Consumer Insights
Uncover trends and behaviors shaping consumer choices today
Procurement Insights
Optimize your sourcing strategy with key market data
Industry Stats
Stay ahead with the latest trends and market analysis.
Base Year
Historical Year
Forecast Year
The Europe construction market attained a value of approximately USD 2,752.75 billion in 2023. The market is projected to grow at a CAGR of 4.9% in the forecast period of 2024-2032, reaching a value of around USD 4,233.96 billion by 2032.
Read more about this report - REQUEST FREE SAMPLE COPY IN PDF
The process of construction encompasses a series of technicalities, including planning, design, financing, and project execution. Some types of construction include residential building and renovation, commercial and industrial construction, as well as infrastructure construction.
Rising concerns about climate change and the environmental impact of construction activities are transforming the Europe construction market landscape. According to the European Environment Agency, the building sector is one of the key contributors to energy-related emissions in Europe, representing a total of 35% in 2021, thereby aiding the growth of the Europe construction market.
Due to this, various European construction companies are switching to sustainable and bio-based building materials to improve the energy efficiency of construction operations. Sustainable building materials are commonly derived from renewable resources, and meticulously crafted to minimise environmental impact across their life cycle. Such materials encompass recycled content, responsibly sourced wood, and alternative substances that require fewer resources and energy during the production process.
Rising emphasis on sustainable construction, advancements in technologies for construction activities, and the rising government investments are shaping Europe construction market opportunities.
Date | Company | Project Details | Location | Value |
January 2024 | Bouygues Construction | Four major projects: hospital, residential complex, two office buildings | Switzerland | EUR 410 million |
January 2024 | Skanska AB | Refurbishment and enlargement of commercial office structure | Trondheim, Norway | USD 64 million |
September 2023 | VINCI Construction Grands Project | Construction of 180,000 cubic meter liquified natural gas tank | Netherlands | EUR 160 million |
September 2023 | VINCI Group | Transformation of living spaces and infrastructures for 2024 Paris Olympic and Paralympic Games | France | N/A |
Trends | Impact |
Rising demand for multifamily construction | Due to rapid urbanisation, rising house ownership prices, and changing consumer preferences, many multi-families housing construction projects are in progress. |
Increasing focus on renovation projects | Development of old infrastructure and monuments to improve energy efficiency have led to initiation of several renovation projects in Europe. |
Implementation of the latest technologies for planning and building | Building information modelling and augmented and virtual reality aids in improvement of construction projects and worker safety and can be termed as a key trend of the Europe construction market. |
Transition towards sustainable construction practices | Construction sector accounts for a major portion of the total greenhouse gas emissions and key players are now focusing on the development of energy-efficient buildings. |
Government investments in infrastructural development | European Union and governments investing in strategic and sustainable infrastructure development plans has resulted in investment of billions in infrastructure development. |
The increasing investments in infrastructure development by governments and the European Union are likely to be a major factor influencing the Europe construction market growth. Countries in the region regularly establish comprehensive policy frameworks to guide infrastructural development. These frameworks are often established individually or collectively through the European Union.
According to European construction industry statistics, in 2023, the European Commission announced its plan to invest EUR 6.2 billion in 107 selected transport infrastructure projects in EU grants from the Connecting Europe Facility, which can increase the Europe construction market value. More than 80% of the total funds allotted will be directed towards projects that are aimed at improving the sustainability and efficiency of key transportation networks, such as the railroads, inland waterways, and marine routes of the trans-European transport network (TEN-T).
Year | Europe Construction Industry Turnover | Biggest Construction Firm in Europe | UK’s GVA of Construction Industry | EU Home Ownership | EU Rented Housing | Construction Projects |
2020 | EUR 1,715 billion | -- | -- | -- | -- | -- |
2021 | -- | VINCI SA (France) | -- | -- | -- | -- |
2022 | -- | -- | -- | 69% | 31% | -- |
2023 | -- | -- | Over GBP 4 billion | -- | -- | -- |
2024 | -- | -- | -- | -- | -- | Paris 2024 Olympics |
For the Euro Area (19), the permits for dwellings and residential buildings specifically have been highly volatile between 2016 and 2022. As measured with the base set at 2015 = 100, 2016 recorded grossing 118.33, followed by 127.52 in 2017 and further to 134.59 in 2018, according to the Federal Reserve Bank of St. Louis. In 2019, there is a small decline in the value, which stands at 133.34. It was characterised by the impact of the fall of the 2020 ding, amounting to 118.52. Then, the annual growth regained with an index close at 136.07 by this year-end, to further peak at 146.37 in 2022.
