Heavy Industry
Canada Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027
Canada Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027
Canada Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027
Summary
After standing at relatively high levels in 2021-2022, Canada’s construction sector is set to decline sharply by 3.4% this year and 1.5% next year, owing to a drop in residential demand and economic expansion due to monetary tightening, along with high construction prices, and a skilled labour shortage. The residential construction sector is expected to decline by 15% this year and 4.7% next year, reflecting a severe year-on-year (Y-o-Y) decline of 20.1% in new residential construction investments and 18.7% YoY drop in the number of building permits issued in the first seven months of 2023. The slowdown in the coming quarters is also attributed to the suspension of all 118 renewable energy projects until February 2024 in Alberta Province amid a review of renewable energy policies.
Over the remainder of the forecast period, the industry’s output is expected to register an annual average rate of 2.7% between 2025 and 2027, supported by the developments in the energy, commercial, residential and education sectors. For instance, as part of the CAD33 billion ($25.6 billion) Investing in Canada Infrastructure Program (ICIP), the government approved more than CAD24 billion ($18.6 billion) for 5,400 projects as announced by the Ministry of Intergovernmental Affairs, Infrastructure and Communities in April 2023. Growth over the forecast period will also be supported by investment as part of the Canada’s Energy and Natural Resources Minister’s Plan, Powering Canada Forward. As part of this Plan, Canada Infrastructure Bank’s (CIB) commitment of CAD12.9 billion (10 billion) in clean power projects and another CAD12.9 billion ($10 billion) in green infrastructure projects will foster the advancement of clean building retrofits and zero-emission vehicle charging infrastructure. In line with this Plan, the government has proposed an Investment Tax Credit for Clean Technology Manufacturing and an Investment Tax Credit for Clean Electricity in its 2023 Budget. Investment Tax Credit for Clean Technology Manufacturing includes a refundable tax credit of 30% of the cost of investments in new machinery and equipment used to manufacture or process key clean technologies, as well as extract, process, or recycle key critical minerals. Investment Tax Credit for Clean Electricity includes refundable tax credit of 15% of the cost of investments in technologies required for the generation, storage, and transmission of clean electricity between provinces and territories.
The report provides detailed market analysis, information and insights into Canada’s construction industry, including -Canada’s construction industry's growth prospects by market, project type and construction activityCritical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Canada’s construction industryAnalysis 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 Canada. It provides -Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Canada, featuring details of key growth drivers.Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sectorAnalysis 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 consultantsReasons to BuyIdentify and evaluate market opportunities using GlobalData's 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 GlobalData's critical and actionable insight.Assess business risks, including cost, regulatory and competitive pressures.Evaluate competitive risk and success factors.