By 2023, the global construction industry is expected to grow by almost 4% in real terms. The United States, China, and India will continue to be the largest markets, with each representing approximately one-fifth of global construction activity. Within developed markets, growth will be strongest in Canada, the United Kingdom, and Australia, while the construction industry in Western Europe is expected to remain relatively flat.
In terms of sectors, the non-residential construction segment is projected to grow the fastest, with an expected 5.2% annual expansion through 2023. This is being driven by strong demand for office and commercial space, as well as healthcare and educational facilities. The residential construction sector is also expected to see healthy growth over the next five years, driven by population growth and rising household incomes.
The construction industry is a vital driver of economic growth, and its health is closely linked to the overall health of the global economy. In recent years, the industry has been buffeted by a number of headwinds, including rising interest rates, material prices, and geopolitical tensions. However, these challenges are expected to abate over the next five years, leading to strong growth in construction activity around the world.
