Recent Release | 01 Sep 2023

Digitalisation and Modern Methods of Construction

Economic Consulting Team

Oxford Economics

Digitalisation and modern methods of construction will support the decarbonisation of infrastructure and built assets.

Global Construction Futures is a major study of the global construction and engineering industry published by the renowned team of construction economists at Oxford Economics.

This Executive Summary with PwC distils key trends while the main report of almost 600 pages looks in detail and gives forecasts for all major construction and engineering markets globally. Forecasts are given for construction work done in each country as well as for the residential, non-residential, and civil engineering sectors over the next 15-year period to 2037.

Oxford Economics also separately provides a detailed dataset and forecasts of construction work done with annual data over more than a 25-year period from 2010 to 2037 with forecasts for 10 detailed subsectors. This dataset gives the size and growth of construction work done and gross output across some 80 countries globally representing over 95% of world output.

This report covers:

China, US, and India: Global construction superpowers drive growth with Emerging Asia and sub-Saharan Africa highest growing regional markets
China: Short-term growth to drive recovery but longer-term structural challenges lead to weaker growth
United States: Slump in residential construction driven by higher interest rates
India: Population growth to drive global construction superpower
UK: Fastest growing construction market in Western Europe supported by infrastructure mega projects
Australia: A giant resources market that also benefits from service growth
ASEAN Tigers: Fastest growing construction markets globally in Indonesia, Philippines, and Vietnam, supported by strong fundamentals
Western Europe: Regains position as second-largest construction market, but growth prospects to dim later
Ukraine, Turkey, and Eastern Europe: Heightened growth expected from the reconstruction of Ukraine, and post-earthquake rebuilding in Turkey
LATAM: Catch-up from the lost decade of recession and IMF-driven austerity
Saudi Arabia and MENA: Supersized Giga Projects drive growth and diversification
Monetary Policy: Normalisation of rates brings inevitable near-term headwinds for construction markets globally
Green construction and climate change: Arguably the construction industry’s greatest challenge globally
Digitalisation: Transformative for construction productivity as well as driving mass decarbonisation
Higher materials prices: Impact construction volumes globally
Why we need to decarbonise the construction value chain and how it’s going to be harder than it may seem

Contacts

Paul Sloman, Partner, Engineering and Construction Sector Leader, PwC United Kingdom

Christopher Temple, Partner, Net Zero Transformation Leader, PwC United Kingdom

Daryl Walcroft, Partner, Global Engineering and Construction Sector Leader, PwC United State

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Why We Need to Decarbonise the Construction Value Chain

Many major economies have committed to becoming Net Zero by 2050, but few appear to have a coherent plan to fully decarbonise its construction sector.

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About the team

Our construction and industry teams are world leaders in quantitative economic and industry analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the-art techniques. Lead economists on this project are: