Germany Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027

Germany Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027
Summary

GlobalData expects Germany’s construction industry to shrink by 2.6% in real terms in 2023 and 3.5% in 2024, owing to subdued investor and consumer confidence, amid rising interest rates and elevated construction costs. This is particularly being reflected in the sharp decline in building permits. The residential sector - which accounted for 51% of the industry’s total value in 2022 - is expected to be the hardest-hit in 2023 and 2024. According to the Federal Statistical Office (Destatis), the average construction cost index for residential buildings rose by 8.9% year-on-year (YoY) in the first quarter of 2023, owing to a rise in the prices of both materials (12.3% YoY) and labour (3.6% YoY).

Despite the downturn in 2024, the government’s commitment of EUR57 billion ($58.2 billion) to green infrastructure in 2024 will provide some momentum to the industry's output next year. Assuming an improvement in the wider economy and an easing in the energy crisis, the German construction industry is expected to rebound at an average annual growth rate of 2.6% from 2025 to 2027, supported by investments in the transport, renewable energy, and manufacturing sectors. Investments towards the country’s auto manufacturing sector will be driven by the government’s aim of having 15 million electric cars on roads by 2030. In May 2023, the government reported that EUR88 billion ($93.5 billion) in investment will be needed by 2027, to make the national railway network more attractive and reliable. Deutsche Bahn plans to overhaul some of the country's most congested rail corridors, starting from June 2023, with around 4,200 km of tracks flagged for renovation work by 2030.

The report provides detailed market analysis, information and insights into Germany’s construction industry, including -Germany’s construction industry's growth prospects by market, project type and construction activityCritical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Germany’s construction industryAnalysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.Scope

This report provides a comprehensive analysis of the construction industry in Germany. It provides -Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Germany, featuring details of key growth drivers.Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sectorAnalysis 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 consultantsReasons to BuyIdentify 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.