Construction in Australia – Key Trends and Opportunities by State and Territory to 2023

2019-04-01
Price :
Published : Apr-2019
No. of Pages : 86

Construction in Australia – Key Trends and Opportunities by State and Territory to 2023

Summary

Following a period of negative growth during 2014-2016, construction activities in Australia picked up sharply in the second quarter of 2017, with the last stage of work on the multi-billion Gorgon project providing a spurt, along with the ongoing work on the Wheatstone and the Ichthys Liquefied Natural Gas (LNG) projects. As a result, construction work grew by 8.1% and 31.5% in chain volume measures in the second and third quarter of 2017 respectively, and by 10.7% for the entire year. However, the construction industry suffered a downturn in 2018, contracting by an estimated 2.8% in real terms, reflecting a sharp drop in activity in the oil and gas sector as major projects were completed.

The industry is expected to remain weak in 2019, before regaining growth momentum over the remainder of the forecast period (2019-2023). The improvement will be driven by investments in transport infrastructure, with the government planning to invest AUD75.0 billion (US$58.9 billion) to develop the country’s transport infrastructure by 2027-2028. Commercial and industrial projects, and an improvement in consumer and investor confidence, will also provide support.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 2.73% over the forecast period, compared to -1.38% during the review period (2014-2018).

GlobalData’s “Construction in Australia – Key Trends and Opportunities by State and Territory to 2023”, report provides detailed market analysis, information and insights into the Australian construction industry, including –
– The Australian 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 Australian construction industry
– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Key Highlights

– GlobalData expects the residential construction market to decrease in importance over the forecast period and account for 30.5% of the industry’s total value in 2023. This is due primarily to oversupply of new residential buildings in urban centers. Furthermore, uncertainties over the new government’s labor and monetary policies due to the upcoming federal election in May 2019 is expected to hinder the growth of the residential construction market over the early part of the forecast period.
– Forecast-period growth in the infrastructure construction market will be driven by the government and private sector investment in transport infrastructure. In the 2018 budget, the government announced plans to invest AUD75.0 billion (US$56.9 billion) to develop the country’s transport infrastructure over the next ten years. Of the total budget, the government allocated AUD7.9 billion (US$6.0 billion) for the development of railway infrastructure and AUD3.5 billion (US$2.7 billion) for the road development.
– GlobalData expects the energy and utilities construction market to record a forecast-period CAGR of 6.94% in nominal terms, driven by the government’s investment in renewable energy infrastructure. The government aims to generate 50% of the total country’s energy mix from renewable energy by 2025. Accordingly, the government plans to install 10.0GW of new solar and wind power plant by the end of 2019, and generate 33,000GWh of renewable electricity by 2020.
– Industrial construction market’s forecast-period growth will be driven by the government’s focus on the expansion of manufacturing sector through the initiatives such as Supporting Advanced Manufacturing, Industry 4.0 and Transitioning Australia’s Automotive Manufacturing Industry. Under the Supporting Advanced Manufacturing Initiatives, the government encourages innovative production, investment in new technologies and provides facilities to test new products. For this, the government allocated AUD100.0 million (US$75.9 million) in the 2017-2018 budget to provide subsidies to manufacturing companies for the period of FY2017-2018.
– The total construction project pipeline in Australia – as tracked by GlobalData, and including all mega projects with a value above US$25 million – stands at AUD1.4 trillion (US$1.1 trillion). The pipeline, which includes all projects from pre-planning to execution, is relatively balanced, with 52.6% of the pipeline value being in projects in the pre-planning and planning stages as of April 2019.

Scope

– This report provides a comprehensive analysis of the construction industry in Australia.
– Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Australia, 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.

Reasons to buy

– Identify and evaluate market opportunities using GlobalData’s standardized valuation and forecasting methodologies.
– Assess market growth potential at a micro-level with over 600 time-series data forecasts.
– Understand the latest industry and market trends.
– Formulate and validate strategy using GlobalData’s critical and actionable insight.
– Assess business risks, including cost, regulatory and competitive pressures.
– Evaluate competitive risk and success factors.

Filed in: construction
Publisher : GlobalData
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