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

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

Summary

The construction industry in Belgium is estimated to have shrunk by 0.4% in real terms in 2022 - down from annual growth of 1.6% in 2021. The industry’s weakness in 2022 is attributed to the challenges stemming from high construction costs and rising interest rates. According to the Belgian statistical office (STATBEL), the average construction output price index rose by 13.6% year on year (YoY) in the first nine months of 2022, following a rise of 5.7% in 2021. In December 2022, the Belgian construction federation Embuild reported that prices of energy-intensive building materials, such as cement, bricks and tiles, are likely to rise further in the short term. Weakness in the Belgian construction industry is expected to continue into 2023, with the industry expected to shrink by 0.5% this year, owing to the current economic headwinds, coupled with the ongoing energy crisis. GlobalData expects the industry to grow from 2024, assuming an improvement in wider economic stability, with an average growth rate of 2.9% from 2024 to 2027, supported by investments in the transport and renewable energy sectors. In late September 2022, the Council of Ministers approved a plan to double the volume of rail freight transport in the country by 2030. According to the plan, investments will be made in the critical nodes of the network, to ensure that all bottlenecks are removed by the end of 2027. In another positive development, in December 2022, the European Investment Bank (EIB) signed an agreement with the Brussels-Capital Region, for providing a financing of EUR475 million ($485.1 million) for improving the quality and sustainability of local public transport. The funding will be used to renew 63km of tram and metro tracks, and acquire new electric buses, metro sets and trams. Forecast-period growth in the Belgian construction industry will also be supported by investments as part of the National Energy-Climate Plan 2021-2030, under which the government aims to increase the share of renewable energy in its total gross fixed energy consumption from 13% in 2020 to 17.5% by 2030. Additionally, the government also plans to reduce its non-ETS greenhouse gas emissions (all greenhouse gas emissions that are not from companies in the ETS - Emissions Trading System) by 35% by 2023 compared to the 2005 levels. To achieve this target, the government aims to establish 5.8GW of offshore wind capacity by 2030 and 8GW by 2040. It also plans to develop hybrid renewable energy projects, in collaboration with Denmark.

The report provides detailed market analysis, information and insights into the Belgian construction industry, including -

• The Belgian 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 Belgian 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 Belgium. It provides -

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