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

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

Summary

The Spanish construction industry is expected to decelerate in 2023, growing by just 1.7% this year, following annual growth of 4.1% in 2022. The slowdown this year primarily reflects weakness in the residential sector. Rising interest rates and high construction costs have dampened investment in the residential sector. According to Eurostat, the average construction cost index rose sharply by 6.7% YoY in the first four months of 2023, following an increase of 12.4% in 2022. However, weakness in the residential sector is set to be partially offset by improvements in infrastructure and energy and utilities construction activity. Foreign investments have also picked up; according to the Foreign Investment Register DataInvex of the State Secretariat for Trade, foreign investment in Spain increased by 13.9% in 2022, totaling EUR34.2 billion ($34.9 billion).

During the forecast period, the industry's output is expected to grow at a 2.8% annual average rate between 2024 and 2027, supported by investments in the energy, transportation, housing, and industrial sectors. NextGenerationEU funds, within the framework of the Recovery, Transformation and Resilience Plan (RTRP) will support growth in the residential and infrastructure construction sectors. Under this plan, EUR6.8 billion ($6.9 billion) is expected to be invested from the EU's Next Generation funds to renovate around half a million homes by 2026. Moreover, in November 2022, Iberdrola, a Spanish energy company, announced a commitment to invest EUR47 billion ($48 billion) in its electricity networks, and renewable energy production, between 2023 and 2025. Furthermore, government’s approved 2023 Financial Budget with a total expenditure of EUR198.2 billion ($202.4 billion), which a 1.1% increase over the 2022 Budget will further bolstered the growth in the construction industry in the coming quarters.

This report provides detailed market analysis, information and insights into the Spanish construction industry, including -

• The Spanish 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 Spanish 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 Spain. It provides -

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