South Africa Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2027

Pages: 49 Published: June 30, 2023 Report Code: GDCN1179MR

Report Overview
Table of Contents
Tables
Figures
FAQ

South Africa Construction Market Report Overview

The South Africa construction market size was valued at $25.5 billion in 2022 and is expected to achieve an AAGR of more than 3% from 2024 to 2027. The South African construction industry has been declining since 2016, but it will start to show some improvement in 2024, supported by investments in transport, renewable energy, and water infrastructure projects. Forecast-period growth in the industry will also be supported by investments as part of the South African Automotive Masterplan (SAAM) 2021-35. The construction industry’s output will also be supported by the Mega solar power plant 5,000MW program, which the government is undertaking with an investment of ZAR20.1 billion ($1.2 billion).

South Africa Construction Market Outlook, 2022-2027 ($ Billion)

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The South Africa construction market research report provides a detailed analysis of the construction industry’s growth prospects in South Africa by market, project type, and construction activity. The report also delivers critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the South Africa construction industry. Moreover, it also provides an analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Market Size (2022)	$25.5 billion
AAGR (2024 – 2027)	>3%
Forecast Period	2023-2027
Historical Period	2018-2022
Key Sectors	Commercial Construction, Industrial Construction, Infrastructure Construction, Energy and Utilities Construction, Institutional Construction, and Residential Construction
Key Contractors	Wilson Bayly Holmes-Ovcon Ltd, Stefanutti Stocks Holdings Ltd, Basil Read Pty Ltd, Roshcon, Balwin Properties Ltd, Dryden Projects, Scatec ASA, Power Construction Corporation of China, China State Construction Engineering Corp Ltd, and Hyosung Corp
Key Consultants	Amandla Engineering Pty Ltd, iX Engineers Pty Ltd, Incico SpA, SRK Consulting (Global) Ltd, GIBB (Pty) Ltd, ILISO Consulting (Pty) Ltd, Premier Shipping & Packing Limited, PRDW Consulting Port and Coastal Engineers, Temasek Holdings (Private) Ltd, and Malankane Consulting Engineers Pty Ltd
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South Africa Construction Market Segmentation by Sectors

The key sectors in the South Africa construction market are commercial construction, industrial construction, infrastructure construction, energy and utilities construction, institutional construction, and residential construction. The infrastructure construction sector was the largest in the South Africa construction market in 2022, followed by residential construction, energy and utilities construction, and others.

Infrastructure construction: The project types in this sector include rail infrastructure, road infrastructure, and other infrastructure projects. Forecast-period growth in the infrastructure construction sector’s output will be supported by the government’s focus on the development of road and rail infrastructure.

Energy and utility construction: The project types in this sector include electricity and power, oil and gas, telecommunications, sewage infrastructure, and water infrastructure. Growth of the sector will be supported by investments on renewable energy projects, in line with the government’s focus to increase the share of renewable energy in its total electricity mix from 11% in 2019 to 41% by 2030.

Residential construction: The project types in this sector include single- and multi-family housing. The sector will edge upwards from 2024, supported by the government’s focus on the delivery of 18,000 social housing units by 2024, as part of the government’s social housing program.

Commercial construction: The project types in this sector include leisure and hospitality buildings, office buildings, outdoor leisure facilities, retail buildings, and other commercial construction. Investment in logistics centre and office building projects will support activity levels and contribute to a pickup in output from 2024.

Industrial construction: The project types in this sector include chemical and pharmaceutical plants, manufacturing plants, metal and material production and processing plants, and waste processing plants. Forecast-period growth in the industrial construction sector’s output will be supported by investments in the construction of new manufacturing plants, coupled with an increase in export activities.

Institutional construction: The project types in this sector include educational buildings, healthcare buildings, institutional buildings, research facilities, and religious buildings. Forecast-period growth in the institutional construction sector’s output will be supported by the government’s focus on health and education sectors.

South Africa Construction Market Analysis, by Sectors, 2022 (%)

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South Africa Construction Market – Competitive Landscape

Leading Contractors: The leading contractors in the South Africa construction market are Wilson Bayly Holmes-Ovcon Ltd, Stefanutti Stocks Holdings Ltd, Basil Read Pty Ltd, Roshcon, Balwin Properties Ltd, Dryden Projects, Scatec ASA, Power Construction Corporation of China, China State Construction Engineering Corp Ltd, and Hyosung Corp. Wilson Bayly Holmes-Ovcon Ltd was the leading contractor in the South Africa construction market in 2022.

