South-East Asia Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027

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Published: August 18, 2023 Report Code: GRCREG000012CN-BB

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Explore actionable market insights from the following data in the ‘South-East Asia Construction Market’ report:

  • South-East Asia construction market outlook: analysis as well as historical figures and forecasts of opportunities from the sector and regional segments.
  • Key Insights on Leading Sectors: Commercial Construction, Energy and Utilities Construction, Industrial Construction, Infrastructure Construction, Institutional Construction, and Residential Construction.
  • Overview of the South-East Asia construction industry outlook to 2027.
  • Analysis of the construction output values (Real) in major countries: Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
  • Dedicated section covering key industry participants by country including top consultants and contractors.

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

Businesses need to have a deeper understanding of the market dynamics to gain a competitive edge in the coming decade. Get the ‘ South-East Asia Construction Market’ report today, which will help you to:

  • 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 Asia 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.

We recommend this valuable source of information to anyone involved in:

  • 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 construction sector of the South-East Asia region is expected to reach $450.1 billion in 2023, registering a compound annual growth rate (CAGR) of 4.9% over the forecast period. The increasing focus and efforts towards developing regional connectivity through transport infrastructure are anticipated to drive market growth over the near future.

The regional infrastructure construction sector is expected to expand by 4.8% in real terms in 2023, supported by an increasing effort to develop regional transport connectivity. For instance, in April 2023, the Philippines Department of Transportation (DOTr), awarded two contracts worth PHP52.2 billion ($937 million) to a Leighton-First Balfour joint venture and to a Acciona-DMCI joint venture for the Philippines North-South Commuter Railway (NSCR) project.

South-East Asia Construction Market Outlook, 2018-2027 ($ Billion)

South-East Asia Construction Market Outlook, 2018-2027 ($ Billion)

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GlobalData expects the regional construction industry to showcase a growth of 3.1% in real terms in 2023. The region is estimated to register an annual average growth rate (AAGR) of 6.2% from 2024 to 2027, supported by the expansion in the regional infrastructure sector and the development of new commercial centers to attract more tourists. For instance, the Malaysian government hopes to welcome 16.1 million international tourist arrivals and generate MYR49.2 billion ($11.2 billion) in tourist receipts in 2023, compared with 10.1 million tourist arrivals and MYR28.3 billion ($6.5 billion) in tourist receipts in 2022.

Market Size (2023) $450.1 billion
CAGR (2023-2027) 4.9%
Historic Period 2018-2022
Forecast Period 2023-2027
Report Scope & Coverage Sector Overview, Construction Output Value ($ Million) by Country and Sector, Regional Outlook by Key Countries, Key Industry Participants
Key Sectors Commercial Construction, Energy and Utilities Construction, Industrial Construction, Infrastructure Construction, Institutional Construction, and Residential Construction
Key Countries Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam

South-East Asia Construction Market Segmentation by Sectors

The South-East Asia construction industry covers commercial construction, energy and utilities construction, industrial construction, infrastructure construction, institutional construction, and residential construction. The residential construction category is predicted to account for the largest regional share in terms of construction output value (Real) in 2023.

Residential Construction: The residential construction segment is predicted to account for the second-largest regional share in real terms in 2023. The regional segmental growth is expected to remain sluggish this year owing to the deteriorating consumer confidence and affordability issues for potential buyers caused by rising inflation and higher borrowing costs.

However, the regional sectoral growth is anticipated to find momentum in 2024, supported by the construction of new housing units in the region. For instance, the Indonesian government’s plan to carry out projects through public-private partnerships, coupled with its goal of constructing five million housing units by 2027.

South-East Asia Construction Market Share by Sectors, 2023 (%)

South-East Asia Construction Market Share by Sectors, 2023 (%)

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Institutional Construction: This segment is predicted to capture the smallest regional share in real terms in 2023. The South-East Asia institutional construction sector is anticipated to expand by 4.9% in real terms this current year, supported by public- and private-sector investment in the education and healthcare sectors. For instance, in its 2023 Budget, Singapore’s government increased its development expenditure for the healthcare sector by 24.7%, from SGD1.1 billion ($803.2 million) in 2022 to SGD1.4 billion ($1 billion) in 2023.

Infrastructure Construction: The infrastructure construction category is anticipated to register the largest regional share in real terms in 2023, supported by the increasing focus on infrastructure development. For instance, as part of the 2023 State Budget, the Indonesian government increased its allocation for infrastructure development by 7.8%, from IDR363.8 trillion ($23.5 billion) in 2022 to IDR392 trillion ($25.3 billion) in 2023.

