Europe Construction Market by Type (Renovation and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2030

Europe Construction Market by Type (Renovation and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2030

The Europe Construction Market size was valued at USD 2.11 trillion in 2023, and is predicted to reach USD 2.78 trillion by 2030, at a CAGR of 4.8% from 2024 to 2030.

The infrastructure sector in Europe is experiencing significant growth, driven by strong government support and the implementation of major infrastructure projects. Key factors contributing to this expansion include substantial investments in renewable energy, transportation improvements, and the adoption of sustainable infrastructure practices. Notable projects, such as airport expansions, railway modernizations, and the deployment of renewable energy sources, highlight the sector's crucial role in advancing regional infrastructure. Additionally, Europe is allocating considerable resources to the energy sector to sustain overall industry growth. Despite challenges such as material shortages and geopolitical uncertainties in certain areas, the overall outlook remains positive. The real estate industry continues to be essential in promoting economic development and advancing infrastructure across Europe.

However, infrastructure market faces significant challenges due to stringent regulatory frameworks. Real estate projects encounter hurdles from the complex network of government regulations and permitting processes. These projects typically require numerous permits and approvals from governmental bodies at local, regional, and national levels. These permits cover zoning regulations, environmental assessments, compliance with building codes, safety standards, and various other regulatory requirements. Lengthy permit acquisition processes, bureaucratic inefficiencies, and regulatory disparities across jurisdictions can significantly extend project timelines and increase costs.

Also, regulatory changes or unexpected policy shifts can disrupt ongoing projects and deter potential investments. For example, the United States Environmental Protection Agency (EPA) regulates various aspects of the real estate sector, including air quality, lead management, waste disposal, and water regulations. The EPA's compliance assistance centers provide resources to facilitate environmental compliance during demolition activities, the recycling of infrastructure materials, and the proper disposal of refrigeration and air-conditioning equipment.

On the contrary, the real estate sector is also undergoing a significant transformation through digitalization and the adoption of Building Information Modeling (BIM), leveraging advanced technologies to improve efficiency, precision, and collaboration across various projects. BIM, an advanced 3D modeling tool, allows stakeholders to create and manage digital representations of structures and infrastructure, enhancing coordination and communication among project teams.

For instance, in September 2022, the National Institute of Building Sciences (NIBS) launched the U.S. National Building Information Management (BIM) Program, aiming to revolutionize the infrastructure industry and achieve unparalleled levels of industrial efficiency through digitalization. This initiative addresses the inadequate level of digitalization within the U.S. real estate sector, that hampers the transformation of lifecycle work processes to become more efficient, cost-effective, resilient, and safer to construct and maintain.

KEY BENEFITS

The Europe construction industry is segmented based on type, and sector.
Based on type, the market is segmented renovation and new construction.
Based on sector, the market is divided into real estate, infrastructure, and industrial.

Regional Analysis

Germany Holds the Dominant Market Share in Europe Infrastructure Market

The real estate sector in Germany is experiencing significant growth, driven by an increasing number of government initiatives aimed at developing new infrastructure projects, such as railways and power grids. A notable example is the USD 49.73 billion infrastructure program launched jointly by the German Federal Government and Deutsche Bahn (DB) in September 2023. This program focuses on improving the rail network and stations, aiming to enhance train traffic punctuality and meet transportation policy goals for both passenger and freight traffic.

Key Market Players

Leading players operating in the Europe construction industry include:
• China State Construction Engineering Corp. Ltd. (CSCEC)
• China Railway Group Ltd. (CREC)
• China Railway Construction Corp. Ltd. (CRCC)
• China Communications Construction Group Ltd. (CCCC)
• Metallurgical Corporation of China Ltd. (MCC)
• Power Construction Corp. of China
• Vinci SA
• China Energy Engineering Corp. (CEEC)
• Shanghai Construction Group (SCG)
• Bouygues Group

KEY BENEFITS
• The Europe construction market report provides a quantitative analysis of the current market and estimations through 2024-2030 that assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a deep dive analysis of the market trend including the current and future trends for depicting the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.
• The competitive analysis of the market players along with their market share in the Europe construction market.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.