South Africa Construction Market Analysis by Contractors, 2022 (%)

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Leading Consultants: The leading consultants in the South Africa construction market are Amandla Engineering Pty Ltd, iX Engineers Pty Ltd, Incico SpA, SRK Consulting (Global) Ltd, GIBB (Pty) Ltd, ILISO Consulting (Pty) Ltd, Premier Shipping & Packing Limited, PRDW Consulting Port and Coastal Engineers, Temasek Holdings (Private) Ltd, and Malankane Consulting Engineers Pty Ltd. Amandla Engineering Pty Ltd was the leading consultant in the South Africa construction market in 2022.

South Africa Construction Market Analysis by Consultants, 2022(%)

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Segments Covered in the Report

South Africa Construction Market Sector Outlook (Value, $ Billion, 2018-2027)

Commercial Construction
- Leisure and Hospitality Buildings
- Office Buildings
- Outdoor Leisure Facilities
- Retail Buildings
- Other Commercial Construction
Industrial Construction
- Chemical and Pharmaceutical Plants
- Manufacturing Plants
- Metal and Material Production and Processing plants
- Waste Processing Plants
Infrastructure Construction
- Rail Infrastructure
- Road Infrastructure
- Other Infrastructure Projects
Energy and Utilities Construction
- Electricity and Power
- Oil and Gas
- Telecommunications
- Sewage Infrastructure
- Water Infrastructure
Institutional Construction
- Educational Buildings
- Healthcare Buildings
- Institutional Buildings
- Research Facilities
- Religious Buildings
Residential Construction
- Single-Family Housing
- Multi-Family Housing

Scope

This report provides a comprehensive analysis of the construction industry in South Africa. It provides-

Historical and forecast 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 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.

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
  - 4.1.1 Outlook
  - 4.1.2 Latest news and developments
  - 4.1.3 Construction Projects Momentum Index
- 4.2 Commercial Construction
  - 4.2.1 Outlook
  - 4.2.2 Project analytics
  - 4.2.3 Latest news and developments
- 4.3 Industrial Construction
  - 4.3.1 Outlook
  - 4.3.2 Project analytics
  - 4.3.3 Latest news and developments
- 4.4 Infrastructure Construction
  - 4.4.1 Outlook
  - 4.4.2 Project analytics
  - 4.4.3 Latest news and developments
- 4.5 Energy and Utilities Construction
  - 4.5.1 Outlook
  - 4.5.2 Project analytics
  - 4.5.3 Latest news and developments
- 4.6 Institutional Construction
  - 4.6.1 Outlook
  - 4.6.2 Project analytics
  - 4.6.3 Latest news and developments
- 4.7 Residential Construction
  - 4.7.1 Outlook
  - 4.7.2 Project analytics
  - 4.7.3 Latest news and developments

5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants

6 Construction Market Data

7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 7.4 GlobalData Construction

List of Tables

Table 1: Construction Industry Key Data

Table 2: South Africa, Key Economic Indicators

Table 3: South Africa, Commercial Construction Output by Project Type (Real % Change), 2018-27

Table 4: South Africa, Top Commercial Construction Projects by Value

Table 5: South Africa, Industrial Construction Output by Project Type (Real % Change), 2018-27

Table 6: South Africa, Top Industrial Construction Projects by Value

Table 7: South Africa, Infrastructure Construction Output by Project Type (Real % Change), 2018-27

Table 8: South Africa, Top Infrastructure Construction Projects by Value

Table 9: South Africa, Energy and Utilities Construction Output by Project Type (Real % Change), 2018-27

Table 10: South Africa, Top Energy and Utilities Construction Projects by Value

Table 11: South Africa, Institutional Construction Output by Project Type (Real % Change), 2018-27

Table 12: South Africa, Top Institutional Construction Projects by Value

Table 13: South Africa, Residential Construction Output by Project Type (Real % Change), 2018-27

Table 14: South Africa, Top Residential Construction Projects by Value

Table 15: South Africa, Key Contractors

Table 16: South Africa, Key Consultants

Table 17: South Africa, Construction Output Value (Real, $ Million)

Table 18: South Africa, Construction Output Value (Nominal, ZAR Million)

Table 19: GlobalData Construction Market Definitions

Table 20: Risk Dimensions

Table 21: Ratings, Scores and Definitions

List of Figures

Figure 1: Sub-Saharan Africa, Construction Output (Real % Change), 2021-27

Figure 2: South Africa, Construction Output by Sector (Real % Change), 2021-23 and 2024-27

Figure 3: South Africa, Risk Summary

Figure 4: South Africa, Risk Regional Comparison

Figure 5: South Africa, Construction Output Value (Real, $ Billion, 2017 Prices and Exchange Rate), 2018-27

Figure 6: South Africa, Construction Output Value, by Sector (Real, $ Million), 2018-27

Figure 7: South Africa, Construction Value Add (ZAR Billion, Constant 2015 Prices)