Indonesia’s Minister of Finance also asked the Minister of Public Works and Public Housing (PUPR) to complete priority infrastructure projects before the end of President Joko Widodo’s (Jokowi’s) cabinet period in 2024. This includes the construction of roads, airports, railways, bridges, dams, irrigation networks, and housing.

Industrial Construction: The regional institutional construction sector is anticipated to expand by 4.9% in real terms in 2023, supported by public and private sector investments in the education and healthcare sectors. For instance, in its 2023 Budget, Singapore’s government increased its development expenditure for the healthcare sector by 24.7%, from SGD1.1 billion ($803.2 million) in 2022 to SGD1.4 billion ($1 billion) in 2023.

Similarly, in February 2023, the Malaysian government approved an allocation of MYR55.2 billion ($12.6 billion) to the education ministry in the 2023 Budget, up from MYR52.6 billion ($12 billion) in the 2022 Budget. Of the total, MYR2.3 billion ($524.6 million) will be allocated to ensure quality infrastructure and learning facilities for children in schools across the country.

Energy and Utilities Construction: The energy and utilities construction section is predicted to account for the third-largest regional share in real terms in 2023. The sectoral performance in the current year is supported by the development of energy infrastructure, particularly renewable energy.

For instance, the government of the Philippines plans to increase the share of renewable energy in the total power generation mix from 21% in 2020 to 35% by 2030 and 50% by 2040. The country also plans to add 20GW of renewable energy capacity by 2030.

Commercial Construction: The commercial construction sector in the South-East Asia region is expected to grow by 2.5% in real terms in 2023, followed by an annual average growth rate (AAGR) of 6.3% from 2024 to 2027. Over the forecast period, growth will be driven by an improvement in tourism, leisure, and hospitality projects, coupled with increased investment in data center and logistics construction.

For instance, Singapore-based data center company, Princeton Digital Group (PDG), announced in February 2023 that they plan to build a 96MW data center campus in Batam, Indonesia. The campus will be built on 15 acres of land and will feature four buildings of 24MW capacity each.

South-East Asia Construction Market Analysis by Region

The regional construction industry in 2023 is dominated by Indonesia, accounting for 51.0% of the regional share in real terms. Other key countries in the regional mix include Vietnam, Philippines, Malaysia, Thailand, Singapore, Myanmar, and Cambodia.

South-East Asia Construction Market Share by Country, 2023 (%)

South-East Asia Construction Market Share by Country, 2023 (%)

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The construction industry in Indonesia is expected to expand by 1.2% in real terms in 2023, down from a growth of 2% in 2022. This slowing of growth is due to elevated building material prices, weak commercial property demand, high interest rates and a softening of external demand. The industry’s growth in 2023 will however be supported by the government’s focus on infrastructure development.

Vietnam’s continued efforts to improve its business and investment climate are expected to help the country attract foreign direct investment (FDI) and register the second-largest regional share in real terms in 2023. According to the Ministry of Planning and Investment (MPI), FDI inflows into Vietnam continued to grow in the first five months of 2023. In the first five months of 2023, Vietnam’s FDI inflows reached nearly VND251.6 trillion ($10.9 billion).

The construction industry in the Philippines is estimated to register an annual average growth rate of 7.2% between 2024 and 2027, supported by the government’s focus on the development of the country’s rail and road transport and energy infrastructure, coupled with investment to develop affordable housing and social infrastructure. The government aims to construct one million housing units annually from 2023 to 2028 under the Pambansang Pabahay para sa Pilipino Housing Program (4PH) to address the country’s housing shortage of more than 6.5 million units.

A number of major economies have pledged investment in Malaysia, including China’s commitment to invest MYR170 billion ($38.8 billion) between 2023 and 2028, via the signing of 19 memorandums of understanding (MoUs) between Chinese and Malaysian businesses, including in infrastructure, renewable energy, telecommunications, and tourism.

South-East Asia Construction Market Segments and Scope:

South-East Asia Construction Market Sectors Outlook (Value, $ Million, 2018-2027)

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

South-East Asia Construction Market Countries Outlook (Value, $ Million, 2018-2027)

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

Key Highlights

The South-East Asia construction market size will be evaluated at $450.1 billion in 2023. The construction market in the South-East Asia region is expected to grow at a CAGR of 4.9% during 2023-2027.

