Norway Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027
Summary
GlobalData expects the Norwegian construction industry to contract by 1.7% in real terms in 2023, following an annual expansion of 4.4% in 2022. The decline in construction activity in 2023 is expected to be driven by a continuation of the slowdown in the housing market amid rising interest rates and high inflation in terms of both consumer prices and construction costs. Rising mortgage rates and elevated building costs feeding into house prices are expected to weaken demand in the real estate market, causing a reduction in new residential development starts. According to the Statistics Norway (SSB), the average construction cost index for residential buildings rose by 6.4% year on year (YoY) in the first three months of 2023; this increase is attributed to price increases in both materials (9% YoY) and labour (3.9% YoY), and it represents a 26% YoY increase over the same period of pre-pandemic levels of 2019. The impact of high inflation and rising interest rates on household budgets, and thus demand in the retail and leisure sectors, will also weigh heavily on commercial construction this year. However, rising investments in manufacturing and oil and gas sectors will assist the industry’s recovery in 2024. Earlier in January 2023, the government awarded 47 new oil and gas exploration permits to 25 companies under the predefined areas (APA) 2022 licensing round.
Over the remainder of the forecast period, the industry’s output is expected to rebound at an annual average growth rate of 2.4% from 2024 to 2027, supported by investments in the transport and renewable energy sectors. In June 2022, the government unveiled a roadmap to drive green industrial growth in the country. The roadmap aims to facilitate faster development of projects within seven areas, including offshore wind, hydrogen, batteries, and the maritime industry. As part of the roadmap, the government will develop a coherent and profitable battery value chain, develop a value chain for the production, distribution, and use of hydrogen, and allocate areas with potential for 30GW of offshore wind production by 2040, among others.
This report provides detailed market analysis, information, and insights into the Norwegian construction industry, including -
- The Norwegian 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 Norwegian 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 Norway. It provides -
- Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Norway, 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
- 7.4 GlobalData Construction
- Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Norway, Key Economic Indicators
- Table 3: Norway, Commercial Construction Output by Project Type (Real % Change), 2018-27
- Table 4: Norway, Top Commercial Construction Projects by Value
- Table 5: Norway, Industrial Construction Output by Project Type (Real % Change), 2018-27
- Table 6: Norway, Top Industrial Construction Projects by Value
- Table 7: Norway, Infrastructure Construction Output by Project Type (Real % Change), 2018-27
- Table 8: Norway, Top Infrastructure Construction Projects by Value
- Table 9: Norway, Energy and Utilities Construction Output by Project Type (Real % Change), 2018-27
- Table 10: Norway, Top Energy and Utilities Construction Projects by Value
- Table 11: Norway, Institutional Construction Output by Project Type (Real % Change), 2018-27
- Table 12: Norway, Top Institutional Construction Projects by Value
- Table 13: Norway, Residential Construction Output by Project Type (Real % Change), 2018-27
- Table 14: Norway, Top Residential Construction Projects by Value
- Table 15: Norway, Key Contractors
- Table 16: Norway, Key Consultants
- Table 17: Norway, Construction Output Value (Real, $ Million)
- Table 18: Norway, Construction Output Value (Nominal, NOK 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: Norway, Construction Output by Sector (Real % Change), 2021-23 and 2024-27
- Figure 3: Norway, Risk Summary
- Figure 4: Norway, Risk Regional Comparison
- Figure 5: Norway, Construction Output Value (Real, $ Billion, 2017 Prices and Exchange Rate), 2018-27
- Figure 6: Norway, Construction Output Value, by Sector (Real, $ Million), 2018-27
- Figure 7: Norway, Construction Value Add (NOK Million, 2020 Constant Prices)
- Figure 8: Norway, Construction Production Index, 2015=100
- Figure 9: Norway, Construction Employment, in Thousands
- Figure 10: Norway, Construction Projects Momentum Index
- Figure 11: Region, Construction Projects Momentum Index
- Figure 12: Norway, Commercial Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 13: Norway, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 14: Norway, Guest Nights by Foreign Nationals, In Thousands
- Figure 15: Norway, Turnover Index of Office Administrative, Office Support and Other Business Support Activities, 2015=100
- Figure 16: Norway, Turnover Index of Accommodation and Food Service Activities, 2015=100
- Figure 17: Norway, Industrial Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 18: Norway, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 19: Norway, Manufacturing Value Add (NOK Million, 2020 Constant Prices)
- Figure 20: Norway, Index of Manufacturing Production, 2005=100
- Figure 21: Norway, Total Investments in Manufacturing (NOK, Million)
- Figure 22: Norway, Total Export Value (NOK, Million)
- Figure 23: Norway, Infrastructure Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 24: Norway, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 25: Norway, Cost Index for Road Construction, Q1 2004=100
- Figure 26: Norway, Production Index for Road and Rail Construction, 2015=100
- Figure 27: Norway, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 28: Norway, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 29: Norway, Construction Production Index for Utility Projects, 2015=100
- Figure 30: Norway, Oil and Gas Extraction Value Add (NOK Million, 2020 Constant Prices)
- Figure 31: Norway, Electricity, Gas and Steam Value Add (NOK Million, 2020 Constant Prices)
- Figure 32: Norway, Information and Communication Value Add (NOK Million, 2020 Constant Prices)
- Figure 33: Norway, Institutional Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 34: Norway, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 35: Norway, Education Value Add (NOK Million, 2020 Constant Prices)
- Figure 36: Norway, Health and Social Work Value Add (NOK Million, 2020 Constant Prices)
- Figure 37: Norway, Residential Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 38: Norway, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 39: Norway, Total Number of Dwelling Completed (Unit, Number)
- Figure 40: Norway, Total Number of Dwelling Started (Unit, Number)
- Figure 41: Norway, Total Number of Dwelling Under Construction (Unit, Number)
- Figure 42: Norway, Utility Floor Space of Dwelling Permits, in Thousand m2
- Figure 43: Norway, Real Estate Value Add (NOK Million, 2020 Constant Prices)
- Figure 44: Norway, Construction Cost Index for Residential Buildings, 2015=100, % Change YoY
- Figure 45: Norway, Price Index for New Dwellings, 2015=100
- Figure 46: Norway, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 47: Norway, Headquarters of Key Consultants (% of Total Project Pipeline)
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