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The Spain Construction Market size is estimated to grow by USD 31.03 billion at a CAGR of 5.15% between 2023 and 2028. The growth of the market depends on several factors such as the rising smart city projects, the growing demand for modular houses, and the increasing focus on building earthquake-resilient buildings.
The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
Spain Construction Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Modular houses are manufactured in an offsite location and then shipped to the concerned location, wherein they are assembled and erected. The benefits of a modular house are that it offers buyers the flexibility to incorporate their designs and specifications. The demand for modular houses has been prevalent in Spain for a long time. However, its popularity has been increasing steadily for the last few years. This is because of the rising housing rents and the high cost of building new houses. Most of the modular houses in Spain today are significantly prefabricated using timber-frame as the raw material. The use of automation in the production processes has eased the assembling of modular houses.
Moreover, manufacturers can use robots to achieve quick delivery times and high accuracy. The demand for modular houses in Spain is expected to increase significantly, particularly among single-parent families. The low cost of these houses compared with that of traditional houses has increased their demand among students and singles in large cities wherein house rents and purchases are high. Thus, the growing demand for modular houses is driving the growth of the market during the forecast period.
The development of energy-efficient buildings is one of the major market trends driving the growth. With rising concerns over energy consumption by building and the resulting environmental impact, as well as an increase in energy prices, companies in Spain are increasing their focus on the development of energy-efficient buildings. These buildings are constructed using solar energy and energy-efficient building materials that cause low environmental damage.
Moreover, the Spanish government is modernizing existing buildings to make them more energy efficient despite facing criticism for investing money in this sector. Thus, the development trend of energy-efficient buildings is driving the growth of the market during the forecast period.
The high prices of energy and construction materials are one of the major challenges that hamper the growth of the market. The market is expected to grow at a very slow rate in 2023, as increasing interest rates hamper building projects across all subsectors. Higher prices for energy and materials weigh on the activities and margins of businesses operating in the industry. Builders are mainly affected due to their involvement in new residential projects, as they struggle to pass on the higher prices of inputs and labour to the end consumers.
Moreover, the market is also characterized by extended payment terms from large groups and companies. The increasing costs of financing, as well as increased raw materials and energy prices, continue to constrain the liquidity of businesses operating in the industry, making it more difficult to meet payment obligations on time. Thus, the high prices of energy and materials are hindering the growth of the market in Spain during the forecast period.
The market share growth by the commercial segment will be significant during the forecast period. The commercial segment is growing at a significant rate in the market. The demand for construction activities has increased investments in the commercial real estate market as well as in the industrial sector in Spain. Commercial office space and the industrial sector are expected to grow at a moderate rate.
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The commercial segment was the largest and was valued at USD 65.74 billion in 2018. Infrastructure construction includes transportation projects such as the upgrading of railway networks, the construction of airports, and the development of roads and highways. The segment comprises activities of public infrastructure such as railways, bridges, roads, and energy infrastructure. However, the spending on civil engineering projects is expected to increase with the rising damage to infrastructure, including transportation infrastructure. This is because of their progressing age and other external factors, such as harsh environmental conditions. Further, the government has planned to increase investments in renewable energy to improve its share of renewable energy in its power generation mix. Thus, the rising demand in the commercial segment is expected to spur the growth of the market during the forecast period.
Based on end-user, the market has been segmented into large contractor and small contractor. The large contractor ?segment will account for the largest share of this segment.? The large contractor segment of the Spain - construction market is growing at a significant rate. Actividades de Construccion y Servicios (ACS) S.A, Acciona SA, Fomento de Construcciones y Contratas (FCC) SA, Ferrovial SA, and Tecnicas Reunidas SA are the top large companies in Spain. The major driver is the need to construct buildings that are environmentally, socially, and corporate governance compliant. The demand for sustainable buildings is still strong, encouraging investors and real estate developers to construct new buildings despite the increased costs. Thus, the increase in demand for large contractors is expected to drive the growth of the market during the forecast period.
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.
Acciona SA - The company offers real estate development, supported by a range of complementary services, whose purpose is to design the sustainable cities of the future in complete harmony with environmental protection.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including Acciona SA, ACS Actividades de Construccion Y Servicios SA, ADIF, AECOM, Elecnor SA, FCC SA, Ferrovial SA, Fluor Corp., Isolux Corsan, Obrascon Huarte Lain SA, Rover Grupo, Sacyr SA, Site and Field Global Solutions SLU, Skanska AB, Tecnicas Reunidas SA, Tsk Electronica Y Electricidad SA, Vinci, and Grupo Carso SAB de CV.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The Market report forecasts market growth by revenue and provides market trends and analysis and growth opportunities from 2018 to 2028.
The industry is experiencing significant development, driven by vitality and mechanical segments. Factors like rising intrigued rates and tall vitality costs impact the industry's development. Foreign investments are contributing to the growth, particularly in electricity and renewable vitality barters, such as wind and sun-oriented vitality capacity.
The industry is also focusing on dispersed sun-based photovoltaic (PV) and biomass projects. In the private sector, housing construction and housing permits are key areas, while labor and material consumption play crucial roles in non-residential construction and building renovations. The residential sector is witnessing growth in building permits and the volume of transactions, with a focus on leisure and hospitality development projects in the travel and tourism and hotel industry, including new hotel projects.
Spain Construction Market Scope |
|
Report Coverage |
Details |
Page number |
145 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.15% |
Market Growth 2024-2028 |
USD 31.03 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.73 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acciona SA, ACS Actividades de Construccion Y Servicios SA, ADIF, AECOM, Elecnor SA, FCC SA, Ferrovial SA, Fluor Corp., Isolux Corsan, Obrascon Huarte Lain SA, Rover Grupo, Sacyr SA, Site and Field Global Solutions SLU, Skanska AB, Tecnicas Reunidas SA, Tsk Electronica Y Electricidad SA, Vinci, and Grupo Carso SAB de CV |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market growth analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Market Segmentation by Type
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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