Enjoy complimentary customisation on priority with our Enterprise License!
The construction market in emea size is forecast to increase by USD 382.8 billion at a CAGR of 5.34% between 2023 and 2028. The market (Europe, Middle East, and Africa) is experiencing significant changes, driven by various factors. One key trend is the increasing adoption of green buildings, which are in the Innovator's stage in some regions and the Early Majority in others, leading to varying adoption rates and penetration levels. Another trend is the implementation of new technologies and materials, such as Building Information Modeling (BIM) and precast concrete, which are altering purchase criteria for construction projects. The market also faces challenges, including the rising cost of construction, particularly in heavy & civil engineering and specialty trade contracting sectors. These trends and challenges are shaping the future of the construction industry in EMEA, with a focus on sustainability, efficiency, and cost-effectiveness.
The construction industry in Europe, the Middle East, and Africa (EMEA) is experiencing a significant rebound, fueled by the real GDP recovery and increased economic activity. This resurgence is evident in various sectors, including residential and non-residential building construction. Construction sheets, such as flooring, walls & ceilings, roofing, and HVAC systems, are in high demand as the end-user industry continues to recover. The urban population growth and immigration trends are driving the demand for new residential buildings, leading to a surge in residential building permits. Infrastructure building is another sector witnessing a resurgence, with public investments in roads, electricity and power, water and sewage, ports, and airports contributing to the growth.
Concrete machinery and other construction equipment sales are experiencing a corresponding increase due to the heightened infrastructure development activities. The construction industry's recovery is also influenced by energy prices and material prices. While lower energy prices have reduced production costs, material prices have been on the rise due to increased demand and supply chain disruptions. The EU-backed investment in green initiatives, such as carbon neutrality and reducing greenhouse gas emissions, is also impacting the construction market. This trend is leading to an increased focus on sustainable building materials and energy-efficient HVAC systems. Commercial and industrial construction sectors are also experiencing growth, driven by the economic recovery and the need for new facilities to accommodate expanding businesses.
The demand for new offices, warehouses, and factories is expected to continue, leading to increased sales of construction equipment and materials. In conclusion, the market is experiencing a robust recovery, driven by the real GDP growth, increased economic activity, and public investments in infrastructure. The demand for construction sheets, concrete machinery, and other equipment is expected to remain strong, with flooring, walls & ceilings, roofing, HVAC, and infrastructure building sectors leading the growth. The focus on sustainability and carbon neutrality is also influencing the market trends, with a growing emphasis on green building materials and energy-efficient systems.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The private sector segment is estimated to witness significant growth during the forecast period.In the EMEA region, the construction industry has witnessed significant activity in the private sector, with a focus on residential and commercial projects. The need for maintaining and renovating existing buildings is on the rise due to the increasing population and the presence of aging structures. This trend is particularly noticeable in the residential sector, where the demand for energy-efficient and modernized homes is driving the need for retrofitting and renovation. Government regulations have also played a role in this trend, with stricter policies being implemented to ensure that building contractors and property owners adhere to energy-efficient building norms.
As a result, there is a growing emphasis on optimizing heating and cooling systems, as well as other energy-saving measures, within buildings. Construction sheets and equipment sales are expected to benefit from this increased demand for renovation and retrofitting activities. End-user industries, including the residential and commercial sectors, are expected to drive the growth in this market. According to recent economic data, the real GDP recovery in the EMEA region is expected to continue, which should further boost construction activity in the coming years. In conclusion, the construction industry in the EMEA region is experiencing a resurgence, driven by the need for renovation and modernization of existing buildings in the private sector.
Get a glance at the market share of various segments Request Free Sample
The Private sector segment accounted for USD 722.20 billion in 2018 and showed a gradual increase during the forecast period.
EMEA is estimated to contribute 100% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions Request Free Sample
The construction industry in Europe, Middle East, and Africa (EMEA), particularly in Germany, is witnessing steady expansion over the next several years. Key sectors contributing to this growth include roads, electricity and power, water and sewage, ports, airports, and commercial and industrial construction. The residential sector is experiencing a notable increase due to the influx of immigrants and government initiatives, such as incentives and new housing projects. The adoption of digital technologies is a prevailing trend in the market, with a focus on carbon neutrality and reducing greenhouse gas emissions. The construction of energy-efficient buildings and the integration of renewable energy sources are becoming increasingly popular.
The water and sewage sector is also undergoing significant transformation, with investments in smart water grids and wastewater treatment facilities. The ports and airports sector is expected to grow due to the increasing demand for logistics and transportation infrastructure. Overall, the market is poised for sustainable growth, driven by various factors including population growth, urbanization, and technological advancements.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increase in construction of green buildings is the key driver of the market. The construction industry in EMEA (Europe, Middle East, and Africa) encompasses various sectors, including institutional and residential construction, telecommunications, renewable energy capacity expansion, transportation infrastructure, and housing demand. Construction output value in these areas is substantial, with institutional construction and megaprojects being significant contributors. However, the energy consumption and greenhouse gas emissions from buildings are a concern. Buildings require a considerable amount of energy for their operations, which can be costly and deplete natural resources. Renewable energy sources, such as sunlight, geothermal heat, wind, tides, and water, are becoming increasingly scarce due to climate and water depletion at their sources.
