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

Estonia 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 Estonia is expected to shrink by 2.1% in real terms this year, due primarily to high inflation, rising construction material prices and weak investor confidence. According to Statistics Estonia, the average Construction Price Index rose by 18% year-on-year (YoY) in 2022, with the prices of building materials rising by 23.9% YoY and that of building machines and labour rising by 9.7% YoY and 8% YoY, respectively, over the same period. The rise in construction costs is expected to weigh on investor confidence and limit investment in new and ongoing projects. The rise in prices for raw materials has also led to a rise in the cost of real estate, which coupled with rising interest rates, is expected to weaken demand for new housing.

Over the remainder of the forecast period, the construction industry is expected to rebound at an annual average growth rate of 5.7% from 2024 to 2027, supported by investments in transport, electricity, telecommunication, and housing infrastructure projects. The modernization of railway lines in the direction of Tartu, Narva, Viljandi, and Haapsalu by 2028, under the EUR900 million ($919.1 million) national Railway Development Plan, is expected to support the transport infrastructure sector in the coming years. In another development, the Ministry of Economic Affairs and Infrastructure proposed a plan in August 2022, to produce 100% renewable electricity by 2030. To achieve this, small tenders for 1.65TWh of renewable electricity will be conducted over the next three years. In another positive development, offshore wind farms are also planned to be developed in the country with a total capacity of 1,000 to 3,000 MW by the end of 2030.

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

• Estonia’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 Estonia’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 Estonia. It provides -

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