Key Players

Table of Contents

  • CHAPTER 01 Executive Summary

  • CHAPTER 02 Construction Outlook

    • 2.1 All Construction

    • 2.2 Commercial Construction

    • 2.3 Energy and Utilities Construction

    • 2.4 Industrial Construction

    • 2.5 Infrastructure Construction

    • 2.6 Institutional Construction

    • 2.7 Residential Construction

  • CHAPTER 03 Construction Outlook – Country Level

    • 3.1 Cambodia

      • 3.1.1 Construction Market Overview

      • 3.1.2 Key Industry Participants

    • 3.2 Indonesia

      • 3.2.1 Construction Market Overview

      • 3.2.2 Key Industry Participants

    • 3.3 Malaysia

      • 3.3.1 Construction Market Overview

      • 3.3.2 Key Industry Participants

    • 3.4 Myanmar

      • 3.4.1 Construction Market Overview

      • 3.4.2 Key Industry Participants

    • 3.5 Philippines

      • 3.1.1 Construction Market Overview

      • 3.1.2 Key Industry Participants

    • 3.6 Singapore

      • 3.2.1 Construction Market Overview

      • 3.2.2 Key Industry Participants

    • 3.7 Thailand

      • 3.3.1 Construction Market Overview

      • 3.3.2 Key Industry Participants

    • 3.8 Vietnam

      • 3.4.1 Construction Market Overview

      • 3.4.2 Key Industry Participants

  • CHAPTER 04 South-East Asia Construction Regional Trends

    • 4.1 South-East Asia Construction Market Data

      • 4.1.1 Cambodia Construction Market Data

      • 4.1.2 Indonesia Construction Market Data

      • 4.1.3 Malaysia Construction Market Data

      • 4.1.4 Myanmar Construction Market Data

      • 4.1.5 Philippines Construction Market Data

      • 4.1.6 Singapore Construction Market Data

      • 4.1.7 Thailand Construction Market Data

      • 4.1.8 Vietnam Construction Market Data

  • CHAPTER 05 Research Methodology

    • 5.1 Introduction

    • 5.2 Research Methodology Steps

      • 5.2.1 Data Collection and Consolidation

      • 5.2.2 Modelling and Estimation

      • 5.2.3 Forecasting and Validation

  • CHAPTER 06 About GlobalData

  • Contact Us

Table

Table 1 South-East Asia Construction Output Value (Real $ Million) and Growth (% Change), 2018-27

Table 2 South-East Asia, Construction Output by Sector (Real % Change), 2018–27

Table 3 South-East Asia, Commercial Construction Output by Project Type (Real % Change), 2018–27

Table 4 South-East Asia, Energy and Utilities Construction Output by Project Type (Real % Change), 2018–27

Table 5 South-East Asia, Industrial Construction Output by Project Type (Real % Change), 2018–27

Table 6 South-East Asia, Infrastructure Construction Output by Project Type (Real % Change), 2018–27

Table 7 South-East Asia, Institutional Construction Output by Project Type (Real % Change), 2018–27

Table 8 South-East Asia, Residential Construction Output by Project Type (Real % Change), 2018–27

Table 9 Cambodia, Top Construction Projects by Value

Table 10 Cambodia, Key Contractors

Table 11 Cambodia, Key Consultants

Table 12 Indonesia, Top Construction Projects by Value

Table 13 Indonesia, Key Contractors

Table 14 Indonesia, Key Consultants

Table 15 Malaysia, Top Construction Projects by Value

Table 16 Malaysia, Key Contractors

Table 17 Malaysia, Key Consultants

Table 18 Myanmar, Top Construction Projects by Value

Table 19 Myanmar, Key Contractors

Table 20 Myanmar, Key Consultants

Table 21 Philippines, Top Construction Projects by Value

Table 22 Philippines, Key Contractors

Table 23 Philippines, Key Consultants

Table 24 Singapore, Top Construction Projects by Value

Table 25 Singapore, Key Contractors

Table 26 Singapore, Key Consultants

Table 27 Thailand, Top Construction Projects by Value

Table 28 Thailand, Key Contractors

Table 29 Thailand, Key Consultants

Table 30 Vietnam, Top Construction Projects by Value

Table 31 Vietnam, Key Contractors

Table 32 Vietnam, Key Consultants

Table 33 South-East Asia Construction Output Value, by Sector (Real $ Million), 2022–27

Table 34 Cambodia Construction Output Value, by Sector (Real $ Million), 2022–27

Table 35 Indonesia Construction Output Value, by Sector (Real $ Million), 2022–27

