Construction in Israel - Key Trends and Opportunities to 2024

Construction in Israel - Key Trends and Opportunities to 2024

Summary

Prior to the Coronavirus (COVID-19) outbreak, the publisher expected the country’s construction industry to grow by 2.3% in 2020. The industry accounts for 12.9% of Israel’s GDP. However, with the outbreak of COVID-19 and strict lockdown measures the government imposed in March and April to curb the spread of the virus, and further re-instating a three-week lockdown in September as cases continue to soar, along with recent data showing the economy tanking by 8.1% in Q2 2020 - a plunge of 28.7% on an annualized basis - The publisher expects the construction industry to contract by 8.4% in 2020.

Recovery in the sector will ensue, as Israel continues to prioritize transport infrastructure. The severe congestion in Israeli cities is now deemed as the most critical infrastructure bottleneck. Intensive development of intra-city public transport systems will be a primary policy goal in the forecast period (2020-24), although the impact of the COVID-19 pandemic on public transport use may lead to some rationalization of transport priorities. Projects like the Tel Aviv light rail, the Jerusalem light rail, the Haifa-Nazareth light rail, the electrification of Israel Railways network and the fourth track on the Ayalon highway (which involves redirecting the Ayalon stream) will provide a boost to the construction sector; NIS107 billion (US$31.3 billion) will be invested in mass public transportation projects, compared with NIS21 billion in new highways (US$6.2 billion).

While the COVID-19 pandemic has temporarily reduced gas demand, the development of natural gas reserves is expected to gain momentum. The switch to natural gas, as the country's primary energy source will prevail, with the remaining coal-fired power stations to be converted to gas during the forecast period and beyond. The wider adoption of gas throughout oil-dependent industries will encourage a broad switch to natural gas by industry, and by public transport, making use of rising domestic gas production over the forecast period. This will also entail the construction of a network of offshore and onshore pipelines extending beyond the forecast period

This report provides detailed market analysis, information and insights into the Israeli construction industry, including -

• The Israeli 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 the Israeli construction industry
• Analysis 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 Israel. It provides -

• Historical (2015-2019) and forecast (2020-2024) valuations of the construction industry in Israel, 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 publisher'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 publisher's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.