The outlook for the construction industry in Israel is gloomy given the impact of the ongoing conflict with Hamas, which has resulted in projects being delayed or temporarily halted owing primarily to the reduction in labor. There had already been a drop off in the total area authorised for office, manufacturing, and residential buildings prior to the onset of the conflict, and the situation is likely to have worsened since. Moreover, the Central Bank of Israel forecast 2.0% GDP growth in 2023 and 2.0% growth in 2024 in November 2023, down from the previous revision of 2.3% growth in 2023 and 2.8% in 2024. This negative growth is attributed to the ongoing war and assumes that it will be concentrated mainly on the southern front.
The outlook is highly uncertain, but with the government's focus on infrastructure development and investment in the energy and utilities and residential construction projects, there could be average annual growth of 3.1% between 2025 and 2027. The government aims to generate 30% of its energy from renewable sources by 2030, with plans to invest ILS80 billion ($23 billion) in the installation of 15GW of solar photovoltaic power by 2030. The government has taken significant steps toward achieving its targets, such as gradually introducing excise taxes on coal and other fuels from 2023 to 2028 and phasing out coal energy production by 2025, thereby promoting investments and growth in the renewable energy sector. In September 2023, the Ministry of Energy and Infrastructure announced an additional target of adding 2,000 megawatts of solar projects, with a budget of ILS17 billion ($4 billion) for establishing new renewable energy facilities nationwide. Additionally, the government plans to invest ILS123.6 billion ($34.9 billion) to expand the rail network to 2,572km by 2040.
The outlook is highly uncertain, but with the government's focus on infrastructure development and investment in the energy and utilities and residential construction projects, there could be average annual growth of 3.1% between 2025 and 2027. The government aims to generate 30% of its energy from renewable sources by 2030, with plans to invest ILS80 billion ($23 billion) in the installation of 15GW of solar photovoltaic power by 2030. The government has taken significant steps toward achieving its targets, such as gradually introducing excise taxes on coal and other fuels from 2023 to 2028 and phasing out coal energy production by 2025, thereby promoting investments and growth in the renewable energy sector. In September 2023, the Ministry of Energy and Infrastructure announced an additional target of adding 2,000 megawatts of solar projects, with a budget of ILS17 billion ($4 billion) for establishing new renewable energy facilities nationwide. Additionally, the government plans to invest ILS123.6 billion ($34.9 billion) to expand the rail network to 2,572km by 2040.
The report provides detailed market analysis, information and insights into Israel’s construction industry, including:
- Israel’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 Israel’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 Israel. It provides:- Historical (2018-2022) and forecast (2023-2027) 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 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 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
