China Construction Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.59 Trillion |
| Market Size (2029) | USD 5.87 Trillion |
| CAGR (2024 - 2029) | 5.07 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Construction Market Analysis
The China Construction Market size is estimated at USD 4.59 trillion in 2024, and is expected to reach USD 5.87 trillion by 2029, growing at a CAGR of 5.07% during the forecast period (2024-2029).
- China's economic growth has remained generally stable, the development trend of stability and progress, the main macroeconomic indicators are operating in a reasonable range, and the economic structure is being optimized and adjusted.
- China is in the middle of a massive boom in manufacturing. The nation has the largest building market in the world, accounting for 20% of all construction investments worldwide. And it is set to grow: China is expected to spend nearly USD 13 trillion on buildings by 2030. Due to the impact of COVID-19, -19 investments were cut as cash flow across the developer market. Developed projects and commercial businesses were subjected to large fluctuations in retail activity, rental income declined, and businesses decided to shrink office space to lower rental costs.
- In January 2022, China unveiled plans to develop its construction industry during the 14th Five-Year Plan (2021-2025), paving a pillar of the country's economy on a greener, smarter and safer path.
- The Government specifically aims for the development of prefabricated buildings that are partially or fully assembled in factories and shipped to construction sites for assembly will account for more than 30% of new construction in the country. New construction sites will generate less than 300 tons of construction waste per 10,000 square meters. In addition, China's state-owned railway company plans to double the size of its high-speed rail network over the next 15 years. This will drive the growth of the infrastructure construction sector.
China Construction Market Trends
Increase in Output value of China Construction Industry
- The output value of construction in China from 2011 to 2021 indicates progressive growth in the industry. In 2022, the construction industry in China generated an output of over 31 trillion yuan (4.37 trillion), representing an increase of almost 100 percent from a decade ago.
- Demographics are expected to continue spurring growth in residential construction in China. Rising household income rates, along with population migration from rural to urban areas, are expected to continue to drive demand for residential construction in the country. Increased emphasis on both public and private sector affordable housing would fuel development in the residential construction sector.
- Non-residential infrastructure is also projected to expand dramatically in the coming years. The aging population in China is increasing the demand for the construction of healthcare facilities and new hospitals. Rising wages are also expected to boost consumer spending in China. This will create demand for various services, including education and entertainment, and later for plant construction in the country.
- In contrast, infrastructure projects have maintained double-digit growth since June 2022, offsetting a decline in demand for construction work from developers. Investment in Power & Utilities and Hydraulics & Environment projects increased by 17.8% and 12.8% year-on-year in September 2022, respectively. As a result, overall construction activity expanded in 2022, reflected in the strength of the construction PMI.
Increase in Value of Contracts
- From January to February 2023, the value of performed overseas contracts was RMB 126.69 billion, up 11% (USD18.23 billion, up 1.5%) year-on-year; the value of new contracts was RMB174.09 billion, down 9.9% (USD 250.5 billion, down 17.6%) year-on-year.
- In 2022, approximately 36.65 trillion yuan (USD 5.17 trillion) worth of new contracts were signed by the construction enterprises in China, accounting for more than half of the total value. Driven by rapid urbanization, the construction industry in China exceeded the output of 31 trillion yuan (USD 4.37 trillion) in that year. In 2022, the share of the urban population in China increased by 1.1 percentage points (+1.76 percent) since 2021. While the growth is slowing down, with 63.56 percent, the share is at its peak in the observed period. Notably, the share continuously increased over the last years.
- Furthermore, Infrastructure investment is likely to continue to grow in 2023 on robust local-government bond issuance, accelerated project launches, and supportive policy at both the central and local government levels. In 2022, the value added of the Chinese construction industry increased by about 5.5 percent compared to the previous year, 2021.
China Construction Industry Overview
The Chinese construction market is fragmented. However, the market holds opportunities for small and medium players due to increasing government investments in the sector. Some of the major players are China State Construction Engineering, China Railway Group, China Railway Construction, China Communications Construction Company, Power Construction Corporation of China, and many more. The Chinese construction market presents opportunities for growth during the forecast period, which is expected to further drive market competition. Large players competing with others for a significant share leave the Chinese construction market with no observable levels of consolidation.
