The global construction industry took a hit from the lockdowns and other factors resulting from the COVID-19 pandemic. However, Allianz Global Corporate & Specialty’s (AGCS) latest study expects the global construction market to see solid growth once the pandemic is done.

Why the positive outlook? The report determined that the signs showing a strong growth outlook for the construction industry include rising populations in emerging markets, and significant investment in alternative forms of energy such as wind, solar, and hydrogen and power storage and transmission systems. 

Another recent study by Marsh and Guy Carpenter, “Future of Construction: A Global Forecast for Construction to 2030,” also saw that the global construction industry remained resilient during the pandemic and predicts that that global construction output will grow by 42%, or US$4.5 trillion, between 2020 and 2030, mainly due to government stimuli and the demand for residential construction.

AGCS’s study claimed that government spending on infrastructure and the transition to a net-zero society could be the key to helping the construction market thrive post-pandemic, noting that shifting to electric transport will require investment in new plants and battery manufacturing facilities and charging infrastructure.

It also expects buildings to improve their carbon footprint and improve coastal and flood defences and sewage and drainage systems in many catastrophe-exposed regions in response to more frequent weather events.

At the same time, the insurer expects governments in many countries to plan major public investments in large construction infrastructure projects to stimulate economic activity after the pandemic crisis and drive the low carbon transition.

Yann Dreyer, global practice group leader for construction in the global energy and construction team at AGCS, said the pandemic has changed the construction industry dramatically.

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