This has been reflecting the fluctuations in the level of permits issued in the Euro Area in terms of the investment level and potential for construction activity in those years, restricting the seamless growth of Europe construction market. This time series from 2021 to 2022 conversely emphasises the return to the construction sector with a new impetus, most probably driven by recovery measures following the pandemic, post-pandemic recovery tools, and an increasing demand for houses. This trend recorded by the Federal Reserve Bank of St. Louis could be taken as a feature of a bright outlook for the European construction market—increased future construction activity and potential economic growth within this sector.
Civil engineering investments were more variable; after a sharp drop between 2018 and 2020, they stayed at almost 100. After 2020, they started to grow again and according to the projections, they might be close to 108 in 2024. Renovation activities have had dynamic growth since 2015 and finally reached the level of about 116 in 2021. The latest projections in this section show a much milder fall towards 2024 and keep the sector at around 115.
Read more about this report - REQUEST FREE SAMPLE COPY IN PDF
Europe Construction Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:
Based on end use, the market can be divided into:
Based on residentials buildings and single-units, the market can be divided into:
Based on country, the market can be segregated into:
Residential sector helps in expansion of the market due to the rising demand for multi-family housing
The residential sector is expected to develop substantially during the forecast period. There is an increasing demand for the development of multi-family housing construction due to rising urbanisation and the growing population of countries in Europe.
For instance, the Sackville Road Residential Community project encompasses the construction of six blocks of varying heights, ranging from 2 to 15 stories. These blocks are strategically designed to create a cohesive and integrated residential space that caters to diverse housing needs. The project, valued at USD 332 million, represents a significant investment in the construction of a residential community in Hove, the United Kingdom.
Meanwhile, as per the Europe construction industry report, the healthcare sector, driven by factors such as government healthcare spending, demographic changes (like an ageing population), and the need for modern medical facilities, witnessed a noticeable increase on expanding and modernising healthcare infrastructure, especially after the COVID-19 pandemic. Moreover, the hospitality sector, encompassing hotels, resorts, and other leisure facilities, typically follows trends in tourism and business travel.
The table below shows key data and statistics for three sectors in the Europe construction market.
Sector | Data/Statistic |
Residential | 1.97M dwellings completed in EU-27 in 2020 (-2.9% from 2019) |
Residential | 63.8% of EU-27 dwellings completed in 2020 by 5 countries |
Residential | New dwellings price +5.1% and existing dwellings price +7.3% in EU-27 in 2020 |
Hospitality | Nights spent in tourist accommodation in EU-27 -52.3% in 2020 |
Hospitality | Hotel occupancy rate 33.8% and average daily rate EUR 86.75 in Europe in 2020 |
Hospitality | 212,637 rooms in 1,744 hotel projects in Europe as of Jan 2021 (-7.2% in rooms and -6.3% in projects) |
Healthcare | Health expenditure EUR 1.13T or 9.9% of GDP in EU-27 in 2019 |
Healthcare | France, Germany, and Sweden had the highest health expenditure shares of GDP in EU-27 in 2019 (11.3%, 11.2%, and 10.9%) |
Healthcare | EU-27 average of 36.4 hospital beds per 10K inhabitants in 2019 (6.1 in Cyprus to 82.8 in Germany) |
The development of apartments, flats, and detached houses aids the market growth
Construction of apartments/flats and detached houses play a crucial role in propelling the demand for construction in the European market. The construction of these different types of housing responds to the varied needs and preferences of residents, contributes to urban and suburban development, and stimulates economic activity in the construction sector. Moreover, the increasing focus on the renovation and reconstruction of buildings, as well as the integration of various technologies in construction activities is paving the Europe construction market dynamics and trends.
According to Europe construction market estimates, in North Macedonia, 71.2% of the population lives in a detached house, whereas flats are more common in the Baltics and southern and central Europe, with Spain having the highest proportion of people living in flats at 65.7%. The United Kingdom, Ireland, the Netherlands, and Belgium are the only European countries where the most people live in an apartment or terraced house.
Read more about this report - REQUEST FREE SAMPLE COPY IN PDF
Germany holds a substantial market share as the country has passed many housing policies to facilitate development of residential sector
Sustainable construction methods have gained substantial traction in the European construction industry, reflecting a commitment to environmental responsibility, resource efficiency, and the long-term well-being of communities. Green building certification systems such as Leadership in Energy and Environmental Design (LEED), Building Research Establishment Environmental Assessment Method (BREEAM), and the German Sustainable Building Council (DGNB) provide benchmarks for sustainable construction.