Table 36 Malaysia Construction Output Value, by Sector (Real $ Million), 2022–27

Table 37 Myanmar Construction Output Value, by Sector (Real $ Million), 2022–27

Table 38 Philippines Construction Output Value, by Sector (Real $ Million), 2022–27

Table 39 Singapore Construction Output Value, by Sector (Real $ Million), 2022–27

Table 40 Thailand Construction Output Value, by Sector (Real $ Million), 2022–27

Table 41 Vietnam Construction Output Value, by Sector (Real $ Million), 2022–27

Figures

Fig.1 South-East Asia Construction Output Value (Real $ Million) and Growth (% Change), 2018-27

Fig.2 South-East Asia, Construction Output Value, by Sector (Real, $ Million), 2018–27

Fig.3 South-East Asia, Commercial Construction Output by Project Type (Real, $ Million), 2018–27

Fig.4 South-East Asia, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2018–27

Fig.5 South-East Asia,  Industrial Construction Output by Project Type (Real, $ Million), 2018–27

Fig.6 South-East Asia,  Infrastructure Construction Output by Project Type (Real, $ Million), 2018–27

Fig.7 South-East Asia,  Institutional Construction Output by Project Type (Real, $ Million), 2018–27

Fig.8 South-East Asia,  Residential Construction Output by Project Type (Real, $ Million), 2018–27

Fig.9 Cambodia, Construction Output Value (Real, $ Million, 2017 Prices and Exchange Rate), 2018–27

Fig.10 Cambodia, Construction Output Value, by Sector (Real, $ Million), 2018–27

Fig.11 Indonesia, Construction Output Value (Real, $ Million, 2017 Prices and Exchange Rate), 2018–27

Fig.12 Indonesia, Construction Output Value, by Sector (Real, $ Million), 2018–27

Fig.13 Malaysia, Construction Output Value (Real, $ Million, 2017 Prices and Exchange Rate), 2018–27

Fig.14 Malaysia, Construction Output Value, by Sector (Real, $ Million), 2018–27

Fig.15 Myanmar, Construction Output Value (Real, $ Million, 2017 Prices and Exchange Rate), 2018–27

Fig.16 Myanmar, Construction Output Value, by Sector (Real, $ Million), 2018–27

Fig.17 Philippines, Construction Output Value (Real, $ Million, 2017 Prices and Exchange Rate), 2018–27

Fig.18 Philippines, Construction Output Value, by Sector (Real, $ Million), 2018–27

Fig.19 Singapore, Construction Output Value (Real, $ Million, 2017 Prices and Exchange Rate), 2018–27

Fig.20 Singapore, Construction Output Value, by Sector (Real, $ Million), 2018–27

Fig.21 Thailand, Construction Output Value (Real, $ Million, 2017 Prices and Exchange Rate), 2018–27

Fig.22 Thailand, Construction Output Value, by Sector (Real, $ Million), 2018–27

Fig.23 Vietnam, Construction Output Value (Real, $ Million, 2017 Prices and Exchange Rate), 2018–27

Fig.24 Vietnam, Construction Output Value, by Sector (Real, $ Million), 2018–27

Fig.25 Research Methodology Steps

Fig.26 Core Objectives of Data Collection and Consolidation

Fig.27 Modelling Approach

Fig.28 Forecasting and Validation Flow

Fig.29 GlobalData Proposition and Product Capabilities

Fig.30 GlobalData Sector Coverage

Frequently asked questions

  • What was the South-East Asia construction market size in 2023?

    The South-East Asia construction market size will be evaluated at $450.1 billion in 2023.

  • What is the South-East Asia construction market growth rate?

    The construction market in the South-East Asian region is expected to grow at a CAGR of 4.9% during 2023-2027.

  • What are the key sectors in the South-East Asia construction market?

    The key sectors in the South-East Asia construction market are commercial construction, energy and utilities construction, industrial construction, infrastructure construction, institutional construction, and residential construction.

  • Which are the key countries in the South-East Asia construction market?

    The key countries in the South-East Asia construction market are Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

  • Is there a third level of segmentation in the report?

    GlobalData’s focus is on providing reliable and accurate data that is supported by robust research methodology. Our reports undergo rigorous quality checks and are based on primary and secondary research sources, ensuring that the numbers and insights provided are trustworthy. However, despite the best efforts to gather comprehensive data, there could be instances where the available data is limited, making it challenging to provide third-level segmentation. In such cases, GlobalData may choose to provide high-level insights and general trends rather than forcing segmentation that may not be backed by sufficient data. This approach ensures that the report’s overall quality and credibility are maintained.

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