Azerbaijan Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Azerbaijan Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

GlobalData expects the construction industry in Azerbaijan to expand by 2.9% in real terms in 2023, following an estimated annual growth of 9.9% in 2022, supported by government investments in industrial, energy and utilities and infrastructural sectors, specifically for the renovation and expansion of the liberated territories in the Nagorno-Karabakh region. According to the State Statistical Committee of the Republic of Azerbaijan, the construction industry’s value add grew by 13.3% YoY in the first nine months of 2022, following annual contraction of 2% in 2021.

Over the remainder of the forecast period, the construction industry is expected to register an annual average growth of 4.3% during 2024-27, supported by the government plans to develop energy, infrastructure and industrial zones in 25 areas across the liberated territories. In November 2022, the government approved the First State Programme of the Great Return to the liberated territories. Under which, the government plans to construct 100MW Khudaferin hydropower plant and 40MW Giz Galasi hydropower plant by 2025. Moreover, 23 small power plants, which were destroyed by the Armenian invaders, will be reconstructed by 2025. Under the programme, the construction of 34-km gas pipeline connecting Aghdam and Khankendi will be completed by 2025. Moreover, the State Oil Company of the Republic of Azerbaijan plans to construct 21.8km long Aghdam-Aghdara,99.4km Goranboy-Kalbajar, 100km Boyuk Bahmanli-Shusha and 121.5km Goradiz-Lachin gas pipelines. The State Program also includes construction and re-development of existing reservoirs, irrigation and diversion canals and other facilities to ensure water supply to the citizens of the liberated areas. Construction of Bargushad, Hakarichay, and Zabukh reservoirs alongside the renovation of the main canals of the Sugovushan reservoir are some of the projects planned under the State Programme.

The report provides detailed market analysis, information and insights into Azerbaijan’s construction industry, including -

• Azerbaijan’s 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 Azerbaijan’s 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 Azerbaijan. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Azerbaijan, 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.