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    Bill Stankiewicz Copy Of Future Of Global Construction To 2014 Bill Stankiewicz Copy Of Future Of Global Construction To 2014 Document Transcript

    • The Future of Global Construction to2014Market Intelligence ReportReference code: WMCN2275MRPublished: October 2010www.worldmarketintelligence.comWorld Market IntelligenceJohn Carpenter House7 Carmelite StreetLondon EC4Y 0BSUnited KingdomTel: +44 (0) 20 7936 6400Fax: +44 (0) 20 7336 6813© World Market Intelligence. This report is a licensed product and is not to be photocopied
    • TABLE OF CONTENTSTABLE OF CONTENTS1 Introduction ........................................................................................................................... 5 1.1 What is this Report About? ............................................................................................................... 5 1.2 Definitions ........................................................................................................................................ 5 1.3 Summary Methodology .................................................................................................................... 82 Executive Summary ............................................................................................................ 113 Construction Industry Analysis ......................................................................................... 13 3.1 Global Macroeconomic Scenario .....................................................................................................13 3.2 Construction Industry Overview.......................................................................................................15 3.2.1 Industry Dynamics .................................................................................................................................... 174 Construction Industry Data ................................................................................................ 18 4.1 Historic Industry Value ....................................................................................................................18 4.2 Historic Industry Segmentation........................................................................................................19 4.3 Industry Value Forecast ..................................................................................................................20 4.4 Industry Segmentation Forecast......................................................................................................215 About World Market Intelligence........................................................................................ 22 5.1 Disclaimer .......................................................................................................................................23The Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 2
    • TABLE OF CONTENTSLIST OF FIGURESFigure 1: Global Overall Construction Industry Dynamics by Market (%), 2005–14 ............................................................................................. 17Figure 2: Global Construction Industry Value (US$ Trillion), 2005–09................................................................................................................. 18Figure 3: Global Construction Industry Segmentation by Market (%), 2005–09................................................................................................... 19Figure 4: Global Construction Industry Value Forecast (US$ Trillion), 2009–14 .................................................................................................. 20Figure 5: Global Construction Industry Segmentation Forecast by Market (%), 2009–14 .................................................................................... 21The Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 3
    • TABLE OF CONTENTSLIST OF TABLESTable 1: World Market Intelligence Construction Industry Definitions .................................................................................................................... 7Table 2: Global Construction Industry Value (US$ Trillion), 2005–09 .................................................................................................................. 18Table 3: Global Construction Industry Segmentation by Market (US$ Trillion), 2005–09 ..................................................................................... 19Table 4: Global Construction Industry Value Forecast (US$ Trillion), 2009–14 ................................................................................................... 20Table 5: Global Construction Industry Segmentation Forecast by Market (US$ Trillion), 2009–14 ...................................................................... 21The Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 4
