The analyst estimates the Italian construction industry to contract in real terms by 1.5% in 2026, owing to a decline in residential and non-residential building permits issued, coupled with high inflation amid the ongoing war, and the fear of US tariff impacting the country’s export activities. According to the Italian National Institute of Statistics (Istat), the total floor area of new residential and non-residential buildings issued fell by 1.4% year on year (YoY) in the first nine months of 2025, preceded by an annual marginal decline of 0.5% in 2024. The Italian construction Purchasing Managers' Index (PMI), as compiled by an American finance company Standard & Poor's Global (S&P Global) for Hamburg Commercial Bank (HCOB) in March 2026, rose to 50.6 in February 2026, compared to 48.1 in January and 47.9 in December 2025. This index tracks construction activity in the country, with readings above 50 signalling growth and below 50 indicating contractions. Although Italy's manufacturing sector showed signs of improvement in February 2026, it is expected to remain weak in the coming months amid the fragile global environment.
Over the remainder of the forecast period, the Italian construction industry is expected to recover at an average annual rate of 1.4% between 2027 and 2030, supported by government and private sector investments in renewable energy, transport infrastructure, and hospitality sectors. Growth will also be supported by the country’s focus on raising the total renewable capacity to 131GW by 2030, compared to 58GW in 2021, under Italy’s National Energy and Climate Plan (NECP). In alignment with this target, the Italian utility firm, A2A, is also aiming to install 16,000 public charging points for electric vehicles (EVs) in Italy by 2035, along with the development of data centers with an investment of EUR1.6 billion ($1.7 billion). This is part of the company’s plan to invest EUR23 billion ($24.8 billion) during 2024-35 to upgrade grid resilience and support its renewable-generation strategy of reaching 3.7GW of installed wind and solar capacity by 2035. Additional investments part of the country’s National Hydrogen Strategy, aims to install 5GW of electrolysis facilities in the country by 2030 and make Italy a European hydrogen hub by 2050 will also help drive investments in Italy’s construction industry.
Over the remainder of the forecast period, the Italian construction industry is expected to recover at an average annual rate of 1.4% between 2027 and 2030, supported by government and private sector investments in renewable energy, transport infrastructure, and hospitality sectors. Growth will also be supported by the country’s focus on raising the total renewable capacity to 131GW by 2030, compared to 58GW in 2021, under Italy’s National Energy and Climate Plan (NECP). In alignment with this target, the Italian utility firm, A2A, is also aiming to install 16,000 public charging points for electric vehicles (EVs) in Italy by 2035, along with the development of data centers with an investment of EUR1.6 billion ($1.7 billion). This is part of the company’s plan to invest EUR23 billion ($24.8 billion) during 2024-35 to upgrade grid resilience and support its renewable-generation strategy of reaching 3.7GW of installed wind and solar capacity by 2035. Additional investments part of the country’s National Hydrogen Strategy, aims to install 5GW of electrolysis facilities in the country by 2030 and make Italy a European hydrogen hub by 2050 will also help drive investments in Italy’s construction industry.
The Construction in the Italy - Key Trends and Opportunities to 2030 (Q1 2026) report provides detailed market analysis, information, and insights into the Italian construction industry, including:
- The Italian 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 Italian 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 Italy. It provides:
- Historical (2021-2025) and forecast (2026-2030) valuations of the construction industry in Italy, 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
