Europe Construction Market

Europe Construction Market Share, Size, Analysis, Trends: By End Use: Residential, Healthcare, Hospitality, Others; By Residential Buildings and Single Units: Apartments/Flats, Detached Houses, Semi-Detached, Terraced Houses, Others; Regional Analysis; Competitive Landscape; Key Trends and Developments in the Market; 2024-2032

Europe Construction Market Outlook

The Europe construction market size 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.


Key Takeaways

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


Construction refers to the process of assembling buildings, infrastructures, and other structures, which can be public or private. 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.


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.


europe construction market

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Key Trends and Developments

Rising emphasis on sustainable construction, advancements in technologies for construction activities, and the rising government investments are propelling Europe construction market development


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.
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.


Europe Construction Market Trends

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 direct 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).


Challenges in the European Construction Market


Challenge Impact
Lack of skilled labour Reduced productivity, increased costs, and delayed projects
Environmental regulations Higher compliance costs, need for innovation and adaptation, and potential penalties for non-compliance
Brexit Trade barriers, labor mobility issues, currency fluctuations, and legal uncertainties
Digital transformation Opportunities for efficiency, quality, and customer satisfaction, but also challenges of investment, training, and cyber security


europe construction market by segments

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Market Segmentation

Europe Construction Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:


Market Breakup Categories
End Use Residential, Healthcare, Hospitality, Others
Residential Buildings and Single Units Apartments/Flats, Detached Houses, Semi-Detached, Terraced Houses, Others
Country Germany, United Kingdom, France, Italy, Others


Based on residential end use, the market is sub-segmented into private housing and other buildings and single units.


Residential sector helps in expansion of the market due to the rising demand for multi-family housing

According to the Europe construction market analysis, 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 market 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 has led to the segment’s growth.


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.


europe construction market by region

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Competitive Landscape

Construction companies in Europe are adopting sustainable construction methods to demonstrate their commitment to high environmental standards


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 in the Europe construction market include Hochtief AG, Eiffage S.A., STRABAG International GmbH, Balfour Beatty plc, Ferrovial S.A., and Acciona, S.A, among others.


Europe Construction Market Analysis by Region

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.


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, 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 Westminister, Grand Paris Express, and the Nantes New CHU Hospital Development, which can accelerate the Europe construction market growth.


Key Highlights of the Report

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:

  • End Use
  • Residential Buildings and Single Units
  • Region
Breakup by End Use
  • Residential
  • Healthcare
  • Hospitality
  • Others
Breakup by Residential Buildings and Single Units
  • Apartments/Flats
  • Detached Houses
  • Semi-Detached
  • Terraced Houses
  • Others
Breakup by Region
  • Germany
  • United Kingdom
  • France
  • Italy
  • Others
Market Dynamics
  • SWOT
  • Porter's Five Forces
  • Key Indicators of Demand
  • Key Indicators of Price
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • ACS Group
  • Skanska AB
  • Bouygues Construction
  • Hochtief AG
  • Eiffage S.A.
  • STRABAG International GmbH
  • Balfour Beatty plc
  • Ferrovial S.A.
  • Acciona, S.A
  • Others


*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.

1    Preface
2    Report Coverage – Key Segmentation and Scope
3    Report Description

    3.1    Market Definition and Outlook
    3.2    Properties and Applications
    3.3    Market Analysis
    3.4    Key Players
4    Key Assumptions
5    Executive Summary

    5.1    Overview
    5.2    Key Drivers    
    5.3    Key Developments
    5.4    Competitive Structure
    5.5    Key Industrial Trends
6    Market Snapshot
7    Opportunities and Challenges in the Market
8    Global Construction Market Overview

