The analyst expects the Italian construction industry to contract in real terms by 0.8% in 2025 and 4.1% in 2026, owing to declining building permits issued, rising public debt, and a weaker residential and industrial construction sector. According to the Italian National Institute of Statistics (Istat), the business confidence index in the construction industry declined by 1% year-on-year (YoY) in the first eight months of 2025, preceded by an annual decline of 2.3% in 2024. According to Istat, the total floor area for new residential and non-residential buildings issued fell by 11.7% YoY in Q1 2025, preceded by a YoY decline of 6% in Q4 and a growth of 8.3% in Q3 2024. Moreover, Italy is facing major challenges due to the new US tariffs, which threaten the country’s export-driven economy. The US President Donald Trump announced a 30% tariff on imports from all EU countries starting from August 1, 2025.
Over the remainder of the forecast period, the Italian construction industry is however expected to recover in 2027 and record an average annual growth of 1.4% between 2027 and 2029, supported by investments in energy, transport infrastructure, and hospitality sectors, coupled with the government's aim to increase the share of renewable energy in the total power mix from 18.5% in 2022 to 59% in 2030. In line with this, in March 2025, the government-owned national transmission grid operator, Terna, approved an updated 2024-28 Industrial Plan with a record investment of EUR17.7 billion ($19.3 billion) to develop the energy sector, which is EUR1.2 billion ($1.3 billion) more than the previous plan, which was presented in March 2024, representing a 7% increase. The plan targets the integration of 107GW of renewable capacity by 2030 and aims for a 40% increase in cross-border electricity exchange capacity by expanding and strengthening the national transmission grid
Over the remainder of the forecast period, the Italian construction industry is however expected to recover in 2027 and record an average annual growth of 1.4% between 2027 and 2029, supported by investments in energy, transport infrastructure, and hospitality sectors, coupled with the government's aim to increase the share of renewable energy in the total power mix from 18.5% in 2022 to 59% in 2030. In line with this, in March 2025, the government-owned national transmission grid operator, Terna, approved an updated 2024-28 Industrial Plan with a record investment of EUR17.7 billion ($19.3 billion) to develop the energy sector, which is EUR1.2 billion ($1.3 billion) more than the previous plan, which was presented in March 2024, representing a 7% increase. The plan targets the integration of 107GW of renewable capacity by 2030 and aims for a 40% increase in cross-border electricity exchange capacity by expanding and strengthening the national transmission grid
The Construction in Italy - Key Trends and Opportunities to 2029 (Q3 2025) 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
Scope
This report provides a comprehensive analysis of the construction industry in Italy. It provides:
- Historical (2020-2024) and forecast (2025-2029) 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
