In 2023, the South African construction sector contributed with an added value of approximately 109.5 billion rand (roughly 5.79 billion U.S. dollars) to the country's gross domestic product (GDP). This represents a increase of in comparison to the previous year, when the sector's added value to the country's GDP added up to approximately 108.9 billion rand.

The South Africa Data Center Construction Market report segments the industry into Infrastructure (Electrical Infrastructure, Mechanical Infrastructure, General Construction), Tier Type (Tier 1 and 2, Tier 3, Tier 4), and End User (Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Healthcare, Other End Users). Get five years of historical data alongside five-year market forecasts.

In the third quarter of 2023, approximately 347,000 South Africans residing in the Gauteng province were working in the construction industry, marking a year-on-year change of 14,000 people employed. The regions of the Western Cape and KwaZulu-Natal also revealed high numbers of people employed within the industry, at 253,000 and 241,000, respectively.

Discover the booming South African modular construction market! This analysis reveals key trends, drivers, and challenges impacting growth from 2025-2033, including insights on material types, applications, and major players. Explore the opportunities and future projections for this rapidly expanding sector. Key drivers for this market are: 4., Growth in Commercial Activities and Increased Competition4.; Increasing Demand for Affordable Housing Units. Potential restraints include: 4., Lack of Housing Spaces and Mortgage Regulation can Create Challenges. Notable trends are: Government Initiatives Helping the Construction Industry.

The Africa Construction Market Report is Segmented by Sector (Residential, Commercial, Infrastructure), by Construction Type (New Construction, Renovation), by Construction Method (Conventional On-Site, Modern Methods), by Investment Source (Public, Private), and by Geography (Nigeria, South Africa, Egypt, Kenya, Ethiopia, Rest of Africa). The Market Forecasts are Provided in Terms of Value (USD).

GDP from Construction in South Africa increased to 99649 ZAR Million in the third quarter of 2025 from 99569 ZAR Million in the second quarter of 2025. This dataset provides the latest reported value for - South Africa Gdp From Construction - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

In the first quarter of 2025, the construction sector contributed a negative *** percent to the value added and gross domestic product (GDP), relative to the previous month in South Africa. This marked a decline of *** percentage points compared to the previous quarter. South Africa also recorded a decreased value added by the construction sector between 2017 and 2019.

Graph and download economic data for Production: Construction: Total for South Africa (PRCNTO01ZAA189S) from 1993 to 2022 about South Africa, IP, and construction.

Data was collected on the barriers to the implementation of lean construction practices in the South African Construction industry. The data collected was used to establish if barriers unique to the South African construction industry existed. The most prevalent barriers elsewhere in the world were organised under five themes, namely organisational, environmental, labour/workforce, material, and exogenous barriers. The study benefits educational institutions, built environment councils and government policymakers to inform them of the barriers which can be overcome by shifts in existing policies.

The size of the South Africa Data Center Construction Market market was valued at USD 1.31 Million in 2023 and is projected to reach USD 2.60 Million by 2032, with an expected CAGR of 10.27% during the forecast period. Recent developments include: February 2024: Equinix Inc. decided to invest USD 390 million in Africa over the next five years. The investment will focus on constructing new data centers and bolstering its existing operations, primarily in South Africa and the western regions of the continent.January 2023: Africa Data Centres, a subsidiary of Cassava Technologies, a prominent pan-African technology conglomerate, revealed plans for its second data center in Cape Town. Positioned in the northern region of the city, this new facility is set to accommodate an IT load of 20 MW. With construction already in progress, the center is slated for completion and operational status by 2024.. Key drivers for this market are: 4., Government Support for Data Center Development4.; Advent of Cloud, Big Data, and IoT Technologies Driving Investments. Potential restraints include: 4., Government Support for Data Center Development4.; Advent of Cloud, Big Data, and IoT Technologies Driving Investments. Notable trends are: Tier 3 Data Centers Holding Significant Market Share.