    • DEFINITIONS AND METHODOLOGY1 Introduction1.1 What is this Report About? This report is the result of WMI‟s extensive market and company research covering the global construction industry*. It provides detailed analysis of both historic and forecast construction industry values, at market and category level, and analysis of the leading companies in the industry. “The Future of Global Construction to 2014” provides a top-level overview and detailed market, category and company-specific insights into the operating environment for construction contractors. It is an essential tool for companies active across the global construction value chain and for new competitors considering entering the industry. *NOTE: The global construction industry comprises of Argentina, Australia, Bahrain, Belarus, Brazil, Bulgaria, Chile, China, Colombia, Croatia, Czech Republic, Egypt, France, Germany, Hungary, India, Indonesia, Kuwait, Malaysia, Mexico, Oman, Peru, Poland, Qatar, Romania, Russia, Saudi Arabia, Spain, Slovenia, Turkey, UAE, the UK, the Ukraine, the US, Venezuela and Vietnam.1.2 Definitions For the purposes of this report, the following timeframes apply: Review period: 2005 to 2009 Forecast Period: 2009 to 2014 The total value of construction projects can be broadly classified into the following sectors, related to the products and service types provided during the project: Land acquisition and preparation Planning and feasibility studies Architectural and engineering design Construction o Construction services  Labor  Project management o Materials  Building products  Construction materials o Construction equipmentThe Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 5
    • DEFINITIONS AND METHODOLOGY Advisory services o Financing o Inspection and testing o Legal Equipment and furnishings o Interior products o Exterior products o Industrial equipment Other This report focuses on the value of the construction industry, based on the total revenue generated by construction contractors each year. All data is collected in local currency. To avoid distortions due to currency fluctuations, all conversions into US$ (of current, historical and forecast data alike) are made at the 2009 annual average conversion rate. All the values in tables, with the exception of compounded annual growth rate (CAGR) and compounded annual rate of change (CARC) are displayed to one decimal place; therefore, growth rates may appear inconsistent with absolute values due to this rounding method. The key markets featured in the report are defined below:The Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 6
    • DEFINITIONS AND METHODOLOGY Table 1: World Market Intelligence Construction Industry Definitions Market Definition Commercial construction includes the construction of such projects as office buildings, sports complexes such as Commercial athletic fields, golf courses and parks, shopping centers, and hotels. For the purposes of this report, the market is construction split into five main areas: leisure and hospitality buildings, office buildings, outdoor leisure facilities, retail buildings, and other commercial construction. Infrastructure construction encompasses a range of heavy infrastructure construction projects. This includes, but is not limited to, the construction of highways, bridges, tunnels, water lines, sewer lines, pipelines, power and Infrastructure communication transmission lines, dams, dikes, docks, drainage projects, harbors, reservoirs, canals, sewage construction treatment plants, water treatment plants, subways, and other mass transit projects. For the purposes of this report, the market is split into six main areas: energy and communication infrastructure, rail infrastructure, road infrastructure, sewage infrastructure, water infrastructure, and other infrastructure projects. Industrial construction consists of the construction, including new build, extensions and major rebuilds, of industrial buildings. The construction of additional structures with similar production processes to industrial buildings, for Industrial example, incinerators, cement plants, blast furnaces, and similar non-building structures, is also included. For the construction purposes of this report, the market is split into seven main areas: chemical and pharmaceutical plants, electricity generation plants, manufacturing plants, metal and material processing plants, refinery buildings, storage tanks, and waste processing plants. Institutional construction includes the construction of buildings and facilities that do not fall within the remit of commercial construction, but which, by nature, are not industrial. This includes educational institutions, research Institutional facilities, healthcare facilities and religious buildings. These may be either public or private sector. For the purposes construction of this report, the market is split into five main areas: educational buildings, healthcare buildings, institutional buildings, religious buildings and research facilities. Residential construction includes the construction, renovation, and demolition of residential buildings such as Residential houses, townhouses, cottages, condominiums, single unit dwellings, subdivisions, and apartments. For the construction purposes of this report, the market is split into three main areas: new multi-family housing, residential building redevelopment and single family housing. Source: World Market Intelligence analysis © World Market IntelligenceThe Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 7
    • DEFINITIONS AND METHODOLOGY1.3 Summary Methodology All WMI reports are rigorously sourced and created according to a comprehensive four-stage methodology:1) Market study A) Standardization Market definitions are specified using recognized industry classifications. The same definition is used for every country. Annual average currency exchange rates are collected for the latest complete year. These are then applied across both the historical and forecast data to remove exchange rate fluctuations B) Internal audit Review of in-house databases to gather existing data: o Historic market databases and reports o Company database o Construction magazine portfolio o Construction projects database C) Trend monitoring and primary research Review of the latest construction company and project trends Biannual surveys using expert panels compiled from across the construction value chain: o Construction contractors o Equipment and material manufacturers and suppliers o Architects and designers o Project owners and financiers o Project advisors2) Research A) Sources Collection of the latest market-specific data from a wide variety of respected industry sources: o Government statistics o Industry associations o Company filings o Broker reports o International organizationsThe Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 8
