Mongolia Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2027

The construction industry in Mongolia is expected to grow by 3.8% in real terms in 2023, down from annual growth of 8.2% in 2022. The slowing of growth in 2023 is due to a rise in producer prices and the impact of higher interest rates. According to the National Statistical Office (NSO) of Mongolia, the value add of the construction industry rose by 2.1% year on year (YoY) in Q2 2023, following Y-o-Y growth of 0.2% in Q1 2023 and 11.8% in Q4 2022. According to the NSO, the average producer price index rose by 2.6% YoY in the first nine months of 2023, following an annual increase of 30.5% in 2022. The industry’s output has also been affected by a decline in foreign direct investment inflows. According to the NSO, foreign direct investment inflows to the construction sector declined by 58.4% YoY in the first six months of 2023, following an annual growth of 64.2% in 2022. In addition, foreign direct investment inflows to the real estate sector declined by 81.5% YoY in the first six months of 2023, according to the NSO. Although the Bank of Mongolia has maintained its benchmark interest rate at 13% since January 2023, its sharp rise over the last year has affect investor and business confidence.

The slowing of construction activity in Mongolia is expected to continue into early 2024 before it starts to recover, recording an annual average growth of 4.5% between 2024 and 2027, supported by investment in the tourism sector, oil and gas sector, electricity, housing, and mining sectors. In September 2023, Mongol Refinery State Owned LLC awarded a letter of agreement to India-based real estate builders and construction company, Megha Engineering and Infrastructures Limited (MEIL), to undertake an oil refinery construction project with an investment of MNT2.2 trillion ($648 million). Once complete, the facility will be capable of refining 1.5 million tonnes of crude oil annually. In August 2023, Mongolia’s Prime Minister said that he has planned to sign an “open skies” agreement with the US during the initial months of 2024, with flights commencing in the second quarter of 2024. This may boost tourist inflows, supporting the country’s aim to attract one million tourists per year by 2025.

The report provides detailed market analysis, information, and insights into the Mongolian construction industry, including -

• The Mongolian construction industry's growth prospects by market, project type, and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Mongolian construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Mongolia. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Mongolia, 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 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 critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.