The construction industry in Denmark is expected to shrink by 6.9% in real terms in 2024 and further decline by 0.8% in 2025, following an anticipated decline of 0.7% in 2023. The industry’s growth in 2024 will be affected by headwinds such as high inflation and interest rates. The gloomy outlook also reflects the recent sharp fall in total floor area of permits awarded for residential and institutional buildings in the first half three quarters of 2023. Total permits issued, in terms of m2 of useful floor area, fell by 22.1% YoY in the first three quarters of 2023, with residential permits falling by 36.6% YoY during that period. Construction costs also remain high. According to Statistics Denmark, the average construction cost index for residential properties rose by 5.3% year-on-year (YoY) in first three quarters of 2023.
The publisher expects the Danish construction industry to edge upwards in the latter part of the forecast period, supported by investments in transport, renewable energy, manufacturing, and housing projects. The government has a target to reduce greenhouse gas emissions by 70% compared to 1990 levels by 2030 and reach net zero emissions by 2050; this will attract investments towards renewable energy projects. In early October 2023, the Danish government proposed 12 green initiatives to quadruple the total electricity production from solar and onshore wind sources by 2030. It aims to reduce bureaucracy and dialogue with the municipalities and increase compensation for neighbours and local communities. Currently, developers must obtain more than 20 different licenses from several authorities for a project; the government plans to replace it with a single-entry point to access licenses. These initiatives will support development in the renewable energy sector, in line with the anticipated surge in electricity demand, with consumption in Denmark anticipated to increase by approximately 50% by 2030, if no measures are taken.
The publisher expects the Danish construction industry to edge upwards in the latter part of the forecast period, supported by investments in transport, renewable energy, manufacturing, and housing projects. The government has a target to reduce greenhouse gas emissions by 70% compared to 1990 levels by 2030 and reach net zero emissions by 2050; this will attract investments towards renewable energy projects. In early October 2023, the Danish government proposed 12 green initiatives to quadruple the total electricity production from solar and onshore wind sources by 2030. It aims to reduce bureaucracy and dialogue with the municipalities and increase compensation for neighbours and local communities. Currently, developers must obtain more than 20 different licenses from several authorities for a project; the government plans to replace it with a single-entry point to access licenses. These initiatives will support development in the renewable energy sector, in line with the anticipated surge in electricity demand, with consumption in Denmark anticipated to increase by approximately 50% by 2030, if no measures are taken.
The report provides detailed market analysis, information, and insights into the Danish construction industry, including:
- The Danish 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 Danish 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 Denmark. It provides:- Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Denmark, 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
