Summary
Growth in the Chinese construction industry slowed in the second quarter of 2021, owing to the high base in the previous year, when the central, as well as provincial governments launched hundreds of construction projects to stimulate the economy in response to the slowdown caused by the Coronavirus (COVID-19) outbreak and resulting containment measures. According to the National Bureau of Statistics (NBS), the industry’s value add grew by 1.8% year on year (YoY) in the second quarter of 2021, compared to a Y-o-Y growth of 22.8% in the previous quarter; however, the double-digit growth in Q1 2021 mostly reflects the low base in Q1 2020, when construction activities were severely impacted by lockdown restrictions.
GlobalData expects the Chinese construction industry to register an annual growth of 7.7% in real terms in 2021, driven by the government’s focus on supporting major projects and progressing the development of new infrastructure and urbanization initiatives. For this purpose, the government allocated CNY610 billion (US$89.3 billion) as part of the latest central government budget for 2021. The construction industry’s output in the third quarter of this year is expected to continue to be affected by the recent upsurge in COVID-19 infections and the subsequent tightening of containment measures. The industry’s output will also be affected by the torrential rains which hit central China in mid-July 2021. The flooding displaced millions of people and caused significant property damage. On a positive note, however, the government readily announced financing to support post-disaster reconstruction in the severely affected provinces.
Over the remainder of the forecast period, the industry is expected to register an annual average growth of 4.2% between 2022 and 2025, supported by investment on infrastructure projects as part of the 14th Five Year Plan (2021-2025). The plan covers development of various sectors, including transport, energy, manufacturing, health, and education, among others. In the long run, the industry’s output will be supported by the government’s plan to achieve a transport network of 700,000km by 2035, coupled with its plan to achieve carbon neutrality by 2060.
GlobalData’s Construction in China - Key Trends and Opportunities to 2025 (Q3 2021) 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 (2016-2020) and forecast (2021-2025) 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.
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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
3.5 Risk Profile
4 Construction Outlook
4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
4.7 Residential Construction
- Outlook
- Project analytics
- 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
7.3 CRI Methodology
7.4 GlobalData Construction
Contact Us
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), 2016-2025
Table 4: China, Top Commercial Construction Projects by Value
Table 5: China, Industrial Construction Output by Project Type (Real % Change), 2016-2025
Table 6: China, Top Industrial Construction Projects by Value
Table 7: China, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025
Table 8: China, Top Infrastructure Construction Projects by Value
Table 9: China, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025
Table 10: China, Top Energy and Utilities Construction Projects by Value
Table 11: China, Institutional Construction Output by Project Type (Real % Change), 2016-2025
Table 12: China, Top Institutional Construction Projects by Value
Table 13: China, Residential Construction Output by Project Type (Real % Change), 2016-2025
Table 14: China, Top Residential Construction Projects by Value
Table 15: China, Key Contractors
Table 16: China, Key Consultants
Table 17: China, Construction Output Value (Real, US$ Billion)
Table 18: China, Construction Output Value (Nominal, CNY Billion)
Table 19: GlobalData Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of Figures
Figure 1: North-East Asia, Construction Output (Real % Change), 2020 and 2021
Figure 2: China, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: China, COVID-19 Confirmed Cases
Figure 4: China, Risk Summary
Figure 5: China, Risk Regional Comparison
Figure 6: China, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025
Figure 7: China, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
Figure 8: China, Construction Value-add, % Change YoY
Figure 9: China, Total Value of Buildings Completed by Construction Enterprises (CNY Billion), % Change YoY
Figure 10: China, Investment on Fixed Assets in The Construction Industry, (Accumulated % Change, YoY)
Figure 11: China, Total Value of New Contracts Signed by Construction Enterprises, (CYN Trillion, YoY % Change)
Figure 12: China, Investment in Real Estate Development, (Accumulated % Change, YoY)
Figure 13: China, Construction Purchasing Managers’ Index (PMI), Seasonally Adjusted
Figure 14: China, Construction Projects Momentum Index
Figure 15: North-East Asia, Construction Projects Momentum Index
Figure 16: China, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 17: China, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 18: China, Value of Buildings Completed for Commercial, Hotel and Office Use (% Change, YoY)
Figure 19: China, Total Floor Space of Commercial Buildings Under Construction, in Million m2 (Accumulated % Change, YoY)
Figure 20: China, Investment on Office Buildings, In CNY Billion, % Change, YoY
Figure 21: China, Investment on Office Buildings, In CNY Billion, % Change, YoY
Figure 22: China, Investment in Commercial Real Estate Development (in CNY Billion), % Change, YoY
Figure 23: China, Total Retail Sales of Consumer Goods, In CNY Billion, YoY % Change
Figure 24: China, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 25: China, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 26: China, Industrial and Manufacturing Value Add (% Change, YoY)
Figure 27: China, Manufacturing Purchasing Managers Index, Seasonally Adjusted
Figure 28: China, Total Exports (in US$ Billion), % Change YoY
Figure 29: China, Automobile Production and Sales, In Thousand Units
Figure 30: China, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 31: China, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 32: China, Fixed Asset Investment in The Transport Sector (% Change, YoY)
Figure 33: China, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 34: China, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 35: China, Total Electricity Generation, In TWh, YoY % Change
Figure 36: China, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 37: China, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 38: China, Total Value of Buildings Completed for Scientific Research, Education and Medical Use YoY % Change
Figure 39: China, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 40: China, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 41: China, Total Floor Space of Residential Area Under Construction, and Total Floor Space of Residential Builds Started This Year, YoY % Change
Figure 42: China, Investment in Residential Real Estate Development (in CNY Billion), YoY % Change
Figure 43: China, Total Value of Residential Buildings Sold (in CNY Trillion), YoY % Change
Figure 44: China, Outstanding Loans for Property Development, Government-Subsidized Housing Development and Personal Housing, YoY % Change
Figure 45: China, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 46: China, Headquarters of Key Consultants (% of Total Project Pipeline)
