China Transportation Infrastructure Construction Market- Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2028)

The China transportation infrastructure construction market is expected to register a growth rate of over 7% during the forecast period of 2022-2027.

The COVID-19 had a significant impact on the China construction sector in 2020. Despite the fact that COVID-19 is projected to slow infrastructure development, construction is expected to pick up. In 2021, the transport infrastructure construction market began to rise after the COVID-19 impact. Economic activity in China has resumed after weeks of the shutdown, and infrastructure work has resumed, as an early sign of recovery.

In 2021, the revenue of major players like China State Construction Engineering Corporation and China Railway Construction Corporation was USD 253.7 billion and 142.5 billion respectively.

China's economic growth has remained generally stable during the pandemic, the development trend of stability and progress, the main macroeconomic indicators are operating in a reasonable range, and the economic structure is being optimized and adjusted.

A series of infrastructure construction projects have begun across China in the final months of the year, as the country’s construction boom continues to boost economic growth in the fourth quarter and looks to continue doing so into 2022.

Key Market Trends

Government Initiatives Driving Transport Infrastructure Construction Market in China

China's top leaders have paid great attention to transport infrastructure construction and drawn up plans accordingly. Two guidelines about transport planning were released by the central government in FY20 and FY19.The guidelines have mapped out China's transport development over 30 years.

The plan released in 2020 said a more convenient and high-quality transportation network will be built by 2035, allowing most people to have access to a national highway within 15 minutes, a freeway in half an hour and a railway in an hour.

China has more than 40,000 km of high-speed railways, 168,000 km of freeways as well as 248 airports for commercial flights.

This year, China is expected to build more than 3,300 kilometers of railways, build or renovate more than 8,000 km of freeways, and establish eight commercial airports.

Increase in Value of Contracts

China is increasingly turning to state-led investment to stabilise its economy, hoping mega infrastructure projects will stimulate local business and create jobs.

In late December 2021, China’s finance ministry had offered local governments an early allocation of USD 229 billion in quotas for 2022 special-purpose bonds to help spur investment and support the economy.

In 2021, approximately USD 5.42 billion worth of new contracts were signed by the construction enterprises in China, accounting for more than a half of the total value. Driven by the rapid urbanization, the construction industry in China exceeded the output of USD 0.72 billion in that year.

In 2020, China Railway Construction Corporation (1186) announced its value of newly signed contracts for the first three quarters this year rose 25.07% from a year ago to USD 176 billion. For the third quarter, its value of newly signed contracts spiked 40.3% to USD 62.3 billion.

Competitive Landscape

China transportation infrastructure construction market is moderately consolidated, as most of the projects are owned by major players in the industry small scale players have less scope in the industry. Some of the major players includes China State Construction Engineering Corporation Ltd, China Railway Group, China Railway Construction Corporation, China Communications Construction Company, Power Construction Corporation of China.

Additional Benefits:

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

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