Construction In China – Key Trends And Opportunities Report 2020 By Radiant Insights, Inc

This report provides a comprehensive analysis of the construction industry in China. It contains detailed market analysis, information and insights into the Chinese construction industry.

This 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
• Analysis of equipment, material and service costs for each project type in China
• Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Chinese construction industry
• Profiles of the leading operators in the Chinese construction industry
• Data highlights of the largest construction projects in China

Synopsis:

• In real terms, the Chinese construction industry’s output contracted by 0.8% in 2015, following an average annual growth of 8.9% during the preceding four years. Weak economic conditions, low global commodity prices, poor fixed-capital investments, high debt-to-GDP ratios and low investment in real estate contributed to this decline.

• According to the National Bureau of Statistics (NBS), the real estate investment growth rate reached 1.0% in 2015, the lowest level since 2011. This was preceded by annual growth of 10.5%, 19.8% and 16.3% in 2014, 2013 and 2012 respectively.

• Over the forecast period (2016–2020), the Chinese construction industry is expected to grow more slowly than during the review period (2011–2015), due to poor economic growth.

• However, expected expansion in the industry over the forecast period will be driven by investment in public infrastructure and renewable energy, and improvements in consumer and investor confidence.

• Government flagship programs such as the 13th Five-Year Plan (2016–2020), the National New-Type Urbanization Plan (2014–2020), social housing programs, China’s 2016–2020 Energy Plan and Free Trade Zones (FTZ) schemes are expected to support growth over the forecast period.

• The industry’s output value is expected to rise at a compound annual growth rate (CAGR) of 3.12% in real terms over the forecast period to 2020; down from 6.15% during the review period.

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Scope:

This report provides a comprehensive analysis of the construction industry in China. It provides:

• Historical (2011-2015) and forecast (2016-2020) valuations of the construction industry in China using construction output and value-add methods
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type
• Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
• Analysis of key construction industry issues, including regulation, cost management, funding and pricing
• Detailed profiles of the leading construction companies in China

Reasons To Buy:

• Identify and evaluate market opportunities using Timetric’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 Timetric’s critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.

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Key Highlights:

• The Chinese construction industry’s growth rate is slowing in line with the country’s broader economic slowdown. According to the NBS, the construction industry’s value add at current prices grew by 3.7%, increasing in value from CNY4.5 trillion (US$732.5 billion) in 2014 to CNY4.7 trillion (US$739.8 billion) in 2015.

• Rapid urbanization and the growing working population have elevated demand for a fast and convenient transport system. Consequently, the government is investing heavily in expanding the country’s rail network and high-speed railways; the government plans to invest CNY2.8 trillion (US$438.0 billion) in railway projects over 2016–2020. The government also plans to increase the length of high-speed railway lines from 19,000km in 2015 to 30,000km by 2020.

• To improve regional trade, the government plans to connect China with European and Asian countries through adequate transport infrastructure under the One Belt, One Road plan. As part of this plan, in 2015, the government announced plans to invest CNY5.5 trillion (US$900 billion) to construct the Silk Road Economic Belt and the Maritime Silk Road. In the same year, the government announced plans to spend CNY124.4 billion (US$20.0 billion) on the construction of a 3,218km high-speed rail network from China to Tehran.

• The government’s focus on affordable houses is expected to support the residential construction market growth over the forecast period. Under the National New-Type Urbanization Plan (2014–2020), the government plans to build new urban cities with social houses to accommodate 100 million rural migrants by 2020 and 250 million by 2025.

• The government is upgrading the power grid transmission infrastructure across the country in order to reduce electricity waste in transmission and distribution, as well as to increase efficiency. Accordingly, in 2015, it announced plans to invest CNY2.3 trillion (US$315.0 billion) to construct new power grids, and increase the length of the high-voltage network to 1 million km and medium-voltage network to 4 million km in the country by 2020

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