China Is Home To The Largest Players Of The Fragmented Construction Market

29 Nov, 2019

The construction market is highly fragmented, with a large number of small players. The top ten competitors in the market made up to 4.69% of the total share in 2018. This is mainly due to the presence of a large number of small players who cater to the local population and establishments, as the majority of customers prefer construction services that are closer to their locations. However, large companies play a leading role in major infrastructure construction projects. China State Construction Engineering Co., Ltd. was the largest competitor with 0.99% of the market, followed by China Railway Group Ltd. with 0.79%. Other major players in the global construction market include China Railway Construction Corporation Limited, China Communications Construction Group Ltd., Vinci S.A., Power Construction Corp. Of China, Grupo ACS, Bouygues S.A., Bechtel Corporation, and Skanska Group.

China State Construction Engineering Co., Ltd. was the largest competitor in the global construction market in 2018. It is a Chinese construction company and general contractor. The company operates in 100 countries, covering markets in Africa, ASEAN and surrounding regions, Central Asia, Central and Eastern Europe and Latin America. It was founded in 1982 and is headquartered in Beijing, China.

The company’s growth strategy aims to increase revenues by developing new business for the company which will include concepts such as green building, building energy conservation, integrated modular mobile homes, water control and ecological environmental engineering, water supply, gas, water and soil comprehensive management and resource utilization, and construction ecommerce.

China Railway Group Ltd. was the second largest competitor in the construction market in 2018. It is a construction company, and operates with its subsidiary of China Railway Engineering Corporation, which is engaged in infrastructure construction, industrial equipment manufacturing, scientific research and consulting, real estate development, resources development, financial trust, trade and other businesses. The company was established in 2007 and is based in Beijing, China.

China Railway’s growth strategy aims at technology development by applying new technologies, techniques, materials and equipment in project construction, leading to further improvements in quality rate of projects. The group also aims at expanding its business in the high growth Middle East market through strategic partnerships and agreements. For instance, in August 2017, Egypt`s National Authority for Tunnels (NAT) signed an agreement with China based AVIC International and China Railway Group to build a 66-km network with 11 stations, on which trains will run at a speed of up to 120 kilometers. The deal was signed for approximately $1.24 billion.

The rapid changes in many aspects of the Chinese society have created opportunities for companies that can offer technologies to support labor productivity, energy saving, and high-quality products and services. China’s construction industry expanded exponentially, with an average revenue growth rate of 23% during the first decade of the 2000s. The China National Urbanization Plan on New Urbanization (2014-2020) aims at turning migrants into urban citizens, with settlements for a further 100 million urban dwellers by 2020, thus raising the urbanization rate to 60%. This continues to support China’s construction industry.