    • DEFINITIONS AND METHODOLOGY B) Expert opinion Collation of opinion taken from WMI journalist interviews of leading industry figures Analysis of third party opinion and forecasts: o Broker reports o Industry associations o Construction media o Official government sources C) Data consolidation and verification Consolidation of data and opinion to create historical datasets Creation of models to benchmark data across sectors and geographies3) Analysis A) Market forecasts Feed of forecast data into market models: o Macroeconomic indicators o Industry-specific drivers Analysis of the WMI Construction Projects Database to identify trends by sector: o Latest project announcements o Financing shortfalls o Project cancellations and postponements B) Report writing Analysis of market data Discussion of industry trends and issues Integration of survey resultsThe Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 9
    • DEFINITIONS AND METHODOLOGY4) Quality control A) Templates Detailed process manuals Standardized report templates and accompanying style guides Complex forecasting tools used to ensure forecast methodologies are consistently applied Quality control checklists B) Quality control process Peer review Senior level quality control Randomized spot checks on data integrity Benchmark checks across databases Market data cross-checked for consistency with accumulated data from: o WMI Construction Projects Database o Company filingsThe Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 10
    • EXECUTIVE SUMMARY2 Executive Summary The global construction industry grew at a CAGR of 5.62% over the review period. While the industrial construction market was the fastest growing global market during the review period, the residential and infrastructure construction markets led the industry in terms of size in 2009. Indeed, the residential construction market demonstrated strong growth during 2005–08 because of the global economic boom in 2003–07. However, the subprime crisis that emerged in late 2007 in the US led to a fall in both price and demand for residential properties in 2008. This spread to other nations, leading to a global economic crisis towards the end of 2008; and has adversely affected the construction industry. Most world governments introduced large stimulus packages as countercyclical measures to revive economic growth. The stimulus packages largely comprised of infrastructure projects, which helped governments to generate a greater number of jobs quickly, and led to increased construction activity in the infrastructure and institutional construction markets. The impact of global economic crisis was comparatively lower in developing nations, the majority of which recorded growth in the commercial construction market. Office buildings construction was the largest category in the commercial construction market in 2009, due to the growth of the global services sector and consequent expansion of multinational organizations over the review period. Furthermore, as a result of rising income levels in developing nations, the construction of retail buildings was the second largest category in the market. However, in several developing nations, the supply of retail buildings was not sufficient to cater to demand, which attracted large investments to the category. Moreover, increasing income levels across the globe led to an increase in the global expenditure on tourism, which led to growth in the leisure and hospitality, and outdoor leisure facilities categories. The global commercial construction market grew at a CAGR of 7.38% over the review period, and is expected to witness a CAGR of 6.42% over the forecast period. The global residential construction market was the largest construction market in 2009, as the strong growth recorded in the market until 2007 led to the assumption by investors that residential properties were safe and attractive investments. Developing nations even witnessed a shortage in housing, due to increasing populations and rising income levels. However, the residential construction market fell into decline in 2007, as the demand for residential properties significantly decreased in developed nations because of the economic crisis. Therefore, the residential construction market registered a CARC of - 4.83% over the review period, but is expected to record a CAGR of 7.95% over the forecast period. The global industrial construction market was the fastest growing market over the review period. Rapid urbanization, growing industrial sectors, the increasing population, and improving living standards across the world drove the demand for electricity. As the global electricity generation capacity was insufficient to cater to demand, global governments invested substantial sums into the construction of electricity generation plants. Furthermore, the majority of nations have either partially or completely privatized the electricity generation sector to attract private investment and improve the efficiency of the sector. In addition, developing nations in Asia, Africa and Eastern Europe experienced significant growth in the industrial sector because of the availability of low-cost skilled labor. As a result of these factors, the industrial construction market witnessed a CAGR of 19.25% over the review period, and is expected to witness a CAGR of 9.13% over the forecast period.The Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 11
