Construction in the Czech Republic - Key Trends and Opportunities to 2023
Summary
The Czech construction industry regained growth momentum in 2018, with output expanding by 6.9% in real terms - up from 2.8% in 2017. The industry’s output value, measured at constant 2017 US dollar exchange rates, increased from US$33.4 billion in 2017 to US$35.7 billion in 2018. Growth during the review period (2014-2018) averaged 2.5% a year, and was supported by positive developments in regional economic conditions and government investments in transport, commercial, residential and industrial construction projects. The total construction project pipeline in the Czech Republic including all mega projects with a value above US$25 million - stands at CZK574.6 billion (US$27.0 billion). The pipeline, which includes all projects from pre-planning to execution, is well balanced, with 49.2% of the pipeline value being in projects in the pre-execution and execution stages as of March 2019.
According to the Czech Statistical Office (CZSO), the country’s average construction production index at 2015 base prices rose by 8.4% in real terms, going from 97.5 in 2017 to 105.7 in 2018; this was preceded by annual growth of 3.3% in 2017 and annual contraction of 5.6% in 2016. The government’s efforts to enhance transport, commercial and industrial infrastructure will support the growth of the industry over the forecast period (2019-2023). The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 2.82% over the forecast period.
The industry’s output is expected to be supported by improvements in business confidence over the forecast period, which will drive investment in infrastructure, commercial, residential projects and energy infrastructure. The government plans to invest CZK3.5 trillion (US$162.4 billion) to develop the country’s overall infrastructure by 2030. The focus on the development of nuclear and renewable energy infrastructure is also expected to drive industry growth.
Infrastructure construction was the largest market in the Czech construction industry during the review period, accounting for 27.6% of its total value in 2018. The market is expected to follow a similar trend over the forecast period, with infrastructure construction accounting for 26.3% of the industry’s total value in 2023. Commercial construction accounted for 19.9% of the industry’s total output in 2018, followed by energy and utilities construction with 16.9%, residential construction with 15.8%, industrial construction with 14.5% and institutional construction with 5.2%.
Scope
Reasons to Buy
Summary
The Czech construction industry regained growth momentum in 2018, with output expanding by 6.9% in real terms - up from 2.8% in 2017. The industry’s output value, measured at constant 2017 US dollar exchange rates, increased from US$33.4 billion in 2017 to US$35.7 billion in 2018. Growth during the review period (2014-2018) averaged 2.5% a year, and was supported by positive developments in regional economic conditions and government investments in transport, commercial, residential and industrial construction projects. The total construction project pipeline in the Czech Republic including all mega projects with a value above US$25 million - stands at CZK574.6 billion (US$27.0 billion). The pipeline, which includes all projects from pre-planning to execution, is well balanced, with 49.2% of the pipeline value being in projects in the pre-execution and execution stages as of March 2019.
According to the Czech Statistical Office (CZSO), the country’s average construction production index at 2015 base prices rose by 8.4% in real terms, going from 97.5 in 2017 to 105.7 in 2018; this was preceded by annual growth of 3.3% in 2017 and annual contraction of 5.6% in 2016. The government’s efforts to enhance transport, commercial and industrial infrastructure will support the growth of the industry over the forecast period (2019-2023). The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 2.82% over the forecast period.
The industry’s output is expected to be supported by improvements in business confidence over the forecast period, which will drive investment in infrastructure, commercial, residential projects and energy infrastructure. The government plans to invest CZK3.5 trillion (US$162.4 billion) to develop the country’s overall infrastructure by 2030. The focus on the development of nuclear and renewable energy infrastructure is also expected to drive industry growth.
Infrastructure construction was the largest market in the Czech construction industry during the review period, accounting for 27.6% of its total value in 2018. The market is expected to follow a similar trend over the forecast period, with infrastructure construction accounting for 26.3% of the industry’s total value in 2023. Commercial construction accounted for 19.9% of the industry’s total output in 2018, followed by energy and utilities construction with 16.9%, residential construction with 15.8%, industrial construction with 14.5% and institutional construction with 5.2%.
Scope
- This report provides a comprehensive analysis of the construction industry in the Czech Republic.
- Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in the Czech Republic, 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 the author'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 the author's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1. EXECUTIVE SUMMARY2. CONSTRUCTION OUTLOOK: AT-A-GLANCE3. LATEST NEWS AND INDICATORS
4. KEY DRIVERS AND RISKS
5. CONSTRUCTION OUTLOOK
6. KEY INDUSTRY PARTICIPANTS
7. APPENDIX
8. ABOUT The Author