Building Construction in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
4710Revenue
$3.0tr
Past 5-Year Growth
Profit
$XXX.Xbn
Employees
33
Businesses
37
Wages
$XXX.Xbn
Building Construction in China industry analysis
Over the five years through 2023, revenue for the Building Construction industry is expected to have been growing at an average annualized 4.4%, to $3.0 trillion. This includes an anticipated increase of 4.7% in 2023. There are approximately 36,700 construction firms in this industry. Most major players also have operations in civil engineering, real estate development, professional engineering services, plan designing, building materials manufacturing and construction equipment manufacturing. By operating across different sectors, firms can minimize their costs and maintain stable supply sources.Larger general contractors are relatively stable and less vulnerable to external influences due to their broad business scope and established relationships with real estate developers, local government and material supply sources.In 2023, the average profit level for the industry is estimated at 4.6% of industry revenue, although some large firms can earn a profit of 8.0% or more. The industry is generally profitable as the government controls many construction enterprises – particularly large-scale organizations – and provides them with preferable policies.The industry is highly influenced by China's real estate industry. Rapidly increasing housing prices in major cities have resulted in the State Council and first-tier cities issuing a series of measures to curb speculative housing demand and prevent excessive price growth. These policies caused declines in sales volume and average prices of commercial residential buildings and have discouraged real estate investment and new house starts. However, an rise in the number of government-mandated indemnificatory houses is lifting demand for building construction services and offsetting the slowed growth in the commercial residential buildings market. As a result, ACMR-IBISWorld projects that in the five years through 2028, industry revenue is forecast to continue growing at an average annualized 3.8%, to reach $3.6 trillion.
Trends and Insights
- The construction sector is a key player in China's continued economic development. The value of construction output accounted for 25.7% of China's GDP in 2021, a substantial increase from 11.0% in 2020.
- Residential building construction is the largest product segment in the industry. This segment may decline due to the influential impact of the commercial residential building construction market.
- East China is the major region for building construction in China. This region has the highest population level, the highest average per capita incomes and the largest demand for housing and buildings.
- Firms in this industry compete with each other on tender. This is one of the most important success factors for general contractors.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 4.4 % over the past five years, to reach an estimated $3.0tr in 2024.
Trends and Insights
National macro policies improve industry prosperity
- With the smooth progress of national strategies like the Belt and Road, the Guangdong Hong Kong Macao Greater Bay Area, the Yangtze River Delta Integration and the Hainan Free Trade Port Construction, fixed asset investment in related fields has promoted the healthy development of the construction industry.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Urbanization construction still has a long dividend period
- In recent years, the urbanization rate of China's permanent population has been increasing, reaching 65.2% by the end of 2022.
Biggest companies in the Building Construction in China
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 |
|---|
There are no companies that hold a large enough market share in the Building Construction in China industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Residential building construction, Commercial building construction and Public building construction. Residential building construction is the largest segment of the Building Construction in China.
Trends and Insights
Residential building construction shows a downward trend
- Residential buildings refer to the houses exclusively for living, including villas, apartments dormitories for employees' family members, collective dormitories, dormitories for single employees and student dormitories.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Building Material Production Equipment Manufacturing in China
- Building Completion & Interior Design in China
International industries
- Home Builders in the US
- Apartment & Condominium Construction in the US
- Industrial Building Construction in the US
- Masonry in the US
- Roofing Contractors in the US
Table of Contents
About this industry
Industry definition
Businesses in the Building Construction Industry in China construct residential buildings, commercial buildings, hotels, office buildings, schools, hospitals, airport terminals, harbors, railway stations and factories. This report does not include analysis on the construction of bridges, subways, highways, railways, pipelines and mines.
What's included in this industry?
Residential building constructionCommercial building constructionPublic building constructionIndustrial building constructionCompanies
Purchase this report to view all major companies in this industry.
Related Terms
GENERAL CONTRACTORSUBCONTRACTORCONTRACTORGROSS FLOOR AREA (GFA)Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The construction sector is a key player in China's continued economic development. The value of construction output accounted for 25.7% of China's GDP in 2021, a substantial ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Residential building construction is the largest product segment in the industry. This segment may decline due to the influential impact of the commercial residential buildin...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
East China is the major region for building construction in China. This region has the highest population level, the highest average per capita incomes and the largest demand...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Firms in this industry compete with each other on tender. This is one of the most important success factors for general contractors.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Industry leaders focus on economy of scale. Leading enterprises make use of their vast resources to break into related fields.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Building Construction Industry in China is essentially a service provider and therefore tariff protection is not applicable. There is also protection for local firms agai...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The major cost in the industry is purchases, accounting for about 63.2% of total revenue. This segment varies across companies of different scale, and is lower at larger ente...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Building Construction industry in China in 2024?
The market size of the Building Construction industry in China is $3.0tr in 2024.
How many businesses are there in the Building Construction in China industry in 2024?
There are 37 businesses in the Building Construction industry in China, which has grown at a CAGR of 4.4 % between 2019 and 2024.
Has the Building Construction industry in China grown or declined over the past 5 years?
The market size of the Building Construction industry in China has been growing at a CAGR of 4.4 % between 2019 and 2024.
What is the forecast growth of the Building Construction industry in China over the next 5 years?
Over the next five years, the Building Construction industry in China is expected to grow.
What does the Building Construction in China include?
Residential building construction and Commercial building construction are part of the Building Construction industry.
How competitive is the Building Construction industry in China?
The level of competition is high and increasing in the Building Construction industry in China.
