Sweden Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)

Summary

The construction industry in Sweden is expected to decline in real terms by 2.6% in 2025, owing to a downturn caused by elevated construction material costs, falling building permits, and rising energy prices. Residential construction sector remains the most affected, owing to low investor confidence, with significant year-on-year (YoY) declines in building permits. According to Statistiska Central Byrån (SCB), the average construction production value index declined by 4.9% YoY in 2024. Furthermore, the total number of building permits approved fell by 3.2% YoY in 2024, with the number of permits approved for residential buildings declining by 5% YoY during the same period, according to SCB. The challenging economic climate is anticipated to lead to delays, cancellations, and cost overruns in several major construction projects across the country. Notably, the Swedish battery developer Northvolt filed for bankruptcy, in March 2025, after the government withheld SEK16 billion ($1.5 billion) in planned funding due to economic concerns. Similarly, in April 2025, two contracts under the East Link railway project, covering 60km of double-track lines, bridges, tunnels, and a new transport hub, were cancelled due to budget overruns.

The construction industry is expected to recover in 2026 and record an average annual rate of 4.2% from 2026 to 2029, driven by investments in electricity transmission, and renewable energy projects. The government aims to produce 65% of its electricity from renewable sources by 2030 and achieve 100% renewable electricity by 2040. Moreover, as part of the Grid Development Plan for 2024-2033, launched by Sweden’s state-owned electricity transmission operator Svenska kraftnät, in February 2024, several investments will be made to enhance and modernise the national energy infrastructure.

The Construction in Sweden - Key Trends and Opportunities to 2029 (H1 2025) report provides detailed market analysis, information and insights into the Swedish construction industry, including:

The Swedish 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 Swedish 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 Sweden. It provides:

Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Sweden, 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 our 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 business strategies using the analyst's critical and actionable insight
Assess business risks, including cost, regulatory and competitive pressures
Evaluate competitive risk and success factors

1 Executive Summary2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

Outlook
Latest news and developments
Construction Projects Momentum Index

4.2 Commercial Construction

Outlook
Project analytics
Latest news and developments

4.3 Industrial Construction

Outlook
Project analytics
Latest news and developments

4.4 Infrastructure Construction

Outlook
Project analytics
Latest news and developments

4.5 Energy and Utilities Construction

Outlook
Project analytics
Latest news and developments

4.6 Institutional Construction

Outlook
Project analytics
Latest news and developments

4.7 Residential Construction

Outlook
Project analytics
Latest news and developments

5 Key Industry Participants

5.1 Contractors
5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology

About the Analyst
Contact the Publisher

List of Tables

Table 1: Construction Industry Key Data
Table 2: Sweden, Key Economic Indicators
Table 3: Sweden, Commercial Construction Output by Project Type (Real % Change), 2020-29
Table 4: Sweden, Top Commercial Construction Projects by Value
Table 5: Sweden, Industrial Construction Output by Project Type (Real % Change), 2020-29
Table 6: Sweden, Top Industrial Construction Projects by Value
Table 7: Sweden, Infrastructure Construction Output by Project Type (Real % Change), 2020-29
Table 8: Sweden, Top Infrastructure Construction Projects by Value
Table 9: Sweden, Energy and Utilities Construction Output by Project Type (Real % Change), 2020-29
Table 10: Sweden, Top Energy and Utilities Construction Projects by Value
Table 11: Sweden, Institutional Construction Output by Project Type (Real % Change), 2020-29
Table 12: Sweden, Top Institutional Construction Projects by Value
Table 13: Sweden, Residential Construction Output by Project Type (Real % Change), 2020-29
Table 14: Sweden, Top Residential Construction Projects by Value
Table 15: Sweden, Key Contractors
Table 16: Sweden, Key Consultants
Table 17: Sweden, Construction Output Value (Real, $ Million)
Table 18: Sweden, Construction Output Value (Nominal, SEK Billion)
Table 19: the analyst Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions

List of Figures

Figure 1: Western Europe, Construction Output (Real % Change), 2023-29
Figure 2: Sweden, Construction Output by Sector (Real % Change), 2023-25 and 2026-29
Figure 3: Sweden, Risk Summary
Figure 4: Sweden, Risk Regional Comparison
Figure 5: Sweden, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020-29
Figure 6: Sweden, Construction Output Value, by Sector (Real, $ Million), 2020-29
Figure 7: Sweden, Construction Production Value Index (2021-100)
Figure 8: Sweden, Construction Value Add (SEK Million, 2023 Constant Prices)
Figure 9: Sweden, Gross Fixed Capital Formation in Construction Industry (SEK Million, 2023 Constant Prices)
Figure 10: Sweden, Building Permits (Numbers)
Figure 11: Sweden, Construction Confidence Index (2021=100)
Figure 12: Sweden, Construction Projects Momentum Index
Figure 13: Western Europe, Construction Projects Momentum Index
Figure 14: Sweden, Commercial Construction Output by Project Type (Real, $ Million), 2020-29
Figure 15: Sweden, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 16: Sweden, Wholesale and Retail Production Value Index (2021=100)
Figure 17: Sweden, Wholesale Turnover Index (2021=100)
Figure 18: Sweden, Total Floor Area of Office Building Permits Approved (Thousand m2)
Figure 19: Sweden, Total Floor Area of Hotel, Restaurant Buildings Permits Approved (Thousand m2)
Figure 20: Sweden, Industrial Construction Output by Project Type (Real, $ Million), 2020-29
Figure 21: Sweden, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 22: Sweden, Exports (SEK, Million)
Figure 23: Sweden, Manufacturing Production Index (2021=100)
Figure 24: Sweden, Manufacturing Turnover Index (2021=100)
Figure 25: Sweden, Total Floor Area of Permits Approved for Industrial building (in Thousand m2)
Figure 26: Sweden, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
Figure 27: Sweden, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 28: Sweden, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
Figure 29: Sweden, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 30: Sweden, Electricity, Gas, Steam and Air Conditioning, Water Supply and Waste Value Add (SEK Million, 2023 Constant Prices)
Figure 31: Sweden, Telecommunications Value Add (SEK Million, 2023 Constant Prices)
Figure 32: Sweden, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
Figure 33: Sweden, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 34: Sweden, Human Health Activities Value Add (SEK Million, 2023 Constant Prices)
Figure 35: Sweden, Education Value Add (SEK Million, 2023 Constant Prices)
Figure 36: Sweden, Total Floor Area of Institutional Building Permits Approved (Thousand m2)
Figure 37: Sweden, Residential Construction Output by Project Type (Real, $ Million), 2020-29
Figure 38: Sweden, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 39: Sweden, Number of New Dwellings Starts
Figure 40: Sweden, Total Floor Area of Permits Approved for Dwellings (in Thousand m2)
Figure 41: Sweden, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 42: Sweden, Headquarters of Key Consultants (% of Total Project Pipeline)

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