The analyst expects the French construction industry to contract in real terms by 1.3% in 2025, owing to several headwinds caused by falling building permits, labor shortage, political and trade uncertainty, along with a high government deficit. Furthermore, the average construction production index declined by 4.8% YoY in the first six months of 2025, owing to a decline in the index for the construction of buildings (7% YoY) and specialized construction activities (4.9% YoY) during the same period. Construction industry’s growth over a short term is expected to be affected by the recent budget cuts for 2026, proposed by French Prime Minister François Bayrou in mid-July 2025. These cuts include EUR40 billion ($43.6 billion) in reductions in spending and increases in taxes aimed at addressing the escalating deficit.
Over the remainder of the forecast period, the construction industry is expected to register an average annual growth of 2.6% from 2026 to 2029, supported by the public and private investments in energy, transport and data center infrastructure projects. Growth over the forecast period will also be supported by the France Railway Network Redevelopment Program, which includes the redevelopment of 800km of railway track by 2030 with an investment of EUR1.4 billion ($1.5 billion). The government aims to generate 65GW to 90GW of solar power by 2035, along with producing 18GW of offshore wind energy by 2035 and constructing 14 new nuclear reactors by 2050, under its third Multiannual Energy Programming (PPE3), will drive growth in the energy sector. Earlier in May 2025, the European Commission announced EUR500 million ($544.8 million) investment for the period 2025-2027, to encourage public and private researchers and entrepreneurs to choose France for their research investments
Over the remainder of the forecast period, the construction industry is expected to register an average annual growth of 2.6% from 2026 to 2029, supported by the public and private investments in energy, transport and data center infrastructure projects. Growth over the forecast period will also be supported by the France Railway Network Redevelopment Program, which includes the redevelopment of 800km of railway track by 2030 with an investment of EUR1.4 billion ($1.5 billion). The government aims to generate 65GW to 90GW of solar power by 2035, along with producing 18GW of offshore wind energy by 2035 and constructing 14 new nuclear reactors by 2050, under its third Multiannual Energy Programming (PPE3), will drive growth in the energy sector. Earlier in May 2025, the European Commission announced EUR500 million ($544.8 million) investment for the period 2025-2027, to encourage public and private researchers and entrepreneurs to choose France for their research investments
The Construction in France - Key Trends and Opportunities to 2029 (Q3 2025) report provides detailed market analysis, information, and insights into the French construction industry, including:
- The French 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 French 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 France. It provides:
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in France, 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
