Finland 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 Finland is expected to decline by 1.2% in real terms this year, following an estimated annual growth of 1.1% in 2022. The industry’s growth in 2023 will be affected by the rising cost of construction materials, coupled with a lack of capital funds for ongoing projects. According to Statistics Finland, the average building cost index grew by 8% year-on-year (YoY) in the first eleven months of 2022. Prior to the Russia-Ukraine crisis, the Finnish construction industry registered a sharp growth, supported by government investment in the transport and renewable energy sectors. However, headwinds such as rising energy and commodity prices have weighed on investor and consumer confidence and have kept investment levels in the construction industry subdued. As a result, the industry’s value add fell by 1.1% YoY in Q3 of 2022 (the latest data available at the time of writing), preceded by a Y-o-Y decline of 0.6% in Q2 and growth of 8.8% in Q1 2022, according to Eurostat.
GlobalData expects the Finnish construction industry to register an annual average growth of 1.9% from 2024 to 2027, supported by the National Transport System Plan for 2021-2032, under which, the government plans to spend EUR6.1 billion ($7.5 billion) to upgrade the country’s transport infrastructure over the 12-year period. Of the total investment, the government plans to spend EUR3.4 billion ($3.4 billion) for new infrastructure development projects. By segments, 44% of EUR3.4 billion ($3.4 billion) will be allocated for roads, 52% for the rail network, and 4% for waterways. Moreover, the government also aims to phase out coal-based power plants in the country by 2029 and become a carbon-neutral country by 2035; this will drive investments toward the renewable energy sector over the coming years. To achieve carbon neutrality by 2035, additional emission reductions of 4-5Mt (Metric tons) will be needed. The government plans to cut emissions from transport by 2030 by at least half from the level in 2005, with the measures included in the reduction of fossil fuel in transport. The aim is to achieve a total reduction of 1.2Mt by 2030.
The report provides detailed market analysis, information, and insights into the Finnish construction industry, including -
- The Finnish 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 Finnish construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
This report provides a comprehensive analysis of the construction industry in Finland. It provides -
- Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Finland, 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
- 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.
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Context
- 3.1 Economic Performance
- 3.2 Political Environment and Policy
- 3.3 Demographics
- 3.4 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants
- 6 Construction Market Data
- 7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 7.4 GlobalData Construction
- Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Finland, Key Economic Indicators
- Table 3: Finland, Commercial Construction Output by Project Type (Real % Change), 2018-27
- Table 4: Finland, Top Commercial Construction Projects by Value
- Table 5: Finland, Industrial Construction Output by Project Type (Real % Change), 2018-27
- Table 6: Finland, Top Industrial Construction Projects by Value
- Table 7: Finland, Infrastructure Construction Output by Project Type (Real % Change), 2018-27
- Table 8: Finland, Top Infrastructure Construction Projects by Value
- Table 9: Finland, Energy and Utilities Construction Output by Project Type (Real % Change), 2018-27
- Table 10: Finland, Top Energy and Utilities Construction Projects by Value
- Table 11: Finland, Institutional Construction Output by Project Type (Real % Change), 2018-27
- Table 12: Finland, Top Institutional Construction Projects by Value
- Table 13: Finland, Residential Construction Output by Project Type (Real % Change), 2018-27
- Table 14: Finland, Top Residential Construction Projects by Value
- Table 15: Finland, Key Contractors
- Table 16: Finland, Key Consultants
- Table 17: Finland, Construction Output Value (Real, $ Million)
- Table 18: Finland, Construction Output Value (Nominal, EUR Million)
- Table 19: GlobalData Construction Market Definitions
- Table 20: Risk Dimensions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: Western Europe, Construction Output (Real % Change), 2021-27
- Figure 2: Finland, Construction Output by Sector (Real % Change), 2021-23 and 2024-27
- Figure 3: Finland, Risk Summary
- Figure 4: Finland, Risk Regional Comparison
- Figure 5: Finland, Construction Output Value (Real, $ Billion, 2017 Prices and Exchange Rate), 2018-27
- Figure 6: Finland, Construction Output Value, by Sector (Real, $ Million), 2018-27
- Figure 7: Finland, Construction Value Add (EUR Million, 2015 Constant Prices)
- Figure 8:Finland, Gross Fixed Capital Formation (EUR Million, 2015 Constant Prices)
- Figure 9: Finland, Construction Turnover Index (2015=100)
- Figure 10: Finland, Employment in the Construction Industry
- Figure 11:Finland, Total Building Permits Issued (Unit, Number)
- Figure 12: Finland, Building Cost Index (2015=100)
- Figure 13: Finland, Construction Projects Momentum Index
- Figure 14: Region, Construction Projects Momentum Index
- Figure 15: Finland, Commercial Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 16: Finland, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 17: Finland, Total Tourist Arrivals and Overnight stays (in Numbers)
- Figure 18: Finland, Office Building Permits Issued (Unit, Number)
- Figure 19: Finland, Warehouse Building Permits Issued (Unit, Number)
- Figure 20: Finland, Agricultural Building Permits Issued (Unit, Number)
- Figure 21: Finland, Accommodation and Food Service Activities Value Add (EUR Million, 2015 Constant Prices)
- Figure 22: Finland, Industrial Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 23: Finland, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 24: Finland, Manufacturing Turnover Index (2015=100)
- Figure 25: Finland, Manufacturing Value Add (EUR Million, 2015 Constant Prices)
- Figure 26: Finland, Industrial Production Index (2015=100)
- Figure 27: Finland, Industrial Building Permits Issued (Unit, Number)
- Figure 28: Finland, New Orders for Manufacturing Index (2015=100)
- Figure 29: Finland, Infrastructure Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 30: Finland, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 31: Finland, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 32: Finland, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 33: Finland, Information and Communication Value Add (EUR Million, 2015 Chain Linked Volumes)
- Figure 34: Finland, Public Utility Building Permits Issued (Unit, Number)
- Figure 35: Finland, Institutional Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 36: Finland, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 37: Finland, Institutional Care Building Permits (Unit, Number)
- Figure 38: Finland, Education Value Add (EUR Million, 2015 Chain Linked Volumes)
- Figure 39: Finland, Residential Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 40: Finland, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 41: Finland, Real Estate Value Add (EUR Million, 2015 Constant Prices)
- Figure 42: Finland, Residential Building Permits Issued (Unit, Number)
- Figure 43: Finland, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 44: Finland, Headquarters of Key Consultants (% of Total Project Pipeline)
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