    • EXECUTIVE SUMMARY The global infrastructure construction market was the second fastest growing market over the review period. Several developed nations with greater resources to make improvements to national infrastructure took part in large public private partnership (PPP) projects. Several sporting events, such as the Olympic Games in China, the Commonwealth Games in India, and the European Championship in Poland and the Ukraine, required the hosting nations to invest large amounts in infrastructure development. Moreover, the importance of logistical support to the continuation of industrial growth in developing nations required caused governments to introduce stimulus packages and increase expenditure on the development and upgrade of transport infrastructure. Furthermore, with increasing income levels, the majority of nations developed better communications infrastructure and improved the national access to electricity, including to those in isolated areas, to raise living standards and support economic growth. Finally, emerging global concerns about the scarcity of water also caused many nations to increase expenditure on water infrastructure. The infrastructure construction market witnessed a CAGR of 12.00% over the review period, and is expected to register a CAGR of 7.97% over the forecast period. The global institutional construction market was the smallest market over the review period. Educational buildings and healthcare buildings were the two largest categories in the market, as the majority of nations privatized the healthcare sector, which attracted large investments to the sector. Conversely, global educational sectors largely remain in the control of the government, although several governments now allow private investors to establish academic institutions. The institutional construction market witnessed a CAGR of 8.19% over the review period, and is expected to witness a CAGR of 5.11% over the forecast period.The Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 12
    • CONSTRUCTION INDUSTRY ANALYSIS3 Construction Industry Analysis3.1 Global Macroeconomic Scenario During 2008–09, the global economy faced a financial crisis. The subprime crisis that emerged in the US in late 2007 led to restrictions on credit and the loss of consumer and business confidence worldwide. Most affected were developed nations, such as the US, the UK and Western European nations, because of excess liquidity and a low interest rate and „easy credit‟ regime, which led to an oversupply in several markets in developed nations. This led to the decline of several global markets, the residential construction market in particular. Since the mid 2000s, the economies of countries in the Gulf Co-operation Council (GCC) recorded escalated growth as rising oil prices increased government revenues. However, as a result of fluctuations in the price of oil, these nations sought to develop other industries and reduce dependence on the oil sector. As a result, construction activity in major cities in the region, such as Dubai and Abu Dhabi, increased at a fast rate. However, during the global economic crisis, several construction companies either terminated or delayed construction projects due to lack of financing. However, the wealth created by the increase in oil prices during 2003–08prevented several large bond issuers from defaulting, which would otherwise have severely dented consumer confidence in the region. Developing nations, particularly those in Asia and Eastern Europe, provided the main stimulus for economic growth during the global economic crisis. These nations recorded strong population growth, increasing the size of the global population under the age of 25. As a result of these large, young and, often, skilled populations increased the productivity and economic output of developing nations, and supported the global consumption of goods. Furthermore, the economic potential of these countries attracted substantial public and private investment; and, as the cost of skilled labor was low compared to that of developed nations, multinational organizations began to expand and invest into these nations. Several developing nations received additional foreign direct investment (FDI) because of major sporting events such as the Beijing Olympic Games 2009 and FIFA World Cup 2010. Hosting these events led to growth in private investment and foreign tourism in these countries, and provided an opportunity to present these countries to the rest of the world as attractive business destinations. Moreover, several Eastern European countries due to join the EU recorded substantial economic growth because of the availability of EU funds and increased FDI inflows from European multinational organizations. During the forecast period, accession to the EU is likely to eliminate several trade barriers between these countries and other EU nations, which will continue to make the Eastern European region an attractive business destination for global manufacturing companies. Furthermore, rising