Construction Market Insights - APAC and GCC

Gain insight into the construction industry’s performance in 2023, and forward-looking projections for 2024, with Linesight’s latest Construction Market Insights report for the APAC and GCC regions.

This detailed report navigates through the complexities of the APAC (including Japan, Taiwan, Australia, Singapore, Malaysia, India, South Korea) and GCC countries (including KSA and UAE), spotlighting growth prospects amidst skilled labor shortages and evolving economic landscapes.

Key economic and industry findings include:

• Macroeconomic overview: APAC is positioned for significant growth, and is expected to be the fastest-growing region globally in 2024, driven by domestic investment and its manufacturing prowess. Similarly, the GCC countries are experiencing steady growth, propelled by diversification efforts away from oil revenues.
• Interest rates: The construction industry is poised to benefit from improving liquidity conditions as interest rates are anticipated to decrease in 2024. Despite the challenges posed by elevated interest rates, a downturn in inflation could herald lower interest rates in upcoming quarters.
• Construction industry overview: Despite facing high interest rates and inflation, the construction output continues to grow, fueled by investments in infrastructure, data centres, semiconductors, and renewable energy across APAC and GCC. Skill shortages remains a significant challenges.
• Commodities market adjustment: Market corrections have eased pressures on commodity prices, though copper and steel prices have shown volatility. While prices are expected to stabilise, ongoing economic activities and supply chain disruptions may influence price trajectories.

Sector-specific insights:

• Data Centres: The APAC region, along with GCC countries, is witnessing rapid growth in data centre demand, spurred by cloud migration, increased data usage, and digital transformation strategies. This demand is driving developments towards large-scale setups and increased rack density due to AI applications.
• Life Sciences: After robust growth during the pandemic, the life sciences sector faces headwinds from macroeconomic conditions. However, private investment and strong emphasis on R&D in countries like Singapore and Australia continue to fuel growth, with India emerging as a key pharmaceutical hub.
• High Tech Industrial: APAC leads in the digital and energy transition, with significant developments in semiconductor and battery manufacturing. Regulatory shifts in the EU and US are impacting the sector, with major investments in electronic manufacturing in India and Malaysia becoming a regional hub for the EV industry.

Download the full report today to access these insights and analysis of the construction market in APAC and the GCC.