China Construction Market Leaders
China State Construction Engineering
China Railway Group
China Railway Construction
China Communications Construction Company
Power Construction Corporation of China
*Disclaimer: Major Players sorted in no particular order
China Construction Market News
- December 2023: Recently, "Engineering News-Record" (ENR), one of the world's most authoritative academic journals in engineering and construction, announced the winners of the 2023 Global Best Projects Awards. I received awards for two projects. The Lamu Port Berth 1-3 Project was honored with the Award of Merit in the Airport and Port category, while the Peljesac Bridge and its access roads in Croatia received the Award of Merit in the Bridge and Tunnel category.
- July 2023: The Shaoxing Metro Line 2, constructed by CRCC, officially opened, marking the commencement of a new era of automated and driverless subway systems in Shaoxing. This 10.8-kilometer line, featuring nine stations, represents Shaoxing's inaugural automated and driverless subway and the second in Zhejiang Province. As a co-host city with the most events for the Asian Games, the inauguration of Line 2 will further boost the development of the "Commuting Circle" for the Hangzhou Asian Games, providing robust support for the successful hosting of the event.
China Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Government Infrastructure Spending
4.2.2 Urbanization and Increasing Disposable Incomes
4.3 Market Restraints
4.3.1 Oversupply in the Real Estate
4.3.2 Labor Shortages
4.4 Market Opportunities
4.4.1 Technology Advancements
4.4.2 Green Building Initiatives
4.5 Industry Attractiveness- Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Value Chain / Supply Chain Analysis
4.7 Technological Innovations in the Construction Sector
4.8 Impact of Government Regulations and Initiatives on the Industry
4.9 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Sector
5.1.1 Residential
5.1.2 Commercial
5.1.3 Industrial
5.1.4 Infrastruture (Transportation)
5.1.5 Energy and Utilities
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 China State Construction Engineering
6.2.2 China Railway Group
6.2.3 China Railway Construction
6.2.4 China Communications Construction Company
6.2.5 Power Construction Corporation of China
6.2.6 China Metallurgical Group
6.2.7 China Energy Engineering Corporation
6.2.8 Shanghai Construction Group
6.2.9 China National Chemical Engineering
6.2.10 China Petroleum Engineering Corporation*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
China Construction Industry Segmentation
Construction is the installation, maintenance, and repair of buildings and other stationary structures, as well as the construction of roadways and service facilities that form fundamental components of structures and are required for their operation.
The China construction market is segmented by sector (residential, commercial, industrial, infrastructure - transportation, energy, and utilities).
The report provides market size and forecasts in value (USD) for all the above segments.
| By Sector | |
| Residential | |
| Commercial | |
| Industrial | |
| Infrastruture (Transportation) | |
| Energy and Utilities |
China Construction Market Research FAQs
How big is the China Construction Market?
The China Construction Market size is expected to reach USD 4.59 trillion in 2024 and grow at a CAGR of 5.07% to reach USD 5.87 trillion by 2029.
What is the current China Construction Market size?
In 2024, the China Construction Market size is expected to reach USD 4.59 trillion.
Who are the key players in China Construction Market?
China State Construction Engineering, China Railway Group, China Railway Construction, China Communications Construction Company and Power Construction Corporation of China are the major companies operating in the China Construction Market.
What years does this China Construction Market cover, and what was the market size in 2023?
In 2023, the China Construction Market size was estimated at USD 4.36 trillion. The report covers the China Construction Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the China Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key Challenges in the China Construction Market?
The key challenges in the China Construction Market are a) Increased wages and a shrinking pool of skilled construction workers b) Decrease in economic growth
China Construction Industry Report
The China construction market is anticipated to experience significant growth, fueled by investments in development programs and infrastructure projects. The market is segmented into various sectors including commercial, industrial, infrastructure, energy and utilities, institutional, and residential construction. The residential construction sector led the market, with its growth attributed to government measures to revive the real estate sector. The infrastructure construction sector is projected to grow due to plans to expand the railway network, while the energy and utilities construction sector will benefit from investments in power generation and transmission projects. Commercial construction is expected to be driven by investments in retail, data center, and logistics projects, and developments in the tourism sector. The industrial construction sector's growth is attributed to government investment in the semiconductor manufacturing industry, while institutional construction will be supported by investment in the construction of laboratories and hospital facilities. Mordor Intelligence™ Industry Reports provide statistics for the China Construction market share, size, and revenue growth rate, including a market forecast outlook and a historical overview. Get a sample of this industry analysis as a free report PDF download.
