Europe Construction Industry Report 2025-2034 Featuring Hochtief, Eiffage, STRABAG International, Balfour Beatty, Ferrovial, And Acciona

(MENAFN- GlobeNewsWire - Nasdaq) The Europe construction market offers growth opportunities driven by increased urbanization, sustainable construction trends, and government infrastructure investments. Advances in technology and rising demand in residential and healthcare sectors further propel the market, despite challenges like supply chain issues and regulatory complexities.

Dublin, Sept. 02, 2025 (GLOBE NEWSWIRE) -- The "Europe Construction Market Size and Share - Outlook Report, Forecast Trends and Growth Analysis 2025-2034" report has been added to ResearchAndMarkets.com's offering.
The Europe construction market attained a value of approximately USD 2.75 trillion in 2024. The market is projected to grow at a CAGR of 4.90% in the forecast period of 2025-2034, reaching a value of around USD 4.44 trillion by 2034.

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.
Europe Construction Market Competitive Landscape
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.
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.
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 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.
Driving Forces and Innovations Shaping the European Construction Market

• Increased urbanisation and growing populations drive demand of Europe construction market, particularly for residential and commercial building projects.
• New technologies in construction include prefabrication and 3D printing, which are driving efficiency and reducing project timelines.
• Growth in green building practices and adoption of sustainable construction material to address environmental regulations.
• Governmental Infrastructure Initiatives and Public-Private Partnerships Fuel Investment in Transportation and Civic Projects.
• The advancement of digital construction tools-including Building Information Modelling-controls the flow of the project better with increased accuracy.
• Well-built presence of leading international construction companies in the country with advanced project management skills and expertise.

Challenges and Barriers to the Construction Market Today

• Supply chain failure and increased material prices delay budgets and are disturbing project schedules, impeding the construction demand in Europe.
• Labour intensive with high-priced labour without a competent workforce present in the construction industry.
• Across countries, regulatory complexities and stringent building codes make project approvals very cumbersome.
• Ageing infrastructure requires huge investment in maintenance and upgrading syphon funds from new projects.
• Economic uncertainties and fluctuating interest rates hit financing and investment in construction projects.
• Concerns over environmental impact and local opposition slow down project development.

Innovative Solutions and Technologies Transforming the Europe Construction Market

• Implement smart city technologies that integrate the Internet of Things and Artificial Intelligence, enabling efficient urban planning and infrastructure management.
• Develop state-of-the-art insulation and energy-efficient building systems that can lower operational costs and reduce their impact on the environment.
• Robotics and automation taken into the construction process to enhance accuracy and reduce labour dependence, boosting the Europe construction market revenue globally.
• Growth in modular construction techniques to quicker and more sustainable building solutions.
• Relationships and research collaborations with leading academic institutions and research centres to drive innovation and solve critical industry challenges.

Price Indices

• Fluctuation in steel, concrete, and lumber prices, as the global market dictates.
• The impact of energy costs on construction expenses, notably high in an energy-intensive manufacturing process.
• Land prices and real estate market conditions fluctuation that affects a project cost.
• Impact of new technologies and construction methods in reducing or increasing the building expenses.
• Changes in labour market conditions and wages influence the overall budget of the project.
• Government incentives, subsidies, and tax policies affect the affordability and profitability of construction projects, thereby being hurdles to the smooth flow of Europe construction industry revenue.

Demand Key Indicators

• Economic growth with an increased GDP driving higher investments in infrastructure and commercial projects.
• Growth in tourism and hospitality sectors resulting in increasing demand for hotels, resorts, and associated facilities.
• Climate change initiatives driving resilient and sustainable buildings constructions.
• Urban renewal and regeneration projects aimed at the rejuvenation of ageing city areas increase construction activity.
• Higher investments in transportation networks - roads, railways, and airports - spur construction demand in Europe.

Companies Featured

• VINCI SA
• ACS Group
• Skanska AB
• Bouygues Construction
• Hochtief AG
• Eiffage S.A.
• STRABAG International GmbH
• Balfour Beatty plc
• Ferrovial S.A.
• Acciona, S.A

Europe Construction Industry Segmentation
Based on end use, the market can be divided into:

• Residential
• Private Housing
• Other Buildings and Single Units
• Healthcare
• Hospitality
• Others

Based on residentials buildings and single-units, the market can be divided into:

• Apartments/Flats
• Detached Houses
• Semi-Detached
• Terraced Houses
• Others

Based on country, the market can be segregated into:

• Germany
• United Kingdom
• France
• Italy
• Others

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