The publisher expects Germany’s construction industry to grow by 1.2% in 2021, before it stabilizes at an annual average growth of 2% over the remainder of the forecast period (2022-2025). This compares to the previous forecast of 0.2% growth for 2021. This marginal upward revision reflects stronger-than-expected construction growth in Q3 2021, as well as favorable base effects, and assumes that construction activity will accelerate further over the next few quarters, supported by the government’s focus on improving regional connectivity through the development of the country’s rail and road transport infrastructure, coupled with efforts to boost energy production.
The German construction industry fared relatively well compared to its peers in Western Europe in 2020. Although the industry’s value add contracted by 4.5% on a year-on-year (Y-o-Y) basis in Q1 2021, industry output recovered in the second quarter of 2021, increasing by 3.1% in Q2 and 3.5% in Q3 2021, which helped the industry register a cumulative growth of 0.9% in the first nine months of 2021.
The industry’s output over the forecast period will be supported by the government’s focus on the development of green infrastructure as part of its climate change strategy. The government has also supported the construction sector through its fiscal policy response to the Coronavirus (COVID-19) outbreak, announcing an additional EUR3.1 billion (US$3.5 billion) each year between 2021 and 2024 on public investment in infrastructure, including roads and railways and the construction of affordable housing. Improvements in consumer confidence and positive developments in regional economic conditions will also provide momentum.
The construction of the Fehmarn belt underwater tunnel between Germany and Denmark, which is worth EUR7 billion (US$7.8 billion), will underpin activity in the transport infrastructure sector over the medium term. Growth will also be supported by the 10-year plan to invest EUR86 billion (US$94.7 billion) on the maintenance and modernization of the country’s rail network between 2020 and 2030.
The German construction industry fared relatively well compared to its peers in Western Europe in 2020. Although the industry’s value add contracted by 4.5% on a year-on-year (Y-o-Y) basis in Q1 2021, industry output recovered in the second quarter of 2021, increasing by 3.1% in Q2 and 3.5% in Q3 2021, which helped the industry register a cumulative growth of 0.9% in the first nine months of 2021.
The industry’s output over the forecast period will be supported by the government’s focus on the development of green infrastructure as part of its climate change strategy. The government has also supported the construction sector through its fiscal policy response to the Coronavirus (COVID-19) outbreak, announcing an additional EUR3.1 billion (US$3.5 billion) each year between 2021 and 2024 on public investment in infrastructure, including roads and railways and the construction of affordable housing. Improvements in consumer confidence and positive developments in regional economic conditions will also provide momentum.
The construction of the Fehmarn belt underwater tunnel between Germany and Denmark, which is worth EUR7 billion (US$7.8 billion), will underpin activity in the transport infrastructure sector over the medium term. Growth will also be supported by the 10-year plan to invest EUR86 billion (US$94.7 billion) on the maintenance and modernization of the country’s rail network between 2020 and 2030.
This 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 activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Germany’s 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 Germany. It provides:
- Historical (2016-2020) and forecast (2021-2025) 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-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.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