inflation in emerging nations is unlikely to be a significant factor during the forecast period, as although it has been a concern for central banks, which are restricting liquidity to control inflation in 2010. the impact of this is expected to be low on these economies. The global economy declined by 2.2% in 2009, despite strong performances from emerging nations in Asia and Eastern Europe. During the forecast period, the global economic recovery is likely to be led by emerging nations, with developed nations following due to significant government stimulus packages, and the development of new fiscal and monetary policies. The World Bank expects the global economy to grow by 2.7% in 2010, followed by 3.3% in 2011. However, the outlook remains, uncertain as much ofThe Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 13
    • CONSTRUCTION INDUSTRY ANALYSIS the growth in the second half of 2009 and first half of 2010 was attributed to excess liquidity made available by central banks, and tax benefits that boosted consumer spending. Furthermore, positive earnings from the corporate world have been largely attributed to the low base effect and cost cutting, rather than high sales. The main concern for the governments of developed nations over the forecast period will be to reduce the high levels of public debt accumulated from large stimulus packages awarded during the financial crisis to try to reduce the negative effects of recession. Indeed, government revenues remained lower because of lower income from both business and personal tax revenues, and the provision of unemployment benefits to the large numbers of unemployed added to the debt. Moreover, analysts are cautiously optimistic of the economic growth of developed nations, as macroeconomic data recorded negative growth in July 2010 as the effects of stimulus packages and fiscal policies diminished. Several Western European countries, such as Spain, Ireland and Greece, now face large sovereign debt issues, which the respective governments are now attempting to tackle by making cuts to public spending. While it is uncertain as to whether these measures will decrease consumer spending, increase unemployment levels and reduce economic growth, the measures are required to avoid a sovereign debt default, which would have a much larger impact on the global economy. The global economy largely depends on the consumption levels of the US. Macroeconomic data has projected an optimistic view of the economy from early 2010, because of the developments to US fiscal policies and the stimulus spending of the US government. However, as unemployment rates in the US remain high at 10% despite several measures by the government to increase employment, some aspects of the global recovery remain uncertain.The Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 14
    • CONSTRUCTION INDUSTRY ANALYSIS3.2 Construction Industry Overview The global construction industry, which employs more people than any other single industry in the world, recorded strong growth over the review period. The most notable activity to take place over the review period occurred within the global residential construction market. A combination of low interest rates and access to credit led to a boom in the global residential construction market, particularly in developed markets such as the US, until 2007. The increasing demand for housing then led to an increase in speculative activity, which accelerated inflation in the price of housing. However, house prices peaked in 2007 and interest rates began to rise, leading to a lower demand for residential properties. Following this, the subprime crisis caused house prices to fall drastically, and the demand for housing further declined. As a result of low demand, several residential construction projects in developed nations were either delayed or cancelled. However, the subprime crisis has a lesser effect on developing nations, which continued to face housing shortages because of population growth and increasing income levels. The global residential construction market is expected to recover in accordance with the global economy over the forecast period. In addition, the commercial construction market recorded significant activity over the review period, due to the wealth created for both developed and developing nations by the economic boom during 2003– 07. Rising income levels increased the demand for retail buildings, which, in several developing nations, could not be satisfied at the rate necessary. Therefore, private developers began to invest substantial amounts of capital into the construction of large commercial centers. Increasing personal incomes also led to higher discretionary spending in the global tourism sector. Countries with exotic tourist locations, a rich cultural background or inexpensive medical facilities took advantage of this by developing the infrastructure required to attract tourists. In particular, Thailand, India and Eastern European countries became attractive destinations for medical tourism, as they were relatively less expensive and easily accessible for foreign travellers. The economic boom also caused the services sectors in several developing countries, such as India and the Philippines, to expand at a rapid rate, which also attracted investment from private developed for the construction of office buildings. In particular, the demand for office space in the GCC countries escalated during the review period, as the government encouraged the development of non-oil related industries in