The "France 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.
The construction industry in France is expected to grow by 3.4% to reach EUR 1,39,920 million in 2022.
Despite near-term challenges in certain construction sectors, medium to long term growth story in France remains intact. The construction industry in France 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 2.9% during 2022-2026. The construction output in the country is expected to reach EUR 1,57,124.4 million by 2026.
The French government is expected to increase its spending on domestic and international infrastructure projects. This increased spending over the next three to four years is projected to assist the market growth in France from the short to medium-term perspective. This, along with the foreign investment in the French infrastructure projects, will keep assisting the market growth in the country.
However, the effects of the Russia-Ukraine war have had an impact on the French construction industry. The war in Ukraine has amplified the effects on the cost of construction materials for new builds and renovation. Moreover, it has also caused delays in construction firms getting supplies. According to a report from Franceinfo, the house of building a house in France increased by nearly 20% in Q1 2022.
The rising material prices, along with the supply chain issues, are expected to have a short-term impact on the French construction industry. However, the publisher maintains a steady growth outlook for the industry from the medium to long-term perspective, on the back of growing infrastructure spending and innovation in the prefabricated construction industry in France.
France joins China to build global infrastructure construction projects
In February 2022, France became the first country to partner with China in building seven key infrastructure projects globally. The announcement of France's involvement with China to build global projects came after the two countries signed the Fourth Round China-France Third-Party Market Cooperation Pilot Project List. Under the agreement, the two countries are partnering on various infrastructure projects.
France and China will jointly build US$1.7 billion worth of seven key infrastructure projects across Africa, Southeast Asia, and Eastern Europe.
While France is investing in key global construction projects, the country is also attracting foreign investments toward domestic infrastructure projects. For instance,
In May 2022, Switzerland announced that it is considering investing in infrastructure projects in France, especially the French Rhine Line.
These infrastructure projects and investments in the sector are expected to assist the construction industry growth in France from the short to medium-term perspective.
Innovative construction startups are opening new growth possibilities in the residential construction industry
To confront the rising housing crisis, innovative construction startups using prefabricated modules have emerged over the last few years. These new and innovative startups are opening new growth possibilities in the residential construction sector in France.
Cutwork, a French design studio, introduced Polyroom, a prototype for prefabricated modular units. These units are fully adaptable and are stacked together like LEGOS bricks to create a new residential unit. The innovative prefabricated units can confront the rising housing crisis.
According to Cutwork, there will be 3 billion more people living in 2050, according to the projections of the United Nations. Consequently, over 2 billion new homes will be constructed by the end of the 21st century. To capitalize on this and to offer affordable housing units to French people, the startup will open the first Polyroom implementation in 2023. The firm is also planning to open 15 new sites by 2025, developing 2,500 bedrooms for French residents.
These innovative startups in the prefabricated construction sectors, along with the expected demand for residential units over the next few decades, will keep driving the growth of the construction industry globally. Commercial construction projects expected to drive industry growth.
To meet the growing demand for office and hotel facilities in the country, new construction projects have been undertaken by the country in Q1 2022.
The construction work for La Tour Triangle, the controversial skyscraper to grace Paris, was initiated in Q1 2022. The construction project, which will cater to the growing demand for office and hotel facilities in Paris, is expected to finish in 2026. When completed, the project will house a 4-star hotel, office space, a conference center, a cultural center, a daycare center, shops, a medical clinic, and restaurants.
Alongside these commercial construction projects, the country is also set to enhance transport infrastructure.
In February 2022, Le Parisien, the French newspaper, reported that the construction activities of the four-kilometer-long urban cable car is set to begin later in 2022 and is scheduled to open in 2025.
These construction projects are expected to keep driving the investment in the sector, thereby assisting the market growth from the short to medium-term perspective in France.
Scope
KPIs
- Market size by value
- Market size by volume of construction
- Number of units
France Top Cities Construction Data
France 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)
France 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)
France 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)
France 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
France Industrial Green Building Construction Coverage: 10-year market size forecast in value and volume (area and units)
France 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)
France 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
France 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)
France Green Infrastructure Construction: 10- year market size forecast in value terms
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