The collapse of Evergrande, once China’s largest property developer, may symbolize the end of an era for speculative housing but it does not mark the end of China’s construction story. The country’s construction sector is set to be redefined by infrastructure, energy, and technology-driven projects rather than residential property through 2029, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report, “China Construction Market Size, Trends, and Forecast to 2029,” reveals that China has already injected CNY1.2 trillion ($167.5 billion) into transport infrastructure during the first five months of 2025. At the same time, construction machinery sales surged 23% year-on-year, highlighting strong demand across non-residential sectors.

Chideesh Gangadharan, Director of Construction at GlobalData, comments: “Evergrande’s collapse was a wake-up call for anyone who thought China’s property boom would last forever. What we are witnessing now is a fundamental shift in growth engines. The smart capital is moving into infrastructure, renewables, and mega-projects. These areas will define the future of China’s construction market and create trillion-dollar opportunities for investors, suppliers, and developers who understand the pivot.”

GlobalData expects the construction industry to record an average annual growth rate of 3.9% between 2026 and 2029, supported by the government investments as part of the 14th Five-Year Plan (2021-25) that focuses primarily on innovations, digitalization, the modernization of industrial systems, and low carbon emissions.

Gangadharan concludes: “The Evergrande crisis signals the death of speculative property growth, not the end of China’s construction market. The sector is entering a new phase defined by infrastructure, sustainability, and state-backed mega-projects. GlobalData’s intelligence equips stakeholders with the clarity to avoid past mistakes and capture the next wave of opportunities.”