The South Africa construction market size was $25 billion in 2023. The market will grow at an AAGR of more than 3% during 2025-2028. Investments in renewable energy and the industrial sectors, with the government’s plans to increase the share of renewable energy in its total electricity mix will drive the market growth.
The South Africa construction market research report gives 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.
South Africa Construction Market Segmentation by Sectors
The infrastructure construction sector accounted for the highest market share in the South Africa construction market in 2023
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.
Commercial construction: The project types in this sector include leisure and hospitality buildings, office buildings, outdoor leisure facilities, retail buildings, and other commercial construction. A rebound in tourism activities and the construction of retail buildings and data centers will drive the commercial sector’s growth during 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. Investments in the construction of electric vehicle production plants and factories across the country will drive the sector’s growth during 2025-2028.
Infrastructure construction: The project types in this sector include rail infrastructure, road infrastructure, and other infrastructure projects. Investments to expand the country’s transport infrastructure networks will support the sector’s output 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. Improved investments in renewable energy projects, and the government’s aim to reduce the country’s carbon emissions in the country will drive sector growth during 2025-2028.
Institutional construction: The project types in this sector include educational buildings, healthcare buildings, institutional buildings, research facilities, and religious buildings. Public and private sector investments to develop the healthcare and educational sectors will fuel the growth of the institutional construction sector during 2025-2028.
Residential construction: The project types in this sector include single-family housing and multi-family housing. The government’s focus on the construction of affordable housing in the country will support the residential sector output over the forecast period.
