EMEA Construction Market by End-user, Type, and Geography - Forecast and Analysis 2023-2027

EMEA Construction Market Forecast 2023-2027

The Construction Market in EMEA is estimated to grow by USD 336.62 billion from 2022 to 2027, and the market's growth momentum will accelerate at a CAGR of 4.95%. The growth of the EMEA construction market size depends on several factors, including the increase in the construction of green buildings, the increase in infrastructure investments, and the adoption of dry construction techniques.  In the EMEA region, there's a notable transition towards sustainability within the market, spurred by a combination of political dynamics, both domestic and international consumer preferences, and the emergence of luxury skyscrapers. Within this sector, there's a noticeable uptick in the construction of eco-friendly buildings, driven by concerns about environmental consequences and the imperative for energy conservation. This trend finds support from progressions in construction methodologies and sustainable materials, such as green cement and recycled aggregates. Additionally, governmental policies and infrastructure endeavors play a significant role in hastening this shift, fostering employment opportunities and asset value appreciation.

What will be the Size of the Construction Market in EMEA During the Forecast Period?

To learn more about this report, Request Free Sample PDF 

Segmentation by End-user, Type

This research report extensively covers market segmentation by end-user (private sector and public sector), type (commercial and residential), and geography (Germany, France, UK, Spain, and Rest of EMEA). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

End-user Segment Analysis: 

The private sector segment includes residential as well as commercial projects. The aging buildings and the growing resale of properties in EMEA have increased the need for renovation and modernization of building structures in the private sector. Moreover, governments of various countries are implementing policies for building contractors and house owners to ensure energy efficiency.

Get a Customised Report as per your requirements for FREE!

The private sector segment was valued at USD 695.34 billion in 2017 and continued to grow until 2021. The private sector is anticipated to play a major role in the delivery of infrastructure projects in the future. Currently, more than USD 50 billion of social infrastructure work is being completed, while USD 70 billion is in various stages of planning. These factors will drive the growth of the segment in the Europe, Middle East, and Africa construction market during the forecast period.

Type Segment Analysis:

The commercial segment will account for a significant share of the market growth during the forecast period. In 2017 the commercial segment was valued at USD 642.25 billion. The growth of the segment is attributed to factors such as plans by various governments to develop the tourism sector. The demand for construction activities in the commercial market segment is expected to grow during the forecast period owing to high investments in the commercial real estate market and the industrial sector in EMEA. 

Technavio’s Exclusive Construction Market in EMEA Customer Landscape

The report includes the adoption lifecycle of the market, spanning from the innovator’s stage to the laggard’s stage. Furthermore, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies. 

Key Drivers, Trends, and Challenges

The market in the EMEA region is experiencing dynamic shifts driven by a multifaceted landscape. Political climate and government initiatives play pivotal roles in shaping the sector's trajectory, impacting capital appreciation and construction output. Domestic and international consumers seek sustainable building materials and eco-friendly alternatives, propelling advancements in construction technology. Luxury high-rises dominate skylines, while diversification benefits attract investors. Infrastructure projects stimulate GDP and job creation but necessitate construction permits. Short-term impacts focus on job creation, while long-term sustainability considers environmental impacts. Green cement and recycled aggregate emerge as eco-friendly alternatives, mitigating environmental footprints. The EMEA construction sector balances economic growth with environmental stewardship, navigating complexities to meet evolving demands and standards.

Our researchers analyzed the data with 2022 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.    

Key Market Drivers

The market in the EMEA region is experiencing a significant shift towards sustainability, driven by factors such as the political climate, domestic and international consumer demand, and the rise of luxury high-rises. The sector is witnessing a surge in green building construction, fueled by concerns over environmental impact and the need for energy efficiency. This trend is supported by advancements in construction technology and sustainable building materials, including eco-friendly alternatives like green cement and recycled aggregate. Government initiatives and infrastructure projects further accelerate this transition, promoting job creation and capital appreciation. The market is poised for long-term growth, offering diversification benefits and contributing to GDP while mitigating environmental harm. Construction permits and output are expected to rise, reflecting short-term gains and long-term sustainability goals.

Significant Market Trends

The growing demand for modular houses is a key trend influencing the growth of the market. Modular houses are manufactured at an offsite location and then shipped to the required location to be assembled and built. These houses offer buyers the flexibility to incorporate their own designs and specifications. The popularity of such houses has been increasing steadily over the last few years owing to rising housing rents and the high cost of building new houses.

The demand for modular houses in EMEA is expected to increase significantly during the forecast period, especially among nuclear families. The cost of these houses is low when compared to traditional houses, which has increased their demand. Thus, the growing demand for modular houses is expected to support the growth of the Europe, Middle East, and Africa construction market during the forecast period.

