) and forecast (2020-2024) valuations of the construction industry in China, featuring details of key growth drivers.

– Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

– Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.

– Listings of major projects, in addition to details of leading contractors and consultants

Reasons to buy

– Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.

– Assess market growth potential at a micro-level with over 600 time-series data forecasts.

– Understand the latest industry and market trends.

– Formulate and validate strategy using GlobalData's critical and actionable insight.

– Assess business risks, including cost, regulatory and competitive pressures.

– Evaluate competitive risk and success factors.

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Industry: At-a-glance

3 Context

3.1. Economic Performance

3.2. Political Environment and Policy

3.3. Demographics

3.4. COVID-19 Status

4 Construction Outlook

4.1. All Construction

4.1.1. Outlook

4.1.2. Latest news and developments

4.1.3. Construction Projects Momentum Index

4.2. Commercial Construction

4.2.1. Outlook

4.2.2. Project analytics

4.2.3. Latest news and developments

4.3. Industrial Construction

4.3.1. Outlook

4.3.2. Project analytics

4.3.3. Latest news and developments

4.4. Infrastructure Construction

4.4.1. Outlook

4.4.2. Project analytics

4.4.3. Latest news and developments

4.5. Energy and Utilities Construction

4.5.1. Outlook

4.5.2. Project analytics

4.5.3. Latest news and developments

4.6. Institutional Construction

4.6.1. Outlook

4.6.2. Project analytics

4.6.3. Latest news and developments

4.7. Residential Construction

4.7.1. Outlook

4.7.2. Project analytics

4.7.3. Latest news and developments

5 Key Industry Participants

5.1. Contractors

5.2. Consultants

6 Construction Market Data

7 Appendix

7.1. What is this Report About?

7.2. Definitions

8 About GlobalData

8.1. GlobalData Construction

8.2. Disclaimer

8.3. Contact Us

List of Tables

List of Tables

Table 1: Construction Industry Key Data

Table 2: China, Key Economic Indicators

Table 3: China, Commercial Construction Output by Project Type (Real % Change), 2015-2024

Table 4: China, Top Commercial Construction Projects by Value

Table 5: China, Industrial Construction Output by Project Type (Real % Change), 2015-2024

Table 6: China, Top Industrial Construction Projects by Value

Table 7: China, Infrastructure Construction Output by Project Type (real % change), 2015-2024

Table 8: China, Top Infrastructure Construction Projects by Value

Table 9: China, Energy and Utilities Construction Output by Project Type (Real % Change), 2015-2024

Table 10: China, Top Energy and Utilities Construction Projects by Value

Table 11: China, Institutional Construction Output by Project Type (Real % Change), 2015-2024

Table 12: China, Top Institutional Construction Projects by Value

Table 13: China, Residential Construction Output by Project Type (Real % Change), 2015-2024

Table 14: China, Top Residential and Mixed-Use Construction Projects by Value

Table 15: China, Key Contractors

Table 16: China, Key Consultants

Table 17: China, Construction Output Value (Real, US$ Million)

Table 18: China, Construction Output Value (Nominal, CNY Million)

Table 19: GlobalData Construction Market Definitions

List of Figures

List of Figures

Figure 1: North-East Asia, Construction Output (Real % Change), 2020

Figure 2: China, Construction Projects Pipeline by Sector (US$ Billion)

Figure 3: China, COVID-19 Confirmed Cases

Figure 4: China, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2015-2024

Figure 5: China, Construction Output Value, by Sector (Real, US$ Million), 2015-2024

Figure 6: China, Construction Value Add (Accumulated % Change Y-O-Y)

Figure 7: China, Total Value of Buildings Completed by Construction Enterprises (CNY Billion)

Figure 8: China, Investment in Fixed Assets, (Accumulated % Change, Y-O-Y)

Figure 9: China, Investment in Real Estate Development, (Accumulated % Change, Y-O-Y)

Figure 10: China, Values of New Contracts Signed by Construction Enterprises (CNY Trillion)

Figure 11: China, Construction Projects Momentum Index

Figure 12: China, Commercial Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 13: China, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 14: China, Total Retail Sales of Consumer Goods, Current Prices, (CNY Billion)

Figure 15: China, Investment in Commercial Real Estate Development (in CNY Billion)

Figure 16: China, Total Floor Space of Commercial Buildings Under Construction, in Millionm2 (Accumulated % Change, Y-O-Y)

Figure 17: China, Total Floor Space of Commercial Buildings Under Construction, in Millionm2 (Accumulated % Change, Y-O-Y)

Figure 18: China, Value of Buildings Completed for Commercial, Hotel and Office Use (% Change, Y-O-Y)

Figure 19: China, Industrial Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 20: China, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 21: China, Industrial Production Index (2010=100)

Figure 22: China, Purchasing Managers’ Index

Figure 23: China, Industrial Value-Add (% Change, y-o-y)

Figure 24: China, Total Exports (in US$ Billion)

Figure 25: China, Infrastructure Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 26: China, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 27: China, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 28: China, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 29: China, Institutional Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 30: China, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 31: Total Value of Buildings Completed for Scientific Research, Education and Medical Use (% Change Y-O-Y)

Figure 32: China, Residential Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 33: China, Residential Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 34: China, Total Floor Space of Residential Area Under Construction, in million m2 (Accumulated % Change, Y-O-Y)

Figure 35: China, Total Value of Residential Buildings Sold (in CNY Trillion)

Figure 36: China, Investment in Residential Real Estate Development (in CNY Billion)

Figure 37: China, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 38: China, Headquarters of Key Consultants (% of Total Project Pipeline)

Figure 39: GlobalData at a Glance

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