Israel Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028

Israel Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028

Israel Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028

Summary

GlobalData’s Construction in Construction in Israel - Key Trends and Opportunities to 2028 (H1 2024) report provides detailed market analysis, information, and insights into Israel’s construction industry, including -

• Israel’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 Israel’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.

GlobalData expects the construction industry in Israel to contract by 4.7% in real terms in 2024, following a contraction of 5% in 2023, with the high likelihood of further declines if the construction activity in the short-term is more severely disrupted than currently anticipated. Despite a cumulative growth of 7.5% in Q1-Q3 2023 for the construction value add, in chained prices, the overall decline in 2023 was a result of sharp contraction of 38.5% year-on-year (YoY) in Q4 2023, owing to a sharp reduction in labor and a downturn in investor’s confidence, following the commencement of war with Hamas in early October 2023. Concurrently, with the ongoing war with Hamas afflicting the construction sector, a conflict between Israel and Iran has surfaced in mid-April 2024, that can cause elevated material costs and labor shortages, which will continue to pose further risks to the construction industry in 2024, as GlobalData expects the conflicts to continue in the second quarter of 2024. In mid-April 2024, India’s Ministry of External Affairs instructed over 5,000 newly recruited Indian construction workers by Israeli companies not to travel to Israel following the onset of the Israel-Iran war. With the risk of intense operations in 2024, the government is expected to continue to spend high on military needs, which will affect construction activities in the country. In March 2024, the Federation of Israeli Chambers of Commerce announced that the construction industry is undergoing a slowdown of almost 50% in activity.

With subdued investor and consumer confidence continuing in the short to medium-term, the industry’s growth will remain sluggish, but there could be support in line with the government's focus on infrastructure development and investment in the energy and utilities and residential construction projects, which can help recover the construction industry to record an average annual growth of 5.8% between 2025 and 2028. To support the growth of transport infrastructure, the Prime Minister of Israel unveiled the ""Infrastructure for Growth 2023"" plan in June 2023, which includes the construction of 228 infrastructure projects nationwide with an investment of ILS433 billion ($128.4 billion) by 2027.

Scope

This report provides a comprehensive analysis of the construction industry in Israel’s. It provides -

• Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in Israel, 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.