China Construction Directory
Design and construction services sector: China is the world's largest construction market and is expected to grow at an annual average of 8.6% between 2022 and 2030. However, it is also widely used and government is implementing policies to distract the economy from its dependence on land sales. At the same time, an aging population and a general economic slowdown are impacting the sector.
China's 14th Five-Year Plan includes government-led efforts to apply digital technology to the building and construction process. In terms of infrastructure, the national government is expected to focus on transport and energy, with an emphasis on increasing connectivity within city clusters. As China develops a greener economy, there will be more opportunities in low-carbon construction, including green buildings, renewable energy and water conservation.
Architectural services: China's urbanization rate is among the highest in the world. Data from the American Institute of Architects (AIA) Shanghai reports that by 2025 China will have built the equivalent of 10 cities the size of New York since the 1990s. According to the Chinese-language report, Market Status and Trends of China's Architectural Design Industry in 2020, revenues from China's architectural design and engineering industry surpassed $1 trillion in 2019.
Under China's 14th Five-Year Plan, the Ministry of Housing and Urban and Rural Development (MOHURD) has issued a notice for the implementation of urban renewal actions in 2020. While China's urbanization rate reached 60.6% in 2019, this urban renewal policy aims to make greener and more efficient cities as the government seeks to improve the quality of urban living conditions in China.
Recent trends in the Chinese design and construction industry focus on local communities, younger residents and culture-related projects. New super-tall buildings over 500m are prohibited and tall buildings over 250m are restricted. New technologies are also playing an increasingly important role in increasing the quality and safety of buildings, such as Building Information Modeling (BIM), green building solutions and smart cities and artificial intelligence applications.
Except in rare exceptions, US architecture firms have to partner with local design firms on projects in China because it is difficult to get a full architecture license. Only a few multinational companies have obtained the "Class A" license by acquiring local companies.
Engineering Services: Benefiting from the growth of China's construction market capacity, the demand for engineering services has grown rapidly. According to data from MOHURD, revenue from technical advisory services in China, such as technical supervision and cost advisory, will reach $26.5 billion in 2022.
Market opportunities for engineering services mainly lie in the following areas: - Lighting and HVAC products
- Engineering inspection for urban infrastructure projects
- Testing services (e.g., energy efficiency evaluation, indoor air quality testing, new material, and infill testing)
- Construction quality and safety supervision services
- Engineering and consulting services for historic districts & building preservation
- Repositioning and adaptive reuse of old buildings