Figure 8: South Africa, Gross Fixed Capital Formation (ZAR Billion, Constant 2015 Prices)

Figure 9: South Africa, Employment in the Construction Industry (In Thousands)

Figure 10: South Africa, Value of Building Plans Passed, 2019 Constant Prices (ZAR Million)

Figure 11: South Africa, Value of Buildings Reported as Completed, 2019 Constant Prices (ZAR Million)

Figure 12: South Africa, Construction Materials Price Index, Total Construction, Dec 2021=100

Figure 13: South Africa, Construction Projects Momentum Index

Figure 14: Sub-Saharan Africa, Construction Projects Momentum Index

Figure 15: South Africa, Commercial Construction Output by Project Type (Real, $ Million), 2018-27

Figure 16: South Africa, Commercial Construction Projects Pipeline, Value by Stage ($ Million)

Figure 17: South Africa, Total Value of Building Plans Passed for Office and Banking Space and Shopping Space, Current Prices (ZAR Million)

Figure 18: South Africa, Total Value of Building Plans for Office and Banking Space and Shopping Space Reported as Completed, Current Prices (ZAR Million)

Figure 19: South Africa, Income from Accommodation and Food Services (ZAR Million, Current Prices)

Figure 20: South Africa, Total Retail and Wholesale Trade Sales (Constant 2019 Prices, ZAR Billion)

Figure 21: South Africa, Industrial Construction Output by Project Type (Real, $ Million), 2018-27

Figure 22: South Africa, Industrial Construction Projects Pipeline, Value by Stage ($ Million)

Figure 23: South Africa, Manufacturing Value Add (ZAR Billion, Constant 2015 Prices)

Figure 24: South Africa, Total Value of Industrial and Warehouse Space Plans Passed, Current Prices (ZAR Million)

Figure 25: South Africa, Volume Index of Manufacturing Production (2019=100)

Figure 26: South Africa, Absa Purchasing Managers’ Index (PMI), Business Activity Index and New Sales Orders Index, Seasonally Adjusted

Figure 27: South Africa, Total Merchandise Exports (ZAR Billion)

Figure 28: South Africa, Volume Index of Mining Production (2019=100) and Mineral Sales (Current Prices, ZAR Billion)

Figure 29: South Africa, Infrastructure Construction Output by Project Type (Real, $ Million), 2018-27

Figure 30: South Africa, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)

Figure 31: South Africa, Construction Materials Price Index, Civil Engineering Construction, Dec 2021=100

Figure 32: South Africa, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2018-27

Figure 33: South Africa, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)

Figure 34: South Africa, Electricity, Gas and Water Value Add (ZAR Billion, Constant 2015 Prices)

Figure 35: South Africa, Electricity Production (GWh)

Figure 36: South Africa, Institutional Construction Output by Project Type (Real, $ Million), 2018-27

Figure 37: South Africa, Institutional Construction Projects Pipeline, Value by Stage ($ Million)

Figure 38: South Africa, Residential Construction Output by Project Type (Real, $ Million), 2018-27

Figure 39: South Africa, Residential Construction Projects Pipeline, Value by Stage ($ Million)

Figure 40: South Africa, Real Estate Value Add (ZAR Billion, Constant 2015 Prices)

Figure 41: South Africa, Gross Fixed Capital Formation Residential (ZAR Billion, Constant 2015 Prices)

Figure 42: South Africa, Total Value of Residential Building Plans Passed, 2019 Constant Prices (ZAR Million)

Figure 43: South Africa, Total Value of Residential Buildings Reported as Completed, 2019 Constant Prices (ZAR Million)

Figure 44: South Africa, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 45: South Africa, Headquarters of Key Consultants (% of Total Project Pipeline)

Frequently Asked Questions

The South Africa construction market size was $25.5 billion in 2022.

The construction market in South Africa is expected to achieve an AAGR of more than 3% during 2024-2027.

The infrastructure construction sector dominated the South Africa construction market in 2022.

Some of the leading contractors in the South Africa construction market are Wilson Bayly Holmes-Ovcon Ltd, Stefanutti Stocks Holdings Ltd, Basil Read Pty Ltd, Roshcon, Balwin Properties Ltd, Dryden Projects, Scatec ASA, Power Construction Corporation of China, China State Construction Engineering Corp Ltd, and Hyosung Corp.

Some of the leading consultants in the South Africa construction market are Amandla Engineering Pty Ltd, iX Engineers Pty Ltd, Incico SpA, SRK Consulting (Global) Ltd, GIBB (Pty) Ltd, ILISO Consulting (Pty) Ltd, Premier Shipping & Packing Limited, PRDW Consulting Port and Coastal Engineers, Temasek Holdings (Private) Ltd, and Malankane Consulting Engineers Pty Ltd.

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