Trillions: A Global Construction & Manufacturing Projection
If you haven’t read Allied Market Research’s latest report, titled, COVID-19 Impact Analysis on Construction & Manufacturing Industry: Global Opportunity Analysis and Industry Forecast, 2020-2022, we’ve got some interesting news for you! The report announced that the global construction and manufacturing industry generated a whopping US$14.4tn in 2019, and is projected to reach US$14.9tn by 2022, growing at a CAGR of 5.2 percent from 2020 to 2022.
We’re going to break it down, now!
The Global Construction and Manufacturing Market
The global construct market was pegged at US$9.5tn in 2019 and is expected to to reach US$9.77tn by 2022, growing at a CAGR of 4.5 percent from 2020 to 2022. In the other half of the report, we found that the global manufacturing industry accounted for US$4.92tn in 2019, and is expected to hit US$5.08tn by 2022, growing at a faster CAGR of 6.7 percent during the forecast period.
The building construction segment took the lions share of the market in 2019, accounting for more than one-third of the global construction market, owing to the demand for home automation products such as automatic doors to ensure less contact with solid objects in both houses and commercial spaces. However, the construction services segment is expected to manifest the highest CAGR of 6.9 percent during the forecast period.
The COVID-19 Effect
The COVID-19 pandemic caused a myriad of issues across the construction and manufacturing industries, with global supply chains faltering and work coming to a complete halt, in many cases. The prolonged period of lockdown affected the supply and distribution of raw materials for the construction of buildings and commercial places. However, this particular problem has pushed industry-leaders to adopt technology platforms and solutions that can tackle the pandemic-related challenges head-on.
For the manufacturing industry, COVID-19 was a harsh and unexpected kick; the pandemic and the sudden strain that manufacturers faced proved to be the wake-up call that they needed. Many organisations jumped, as fast as they could, onto the Industry 4.0 tech tsunami, which has the capability to withstand the storm. Turns out, people just needed one final push ─ COVID-19 provided.
The Equipment and Machinery Segment
The equipment and machinery segment truly dominates the manufacturing space, at the moment, accounting for nearly three-fifths of the global manufacturing industry in 2019, owing, primarily, to the adoption of technology platforms and solutions to address consumer demand. However, in a world that is working towards more sustainable solutions for the sake of the environment, the packaging sector is becoming an increasingly important factor; unsurprisingly, the packaging segment is expected to “portray the highest CAGR of 8.1 percent during the forecast period.”