Impact of COVID-19 on Construction Industry Market- Opportunity Assessment, Historical Analysis, Regional Trends, Sales Revenue and Forecast

The global construction market size is expected to decline from USD 11,217.4 billion in 2019 to USD 10,566.8 billion in 2020. However, the industry showed signs of recovery since the beginning of 2021 and is expected to reach a market size of USD 13,572.4 billion in 2024, projecting a CAGR of 6.0% between 2020 and 2024. Prior to the COVID-19 outbreak, the construction industry had been showing signs of weakness, with the residential market struggling due to rising unemployment, majorly in India, liquidity crunch in the non-bank financial sector, and a decline in new residential projects launched.

The situation was expected to improve in 2020 due to government initiatives such as improving liquidity position and expanded infrastructure investments. Still, the COVID-19 outbreak and the resultant disruption in the economy have exacerbated the situation around the world. For example, many construction companies had to shut down their activities due to the movement and unavailability of labor.

APAC is the largest construction market. The major international players are exploring opportunities in the region owing to cheap labor, raw materials, and high demand from various sectors such as residential, non-residential, and heavy & civil engineering. However, COVID-19 has affected the entire world disastrously, and APAC is one of the most affected regions, globally. The deadly virus has affected various major markets in APAC, including China and India. It has forced the government to lock down in multiple phases that resulted in slow down across all the sectors.

The key players in the construction industry include Bechtel Group (US), Balfour Beatty (UK), Grupo ACS (Spain), China State Construction Engineering Corporation Limited (China), L&T Construction (India), PCL Construction Enterprises (Canada), and Skanska Construction (Sweden).
read more..