Discover the booming African construction industry! This market analysis reveals a $58.28B market in 2025, projected to grow at a 4.83% CAGR through 2033. Explore key drivers, trends, and regional insights, including leading companies and investment opportunities. Recent developments include: December 2023: Leading renewable energy provider Scatec ASA closed the first 60 MW of the Mmadinare 120 MW Solar Complex and announced that it was on track for the start of construction of the first utility-scale solar project in Botswana.November 2023: Teraco, South Africa’s largest data center provider, completed an expansion of its Durban facility, bringing the total area of space to 5,800 sq. m (62,430 sq. ft). Teraco’s Durban facility opened in 2011, providing 1 MW across 600 sq. m (6,460 sq. ft). In 2018, another expansion was announced, adding 1,000 sq. m (10,765 sq. ft) of white space to the site, bringing the total space to 2,000 sq. m (21,530 sq. ft).. Key drivers for this market are: 4., Rapid Urbanization Driving the Market4.; Economic Development. Potential restraints include: 4., Rapid Urbanization Driving the Market4.; Economic Development. Notable trends are: Infrastructure Construction Projects Driving the Market.

The construction industry in Africa is poised for significant growth, with a market size of $58.42 million in 2025 and a projected CAGR of 5.07% from 2025 to 2033. This growth is driven by factors such as increased urbanization, rising population, infrastructure development, and emerging economies. Key segments include commercial, residential, industrial, infrastructure, and energy and utilities construction. Factors contributing to the growth of the African construction industry include government initiatives to improve infrastructure, the rise of public-private partnerships, and increased investment in renewable energy projects. Additionally, technological advancements such as modular construction, building information modeling (BIM), and drones are transforming the industry, leading to improved efficiency and productivity. However, challenges such as political instability, skilled labor shortages, and limited access to finance present obstacles to growth. Recent developments include: December 2023: Leading renewable energy provider Scatec ASA closed the first 60 MW of the Mmadinare 120 MW Solar Complex and is on track for the start of construction of the first utility-scale solar project in Botswana., November 2023: Teraco, South Africa’s largest data center provider, completed an expansion of its Durban facility, bringing the total area of space to 5,800 square meters (62,430 square feet). Teraco’s Durban facility opened in 2011, providing 1MW across 600 square meters (6,460 square feet). In 2018, a previous expansion was announced, adding 1,000 square meters (10,765 square feet) of white space to the site, bringing the total space to 2,000 square meters (21,530 square feet).. Key drivers for this market are: 4., Rapid urbanization driving the market4.; Economic development. Potential restraints include: 4., Political and Regulatory challenges4.; Skills and Labor Shortages. Notable trends are: Infrastructure construction projects driving the market.

The Africa data center construction market by investment was valued at USD 1.26 billion in 2025 and is expected to reach USD 3.06 billion by 2030, growing at a CAGR of 15.94% during the forecast period.

The South African modular construction market is experiencing robust growth, driven by factors such as increasing urbanization, infrastructure development needs, and a demand for faster and more cost-effective building solutions. The market's expansion is fueled by government initiatives promoting affordable housing and sustainable construction practices. While precise market sizing for South Africa is unavailable in the provided data, considering the global CAGR of over 5% and the strong regional growth drivers, a conservative estimate places the 2025 South African modular construction market size at approximately ZAR 1.5 billion (approximately USD 80 million, based on a rough conversion and assuming a proportionally smaller but still growing market compared to global figures). This figure is projected to increase significantly over the forecast period (2025-2033), with a likely CAGR mirroring or slightly exceeding the global average, driven by increased private sector investment in commercial and industrial projects, alongside ongoing public sector initiatives. The market is segmented by material type (concrete, steel, timber, etc.) and application (residential, commercial, industrial), with steel and concrete likely dominating due to their durability and suitability for diverse applications. Key restraints include a potential skills shortage in the specialized construction workforce and regulatory hurdles that may slow down project implementation. However, the overall market outlook remains positive, with increasing adoption of sustainable and prefabricated modular techniques expected to drive considerable future growth. The competitive landscape features both international players with established footprints in Africa and emerging local companies. These firms offer a range of modular building solutions tailored to the specific needs of the South African market. The presence of both large multinational corporations and smaller, specialized businesses suggests a diversified market with opportunities for various players. The market is likely to see increased consolidation and collaboration in the coming years as companies adapt to changing market dynamics and strive for greater efficiency and economies of scale. Further research focusing specifically on South African market data is advised for a more precise market analysis and detailed competitor landscape. Recent developments include: October 2022: Sika acquired a majority stake in Index Construction Systems and Products. Index is a leading manufacturer of roofing and waterproofing systems based near Verona, Italy., July 2022: SHAPE announces the acquisition of KLMSA, a modular construction company with over 30 years of experience in delivering modern, custom modular building solutions. Based in Victoria, KLMSA has a particular focus on the education and community infrastructure sectors.. Notable trends are: Government Initiatives Helping the Construction Industry.

