Construction Set To Increase By 60% Globally Over Next 15 Years, Spurred By Climate Change: Study
The next 15 years are set to bring enormous growth in the construction market around the world as widespread building upgrades and investments in energy adaptation ramp up.
Oxford Economics and Aon’s Global Construction and Infrastructure Group estimate growth of $5.6T in construction between 2022 to 2037, according to a new forecast reported by Strategic Risk. The figure would equate to growth of more than 60% in the construction market internationally.
“The challenges of dealing with climate change will be a significant growth driver for construction globally and will create new industries and employment,” Oxford Economics Global Infrastructure and Construction Lead Graham Robinson told Strategic Risk. ”With the built environment accounting for almost 40% of all greenhouse gas emissions globally, the transition to clean energy and new resilient infrastructure will boost growth for construction.”
Most countries around the world, including the UK, the U.S and the entire European Union, have committed to reaching net zero by 2050, a goal that is going to drive enormous focus on construction. Much of the work will be on infrastructure and in transitioning energy grids to renewable sources. The report also predicts a drop in inflation through 2023.
The built environment’s vulnerability to the climate crisis has become increasingly stark in recent years.
An estimated $34B worth of U.S. real estate on the coasts could be regularly flooded within the next three decades, according to a new report by the nonprofit Climate Central, as seas rise between 8 and 23 inches. Hurricane Ian alone did between $60B and $70B in property damage last month, plunging Florida into a property insurance crisis.