The "Germany Construction Industry Databook Series Market Size Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional, Infrastructure Construction and City Level Construction by Value Q4 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Construction industry in Germany is expected to grow by 2.8% to reach EUR 244,038 million in 2022.
This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025 in Germany.
Despite near-term challenges in certain construction sectors, medium to long term growth story in Germany remains intact. The construction industry in Germany is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 2.5% during 2022-2026. The construction output in the country is expected to reach EUR 2,69,602.7 million by 2026.
In Q1 2022, the construction industry in Germany showed little signs of abating despite the growing concerns around rising material prices and shortage of qualified workers. In 2021, the Federal Statistics Office stated that the turnover figures for the German construction industry reached €100 billion. This represented a growth of 2.3% in orders compared to 2020, after seasonal and price adjustments.
While the sector showed strong resilience in Q1 2022, the rising energy prices and supply chain issues hit the sector in Q2 2022, thereby dimming the growth outlook for the sector in 2022. However, the publisher expects increased government spending on infrastructure projects along with subsidies for renovation to make buildings more energy-efficient to support the construction industry over the next three to four years.
Investment in the infrastructure projects in H2 2022 expected to drive industry growth in Germany
In H2 2022, several new infrastructure projects are expected to start in Germany, thereby driving investment in the sector.
Some of the major infrastructure projects that are expected to be initiated in Germany include:
- The NeuConnect interconnector project, a €2.8 billion infrastructure project a high voltage direct current link that will connect Germany with the United Kingdom has moved forward with construction activities expected to begin in H2 2022. Notably, a group of 20 lenders, led by the European Investment Bank, have agreed to provide US$406.5 million or €400 million for the project. The project is scheduled for completion by 2028.
- In July 2022, the first of the four LNG import terminals in the country, which never had such infrastructure, gained expedited construction approval. The US$69 million infrastructure project is set to operate this year or in early 2023, which construction activities scheduled to begin in September 2022. Notably, the LNG terminal will handle 7.5 billion cu meters of natural gas, which is about 8.5% of the current demand in Germany.
These infrastructure construction projects are expected to assist the industry growth in the country from the short to medium-term perspective.
Government subsidies for renovation to make buildings more energy efficient are expected to drive growth in the residential construction sector
As the country prepares to become carbon neutral by 2045, the government is stepping up subsidies for renovation to make buildings more energy efficient. In 2021, the government offered renovation subsidies of €8 billion and further increased the amount in 2022.
- In July 2022, the Economy Ministry announced that the German government plans to offer €13 billion to €14 billion per year in subsidies for renovations. Over the next few years, the government will allocate funding of €13 billion to €14 billion to renovate old buildings and install energy-efficient windows, heaters, and doors. Whereas €1 billion will be allocated for the new construction. In July 2022, the German government also presented a plan for the construction sector that will require all the newly installed heating systems to operate with 65% renewable energy from 2024.
These funding programs are projected to drive the growth of the residential construction sector in Germany over the next three to four years as the country continues its move to become a carbon-neutral nation by 2045.
Rising construction cost is having an impact on the approved rail infrastructure construction budget in Germany
The ongoing war between Ukraine and Russia, along with the rising inflation, has resulted in increased prices of construction materials. This is having an impact on the approved rail infrastructure construction budget.
- In July 2022, Pro-Rail Alliance, the non-profit transport alliance, announced that the German federal budget for railways announced is not enough to absorb the increase in construction costs for the rail infrastructure. Notably, €3.86 billion has been earmarked for the construction and expansion of roads, which is twice the amount allocated for the railway network. Consequently, Pro-Rail Alliance expects that the new government will increase the budget for the construction of rail infrastructure in the country.
With the increasing demand for railways in Germany, the higher budget for the construction of infrastructure can further assist the industry growth over the next three to four years.
Scope
KPIs covered include the following:
- Market size by value
- Market size by volume of construction
- Number of units
Germany Top Cities Construction Data
Germany Residential Building Construction Coverage: 10-year market size forecast in value and volume (area and units) terms by
- Housing type (multi family, single family)
- Key cities (Tier 1, Tier 2, Tier 3 segmentation)
- Price point/income level (luxury, mid-tier, affordable)
- Construction stage (new construction, re-development maintenance)
Germany Residential Green Building Construction Coverage: 10-year market size forecast in value and volume (area and units) terms by
- Green building by Housing type (multi family, single family)
- Green building by Key cities (Tier 1, Tier 2, Tier 3 segmentation)
- Green building by Price point/income level (luxury, mid-tier, affordable)
Germany Commercial Building Construction Coverage: 10-year market size forecast in value and volume (area and units) terms by
- Office (further broken down by Grade A, Grade B, and Grade C)
- Retail (further broken down by Grade A, Grade B, and Grade C)
- Hospitality (further broken down by Grade A, Grade B, and Grade C)
- Restaurant (further broken down by Grade A, Grade B, and Grade C)
- Entertainment
- Sports facility
- Construction stage (new construction, re-development maintenance)
Germany Commercial Green Building Construction Coverage: 10-year market size forecast in value and volume (area and units) terms by
- Office green building construction
- Retail green building construction
- Hospitality green building construction
- Restaurant green building construction
- Entertainment green building construction
- Sports facility green building construction
- Other commercial green building construction
Germany Industrial Green Building Construction Coverage: 10-year market size forecast in value and volume (area and units)
Germany Institutional Building Construction Coverage: 10-year market size forecast in value and volume (area and units) terms by
- Healthcare construction
- Educational construction
- Public sector
- Construction stage (new construction, re-development maintenance)
Germany Institutional Green Building Construction Coverage: 10-year market size forecast in value and volume (area and units) terms by
- Healthcare green building construction
- Educational green building construction
Germany Infrastructure Construction Sectors: 10- year market size forecast in value terms by
- Marine and inland water infrastructure
- Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
- Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
- Construction stage (new construction, re-development maintenance)
Germany Green Infrastructure Construction: 10- year market size forecast in value terms
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View source version on businesswire.com: https://www.businesswire.com/news/home/20221209005135/en/
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