Dublin, Feb. 23, 2026 (GLOBE NEWSWIRE) -- The "South Africa Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q4 2025)" report has been added to ResearchAndMarkets.com's offering.
South Africa's construction industry was expected to decline by 4% in real terms in 2025, due to a decline in gross fixed capital formation, coupled with high construction costs, increased debt, and a downturn in the industrial sector resulting from a 30% tariff imposed by the US in August 2025.
According to the Bureau for Economic Research, the average seasonally adjusted Absa Purchasing Managers' Index (PMI) recorded a score of 47.2 during the first eleven months of 2025, a decrease from 48.9 in the same period of 2024. An index value above 50 indicates growth, while a value below 50 signifies a reduction in industrial activity.
Furthermore, Statistics South Africa (Stats SA) reported that the average construction materials price index increased by 1% year-on-year (YoY) in the first ten months of 2025, following an annual growth of 6.1% in 2024. Additionally, inflation in the country reached 3.6% in October 2025, up from 3.4% in September 2025, marking the highest levels since September 2024.
The analyst projects the South African construction industry to record an average annual growth of 3.8% from 2027 to 2029, supported by investments in industrial, infrastructure, and energy projects, coupled with the government's goal to add 11.3GW of solar, 7.3GW of wind, 6GW of gas, and 5.2GW of nuclear power by 2030. The government unveiled its energy strategy in October 2025, which is valued at ZAR2.4 trillion ($127.5 billion) and aims to introduce 105GW of new energy capacity by 2039.
Additionally, in October 2025, the European Commission (EC) announced a financial package amounting to ZAR245 billion ($13.1 billion) for the energy sector. Significant investments under this package includes ZAR177.6 billion ($9.5 billion) for green projects, such as hydrogen, solar, and wind initiatives, as well as ZAR26.5 billion ($1.4 billion) for infrastructure, green logistics, and transmission projects.
Report Scope
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in South Africa, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis 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 consultants
Reasons to Buy
- Identify and evaluate market opportunities using our 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 business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
4 Construction Outlook
4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/kjo93w
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