The analyst expects the construction industry in Germany to decline in real terms by 1.8% in 2025, marking its fifth consecutive year of decline; the industry’s weakness in 2025 is attributed to headwinds caused by high construction material costs and weak external demand, coupled with a decline in permits approved for buildings. According to Destatis, the total number of building permits approved fell by 0.2% year-on-year (YoY) in the first three months of 2025, following an overall annual fall of 11.5% in 2024. Similarly, the construction production index declined by 3.3% YoY in the first three months of 2025, following an overall annual fall of 3.3% in 2024, according to Eurostat. In another setback to the industry’s output, the announcement of US tariffs on European imports is likely to weigh on the export-driven economy of Germany, making it vulnerable to rising trade barriers. The major export from Germany to the US is vehicles, especially cars. In 2024, Germany exported approximately 3.4 million new cars worldwide, worth EUR135 billion ($147.1 billion), with the US being a major importer.
The German construction industry is expected to recover at an average annual growth rate of 3.1% between 2026 to 2029, supported by the government’s investments in transport and energy projects. Growth will be supported by investments in renewable energy projects, in line with the government’s plan to generate 80% of electricity from renewable energy sources by 2030 and become carbon neutral by 2045. Among the recent developments, in May 2025, the German electric utility EnBW Energie Baden-Wuerttemberg AG announced that it is planning to invest EUR50 billion ($54.5 billion) in the transformation of the energy system by 2030. The plan aims to expand transmission and distribution networks and construct new wind and solar power plants, including the planned hydrogen core network
The German construction industry is expected to recover at an average annual growth rate of 3.1% between 2026 to 2029, supported by the government’s investments in transport and energy projects. Growth will be supported by investments in renewable energy projects, in line with the government’s plan to generate 80% of electricity from renewable energy sources by 2030 and become carbon neutral by 2045. Among the recent developments, in May 2025, the German electric utility EnBW Energie Baden-Wuerttemberg AG announced that it is planning to invest EUR50 billion ($54.5 billion) in the transformation of the energy system by 2030. The plan aims to expand transmission and distribution networks and construct new wind and solar power plants, including the planned hydrogen core network
The Construction in Germany - Key Trends and Opportunities to 2029 (Q2 2025) report provides detailed market analysis, information, and insights into the German construction industry, including:
- The German 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 German 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 Germany. It provides:
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Germany, 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