Austria Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027

Austria Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027

Summary

The construction industry in Austria is expected to shrink by 2% in real terms in 2023 and 1.9% in 2024, owing to headwinds caused by high inflation, coupled with rising interest rates, and labor shortages in the country. According to Statistics Austria, the average consumer price inflation reached 9.6% in the first six months of 2023. The decline in building permits will also affect the construction industry’s performance in the near term. According to Eurostat, the residential building permit index declined by 40.8% year on year (YoY) in Q1 2023, preceded by annual decline of 21% in 2022. The decline is also attributed to subdued investor confidence, amid rising interest rates and high construction costs.

The Austrian construction industry is expected to pick up from 2025 and is expected to register an annual average growth rate of 2.5% between 2025 and 2027, supported by the government’s focus to generate 100% of the country’s electricity through wind, solar and hydropower energy sources by 2030, and reduce greenhouse gas emission by 36%, compared with 2005 levels, by 2030 and net zero emissions by 2040. To meet this target, as part of the Austrian Recovery and Resilience Plan, backed by the EU’s Recovery and Resilience Fund (RRF), the government aims to invest EUR100 million ($102.1 million) to increase the production of electricity per year from renewables to reach 98.5TWh by 2030 from 71.5TWh in 2021. Furthermore, in July 2023, the Federal Association Photovoltaic Austria (PV Austria) revised up the solar photovoltaic (PV) target for 2030 from 13GW under Renewable Energy Expansion (EAG) Act of 2020 to 21GW by 2030 - which implies that the country is required to install 2.1GW annually until 2030.

This report provides detailed market analysis, information, and insights into the Austrian construction industry, including -

• The Austrian 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 Austrian 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 Austria. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Austria, 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 GlobalData's 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 GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.