Construction in Myanmar - Key Trends and Opportunities to 2023

Construction in Myanmar-Key Trends and Opportunities to 2023 Summary Myanmar's construction industry output grew by 7% in real terms� in 2018, following an average annual growth of 9% during the preceding four years. This increase can be attributed to public and private sector investments in transport infrastructure, energy and housing projects, positive developments in economic conditions and improvement in investor confidence. Policy reforms related to foreign direct investment (FDI) and a recovery in exports also supplemented the growth momentum. The industry's output value is expected to continue to expand in real terms over the forecast period (2019-2023), driven by the government's plans to upgrade the country's transport infrastructure. The government's continued investment in transport infrastructure, energy and residential projects under the flagship programs such as the National Electrification Plan (NEP), National Education Strategic Plan (NESP) and the Million Homes Plan is expected to drive the growth of the industry over the forecast period. The government's efforts to attract FDI through the Myanmar Investment Promotion Plan (MIPP) will also boost the construction industry. The government's aim to enhance the electricity supply across the country is also expected to support investment in energy infrastructure projects, which will in turn fuel growth in the industry. The industry's output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 8.6% over the forecast period. GlobalData's Construction in Myanmar-Key Trends and Opportunities to 2023 report provides detailed market analysis, information and insights into Myanmar's construction industry, including - - Myanmar's construction industry's growth prospects by market, project type and construction activity - Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Myanmar's construction industry - Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline. Key Highlights - GlobalData expects the residential construction market to retain its leading position over the forecast period and account for 33.3% of the industry's total value in 2023, driven by the government's aim to provide affordable houses to the country's middle- and low-income citizens. The government aims to build one million affordable housing units by 2030 under the Million Homes Plan, of which 80% will be developed by investments from the private sector. - Forecast-period growth in the energy and utilities construction market will be supported by the government's efforts to increase the country's energy production capacity in line with the growing demand. The government is building four liquefied natural gas (LNG) power plants with a total investment of MMK7.4 trillion (USD 5.2 billion), which will increase the electricity production from 3.0GW in 2018 to 6.1GW by 2021. - GlobalData expects the infrastructure construction market to record a forecast-period CAGR of 16.7% in nominal terms, driven by the government's continuous investments in transport infrastructure development, with an aim to reduce the country's infrastructure gap. According to the Asian Development Bank (ADB), MMK172.5 trillion (USD 120.0 billion) in investment will be required until 2030 to bridge this gap. The ADB will invest MMK1.2 trillion (USD 815.3 million) on road construction and rehabilitation during the period of 2019-2021. - Under the National Education Strategic Plan (NESP), the government plans to increase access to pre-schools and kindergarten education across the country and strengthen higher education quality. Under the first phase (2016-2021) of NESP, the government plans to spend MMK15.3 trillion (USD 11.2 billion) by 2021. In March 2019, in order to support the first phase of the NESP, the government launched the education budget support program in collaboration with the European Union (EU), under which the EU will invest MMK317.7 billion (USD 221 million) to improve the education sector in the country by 2023. - The total construction project pipeline in Myanmar-as tracked by GlobalData, and including all mega projects with a value above USD 25 million-stands at MMK178.2 trillion (USD 124.7 billion). The pipeline, which includes all projects from pre-planning to execution, has a relatively high share of early-stage projects, with 74.6% of the pipeline value being in projects in the pre-planning and planning stages as of June 2019. Scope This report provides a comprehensive analysis of the construction industry in Myanmar. It provides - - Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Myanmar, 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 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.