The construction industry in Norway is projected to shrink by 2.1% in real terms this year and 3% in 2024, following an annual growth of 4.4% in 2022, owing to elevated construction costs, rising unemployment and high interest rates, which will cause a major downturn in the residential sector. Moreover, the ongoing geopolitical tension owing to the Russia-Ukraine war will continue to generate risks of supply chain disruption and volatility in material prices. According to Statistics Norway, the average construction cost index for residential buildings rose by 4.9% year on year (YoY) in the first nine months of 2023, while that for road construction rose by 3.1% YoY in the first nine months of 2023. This growth in construction cost is due to the rise in cost of labor (4.2%) and material (5.8%). According to Statistics Norway, the construction industry’s value add declined by 2.7% YoY in Q2 2023, preceded by Y-o-Y growth of 1.8% in Q1 2023 and 0.5% in Q4 2022.
Over the forecast period, the industry’s output is expected to rebound at an annual average growth rate of 3.4% from 2025 to 2027, supported by investments in the transport and renewable energy sectors. In June 2022, the government unveiled a roadmap to drive green industrial growth in the country. The roadmap aims to facilitate faster development of projects within seven areas, including offshore wind, hydrogen, batteries, and the maritime industry. As part of the roadmap, the government will develop a coherent and profitable battery value chain, develop a value chain for the production, distribution and use of hydrogen, and allocate areas with potential for 30GW of offshore wind production by 2040, among others.
Over the forecast period, the industry’s output is expected to rebound at an annual average growth rate of 3.4% from 2025 to 2027, supported by investments in the transport and renewable energy sectors. In June 2022, the government unveiled a roadmap to drive green industrial growth in the country. The roadmap aims to facilitate faster development of projects within seven areas, including offshore wind, hydrogen, batteries, and the maritime industry. As part of the roadmap, the government will develop a coherent and profitable battery value chain, develop a value chain for the production, distribution and use of hydrogen, and allocate areas with potential for 30GW of offshore wind production by 2040, among others.
The report provides detailed market analysis, information and insights into the Norwegian construction industry, including:
- The Norwegian 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 Norwegian 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 Norway. It provides -- Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Norway, 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