South Africa ZA: Production Index: Construction data was reported at 113.943 2010=100 in Sep 2017. This records an increase from the previous number of 110.755 2010=100 for Jun 2017. South Africa ZA: Production Index: Construction data is updated quarterly, averaging 97.180 2010=100 from Mar 2000 (Median) to Sep 2017, with 71 observations. The data reached an all-time high of 149.903 2010=100 in Dec 2008 and a record low of 46.688 2010=100 in Mar 2002. South Africa ZA: Production Index: Construction data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s South Africa – Table ZA.IMF.IFS: Production Index: Quarterly.

The South Africa Data Center Construction Market is poised for substantial expansion, projected to reach an estimated market size of USD 1.31 billion by 2025. This growth is fueled by a robust Compound Annual Growth Rate (CAGR) of 10.27%, indicating a dynamic and rapidly developing sector. The increasing demand for digital services, cloud computing, and data storage solutions across various industries, including BFSI, IT and telecommunications, and government, is a primary driver. Furthermore, the ongoing digital transformation initiatives within South Africa are necessitating the development of advanced and resilient data center infrastructure to support these evolving technological landscapes. Key trends shaping the market include a significant focus on building more sophisticated and high-tier facilities, with Tier 1 and 2 data centers likely to see increased investment for their enhanced reliability and uptime. The segmentation reveals a strong emphasis on both electrical and mechanical infrastructure. Within electrical infrastructure, power distribution solutions like smart PDUs, transfer switches, and switchgear are critical, alongside robust power backup solutions such as UPS and generators. Mechanically, advanced cooling systems, including immersion cooling and direct-to-chip solutions, are gaining traction to manage the increasing heat density of modern IT equipment. While specific drivers and restraints were not explicitly detailed, common industry factors such as the need for scalable infrastructure, cybersecurity concerns, and the adoption of sustainable construction practices are likely influencing investment decisions and project timelines. Key drivers for this market are: 4., Government Support for Data Center Development4.; Advent of Cloud, Big Data, and IoT Technologies Driving Investments. Potential restraints include: 4., Government Support for Data Center Development4.; Advent of Cloud, Big Data, and IoT Technologies Driving Investments. Notable trends are: Tier 3 Data Centers Holding Significant Market Share.

This statistic shows the revenue of the industry “construction of buildings“ in South Africa from 2011 to 2017, with a forecast to 2023. It is projected that the revenue of construction of buildings in South Africa will amount to approximately 11.9 billion U.S. Dollars by 2023.

The South African construction industry is expected to grow by 6.1% in real terms in 2021 – up from a contraction of 16.5% in 2020. The industry’s output was severely affected by the outbreak of the Coronavirus (COVID-19) pandemic, with the country imposing a strict six-week lockdown in response to the outbreak. Reflecting the pandemic’s impact on construction activities, the industry’s value-add fell sharply by 21.6% year on year (YoY) in Q3 2020, which was preceded by a 33.3% contraction in Q2 2020, according to Statistics South Africa (Stats SA). The industry was also one of the hardest hits in terms of employment, losing 259,118 jobs at the end of Q3 2020, compared to that at the end of Q3 2019. Read More

The South African construction industry has been in decline since 2017, with the industry’s output value in real terms contracting by 3.3% in 2019. This decline is attributed to an economic slowdown, coupled with weak consumer and investor confidence, affecting public and private sector investments in construction projects. The negative impact will persist as the industry continues to be hit hard by the impact of high national debt, labor shortages, and little infrastructure spending amid a depressed economy. Read More

South Africa Construction Market growth is driven by increasing infrastructure investments, urbanization, and technological advancements in construction methods.