Italy Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecasts, 2022-2026

Italy Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecasts, 2022-2026

Summary

Italy’s construction industry has been booming, recovering strongly in 2021, when it expanded by 21.3%, and continued to rise sharply in 2022, with year-on-year (Y-o-Y) growth of 12.8% in the first three quarters of this year. The expansion has been driven primarily by support packages and incentives for the residential sector, backed by EU funds under the Recovery and Resilience Facility (RRF) to finance large-scale renovation of residential buildings to make them more energy efficient. Although succeeding in boosting construction in recent quarters, the incentive schemes have proven controversial and distortionary, with high levels of fraud and rising construction costs. There are indications that the industry is set to fall back in 2023; this is in part owing to challenges in the continued delivery of residential support schemes, but also because of the uncertain outlook for the economy, high inflation, and rising interest rates. According to the Istat, the average construction cost index for industrial and residential buildings grew by 15.2% and 11.9%, respectively in Y-o-Y terms, in the first ten months of 2022. Additionally, the rise in interest rates and the subsequent rise in borrowing costs is expected to weigh on investor and business confidence, thereby affecting investments in the residential sector in 2023. According to the Census and Economic Information Centre (CEIC), the interest rate was 4.2% in November 2022 - up from 1% in November 2021.

GlobalData expects Italy’s construction industry to rebound at an annual average growth rate of 2.1% from 2024 to 2026, supported by investments in the transport, electricity and housing sectors. There is an overarching sustainable mobility plan, under the RRF, to integrate more regions into the high-speed rail network, complete the rail freight corridors, and boost sustainable local transport through the extension of cycle lanes, metros, tramways, and zero-emission buses, including the construction of electric charging stations across the country and hydrogen refuelling points for road and rail transport. Among the recent project developments, in early December 2022, the EU approved financing of EUR109 million ($111.9 million) to build a new circular railway section in Palermo. In the same month, the EU also approved a plan to invest EUR307 million ($324 million) on the construction of a power line connecting Italy and Tunisia.

The report provides detailed market analysis, information, and insights into Italy’s construction industry, including -

• Italy’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 Italy’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.

Scope

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

• Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Italy, 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.