Major Market Challenges

Lack of awareness and volatility in transportation charges will challenge the growth of the market during the forecast period. Modular constructed parts need to be transported from manufacturing units to the construction site. The transportation of these parts requires special vehicles. Moreover, the carriage charges vary due to factors such as lack of planning of city roads, use of private cars, road capacity, and insufficient and inadequate public transport, which further increases the cost of modular construction.

Fuel prices, mode of transportation, and the distance to be covered also affect transportation costs. Any delay in transporting modularly constructed parts will lead to a delay in construction projects. In addition, many people are unaware of modular construction methods, as they are accustomed to traditional construction methods. Contractors are also often unaware of new construction methods, which lowers their lower adoption. Such factors may impede the growth of the market during the forecast period.

Who are the Major EMEA Construction Market Companies?

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.

AFRIDECA Group (Pty) Ltd. - The company offers construction services such as shopping malls, multi-story office complexes, and manufacturing facilities. The company offers services that include construction work for buildings and civil engineering, installation and assembly work, building completion, and finishing work.

Al Naboodah Construction Group - The company offers construction services such as roads, highways, bridges, tunnels, and dams. It also offers civil engineering, mechanical, electrical, and plumbing services, as well as constructs airports, tunnels, and buildings.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:

• ACS Construction Group Ltd.
• Airolink Building Contracting LLC
• Al Futtaim Group Co.
• Al Habtoor Group LLC
• Arabtec Constructions
• Balfour Beatty Plc
• BIC Contracting LLC
• BOUYGUES
• Consolidated Contractors Co.
• Dutco Group
• Eiffage
• Implenia AG
• Khansaheb Civil Engineering LLC
• Kier Group plc
• Skanska AB
• UCCHolding
• Vinci
• WBHO Ltd.

The report offers a deep understanding of the market and its players through a combined qualitative and quantitative analysis of vendors. Technavio classifies vendors into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Vendors are categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business, which, in turn, can help clients make the best decisions.  

Segment Overview

The research report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook 
  • Commercial 
  • Residential 

• End-user Outlook 
  • Private sector 
  • Public sector 

• Region Outlook 
  • Germany 
  • France 
  • UK 
  • Spain 
  • Rest of EMEA

Market Analyst Overview

The market stands at the forefront of innovation and sustainability, leveraging advanced technologies like 3D printing, drone surveying, and Building Information Modeling (BIM). This dynamic landscape sees a surge in eco-friendly alternatives and energy-efficient building designs, driven by stringent energy-efficiency regulations. As urbanization accelerates and populations grow, there's a demand for affordable housing programs and modern construction techniques. With a focus on sustainable building materials and recycled aggregates, the industry aims for environmental impact mitigation while meeting safety standards. Stakeholders, including architects and skilled labor, collaborate on renovation and refurbishment projects to preserve architectural heritage and enhance the built environment. Amidst these efforts, the market experiences capital appreciation and diversification benefits, shaping a prosperous construction industry with both short-term and long-term impacts on the region's economic development and standard of living.

The EMEA region is witnessing a transformative phase in the construction industry, driven by major driving factors such as rapid urbanization, population growth, and modernization projects. Advanced construction equipment and digital technologies are revolutionizing traditional practices, while Building Information Modelling (BIM) is enhancing efficiency and accuracy in commercial and residential buildings. Contemporary designs, coupled with sustainable construction practices like green cement and recycled aggregate usage, are shaping the landscape. Infrastructure development and restoration projects are revitalizing historical infrastructure and improving public spaces. Prefabricated construction components are streamlining processes, while the emphasis on enhancing energy efficiency is evident across industrial facilities and luxury high-rises. Amidst evolving political climates, short-term gains and long-term impacts are carefully assessed, ensuring continued growth and resilience in the dynamic Europe construction market.

Business and industrial operations, along with commercial construction endeavors, are integral components of contemporary urban landscapes. With a focus on modern aesthetics and functionality, commercial buildings reflect contemporary design trends. The level of disposable income among domestic consumers often influences investment decisions in commercial construction projects. As such, these constructions aim to meet the evolving needs of both businesses and consumers while contributing to the vibrancy of urban environments.

EMEA Construction Market Scope
Report Coverage	Details
Page number	150
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.95%
Market growth 2023-2027	USD 336.62 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	4.55
Key countries	Germany, France, UK, Spain, and Rest of EMEA
Competitive landscape	Leading Vendors, Market Positioning of Vendors, 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, Implenia AG, Khansaheb Civil Engineering LLC, Kier Group plc, Skanska AB, UCCHolding, Vinci, and WBHO Ltd.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles,market report, market report, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Request Free Sample PDF 

What are the Key Data Covered in this Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across EMEA
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

We can help! Our analysts can customize this report to meet your requirements. Get in touch