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

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

Summary

GlobalData expects the output of the Iranian construction industry to decline by 1.3% in real terms in 2023, following an annual contraction of 2.5% in 2022. Multiple challenges, including an average inflation rate of more than 46% in 2022, nationwide protests, a sharp decline in the value of the rial - Iran's currency, mounting tensions between the regime and Europe and the ongoing political crisis will dampen industry output this year. In addition, it is expected to result in an absence of financial resources for projects, government deficits, and a decrease in investment, particularly in domestic production, leading to project delays and suspensions in the short to medium term. However, construction activity this year will be aided by the implementation of energy and transport infrastructure projects, in which the government will complete the construction of nearly 400km of railway lines and build 110,000 solar power stations across the country with a total capacity of 550MW in the current Iranian year (March 21, 2023-March 20, 2024).

Over the remainder of the forecast period, between 2024 and 2027, the industry’s output is expected to register an annual average growth of 3.2%, supported by the investment in the oil and gas, transport, and housing sectors. Previously in August 2022, the government awarded contracts worth IRR747.6 trillion ($13 billion) for the construction of two oil refineries - Shahid Soleimani Petrochemical Refinery and the Morvarid Makran Refinery. This initiative will support the government’s target of increasing the country’s crude oil refining capacity by 600,000 barrels per day (bpd) by 2027. Furthermore, in February 2023, the National Iranian Oil Company (NIOC) announced plans to increase gas production in the country by 50% by 2029, with Iran's gas production expected to rise from around one billion cubic meters (bcm)/day in 2023 to 1.5 bcm/day by 2030

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

• The Iranian 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 Iranian 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 Iran. It provides -

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