South-East Asia Construction Market Size, Share, Trends and Analysis by Sector, Country and Segment Forecast to 2028

Accessing the in-depth insights from the ‘South-East Asia Construction’ report can help:

• Access the historical and forecast valuations of the South-East Asia construction market in real terms from 2019 to 2028.
• Examine the sectors and sub-sectors within the South-East Asia construction market.
• Foresee shift in the construction landscape for key regional countries including the US and Canada

• Analyze the mega-project pipeline, including breakdowns by development stage across all sectors.
• Assess the projected spending on projects in the existing pipeline.

• Learn about key industry participants including contractors and consultants for each of the regional countries.

How is our ‘South-East Asia Construction’ report different from other reports in the market?

• The report explores the different sectors of the construction industry in North America through a detailed investigation of the output values from 2019 to 2028.
• The study entails country-specific details covering construction output value in real terms along with a list of projects and key industry participants.
• Detailed segmentation by sector– Commercial Construction, Energy and Utilities Construction, Industrial Construction, Infrastructure Construction, Institutional Construction, and Residential Construction
• Detailed segmentation by country
• With more than 30+ charts and tables, the report is designed with an easy digestible qualitative content.
• Identify the key growth enablers and target commercial opportunities through a strategic plan.
• Formulate steps to success while leveraging key construction insights from the report.

We recommend this valuable source of information to:

• Contractors Including Civil Works, Electrical, HVAC, and Others
• Consultants/Designers
• Building Material Merchants/Players
• Management Consultants and Investment Banks
• Portfolio Managers/Buy-Side Firms
• Strategy and Business Development
• Investment Banking

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South-East Asia Construction Market Overview

The South-East Asia construction market size revenue is projected to reach $538.5 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of more than 6% over the forecast period. Government investments in large-scale projects aimed at improving transportation networks, energy systems, and public facilities further stimulate market growth. Additionally, the region’s expanding middle class and increasing tourism drive demand for infrastructure, including affordable housing and hospitality facilities. Moreover, the growing emphasis on sustainable construction practices and green building projects is shaping the market landscape in Southeast Asia.

In response to the growing tourism industry, governments across Southeast Asia are allocating substantial funds for infrastructure development and tourism promotion. For example, the Malaysian tourism sector is expected to attract over 26 million tourists by 2026. Thus, to support this tourism footfall, in October 2023, the domestic government announced the allocation of over $22 billion in tourism and related infrastructure activities. Similarly, the government of Thailand has allocated over $163 million for the development of the Ministry of Sports and Tourism.

South-East Asia Construction Market Outlook, 2019-2028 ($Billion)

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The regional construction sector recovery in the post-pandemic era remained slow until 2022. However, in 2023, the YoY growth rate touched 5%, supported by a surge in the output value from countries including the Philippines, Vietnam, Malaysia, Singapore, Indonesia, and Cambodia.

Sectorwise growth was aided by the regional infrastructure construction industry in 2023. The public roadway construction expanded during this period with the majority of the regional governments opting to invest in the expansion of the transportation network. For instance, in 2023, Vietnam’s Ministry of Transportation announced the commencement of construction work on 13 roadway infrastructure projects with a total investment of over $1 billion.

Over the forecast period, the regional construction industry’s growth is projected to be aided by a mix of energy and infrastructure projects. The drive towards cutting down carbon dioxide emissions is set to fuel the investment in renewable energy projects. For example, in September 2023, the Indonesian state-owned utility company PT PLN group announced an investment of $172 billion to develop over 31 GW of renewable energy capacity between 2024 to 2030. The company further plans to construct new transmission lines and smart grids to connect clean energy sources with the cities of Jawa and Sulawesi wherein the energy demand is high or peaking.

South-East Asia Construction Market Segmentation by Sectors

The infrastructure construction segment is set to dominate the South-East Asia construction market in 2024 and is projected to continue its dominance with the fastest compound annual growth rate over the forecast period. The segmental growth is anticipated to be supported by the expansion of regional connectivity through the development of roadways, railways, and airports. One of the largest ongoing roadway infrastructure projects in the region is the development of the Trans-Sumatra highway site. This roadway project includes construction work of 2,600 km of toll road development with a total cost of $37 billion.

Residential construction is expected to emerge as the second-largest category in terms of output value (real) in 2024, driven by the rising demand for affordable housing in the region. To tackle the issue of affordable housing, the government of Indonesia plans to build five million affordable residential units by 2027. In addition, the Indonesian government aims to construct 16,000 housing units for civil servants by the end of 2024. Similarly, the Vietnamese government envisions delivering one million affordable housing units by 2030, by raising over $36 billion in funds from private and public sources.

The energy and utilities construction segment is forecast to register the third-largest share in 2024. This segment is set to record a compound annual growth rate of over 6% during the forecast period, aided by the rising effort to shift to clean energy sources and reduce carbon emissions. For example, in March 2024, the government of Singapore agreed with ExxonMobil and Shell to build a cross-border carbon capture and storage site. The project is due to be completed by 2030 and is anticipated to handle a minimum of 2.5 million tons of carbon dioxide on an annual basis.

