Dublin, Feb. 16, 2024 (GLOBE NEWSWIRE) -- The "Taiwan Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2023-2027" report has been added to ResearchAndMarkets.com's offering.
The Taiwanese construction industry declined by 4.1% in real terms in 2023, due to the impact of higher interest rates, weak investor confidence and a decline in foreign direct investment (FDI). As per the data from the Directorate General of Budget, Accounting and Statistics (DGBAS), the construction industry's value-add fell by 4.3% YoY in Q2 2023, following YoY declines of 5.4% in Q1 2023 and 3.1% in Q4 2022.
Moreover, the total floor area on which construction works had commenced declined by 6.4% in the first nine months of 2023, preceded by an annual growth of 1.5% in 2022, according to Ministry of the Interior (MoI), Taiwan. According to Ministry of Economic Affairs (MOEA), the total number and value of foreign direct investment (FDI) projects approved in the country declined by 7.6% YoY and 28.4% YoY, respectively, during the first nine months of 2023. Furthermore, in November 2023, a number of Japanese firms withdrew their investment in Taiwanese offshore wind projects due to rising costs, project delays, and changes in local procurement rules. This is expected to weigh on construction activity into 2024.
However, the country's construction industry is expected to record growth from 2024, registering a rise of 3.4% in 2024 and expanding at an annual average rate of 3.9% between 2025 and 2027, supported by investment in renewable energy, rail and road infrastructure and water infrastructure. In August 2023, the Government's budget plan of TWD2.9 trillion ($98.5 billion) for 2024 was approved by the Cabinet, a 7.2% increase over 2023's general budget. Of the total, TWD58 billion ($2 billion) was allocated for the energy transition, 37% more than 2023's budgetary allocation.
The Government of Taiwan is focusing on the development of wind and solar energy to reduce emissions by 23-25% by 2030, as compared to 2005, and achieve carbon neutrality by 2050. To support this, as part of its latest budget, the government allocated TWD27.3 billion ($805 million) to the development of wind and solar power, TWD34.7 billion ($1.2 billion) for power and energy storage systems and TWD6.7 billion ($227.6 million) on promoting electric vehicles.
Among the recent developments, the Hai Long offshore wind project, Taiwan's longest offshore wind project finance contract till date, that involves an estimated cost of TWD117 billion ($6.5 billion), received all environmental approvals and major construction permits in September 2023. The construction works of the project are expected to commence by 2026 and end by the end of 2032.
The report provides detailed market analysis, information, and insights into the Taiwanese construction industry, including -
- The Taiwanese construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Taiwanese construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
This report provides a comprehensive analysis of the construction industry in Taiwan. It provides -
- Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Taiwan, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
For more information about this report visit https://www.researchandmarkets.com/r/6uybnt
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