Global spending in construction is forecasted to hit $17.5 trillion by 2030, according to a recent analysis by Frost & Sullivan’s entitled, Future of Construction, Global, 2030.
The study looked at key trends that are likely to disrupt the construction industry in the next five to 10 years, such as digitization, autonomy, new business models and sustainability, as well as economic and social trends within the residential, nonresidential, and infrastructure sectors.
According to the report, China, the United States and India are leading the way in construction spending, accounting for 57 percent of all global growth. Furthermore, more than 60 percent of the global infrastructure investment will take place in emerging economies, particularly Asia, while the United States and Canada will contribute almost 20 percent.
Buildings and civil infrastructure are expected to be the fastest-growing segments in emerging economies from 2018 to 2030, while infrastructure investments in electricity and roads will be the highest among all sectors due to market need.
“By 2030, the construction industry will account for 14.7 percent of all global economic output, with China, India, and the United States being the biggest investors,” noted Vinay Venkatesh, visionary innovation research analyst.
The report also noted that an increasingly aging workforce and digitization are driving investments in workforce management and digital solutions, lending to a transition toward new business models that are technology and data-driven.
“Technological advancements in artificial intelligence, cloud software, drones, and pre-fab construction will be leveraged to reduce cost and improve quality and speed of construction,” said Chaitanya Habib, visionary innovation research consultant at Frost & Sullivan. “Smart infrastructure technologies embedded with telematics, too, will influence the future of the industry by creating an intelligent and on-demand system that reduces operational costs and augments productivity.”
To read the full analysis, click here.
