Germany Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027
Summary
GlobalData expects Germany’s construction industry to shrink by 2.6% in real terms in 2023 and 3.5% in 2024, owing to subdued investor and consumer confidence, amid rising interest rates and elevated construction costs. This is particularly being reflected in the sharp decline in building permits. The residential sector - which accounted for 51% of the industry’s total value in 2022 - is expected to be the hardest-hit in 2023 and 2024. According to the Federal Statistical Office (Destatis), the average construction cost index for residential buildings rose by 8.9% year-on-year (YoY) in the first quarter of 2023, owing to a rise in the prices of both materials (12.3% YoY) and labour (3.6% YoY).
Despite the downturn in 2024, the government’s commitment of EUR57 billion ($58.2 billion) to green infrastructure in 2024 will provide some momentum to the industry's output next year. Assuming an improvement in the wider economy and an easing in the energy crisis, the German construction industry is expected to rebound at an average annual growth rate of 2.6% from 2025 to 2027, supported by investments in the transport, renewable energy, and manufacturing sectors. Investments towards the country’s auto manufacturing sector will be driven by the government’s aim of having 15 million electric cars on roads by 2030. In May 2023, the government reported that EUR88 billion ($93.5 billion) in investment will be needed by 2027, to make the national railway network more attractive and reliable. Deutsche Bahn plans to overhaul some of the country's most congested rail corridors, starting from June 2023, with around 4,200 km of tracks flagged for renovation work by 2030.
The report provides detailed market analysis, information and insights into Germany’s construction industry, including -
- Germany’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 Germany’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.
This report provides a comprehensive analysis of the construction industry in Germany. It provides -
- Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Germany, 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
- 8 About GlobalData
- 9 Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Germany, Key Economic Indicators
- Table 3: Germany, Commercial Construction Output by Project Type (Real % Change), 2018–27
- Table 4: Germany, Top Commercial Construction Projects by Value
- Table 5: Germany, Industrial Construction Output by Project Type (Real % Change), 2018–27
- Table 6: Germany, Top Industrial Construction Projects by Value
- Table 7: Germany, Infrastructure Construction Output by Project Type (Real % Change), 2018–27
- Table 8: Germany, Top Infrastructure Construction Projects by Value
- Table 9: Germany, Energy and Utilities Construction Output by Project Type (Real % Change), 2018–27
- Table 10: Germany, Top Energy and Utilities Construction Projects by Value
- Table 11: Germany, Institutional Construction Output by Project Type (Real % Change), 2018–27
- Table 12: Germany, Top Institutional Construction Projects by Value
- Table 13: Germany, Residential Construction Output by Project Type (Real % Change), 2018–27
- Table 14: Germany, Top Residential Construction Projects by Value
- Table 15: Germany, Key Contractors
- Table 16: Germany, Key Consultants
- Table 17: Germany, Construction Output Value (Real, $ Million)
- Table 18: Germany, 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: Germany, Construction Output by Sector (Real % Change), 2021–23 and 2024–27
- Figure 3: Germany, Risk Summary
- Figure 4: Germany, Risk Regional Comparison
- Figure 5: Germany, Construction Output Value (Real, $ million, 2017 Prices and Exchange Rate), 2018–27
- Figure 6: Germany, Construction Output Value, by Sector (Real, $ Million), 2018–27
- Figure 7: Germany, Construction Value Add, 2015 Chained Linked Volume Measures (EUR Million)
- Figure 8: Germany, Gross Fixed Capital Formation, Current Prices (% Change YoY), in EUR Billion
- Figure 9: Germany, New Orders Value Index for Building Construction and Civil Engineering Works (2015=100)
- Figure 10: Germany, Total Number of Building Permits Approved
- Figure 11: Germany, Construction Turnover (Companies With 20 and More Persons Employed), % Change YoY
- Figure 12: Germany, Construction Projects Momentum Index
- Figure 13: Western Europe, Construction Projects Momentum Index
- Figure 14: Germany, Commercial Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 15: Germany, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 16: Germany, Wholesale and Retail Trade, Transport, Accommodation, and Food Service Activities Value Add, 2015 Chained Linked Volume Measures (EUR Billion)
- Figure 17: Germany, Commercial Building Construction Orders Value Index (2015=100)
- Figure 18: Germany, Tourist Arrivals and Overnight Stays (Total Number in Thousand)
- Figure 19: Germany, Turnover Index of Accommodation Service Activities in Constant Terms, 2015=100
- Figure 20: Germany, Retail Sales Index in Constant Terms, 2015=100
- Figure 21: Germany, Wholesale Turnover Index in Constant Terms, 2015=100
- Figure 22: Germany, Industrial Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 23: Germany, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 24: Germany, Manufacturing Value Add, 2015 Chained Linked Volume Measures (EUR Billion)
- Figure 25: Germany, Incoming Orders in Manufacturing Sector (Value index), 2015=100
- Figure 26: Germany, Manufacturing Production and Turnover Indices, 2015=100
- Figure 27: Germany, Total Exports (EUR Billion)
- Figure 28: Germany, Number of New Passenger Car Registrations, in Thousands
- Figure 29: Germany, Infrastructure Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 30: Germany, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 31: Germany, Gross Fixed Capital Formation in Civil Engineering, Current Prices (EUR billion)
- Figure 32: Germany, New Orders Value and Volume Indices for Road Construction (% change YoY)
- Figure 33: Germany, Road and Rail Construction Turnover (Companies With 20 and More Persons Employed), % Change YoY, In EUR Million
- Figure 34: Germany, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 35: Germany, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 36: Germany, Information and Communication Value Add, 2015 Chained Linked Volume Measures (EUR Billion)
- Figure 37: Germany, Civil Engineering and Sewage Treatment Plan Construction Turnover (Companies With 20 and More Persons Employed), EUR Million
- Figure 38: Germany, Institutional Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 39: Germany, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 40: Germany, Public Administration, Defense, Education, Human Health, and Social Work Activities Value Add, 2015 Chained Linked Volume Measures (EUR Billion)
- Figure 41: Germany, Total Number of Institutional Building Permits Issued
- Figure 42: Germany, Residential Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 43: Germany, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 44: Germany, Real Estate Value Add, 2015 Chained Linked Volume Measures (EUR Billion)
- Figure 45: Germany, Total Fixed Capital Formation in Residential Buildings, Current Prices (EUR billion)
- Figure 46: Germany, New Orders Value and Volume Indices for Housing Construction (2015=100)
- Figure 47: Germany, Total Number of Residential Building Permits Approved
- Figure 48: Germany, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 49: Germany, Headquarters of Key Consultants (% of Total Project Pipeline)
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