As per the construction industry in Europe, in terms of residential infrastructure development, Germany construction market holds a significant portion of the European construction market. Germany has enacted housing policies designed to foster and facilitate residential development. These initiatives include providing subsidies for energy-efficient construction, offering incentives for urban development, and establishing regulatory frameworks that champion sustainable housing practices.
On the other hand, the United Kingdom and France have been increasingly focusing on civil infrastructure development. Some of the major ongoing projects include Hinkley Point C, the restoration of the Palace of Westminster, Grand Paris Express, and the Nantes New CHU Hospital Development, which can accelerate the Europe construction market growth.
Construction companies in Europe are adopting sustainable construction methods to demonstrate their commitment to high environmental standards and push the growth of the Europe construction industry.
Company | Year Founded | Headquarters | Focus |
VINCI SA | 1899 | Nanterre, France | Construction, energy, and concessions |
ACS Group | 1916 | Wisconsin, United States | Designing, manufacturing, and marketing of auxiliary products for the plastics processing sector |
Skanska AB | 1887 | Stockholm, Sweden | Construction and development for transportation, healthcare, energy, and industrial players |
Bouygues Construction | 1952 | Paris, France | Building, infrastructure, energy, and services |
Other key players boosting the construction demand growth in Europe include Hochtief AG, Eiffage S.A., STRABAG International GmbH, Balfour Beatty plc, Ferrovial S.A., and Acciona, S.A, among others.
REPORT FEATURES | DETAILS |
Base Year | 2023 |
Historical Period | 2018-2023 |
Forecast Period | 2024-2032 |
Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
Breakup by End Use |
|
Breakup by Residential Buildings and Single Units |
|
Breakup by Region |
|
Market Dynamics |
|
Competitive Landscape |
|
Companies Covered |
|
Animal Feed Micronutrients Market
Folding Electric Bicycle Market
North America Building Thermal Insulation Market
Europe Construction Market Size
Europe Construction Market Trends
Europe Construction Market Growth
Europe Construction Market Share
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
Get in touch with us for a customized solution tailored to your unique requirements and save upto 35%!
In 2023, the Europe construction market reached an approximate value of USD 2,752.75 billion.
The market is expected to grow at a CAGR of 4.9% between 2024 and 2032.
The market is estimated to witness a healthy growth in the forecast period of 2024-2032 to reach USD 4,233.96 billion by 2032.
Construction is any project that starts with a design for a structure at a specific location and ends with assembling all the components to build that structure.
Europe market is being aided by the rising demand for affordable housing, the surging construction of commercial buildings, and the growing infrastructural development activities.
The key trends propelling the market expansion include technological advancements, the development of green energy infrastructure, and the adoption of sustainable construction practices that can reduce emissions.
The major countries in the market in Europe are the United Kingdom, Germany, France, and Italy, among others.
The major end uses of construction in the market are residential, commercial, healthcare, and hospitality, among others.
The significant residential buildings and single units segments in the market include apartments/flats, detached houses, semi-detached, and terraced houses, among others.
Key players in the market are VINCI SA, ACS Group, Skanska AB, Bouygues Construction, Hochtief AG, Eiffage S.A., STRABAG International GmbH, Balfour Beatty plc, Ferrovial S.A., and Acciona, S.A, among others.
Purchase Full Report
Datasheet
Single User License
One User
Five User License
Five Users
Corporate License
Unlimited Users
How To Order
Our step-by-step guide will help you select, purchase, and access your reports swiftly, ensuring you get the information that drives your decisions, right when you need it.
Select License Type
Choose the right license for your needs and access rights.
Click on ‘Buy Now’
Add the report to your cart with one click and proceed to register.
Select Mode of Payment
Choose a payment option for a secure checkout. You will be redirected accordingly.
Gain insights to stay ahead and seize opportunities.
Get insights & trends for a competitive edge.
Track prices with detailed trend reports.
Analyse trade data for supply chain insights.
Leverage cost reports for smart savings
Enhance supply chain with partnerships.
Connect For More Information
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
We employ meticulous research methods, blending advanced analytics and expert insights to deliver accurate, actionable industry intelligence, staying ahead of competitors.
Our skilled analysts offer unparalleled competitive advantage with detailed insights on current and emerging markets, ensuring your strategic edge.
We offer an in-depth yet simplified presentation of industry insights and analysis to meet your specific requirements effectively.
Australia
63 Fiona Drive, Tamworth, NSW
+61 448 06 17 27
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-858-608-1494
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City,1226.
+63 287899028, +63 967 048 3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84865399124
United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Australia
63 Fiona Drive, Tamworth, NSW
+61 448 06 17 27
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-858-608-1494
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63 287899028, +63 967 048 3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84865399124
Share