South-East Asia Construction Market Share by Sector, 2024 (%)

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The commercial construction category rebounded in 2023 following a two-year negative trajectory in 2021 and 2022. The segmental growth is poised to register healthy growth in 2024, aided by the boost in the regional tourism sector. For instance, in February 2024, the government of Indonesia released its plan aiming to attract 17 million tourists this year. Additionally, the domestic government in December 2023 announced visa-free entry from 20 countries including the US, China, and India, and increased 30-day single tourist visa entry to 60 days. Similarly, in December 2023, the Tourism Authority of Thailand (TAT) revealed that it aims to attract 35 million tourists in 2024 and generate over $103 billion in revenue. The government is also introducing special packages, including free passes to national parks, to entice foreign tourists.

The industrial construction segment is predicted to account for a regional share of over 7% in terms of output value (real) in 2024. The segmental growth over the projected timeframe is anticipated to be aided by the development of new manufacturing plants in the region. For example, in March 2024, Shell announced the development of its first grease manufacturing site in Indonesia. This new plant is set to be built in the company’s existing Marunda Lubricants Oil Blending Plant complex in Bekasi. Once completed, the new manufacturing site of Shell will produce 12 kilotons of premium grease annually.

The institutional construction category is poised to remain the smallest group in terms of construction output value (real) in 2024. The expansion of existing healthcare facilities is set to remain a key driver for segmental growth over the forecast period. For example, the Asian Development Bank in December 2023 approved an investment loan of $650 million to upgrade the current healthcare facilities and laboratories in Indonesia. The investment further aims to modernize the existing health facilities with energy-efficient equipment to contribute to climate change mitigation.

South-East Asia Construction Market Analysis by Country

The South-East Asia construction market by country is estimated to be dominated by Indonesia in terms of output value (Real) in 2024. Indonesia is the most populous country in the South-East Asia region with increasing construction activities. The country gradually improved its construction output value growth in real terms in the post-pandemic era and is poised to register an annual average growth rate of 6.0% from 2025 to 2028, which will be significantly supported by the country’s plan to expand its electric vehicle manufacturing capacity to 600,000 units by 2030. This plan has already attracted China-based electric vehicle manufacturer BYD to set up a $1.3 billion electric vehicle production plant in the country, as announced in January 2024.

Vietnam is set to emerge as the second-largest market in South-Asia construction in terms of construction output value (real) in 2024. The growth of the Vietnamese construction industry over the predicted timeline will be supported by the government’s concerted efforts to boost renewable energy generation projects. The government is seeking to generate over 150 GW of renewable energy by 2030 and thus, heavily targeting investment in its 2030 vision. In line with this strategy, stakeholders in the solar industry are establishing their manufacturing base in the country to capitalize on the plan. For instance, in March 2024, GoodWe a manufacturer of solar PV inverters commenced its manufacturing facility in Haiphong, Vietnam. This new manufacturing plant will be dedicated to the manufacturing of hybrid and grid-tied solar PV inverters.

South-East Asia Construction Market Share by Country, 2024 (%)

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In 2024, the Philippines is projected to secure the third position in the regional construction sector in terms of output value (real). the expanding government’s investment in developing the local railway network will support the domestic construction sector growth. The Ministry of Transportation in the Philippines has announced an allocation of $1.2 billion for the Metro Manilla Subway Project.

The construction sector in Malaysia, which is the fourth largest in the region in terms of construction output value (real), is set to be aided by public spending on increasing the share of renewable energy in the total energy mix. The government is seeking to increase renewable energy share to 31% by 2025 and 70% by 2050. Under the National Energy Transition Roadmap (NETR), the government aims to invest over $273 billion by 2050 to meet its renewable energy targets.

South-East Asia Construction Market Segments

GlobalData Plc has segmented the South-East Asia construction market report by sectors and country:

South-East Asia Construction Market Sectors Outlook (Revenue, $Million, 2019-2028)

• Commercial Construction
• Energy and Utilities Construction
• Industrial Construction
• Infrastructure Construction
• Institutional Construction
• Residential Construction

South-East Asia Construction Market Countries Outlook (Revenue, $Million, 2019-2028)

• Cambodia
• Indonesia
• Malaysia
• Myanmar
• Philippines
• Singapore
• Thailand
• Vietnam

Scope

The market intelligence report provides an in-depth analysis of the following –

• South-East Asian construction market outlook: analysis as well as historical figures and forecasts of opportunities from the sector and regional segments.

• The report provides an overview of the outlook for the South-East Asian construction industry to 2028.

• Analysis of the construction output values (Real) in major countries: Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Thailand.

• Insight into the sectoral movement covering commercial construction, energy and utilities construction, industrial construction, infrastructure construction, institutional construction, and residential construction.

• Dedicated section covering key industry participants by country including top consultants and contractors.

Key Highlights

The South-East Asia construction market size will be evaluated at $538.5 billion in 2024. The construction market in the South-East Asia region is expected to grow at a CAGR of 6.2% during 2024-2028.

Reasons to Buy

• Evaluate regional trends in construction development from insight into output values and project pipelines. Identify the fastest growers to enable assessment and targeting of commercial opportunities in the markets best suited to strategic focus.

• Identify the drivers in the South-East Asian construction market and consider growth in developed economies. Formulate plans on where and how to engage with the market while minimizing any negative impact on revenues.

• Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in the South-East Asian construction market.