The Construction Market in South Korea is being driven by Growing demand for modular houses
The Construction Market in South Korea is expected to grow at a CAGR of 5.4% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 61.6 billion. South Korea's construction market is experiencing a significant surge due to the government's commitment to investing in public infrastructure, with an estimated USD51.8 billion expenditure in 2024, marking a 2.8% increase from the previous year. Despite low interest rates and substantial fiscal stimulus, this trend is expected to continue as a key driver of economic growth. South Korean engineering, procurement, and construction (EPC) firms are prominent players in large-scale housing, transportation, plant, and commercial projects, both domestically and internationally. Notably, multibillion-dollar projects are the primary focus for large EPC firms, while smaller but highly experienced SMEs play a crucial role in executing smaller projects within the industry.
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The market is segmented based on
According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows:
However, the market also witnesses some limitations, which are as follows:
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Market Scope |
|
Report Coverage |
Details |
Page number |
146 |
Base year |
2024 |
Historic period |
2019-2023 |
Forecast period |
2025-2029 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.4% |
Market growth 2025-2029 |
USD 61.6 billion |
Market structure |
market_structure.ucfirst |
YoY growth 2024-2025(%) |
5.1 |
Key countries |
South Korea, Asia, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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The construction industry in South Korea encompasses various project types, including manufacturing plants for material production, semiconductor manufacturing, pharmaceuticals, and renewable energy infrastructure. Transport and housing redevelopment projects are also significant, with regulations guiding reconstruction efforts. Commercial construction includes water infrastructure, hospitality buildings, office buildings, outdoor leisure facilities, retail buildings, and data centers. Leisure and hospitality, tourism industry, and educational buildings are key sectors. Industry trends include a focus on sustainability and innovation, while key risks include regulatory changes and economic fluctuations. The mega-project pipeline includes transportation, housing, and energy projects in different development stages. Participants include local and international construction firms, engineering companies, and government agencies. Other sectors include waste processing plants and renewable energy infrastructure.
The South Korean construction and engineering market encompasses businesses specializing in non-residential construction, encompassing engineering service providers and Engineering, Procurement, and Construction (EPC) contractors. This market excludes entities involved in residential construction. According to Technavio, the global construction and engineering market expansion is attributed to several key factors. Primarily, substantial investment in urban infrastructure development is a significant driver, as urban populations continue to grow and demand escalates for advanced transportation, communication services, and essential utilities, such as water and renewable energy infrastructure. Additionally, housing redevelopment projects and regulatory requirements for reconstruction contribute to market growth. The project types within this sector span various domains, including manufacturing, transport, renewable energy infrastructure, and housing redevelopment. Construction activity remains robust, underpinned by these factors, and is expected to continue its upward trajectory.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
Technavio Research
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