Dublin, Oct. 03, 2023 (GLOBE NEWSWIRE) -- The "South Korea Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027" report has been added to ResearchAndMarkets.com's offering.
The South Korean construction industry is expected to grow marginally by 0.8% this year, owing to ongoing economic and industrial weakness, and increases in inflation, construction material prices and interest rates.
These headwinds have weighed on new investment, construction permits, and new orders. Also, the manufacturing and export markets - the pillars of the South Korean economy - are expected to be weak in the short term, as external demand softens; however, investment in the sector is steadily increasing, particularly in electric vehicle and battery manufacturing projects.
According to the Korean Statistical Information Service (KOSIS), the industrial value of construction contracts received increased by 172.5% year on year (YoY) in the first three months of 2023, rising from KRW3.5 trillion ($2.6 billion) in January-March 2022 to KRW9.6 trillion ($7.2 billion) in January-March 2023.
Moreover, in early February 2023, the South Korean Minister of Finance reaffirmed his view that inflation could ease in the second quarter of this year; this is expected to further boost consumer activity, thereby enhancing economic and construction output in the latter half of 2023.
The industry's output is expected to grow at an annual average rate of 3.5% from 2024 to 2027, supported by investment in the energy, transportation, and industrial sectors. In early January 2023, the Ministry of Industry, Trade, and Energy (MoITE) announced a target of increasing renewable energy generation from 9% in 2021 to 21.6% in 2030 and 30.6% in 2036.
To strengthen Korea's hydrogen industry, SK E&S, a South Korean green energy company, and Plug Power, a US developer of hydrogen fuel cell systems, announced a KRW1 trillion ($751.1 million) investment plan in May 2023. These investments are being diverted to the construction of the gigafactory and Boryeong Blue Hydrogen Plant.
The construction of a gigafactory, which aims to produce hydrogen fuel cells that can power vehicles and generate power, is expected to begin production in 2025, while the development of the Boryeong Blue Hydrogen Plant will begin production in 2026 and will be capable of producing 50,000 tonnes of liquefied hydrogen per year by 2026
Scope
- Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in South Korea, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the publisher's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
4 Construction Outlook
4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/ypgb1c
Source: GlobalData
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