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

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

Summary

The construction industry in Switzerland is expected to shrink by 3.6% in real terms in 2022 and 1.5% in 2023, owing to headwinds caused by high inflation and construction material prices, rising interest rates, an energy crisis and labour shortages. According to the Federal Statistics Office (FSO), the construction output price index - which is recorded twice a year (in April and October) - rose by 8.3% year-on-year (YoY) in October 2022, and the Central Bank of Switzerland (Swiss National Bank - SNB) raised its benchmark interest rate by 50 basis points, to 1%, in mid-December 2022. Although inflation in Switzerland is noticeably below the high levels in neighbouring European countries, it is still well above the SNB’s target of 0-2%. The country’s inflation rate stood at 3% in November 2022, down marginally from a three-decade high of 3.5% in August 2022.

GlobalData expects the Swiss construction industry to rebound at an annual average growth rate of 1.7% from 2024 to 2026, supported by investments in the transport and renewable energy sectors. In September 2022, the national railway company of Switzerland - Swiss Federal Railways (SBB) - presented a plan called Suisse Cargo Logistics, to boost rail freight. The plan is to build five new rail terminals on the key east-west route between St Gallen and Geneva, and five to eight city hubs. The SBB aims to commence operations on its first high-capacity terminal on the east-west route by 2030. According to the estimates of the SBB, the new programme is expected to increase freight traffic by 60%, from 3.8 billion net tonne-km currently to 6.1 billion by 2050. Forecast-period growth in the industry will also be supported by the government’s plan to spend nearly CHF8 billion ($8.7 billion) on major road development works from 2024 to 2027.

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

• The Swiss 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 Swiss 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 Switzerland. It provides -

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