The global construction market is set for a sustained period of strong growth, driven by an expected surge in government spending on infrastructure and the transition to net zero. However, the switch to sustainable energy and the adoption of modern building methods will transform the risk landscape, with radical changes in design, materials and construction processes.
The global construction industry is about to embark on a sustained period of growth, driven by the needs of a growing world population and the transition to a more sustainable world. According to a recent report from Marsh and Oxford Economics [1], the global construction industry is forecast to grow 42% to $15trn by 2030. The construction industry is expected to be a major driver of economic growth in the coming decade, outperforming manufacturing and services.
The positive growth outlook is based on a number of factors. Rising populations in emerging markets, urbanization and a growing working age population are expected to drive the need for homebuilding, infrastructure and workplace construction. The transition to a low carbon or net zero economy will require significant investment in alternative forms of energy, such as wind, solar and hydrogen, as well as power storage, transmission and supporting services. According to the International Energy Agency (IEA) [2], pursuing net zero would create a market for wind turbines, solar panels, lithium-ion batteries, electrolyzers and fuel cells of well over $1trn a year by 2050, comparable in size to the current oil market.
