The Philippine government considers the construction industry a key pillar of the country’s economic growth. It comes as no surprise if the government has heavily prioritized infrastructure development across the country.
In 2020, the industry is valued at USD 20.05 billion. By 2026, the value is expected to reach USD 54.12 billion. Philippines construction market research can help you understand the industry market better, particularly regarding the risks and opportunities.
Philippines Construction Market Research: Market Overview
In 2019, the Philippines’ construction industry is valued at USD 16.99 billion. Just one year after, the value increased significantly to USD 20.05 billion. The value of the industry is projected to grow even higher.
By 2021, the total market size of the Philippines’ construction industry is expected to reach USD 54.12 billion with a CAGR of 18.2% in 2021 – 2026.
The main drivers of the industry are the implementation of different governmental projects, the growing population, and the increasing rate of urbanization.
Key market players include EEI Corporation, SMCC Philippines, DDT Konstract, Megawide Construction Corporation, and Metro Stonerich Corporation, among others.
Risks
While the Philippines’ construction industry grows rapidly, the same can’t be said about the country’s skilled labor. The jobs related to the industry jump from 10,000 to 16,500 in only a single year.
The Philippine government attempts to close the gaps between skilled and unskilled labor by recruiting workers from other countries. So far, the Philippine government has allowed nearly 52,000 skilled workers from China to work in the country.
Although this solves the shortage of skilled labor in the short term, more needs to be done so it wouldn’t create risks for the growth and development of the industry.
Opportunities
Increasing number of construction projects
In the last nine years, the number of issued licenses for contracting has increased dramatically from 1,420 to 1,860. In addition, the number of flagship projects also increase. For example, nearly 100 infrastructure flagship projects are prepared in 2019 alone.
This comes as no surprise as the Philippine government considers the construction industry as a key driver of the country’s economic development.
Rising demand for green construction projects
There is also a rising demand for green construction projects. At the moment, the acceptance of green building practices has been gaining momentum in the public sector, offices, as well as residential projects.
The Philippines’ construction industry is growing rapidly. With a projected CAGR of 18.2% in 2021 – 2026, the value of the industry is expected to reach USD 54.12 billion. Philippines construction market research can help you understand the market and formulate an effective market entry strategy.