order to diversify its economy. However, from 2008, office space was in oversupply in some of the GCC countries, as the global economic crisis led to the closure or consolidation of many large companies. The global infrastructure construction market attracted significant public spending over the review period, as the lack of quality infrastructure proved detrimental to the economic growth of developing markets. To sustain industrial growth, developing nations invested in the construction of efficient transport infrastructure, which supported freight and logistical operations, while increasing traffic congestion in urban cities worldwide led governments to invest in mass transit projects, such as metro railways. In particular, the GCC nations, which lacked efficient rail infrastructure, invested large sums in the development of a rail network that not only connected national locations, but also across the region. Sporting events such as the Beijing Olympics in 2008 and FIFA World Cup in 2010 also encouraged the growth of the infrastructure construction market in hosting nations. The industrial construction market recorded strong growth over the review period especially in developing countries with low-cost skilled workers, such as China and India. To take advantage of this fact, developing nations invested in the construction of industrial zones to attract foreign companies and international recognition as industrial centers, Furthermore, competition between these nationsThe Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 15
    • CONSTRUCTION INDUSTRY ANALYSIS increased, and many implemented pro-business policies and tax incentives to attract foreign investment. Moreover, while oil-rich nations, such as the GCC countries, registered strong growth in the refinery buildings construction category, increases in the global consumption of electricity resulted in significant investment in the construction of the electricity generation plants. The electricity generation plants category also experienced rapid growth because of an increasing global awareness of the benefits of renewable energy sources and nuclear energy, and efforts to decrease global reliance on fossil fuels. As the demand for electricity has not yet been met in many locations around the world, particularly in rural areas, the electricity generation plants category is expected to continue to record rapid growth throughout the forecast period. Global government spending on education and healthcare increased over the review period because of demographic and economic growth. While the aging populations of developed nations required improved and easily accessible healthcare services, developing nations invested in healthcare services in order to reduce mortality rates and increase life expectancy, especially in rural areas. In addition, education provision became imperative in developed nations over the review period because of its positive impact on long-term economic growth, especially in the services sector. Several international organizations awarded funding to the healthcare and educational sectors of underdeveloped and developing nations, which, in turn, supported the growth of the construction industry in these categories. Furthermore, with continued government spending and international aid, the institutional construction market is expected to grow at a stable rate over the forecast period. The global construction industry grew at a CAGR of 5.62% over the review period, and is expected to witness a CAGR of 7.75% over the forecast period due to the recovery of world economies from the global economic crisis.The Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 16
    • CONSTRUCTION INDUSTRY ANALYSIS3.2.1 Industry Dynamics Within the global construction industry, residential construction was the largest market over the review period, with a share of 29.6% in 2009. The industrial construction market witnessed the fastest CAGR of 19.25% over the review period, and is also expected to record the fastest CAGR of 9.13% in the forecast period. Figure 1: Global Overall Construction Industry Dynamics by Market (%), 2005–14 Note: Bubble size represents 2009 market value (US$ trillion) Source: World Market Intelligence analysis / © World Market IntelligenceThe Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 17
    • CONSTRUCTION INDUSTRY DATA4 Construction Industry Data4.1 Historic Industry Value In 2009, the global construction industry valued US$3.9 trillion, which indicated a decline of 2.3% over figures from 2008. Over the review period, the industry experienced a CAGR of 5.62%. Table 2: Global Construction Industry Value (US$ Trillion), 2005–09 Year US$ Trillion % Growth 2005 3.2 2006 3.5 12.3% 2007 3.9 9.2% 2008 4.0 3.8% 2009 3.9 -2.3% CAGR 2005–09 5.62% Source: World Market Intelligence analysis /© World Market Intelligence Figure 2: Global Construction Industry Value (US$ Trillion), 2005–09 Source: World Market Intelligence Analysis /© World Market IntelligenceThe Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 18
