IHS Global Insight indicated that the downturn in the global construction market is slowing and is likely to stabilize.
It predicted that the market will grow by a low 0.01% in 2010, after contractions in 2008 and 2009, as strong upturns in Asia coincide with slowing declines in the United States and Western Europe. It considered that the very modest recovery of global construction in 2010 positions the industry for stronger gains in 2011, as it lags the expected bounce in economic growth around the world next year. It projected the global construction market to grow by a compound annual growth rate of 4.1% during the 2009-14 period and by 4.2% in 2009-19. It forecast the residential market to post a CAGR of 4.4% in 2009-14, and for the commercial and office segments to grow by 3.5% and 2.8%, respectively during the same period. It noted that construction in energy and public health will grow by 6.3% and 6%, respectively, posting the highest growth rates among all segments of the construction market. It added that chemicals and food processing will show significant growth of 5.3% and 4.6%, respectively, over the 2009-14 period. IHS Global Insight considered that the Asian construction market will lead the sector’s global growth with a CAGR of 7.1% over the 2008-13 period for non-Japan Asia. It expected the Middle East & Africa to be the second fastest region in terms of construction growth at 3.5%, followed by South America with 3.2%, Eastern Europe with 2.5% and North America with 2%, while Western Europe will contract by 0.5%.
Source: IHS Global Insight