Insights

A paradox is appearing globally: construction companies feel risk has risen yet remain optimistic about the future. According to Samjong KPMG Economic Research Institute's 2026 Global Construction Industry Outlook, in a KPMG Global survey of 375 senior executives from infrastructure and construction organizations worldwide, 66% are optimistic about the industry's outlook over the next 5 years, while 71% say their risk aversion has strengthened compared to 12 months ago. This dynamic — summarized as the “paradox of progress” — is the key keyword of the 2026 global construction industry.

Growth areas and shifting corporate strategies. Areas with expected construction-demand growth over the next 12–24 months: water and utilities (91%), infrastructure projects (89%), renewable power generation (89%), and transport (88%) led the list. Executives identified Workforce (76%), Technology (68%), and Delivery Models (61%) as core competitive levers. Strategic priorities over the next 12 months were operational efficiency and profitability (75%), market expansion and customer focus (72%), technology innovation (61%), and risk and resilience management (53%).

Three conditions for sustained growth. The report identifies three conditions for sustained growth at construction companies: responsiveness to change (structural transformation of business strategy), integration of people and technology (balance of talent capabilities and technology adoption), and adaptive execution (linking strategy to execution). Priorities for Korean contractors include strategic restructuring in response to overseas-order environments, selective bidding and risk management, securing domestic-business stability to address Korean real-estate volatility, and diversifying portfolios across domestic and overseas markets.

What this means for M&A. Risk-managed growth strategy in global construction reshapes the M&A landscape in three directions. First, competition will intensify for strategic acquisitions of construction and EPC firms with capabilities in specialized areas with strong demand visibility — renewable power, water, and digital infrastructure. Second, demand to acquire construction-tech (ConTech) firms to lift operational efficiency and accelerate digital transformation will rise among major contractors. Third, Korean contractors seeking to diversify their overseas-order portfolios will actively consider acquiring stakes in local contractors or EPC partners to speed up new-market entry.

Full report: Samjong KPMG Economic Research Institute, 2026 Global Construction Industry Outlook (April 2026)