France Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market France, 2023-2027

France Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market France, 2023-2027

Summary

The French construction industry is expected to decline by 1% this year and 2.5% in 2024, owing to the impact of high interest rates, and declining investor and consumer confidence that has led to a slowdown in project developments. According to the National Institute of Statistics and Economic Studies (INSEE), the construction industry’s value add declined by 1.4% year on year (YoY) in Q3 2023, preceded by a Y-o-Y decline of 1.4% in Q2 and growth of 0.3% in Q1 2023. The residential sector will account for much of the downturn in the short term, owing to a sharp decline in the number of building permits issued. The total number of dwelling units authorized in the country fell by 31.4% YoY in the first nine months of 2023, according to INSEE, preceded by an annual marginal growth of 0.3% in 2022. The government has also signed five-year agreement with Action Logement, finacial services company, in November 2023 for the renovation works and the construction of social housing. The agreement includes EUR1.2 billion ($1.23 billion) funding for renovation plan and EUR8 billion ($8.2 billion) for the construction of social housing.

Over the remainder of the forecast period, the construction industry's output is expected to recover with an average annual growth rate of 2.2% between 2025 and 2027, supported by the government's investment in the industrial sector and renewable energy infrastructure projects, to achieve carbon neutrality by 2050. France plans to increase its energy generation capacity of renewables to 175GW in 2035, with solar power capacity increasing to 75-100GW, offshore wind power capacity to 18GW, and hydropower capacity to 28GW in 2035. In October 2023, the French Ministry of Economics and Finance announced funding worth EUR70 billion ($71.5 billion) for the construction of electric vehicle charging points across the country, which is in line with its decarbonization plan. The French Ministry announced EUR70 billion ($71.5 billion) for the development of electric vehicle charging points across the country and plans to include 400,000 public charging points by 2030. The funding will also include other initiatives to support decarbonization goals and EUR5.6 billion ($5.7 billion) will be provided from the funding for the decarbonization projects at industrial sites.

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

• The French 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 French 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 France. It provides -

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