South Africa Construction Industry Report, Q4 2024: Output to Contract by 0.5% in 2025 Following an Expected Decline of 5% in 2024 - Forecasts to 2028 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "South Africa Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q4 2024)" report has been added to ResearchAndMarkets.com's offering.

The construction industry in South Africa was expected to contract further, by 5% in real terms in 2024 and 0.5% in 2025, owing to headwinds such as weak economic activity, high construction costs, coupled with subdued residential buildings and civil construction activities.

According to the Statistics South Africa (Stats SA), the average construction materials price index rose by 6.5% year on year (YoY) in the first ten months of 2024, preceded by annual growth of 6.6% in 2023. Furthermore, the average construction materials price index for civil engineering rose by 6% in the first ten months of 2024, preceded by annual growth of 4.4% in 2023.

The analyst expects South Africa's construction industry to rebound over the remainder of the forecast period and record average annual growth of 3.5% from 2026 to 2028, supported by public and private sector investments in infrastructure and energy projects. The industry's growth will also be supported by the national target to increase the share of renewable energy to 50% of the total energy mix, and reach net zero carbon emissions by 2050.

In line with this, in September 2024, the European Investment Bank (EIB) and FirstRand Bank Ltd - a domestic bank holding company - announced a joint venture, investing ZAR7.4 billion ($400 million) in renewable energy projects. This investment will be used in various construction projects such as photovoltaic and wind energy, and energy-efficiency projects. Furthermore, in September 2024, Terra Firma - a South African independent power producer (IPP) - announced plans to construct a new ZAR1.3 billion ($70 million) solar plant with an installed capacity of 110MW.

Scope

• Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in South Africa, 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 our 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 business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile

4 Construction Outlook
4.1 All Construction

• Outlook
• Latest news and developments
• Construction Projects Momentum Index

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants
5.1 Contractors
5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/bp10w5

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