The construction industry in Sweden is expected to have contracted by 2.6% in real terms in 2025, owing to falling building permits, rising construction material costs, and rising energy prices. Residential construction sector remained the most affected sector, owing to low investor confidence, with significant year-on-year (Y-o-Y) declines in building permits. According to Statistiska Central Byrån (SCB), the total number of building permits approved fell by 9.3% YoY in Q3 2025, preceded by a Y-o-Y decline of 0.4% in Q2 and a growth of 10.9% in Q1 2025. The construction industry’s value add fell by 3.7% YoY in Q3 2025, preceded by a Y-o-Y decline of 4.6% in Q2 and 6.7% in Q1 2025, according to the SCB. Moreover, the country's unfavourable economic climate is expected to cause delays, cancellations, and cost overruns in major construction projects. In April 2025, Trafikverket, Sweden’s infrastructure manager cancelled the procurement process for contracts in Vagnhärad and Skavsta located on the Sweden’s East Link project (Ostlänken).
The analyst expects the construction industry in Sweden to recover at 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% fossil-free electricity production by 2040. In line with this, in September 2025, Sweden’s government announced a plan to provide loans worth SEK220 billion ($21 billion) to companies to build nuclear reactors in the Scandinavian country. Government also plans to construct two new nuclear reactors by 2035 and 10 new reactors by 2045. The industry’s growth over the forecast period will also be supported by the government’s Grid Development Plan for 2024-2033, launched by Svenska kraftnät, Sweden’s state-owned electricity transmission operator, in February 2024. Under the plan, the government aims to construct 1,500km of new transmission lines and 30 substations by 2033, alongside upgrades to over 2,500km of existing lines and nearly half of the country's substations. In another boost to the industry, in October 2024, the government announced the National Infrastructure Plan (2026-2037), under which, the government plans to invest SEK354 billion ($33.5 billion) for road infrastructure projects and SEK210 billion ($19.9 billion) for rail infrastructure maintenance by 2037.
The analyst expects the construction industry in Sweden to recover at 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% fossil-free electricity production by 2040. In line with this, in September 2025, Sweden’s government announced a plan to provide loans worth SEK220 billion ($21 billion) to companies to build nuclear reactors in the Scandinavian country. Government also plans to construct two new nuclear reactors by 2035 and 10 new reactors by 2045. The industry’s growth over the forecast period will also be supported by the government’s Grid Development Plan for 2024-2033, launched by Svenska kraftnät, Sweden’s state-owned electricity transmission operator, in February 2024. Under the plan, the government aims to construct 1,500km of new transmission lines and 30 substations by 2033, alongside upgrades to over 2,500km of existing lines and nearly half of the country's substations. In another boost to the industry, in October 2024, the government announced the National Infrastructure Plan (2026-2037), under which, the government plans to invest SEK354 billion ($33.5 billion) for road infrastructure projects and SEK210 billion ($19.9 billion) for rail infrastructure maintenance by 2037.
The Construction in Sweden - Key Trends and Opportunities to 2029 (H2 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.
Report 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
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
