China and India continue to be the largest and most active construction markets in Asia. China is slowing down slightly, and India is continuing its’ strong and consistent pace.

India is currently experiencing a booming period: India is one of the world’s fastest growing economies. India’s construction sector is making significant headway, a visitor to India will see significant construction activity (roads, factories & new building) in just about all of India’s 28 states & 8 unions.

India’s construction sector has been growing at a record pace in the last 5 years. India is set to become the 3rd largest Construction Market by 2026 only trailing the USA and China. Will we see India overtake China in the next decade? Maybe……..stay tuned.

The Indian construction industry is forecast to be in the $0.75 to $0.85 trillion range by the end of 2025. Construction is close to 11.5% of India’s GDP and one of India’s top 3 industries. The Indian construction market is forecast to be a $1.25 to $1.30 Trillion market by the year 2030.

India’s construction industry has played an important role in India’s increasing world status and economic growth. The Indian construction sector is a huge employer, employing 10’s of millions of construction workers. Look for this growth to continue in 2025 and beyond. India’s infrastructure sector is primed for significant growth, infrastructure projects related to roads, bridges, ports and the like are in the planning pipeline and forecast to cost more than $500 billion and are expected to be completed in the next 24 to 36 months.

India’s GDP growth rate is forecast to be in the 5.3% to 5.8% range in 2025 way ahead of all major countries and higher than its nemesis China. India has overtaken China in as the world’s most populated country in 2024, with a population of 1.45 billion. India’s unemployment rate is in the 7.7% to 8.1% range, which is reasonably high. However, these values are somewhat questionable.

Ten years ago, most major US & European industrial / manufacturing companies were directing their CAPEX capital investments into China. However, with all the recent political posturing, territorial disputes & COVID related shutdown issues China has experienced a slowdown in foreign capital investment. We are seeing more US, Japanese & Western European capital investment moving into India. India is now viewed now as the place to build new manufacturing / production facilities.

The military standoff between India and China in the northern Himalayan region is tenuous and threatening, with troops positioned in close proximity to each other, both countries are claiming sovereignty of the disputed border area.

The Chinese construction industry is forecast to see GDP growth of 4.4% to 4.8% in the 1st Q of 2025. China’s Governments 14^th 5 Year plan calls for domestic investment in Transportation, Infrastructure, Energy and Urbanization projects, the halcyon growth rates that we saw 5 or more years back are perhaps in the rear-view mirror now as we move further into 2025. China’s inflation rate is currently 0.4% to 0.8% and unemployment is between 4% and 5%, these are Government generated numbers, so the real numbers could be different, perhaps somewhat higher.

Indonesia is the largest S.E. Asia nation with a population of 280 million & located on 100’s of islands, Indonesia has sizable O&G, timber & mineral resources. The future looks bright for the Indonesian construction sector.

Indonesia has commenced construction on its new futuristic capital “Nusantara.” President Widodo proclaimed that Jakarta, the current overcrowded, unhealthy and polluted capital, which is predisposed to earthquakes, flooding and is steadily submerging below sea level would be withdrawn as Indonesia official capital city. The new capital 1,300km (800 miles) away from Jakarta on the island of Borneo. Thousands of construction workers are currently installing utilities, roads and temporary worker camps. Construction of this new capital will take at least 5 years or more and will cost more than $10 billion.

Post Covid 19, Japan has advanced its’ skills related to healthcare / life sciences, automation / robotics & AI know-how. The Japan construction market is projected to grow to between US$600 & $635 billion in 2025. Japan’s construction industry (for the sixth year in a row) continues to experience slow or minimal growth in its civil / infrastructure, home building, commercial, institutional and industrial sectors, perhaps mirroring Japan’s steadily declining and aged population. Japan’s construction industry is forecast to grow by 1.5% to 2.5% in 2024 very similar to previous years.

The Japanese construction sector is estimated to be $600 to $700 billion in 2024 or close to 8% of the country’s GDP. Japan’s construction industry for the sixth year continues to experience slow or minimal growth in its civil / infrastructure, home building, commercial, institutional and industrial sectors, perhaps mirroring Japan’s steadily declining population. Japan’s construction industry is forecast to grow by 0.4% to 0.7% in the 2^nd half of 2024 from the previous year.

In the last 5 years South Korea has strengthened its standing as a as a leader in technology, micro-chips, ship building & FPSO construction.

Some of the smaller Asian nations such as India, Bangladesh, Malaysia, Sri Lanka, Indonesia, Singapore, Pakistan, Philippines, Thailand, Vietnam and Laos in 2025, have a huge need for new highways, bridges, railroads and other transport and power / industrial related projects.