France Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q4 2024)

France Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q4 2024)

Summary

GlobalData’s Construction in France - Key Trends and Opportunities to 2028 (Q4 2024) 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

The construction industry in France is estimated to decline in real terms by 3.2% in 2024 and register marginal growth of 0.9% in 2025, owing to high energy prices, elevated inflation and a budget deficit that needs to be resolved. According to the National Institute of Statistics and Economic Studies (INSEE), the business climate index declined by 2.9% year on year (YoY) in the first ten months of 2024, following a 4.4% drop in 2023. Furthermore, the average residential and non-residential turnover index of the construction of buildings fell by 5.7% YoY in the first eight months of 2024 according to INSEE. The construction industry's performance will also be constrained by ongoing weakness in the residential sector, which has been declining since 2022, owing to a drop in residential permits. According to the INSEE, the total floor area of authorized dwellings fell by 15.7% YoY in the first nine months of 2024; preceded by an annual decline of 27.3% in 2023.

In response to a warning from the European Union (EU) about France’s rising public-sector deficit, which is expected to exceed 6.1% of GDP in 2024, the government presented a draft 2025 Budget in October 2024, aimed at reducing the deficit with EUR60.6 billion ($63.6 billion) in spending cuts and tax hikes. These measures include cuts to apprenticeships, environmental programs, foreign aid and reducing government jobs. The budget also includes higher taxes on large corporations, especially in the construction sector, and temporary taxes on defense, airlines, and shipping companies. Vinci, for example, expects to pay an additional EUR400 million ($424 million) in taxes in 2025. But, due to the collapse of Prime Minister Michel Barnier’s government, following the no confidence vote in December 2024, President Emmanuel Macron must appoint a new prime minister

Scope

This report provides a comprehensive analysis of the construction industry in France. It provides -

• Historical (2019-2023) and forecast (2024-2028) 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 our 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 business strategies using GlobalData's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors