Germany's construction industry expanded by 3% in real terms in 2018, with the industry's output value - measured at constant 2017 US dollar exchange rates - increasing from US$352.5 billion in 2017 to US$363.1 billion in 2018; this was preceded by an average annual growth of 1.9% during the preceding four years. Growth during the review period (2014-2018) was driven by positive developments in regional economic conditions, as well as public and private sector investment in energy, residential and transport infrastructure.
The industry's output value is expected to continue to expand in real terms over the forecast period (2019-2023), driven by the government's plans to upgrade the country's transport infrastructure, coupled with efforts to boost the residential construction market. In March 2019, the government announced plans to invest EUR150 billion (US$170 billion) on infrastructure, housing, digital technology and education over the next four years. The government also plans to invest EUR28.1 billion (US$32 billion) to develop transport infrastructure in Berlin by 2035. In addition, the government's aim to expand renewable energy resources is expected to attract investments in energy infrastructure projects, which will in turn fuel growth in the industry.
The industry's output value in real terms is expected to post a compound annual growth rate (CAGR) of 2.59% over the forecast period. The industry is consequently expected to rise from a value of US$363.1 billion in 2018 to US$412.7 billion in 2023, measured at constant 2017 US dollar exchange rates.
Residential construction was the largest market in the German construction industry during the review period, accounting for 48.3% of its total value in 2018. The market is expected to follow a similar trend over the forecast period, with residential construction accounting for 48.3% of the industry's total value in 2023. Commercial construction accounted for 17.8% of the industry's total output in 2018, followed by infrastructure construction with 14.6%, institutional construction with 7.2%, industrial construction with 6.5% and energy and utilities construction with 5.6%.
The total construction project pipeline in Germany including all mega projects with a value above US$25 million - stands at EUR261.5 billion (US$308.3 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 70.1% of the pipeline value being in projects in the pre-execution and execution stages as of August 2019.
This report provides a comprehensive analysis of the construction industry in Germany. It provides -
- Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in German, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
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Table of Contents
- 1 Executive Summary
- 2 Construction Outlook: At-a-glance
- 3 Latest News and Indicators
- 4 Key Drivers and Risks
- 4.1. Economic Performance
- 4.2. Political Environment
- 4.3. Demographics
- 4.4. Risk Profile
- 5 Construction Outlook
- 5.1. All Construction
- 5.1.1. Outlook
- 5.1.2. Project analytics
- 5.2. Commercial Construction
- 5.2.1. Outlook
- 5.2.2. Project analytics
- 5.3. Industrial Construction
- 5.3.1. Outlook
- 5.3.2. Project analytics
- 5.4. Infrastructure Construction
- 5.4.1. Outlook
- 5.4.2. Project analytics
- 5.5. Energy and Utilities Construction
- 5.5.1. Outlook
- 5.5.2. Project analytics
- 5.6. Institutional Construction
- 5.6.1. Outlook
- 5.6.2. Project analytics
- 5.7. Residential Construction
- 5.7.1. Outlook
- 5.7.2. Project analytics
- 6 Key Industry Participants
- 6.1. Contractors
- 6.2. Consultants
- 7 Appendix
- 7.1. What is this Report About?
- 7.2. Definitions
- 8 About GlobalData
- 8.1. GlobalData at a Glance
- 8.2. GlobalData Construction
- 8.3. Disclaimer
- 8.4. Contact Us