South Africa Construction Market Report Overview
The South Africa construction market size was $25.5 billion in 2022. The market is projected to achieve an AAGR (average annualized return of an investment, portfolio, asset, or cash flow over time)of more than 3% during 2024-2027. The growth is attributed to investments in transport, energy, industrial, and housing projects. The government plans to increase the share of renewable energy in its total electricity mix from 11% in 2019 to 41% by 2030 and decommission 8-12GW of coal-fired power plants by the end of 2030.
The South Africa construction market research report offers a comprehensive understanding of project types and construction activities in the country. It analyzes the mega-project pipeline, focusing on development stages, participants, and listings of major projects in the pipeline. The market report further discusses the key sectors in the construction market and their growth drivers. Along with reviewing the details of the construction projects, our analysts have elaborated on emerging trends and assessed key risks and opportunities that will influence the South Africa construction market growth in the coming years.
Infrastructure construction was the leading sector in the South Africa construction market in 2022
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. In 2022, the infrastructure construction sector was followed by residential construction.
Infrastructure construction: The project types in this sector include rail infrastructure, road infrastructure, and other infrastructure projects. Investment to expand the country’s transport infrastructure networks will support the sector growth.
Residential construction: The project types in this sector include single-family housing and multi-family housing. The government’s focus on boosting the supply of social housing units will support the sector growth during the forecast period.
Energy and utilities construction: The project types in this sector include electricity and power, oil and gas, telecommunications, sewage infrastructure, and water infrastructure. Investments in long-term renewable energy projects and the government’s goal of increasing the share of renewable energy in its total electricity mix from 11% in 2019 to 41% by 2030 will drive the sector’s demand during the projected period.
Commercial construction: The project types in this sector include leisure and hospitality buildings, office buildings, outdoor leisure facilities, retail buildings, and other commercial construction. Developments in leisure and hospitality, office, data centre, and retail building projects will drive the commercial sector’s growth over the forecast period.
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. Factors such as a gradual rebound in manufacturing and export activities, coupled with investments in the establishment of industrial parks, and the government’s focus on boosting the automotive industry will drive the sector’s growth during the forecast period.
Institutional construction: The project types in this sector include educational buildings, healthcare buildings, institutional buildings, research facilities, and religious buildings. Infrastructure developments in the healthcare and educational sectors will fuel the growth of this sector in the coming years.
