Dublin, Oct. 02, 2024 (GLOBE NEWSWIRE) -- The "South Africa Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in South Africa is expected to grow by 4.8% to reach ZAR 160.65 billion in 2024.
Despite near-term challenges in certain construction sectors, South Africa's construction industry is poised for significant growth. The industry is expected to grow steadily over the next four quarters, with the growth momentum continuing over the forecast period. A CAGR of 2.0% is projected during 2024-2028, with the country's construction output expected to reach ZAR 190.66 billion by 2028, indicating substantial growth potential.
The South African construction industry is on a path of recovery and growth, driven by strategic investments and a focus on sustainability. As the sector adapts to new challenges and opportunities, stakeholders must remain vigilant and responsive to market dynamics. By leveraging emerging technologies and aligning with government initiatives, executives can position their organizations for success in this evolving landscape.
The South African construction industry is poised for gradual recovery and growth, driven by public and private sector investments, infrastructure development, and technological advancements.
- Government Spending Initiatives: The South African government has earmarked ZAR7.1 trillion ($424.4 billion) for infrastructure development from FY2023-24 to FY2025-26, with significant allocations for road (ZAR233.1 billion), water (ZAR121.3 billion), and housing infrastructure (ZAR45.9 billion).
- Emerging Technologies: The adoption of artificial intelligence (AI) for risk management is gaining traction. Companies are leveraging AI to enhance project planning, cost management, and safety protocols. This trend is expected to reshape operational efficiencies within the sector.
Residential Construction: A Sector on the Rise
- Market Dynamics: The residential construction segment is experiencing a resurgence, driven by a growing demand for affordable housing. The sector is projected to grow significantly, focusing on sustainable building practices and green technologies.
- Diverse Housing Needs: There is an increasing emphasis on catering to various income levels, with developments targeting luxury, mid-tier, and affordable housing markets. This diversification is crucial in addressing the housing backlog in urban areas.
Commercial Construction: Adapting to New Norms
- Office Space Evolution: The commercial construction sector is adapting to changing work patterns, shifting towards flexible office spaces and mixed-use developments. This trend is fuelled by the rise of remote work and the need for collaborative environments.
- Investment in Retail and Hospitality: Significant investments are being made in retail and hospitality, particularly in urban centers. This includes the development of shopping complexes and hotels, which are essential for economic revitalization post-pandemic.
Institutional Construction: Building for the Future
- Focus on Healthcare and Education: The institutional construction segment prioritizes healthcare and educational facilities, with government initiatives to enhance public services. This includes the construction of new hospitals and schools to meet growing demands.
- Sustainability Initiatives: There is a strong push towards sustainable building practices within institutional projects, aligning with global trends to reduce carbon footprints and promote environmental responsibility.
Industrial Construction: Strengthening Economic Foundations
- Manufacturing Growth: The industrial construction sector is witnessing growth due to increased manufacturing activities. Investments in manufacturing plants and facilities are expected to rise, supported by government incentives and a focus on local production.
- Infrastructure for Industry: Infrastructure developments, such as logistics hubs and distribution centers, support industrial growth. This trend is essential for enhancing supply chain efficiencies and boosting economic performance.
Infrastructure Construction: The Backbone of Development
- Major Infrastructure Projects: The South African National Roads Agency (SANRAL) has significantly increased its tender allocations, awarding ZAR59 billion ($3.5 billion) in road and highway projects in FY2022-23, marking a 168.2% increase over the previous year. This indicates a robust pipeline of infrastructure projects.
- Investment in Renewable Energy: Infrastructure construction also focuses on renewable energy projects, with plans to increase the share of renewables in the energy mix. This includes the construction of solar and wind farms, aligning with national goals for energy sustainability.
Scope
- Market Dynamics by Value, Volume, and Number of Units: This report provides a comprehensive data-centric view of size and structure, industry dynamics, and end market opportunities in South Africa's building and infrastructure construction industry.
- The report provides a detailed analysis of the residential construction market, covering various types of construction, development stages, price points, and key cities. KPIs include value, volume, and number of units, offering a comprehensive view of this sector.
- Commercial Construction Outlook: Provides construction outlook by value and volume across office buildings, retail buildings, hospitality buildings, restaurant buildings, and sports facilities.
- Institutional Construction Outlook: Provides construction outlook by value and volume across manufacturing plant buildings, metal & material processing buildings, and chemical & pharmaceutical buildings.
- Industrial Construction Outlook: Provides construction outlook by value and volume across manufacturing plants and educational buildings.
- Infrastructure Construction Outlook: This report provides growth dynamics and market analysis for three key sections: marine and inland, utility system and transport infrastructure construction.
- City Level Analysis: Provides outlook of the top 10 cities in South Africa by construction value.
- The Construction Cost Structure Analysis module in this report provides a detailed outlook on construction costs by construction value, such as material, labor, equipment, and others. At a granular level, it offers a comprehensive material cost analysis by type of materials and labor cost by type of work, ensuring stakeholders deeply understand the cost structure.
For more information about this report visit https://www.researchandmarkets.com/r/cjn2cw
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