Therefore, constructing energy-efficient buildings, such as green buildings, is crucial. These structures are designed to minimize energy consumption and reduce greenhouse gas emissions, making them an essential investment for sustainable development in the EMEA region. Keywords: Construction industry, Institutional construction, Residential construction, Megaprojects, Telecommunications, Renewable energy capacity, Housing demand, Construction output value, Transportation infrastructure, Energy efficiency, Green buildings.
Adoption of new technologies and materials is the upcoming trend in the market. The construction industry in EMEA is undergoing significant transformations, driven by advancements in technology and a shift towards more capital-intensive projects. Infrastructure investment in sectors such as sports facilities and smart cities is on the rise, leading to an increased focus on energy efficiency, traffic safety equipment, and green buildings. New materials like durable concrete, high-performance concrete, mineral admixtures, condensed silica fume, and high-volume fly ash concrete are gaining popularity due to their enhanced properties. As construction companies adopt more automated and manufacturing-based methods, there is a growing need for efficient supply chain management. However, this transition comes with increased product liability risks.
Dry construction techniques, such as modular and prefabricated building blocks, are being employed to boost productivity and reduce labor shortages. The construction sector's future lies in the integration of technology, sustainable materials, and innovative methods to deliver high-quality projects while minimizing risks.
Rise in cost of construction is a key challenge affecting the market growth. The construction market in Europe, Middle East, and Africa (EMEA) encompasses various stages of adoption for building construction and heavy civil engineering projects. At the innovator's stage, early adopters utilize specialty trade contractors and advanced technologies to execute construction-related activities. As projects progress, adoption rates expand to the early and late majorities. Purchase criteria for these projects include cost, quality, and time efficiency. Materials such as stainless steel, hardened steel, cast iron, cement, brick, crude oil, aggregates, and metal alloys are essential inputs. However, their combined availability can lead to price inflation, increasing overall construction costs. Financially stable European countries like the UK, France, and Germany can absorb these price hikes.
Conversely, African countries like Nigeria and Namibia face challenges in taking up expensive projects due to economic constraints. The construction process involves various inputs, including raw materials, land, labor, and utilities. By understanding the purchase criteria and market dynamics, stakeholders can make informed decisions and optimize their construction projects.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ACS Construction Group Ltd. - In Europe, the Middle East, and Africa (EMEA) region, our company provides construction solutions for various projects, including structures, warehouses, and industrial units, throughout the United Kingdom. Our expertise spans the entire construction process, from design and planning to execution and maintenance. We are committed to delivering high-quality, sustainable, and cost-effective construction services to meet the unique needs of our clients.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The construction industry in EMEA (Europe, Middle East, and Africa) is experiencing a resurgence, driven by the real GDP recovery and increased economic activity. The construction sector's revival is evident in the surge in construction equipment sales and the resuscitation of end-user industries such as residential building permits, urban population growth, and immigration. The demand for buildings, including flooring, walls & ceilings, roofing, HVAC, and concrete machinery, is on the rise. Infrastructure building is a significant contributor to the market, with public investments in roads, electricity and power, water and sewage, ports, airports, and telecommunications driving demand. The push towards carbon neutrality and reducing greenhouse gas emissions is leading to an increase in renewable energy capacity and the adoption of green buildings.
The construction output value is expected to grow, with commercial, industrial, institutional, and residential construction projects contributing significantly. Megaprojects, capital-intensive projects, and smart cities are at the innovator's stage, while energy efficiency, traffic safety equipment, and dry construction techniques are at the laggard's stage. The construction industry's business climate index is improving, with demand-side factors such as housing demand, investment volumes, asset management, and construction materials driving growth. The labor shortage and the need for trained workers are challenges that the industry must address to meet the urban population's needs.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
160 |
|
Base year |
2023 |
|
Historic period |
2018-2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 5.34% |
|
Market growth 2024-2028 |
USD 382.8 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
4.78 |
|
Regional analysis |
EMEA |
|
Performing market contribution |
EMEA at 100% |
|
Key countries |
Germany, France, UK, Spain, and Rest of EMEA |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
ACS Construction Group Ltd., AFRIDECA Group (Pty) Ltd., Airolink Building Contracting LLC, Al Futtaim Group Co., Al Habtoor Group LLC, Al Naboodah Construction Group, Arabtec Constructions, Balfour Beatty Plc, BIC Contracting LLC, BOUYGUES, Consolidated Contractors Co., Dutco Group, Eiffage, Khansaheb Civil Engineering LLC, Kier Group plc, Skanska AB, The Implenia group, UCCHolding, Vinci, and Wilson Bayly Holmes Ovcon Ltd. |
|
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
|
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Get the report (PDF) sent to your email within minutes.
Complimentary full Excel data with your report purchase.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
