Germany Construction Industry Expected To Recover and Register Positive Growth Over the Forecast Period (2017-2021)
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After contracting between 2012 and 2015, the German construction industry recovered in 2016 as a result of an improvement in economic conditions and subsequent investments in construction projects, growing by 2.1% in real terms.
This upturn follows a sluggish recovery from the Eurozone crisis and weak business confidence, and continued growth is expected over the coming years, supported by a revival in investor confidence and subsequent public and private sector investments in infrastructure, residential, and energy and utilities construction projects.
The governments focus on the development of the country’s transport infrastructure through the implementation of the Federal Transport Infrastructure Plan (FTIP) 2030 is expected to drive the industry’s growth, with construction output in real terms forecast to record a compound annual growth rate (CAGR) of 2.37% from 2017 to 2021.
Market Research Hub Construction in Germany - Key Trends and Opportunities to 2021 report provides detailed market analysis, information and insights into the German construction industry, including:
The German construction industry's growth prospects by market, project type and construction activity
Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the German construction industry
Profiles of the leading operators in the German construction industry
This report provides a comprehensive analysis of the construction industry in Germany. It provides:
Historical (2012-2016) and forecast (2017-2021) valuations of the construction industry in Germany using construction output and value-add methods
Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
Detailed profiles of the leading construction companies in Germany
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Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies.
Assess market growth potential at a micro-level with over 600 time-series data forecasts.
Understand the latest industry and market trends.
Formulate and validate strategy using Timetric's critical and actionable insight.
Assess business risks, including cost, regulatory and competitive pressures.
Evaluate competitive risk and success factors.
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Efficiently developed transport infrastructure is vital for the economic growth of Germany. Accordingly, under the flagship program FTIP, the government is investing heavily in transport infrastructure projects. According to Timetric, the infrastructure construction market is expected to post a nominal forecast-period CAGR of 4.75%, as compared to 1.02% registered during the review period.
The ongoing urbanization in the country is expected to drive fresh demand for new housing units over the forecast period. According to Timetric, the residential construction market is expected to maintain its leading share in the industry over the forecast period, to account for 47.7% of the industrys total value in 2021.
The government is focusing on transforming the country into a digital economy. Accordingly, in March 2017, the government announced plans to invest EUR100.0 billion (US$111.8 billion) until 2025 to develop internet networks across the country by 2025.
In support of the achievement of the 2030 renewable energy target, the Federal Ministry for Economic Affairs and Energy is developing the Merkur offshore wind farm in the German North Sea. With an estimated investment of EUR1.6 billion (US$1.8 billion), the wind farm, when completed in 2019, is expected cater to the energy needs of over 500,000 households.
Germany is considered one of the more favorable investment destinations in Europe, owing to its strategic location and availability of skilled workforce. In a bid to accelerate the pace of foreign investments, the government has announced attractive tax subsidies. Owing to the countrys attractive investment scenario, in November 2016, Amazon, one of the worlds largest online retailers, announced plans to construct a logistics center in Winsen. The governments initiative is expected to provide a boost to the construction industry in the years to come.
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