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Infrastructure sector in China - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 120 Pages
  • January 2022
  • Region: China
  • Mordor Intelligence
  • ID: 5529036

The Infrastructure sector in China is estimated to grow at a CAGR of approximately 5% during the forecast period.

China's moves to revive its infrastructure sector in response to slower domestic economic growth and rising trade tensions are widely expected to fuel and sustain steel demand from September to 2020, but could also spur an increase in steel production resulting in another winter of oversupply and short-term losses for steel mills. China approved Yuan 1.65 trillion (USD 231 billion) of investment in the railway, urban rail traffic, and airport projects in 2018 75% or Yuan 1.24 trillion of it in the fourth quarter.

13 major cities and provinces, including Beijing, Shanghai and Fujian province, released investment plans and “major infrastructure” projects for 2020. Eight cities and provinces announced their investment budgets, which in total amounts to 33.83 trillion yuan (USD 4.8 trillion).

Key Market Trends

Growing infrastructure in railway:

China has promised to boost its railway freight capacity in order to ease traffic congestion and pollution. The ministry said rail freight volumes rose 7.9 percent in the first three quarters, with deliveries of coal by rail rising around 10 percent.

Rail still only accounted for 8.1 percent of total freight, which amounted to 37.74 billion tonnes over the period, up 7 percent on the year.

Increase in FDI:

Over the last decades, foreign direct investment (FDI) in BRI economies has risen significantly. This rise in FDI inflow has come from a variety of regions, in particular, East Asia Pacific. China alone now accounts for 20% of the total FDI inflows in BRI economies.

A major objective of the Belt and Road Initiative (BRI) is to reduce the time and cost it takes to transport goods and people across BRI economies. Many of these countries face serious gaps in infrastructure, especially related to trade and investment.

There is a significant correlation between construction projects by Chinese firms in other BRI countries and increased direct investment. According to the analysis, a 10% increase in China’s construction activities is associated with an increase in outward FDI from China by 7% in the same year, 11% the next year, and 16% in two years. This suggests that China’s infrastructure activities overseas may serve as a catalyst for Chinese investments in manufacturing or services.

Competitive Landscape

The report covers the major players operating in the infrastructure sector china. The market is Fragmented, the infrastructure sector presents opportunities for growth during the forecast period.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain / Supply Chain Analysis
4.5 Porters 5 Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Market Insights
4.6.1 Current Economic and Infrastructure Market Scenario
4.6.2 Technological Innovations in the industry
4.6.3 Impact of Government Regulations and Initiatives on the Industry
4.6.4 Impact of COVID -19 on the market
5.1 By Infrastructure segment
5.1.1 Social Infrastructure Schools Hospitals Defence Others
5.1.2 Transportation Infrastructure Railways Roadways Airports Waterways
5.1.3 Extraction Infrastructure Power Generation Electricity Transmission & Disribution Water Gas Telecoms
5.1.4 Manufacturing Infrastructure Metal and Ore Production Petroleum Refining Chemical Manufacturing Industrial Parks and clusters Others
6.1 Vendor Market Share
6.2 Mergers & Acquisitions
6.3 Company Profiles
6.3.1 China State Construction Engineering
6.3.2 China Railway Group
6.3.3 China Railway Construction
6.3.4 China Communications Construction Company
6.3.5 Power Construction Corporation of China
6.3.6 hina Metallurgical Group
6.3.7 China Energy Engineering Corporation
6.3.8 Shanghai Construction Group
6.3.9 China National Chemical Engineering
6.3.10 China Petroleum Engineering Corporation*