    • CONSTRUCTION INDUSTRY DATA4.2 Historic Industry Segmentation With a value of US$1.2 trillion and a market share of 29.6%, residential construction was the largest market in the global construction industry in 2009. Infrastructure construction held the second largest share, and accounted for a value of US$1.0 trillion. Industrial construction accounted for a value of US$0.8 trillion, and was the third largest construction market. Over the review period, industrial construction was the fastest growing market in the global construction industry, with a CAGR of 19.25%. This was followed by infrastructure construction, with a CAGR of 12.00%, and institutional construction, with a CAGR of 8.19%. Table 3: Global Construction Industry Segmentation by Market (US$ Trillion), 2005–09 CAGR Market 2005 2006 2007 2008 2009 2005–09 Residential construction 1.4 1.5 1.5 1.3 1.2 -4.83% Infrastructure construction 0.6 0.8 0.9 1.0 1.0 12.00% Industrial construction 0.4 0.5 0.6 0.8 0.8 19.25% Commercial construction 0.4 0.5 0.6 0.6 0.5 7.38% Institutional construction 0.3 0.3 0.3 0.4 0.4 8.19% Overall 3.2 3.5 3.9 4.0 3.9 5.62% Source: World Market Intelligence analysis / © World Market Intelligence Figure 3: Global Construction Industry Segmentation by Market (%), 2005–09 Source: World Market Intelligence analysis / © World Market IntelligenceThe Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 19
    • CONSTRUCTION INDUSTRY DATA4.3 Industry Value Forecast WMI expects the global construction industry to record a CAGR of 7.75% over the review period, increasing in value from US$3.9 trillion in 2009 to US$5.7 trillion in 2014. Table 4: Global Construction Industry Value Forecast (US$ Trillion), 2009–14 Year US$ Trillion % Growth 2009 3.9 2010 4.1 5.2% 2011 4.5 10.1% 2012 4.9 7.3% 2013 5.3 8.0% 2014 5.7 8.3% CAGR 2009–14 7.75% Source: World Market Intelligence analysis / © World Market Intelligence Figure 4: Global Construction Industry Value Forecast (US$ Trillion), 2009–14 Source: World Market Intelligence analysis / © World Market IntelligenceThe Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 20
    • CONSTRUCTION INDUSTRY DATA4.4 Industry Segmentation Forecast With a predicted CAGR of 7.95% and market value of US$1.7 trillion, residential construction is forecast to remain as the largest market in 2014. WMI also expects the residential construction market to increase its market share from 29.6% in 2009 to 29.9% in 2014. Infrastructure construction is expected to be the second largest market in the industry, with a share of 26.1%. Table 5: Global Construction Industry Segmentation Forecast by Market (US$ Trillion), 2009–14 CAGR Market 2009 2010 2011 2012 2013 2014 2009–14 Residential construction 1.2 1.2 1.4 1.5 1.6 1.7 7.95% Infrastructure construction 1.0 1.1 1.2 1.3 1.4 1.5 7.97% Industrial construction 0.8 0.9 1.0 1.1 1.2 1.3 9.13% Commercial construction 0.5 0.5 0.6 0.6 0.7 0.7 6.42% Institutional construction 0.4 0.4 0.4 0.4 0.5 0.5 5.11% Overall 3.9 4.1 4.5 4.9 5.3 5.7 7.75% Source: World Market Intelligence analysis / © World Market Intelligence Figure 5: Global Construction Industry Segmentation Forecast by Market (%), 2009–14 Source: World Market Intelligence analysis / © World Market IntelligenceThe Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 21
    • APPENDIX5 About World Market IntelligenceWorld Market Intelligence (WMI) is a premium information and marketing solution company focused onproviding high quality information and software solutions to drive business success. Its business spansthree main areas:Research ReportsWMI publishes in-depth strategic intelligence reports across many key industries. Its reports draw on in-depth primary and secondary research, proprietary databases, and high quality analysis from its expertteams. Data and analysis at the company, country and industry level includes competitor and marketdata, valuations, trends and forecasts.For more information on WMI‟s construction research reports, please visitwww.worldmarketintelligence.comPremium Information ServicesWMI‟s Premium Information Services are unique, interactive desktop decision tools for executives andanalysts in a range of functions and industries. Subscribers receive access to comprehensive businessplanning tools, databases, opinion and research reports integrated with innovative desktop and emailtools for easy search, browse, and data access. It also provides custom research and consultingsolutions.For WMI‟s Construction Intelligence Center product, visitwww.worldmarketintelligence.com/ic/constructionMedia and Marketing SolutionsWMI‟s media brands have a history of providing market-leading information products and services thatdates back over 130 years. Through its multiplatform media networks, WMI has relationships withhundreds of thousands of industry participants, enabling it to offer powerful and comprehensive marketingsolutions to its clients.For WMI‟s construction media and marketing sites, please visitwww.worldconstructionindustrynetwork.comWMI‟s corporate headquarters are in London, UK, with offices in Manchester, UK, and Hyderabad, India.It has over 100 staff dedicated to its construction business unit. It is a part of Progressive Media Group,one of the world‟s leading media, information and communication groups.For further information, email info@worldmarketintelligence.comThe Future of Global Construction to 2014 Published October 2010© World Market Intelligence. This report is a licensed product and is not to be photocopied Page 22
    • APPENDIX5.1 Disclaimer All rights of this report are reserved No part of this report may, in any form or by any means, be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, WMI. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that WMI delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such WMI can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect. The Future of Global Construction to 2014 Published October 2010 © World Market Intelligence. This report is a licensed product and is not to be photocopied Page 23