    8.1    Key Industry Highlights
    8.2    Global Construction Historical Market (2018-2023) 
    8.3    Global Construction Market Forecast (2024-2032)
    8.4    Global Construction Market Share by Region
        8.4.1    North America
        8.4.2    Europe
        8.4.3    Asia Pacific
        8.4.4    Latin America
        8.4.5    Middle East and Africa
9    Europe Construction Market Overview
    9.1    Key Industry Highlights
    9.2    Europe Construction Historical Market (2018-2023) 
    9.3    Europe Construction Market Forecast (2024-2032)
10    Europe Construction Market by End Use
    10.1    Residential
        10.1.1    Historical Trend (2018-2023)
        10.1.2    Forecast Trend (2024-2032)
        10.1.3    Breakup by Residential Type
      Private Housing
      Other Buildings and Single Units
    10.2    Healthcare
        10.2.1    Historical Trend (2018-2023)
        10.2.2    Forecast Trend (2024-2032)
    10.3    Hospitality
        10.3.1    Historical Trend (2018-2023)
        10.3.2    Forecast Trend (2024-2032)
    10.4    Others
11    Europe Construction Market by Residential Buildings and Single Units
    11.1    Apartments/Flats
        11.1.1    Historical Trend (2018-2023)
        11.1.2    Forecast Trend (2024-2032)
    11.2    Detached Houses
        11.2.1    Historical Trend (2018-2023)
        11.2.2    Forecast Trend (2024-2032)
    11.3    Semi-Detached
        11.3.1    Historical Trend (2018-2023)
        11.3.2    Forecast Trend (2024-2032)
    11.4    Terraced Houses
        11.4.1    Historical Trend (2018-2023)
        11.4.2    Forecast Trend (2024-2032)
    11.5    Others
12    Europe Construction Market by Country
    12.1    Germany
        12.1.1    Historical Trend (2018-2023)
        12.1.2    Forecast Trend (2024-2032)
    12.2    United Kingdom
        12.2.1    Historical Trend (2018-2023)
        12.2.2    Forecast Trend (2024-2032)
    12.3    France
        12.3.1    Historical Trend (2018-2023)
        12.3.2    Forecast Trend (2024-2032)
    12.4    Italy
        12.4.1    Historical Trend (2018-2023)
        12.4.2    Forecast Trend (2024-2032)
    12.5    Others
13    Market Dynamics
    13.1    SWOT Analysis
        13.1.1    Strengths
        13.1.2    Weaknesses
        13.1.3    Opportunities
        13.1.4    Threats
    13.2    Porter’s Five Forces Analysis
        13.2.1    Supplier’s Power
        13.2.2    Buyer’s Power
        13.2.3    Threat of New Entrants
        13.2.4    Degree of Rivalry
        13.2.5    Threat of Substitutes
    13.3    Key Indicators of Demand
    13.4    Key Indicators of Price
14    Competitive Landscape
    14.1    Market Structure
    14.2    Company Profiles
        14.2.1    VINCI SA
      Company Overview
      Product Portfolio
      Demographic Reach and Achievements
        14.2.2    ACS Group
      Company Overview
      Product Portfolio
      Demographic Reach and Achievements
        14.2.3    Skanska AB
      Company Overview
      Product Portfolio
      Demographic Reach and Achievements
        14.2.4    Bouygues Construction
      Company Overview
      Product Portfolio
      Demographic Reach and Achievements
        14.2.5    Hochtief AG
      Company Overview
      Product Portfolio
      Demographic Reach and Achievements
        14.2.6    Eiffage S.A.
      Company Overview
      Product Portfolio
      Demographic Reach and Achievements
        14.2.7    STRABAG International GmbH
      Company Overview
      Product Portfolio
      Demographic Reach and Achievements
        14.2.8    Balfour Beatty plc
      Company Overview
      Product Portfolio
      Demographic Reach and Achievements
        14.2.9    Ferrovial S.A.
      Company Overview
      Product Portfolio
      Demographic Reach and Achievements
        14.2.10    Acciona, S.A
      Company Overview
      Product Portfolio
      Demographic Reach and Achievements
        14.2.11    Others
15    Key Trends and Developments in the Market


List of Key Figures and Tables

1.    Global Construction Market: Key Industry Highlights, 2018 and 2032
2.    Europe Construction Market: Key Industry Highlights, 2018 and 2032
3.    Europe Construction Historical Market: Breakup by End Use (USD Million), 2018-2023
4.    Europe Construction Market Forecast: Breakup by End Use (USD Million), 2024-2032
5.    Europe Construction Historical Market: Breakup by Residential Buildings and Single Units (USD Million), 2018-2023
6.    Europe Construction Market Forecast: Breakup by Residential Buildings and Single Units (USD Million), 2024-2032
7.    Europe Construction Historical Market: Breakup by Country (USD Million), 2018-2023
8.    Europe Construction Market Forecast: Breakup by Country (USD Million), 2024-2032
9.    Europe Construction Market Structure

Key Questions Answered in the Report

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.

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