France Construction Industry Report 2026: A €182.65 Billion Market By 2030, Driven By Energy Retrofit Wave, Tertiary Decree-Driven Commercial Upgrades, EV Battery Industrial Growth & Grand Paris Rail

(MENAFN- GlobeNewsWire - Nasdaq) France's construction market offers key opportunities in renovation, driven by government incentives and sustainability demands. Industrial growth is bolstered by strategic investments in EV supply chains, while infrastructure projects maintain stability through urban rail and power network expansions. Access to financing and policy stability will be crucial.

Dublin, Feb. 13, 2026 (GLOBE NEWSWIRE) -- The "France Construction Industry Databook - Market Size & Forecast by Value and Volume, 40+ Market Segments Across Residential, Commercial, Industrial, Institutional, Infrastructure Construction, City Level Construction by Value and Construction Cost Structure, Q1 2026 Update" report has been added to ResearchAndMarkets's offering.
The construction market in France is expected to grow by 2.9% on annual basis to reach EUR 161.58 billion in 2026.
The construction market in the country experienced robust growth during 2021-2025, achieving a CAGR of 5.9%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 2.4% during 2026-2030. By the end of 2030, the construction sector is projected to expand from its 2025 value of EUR 156.97 billion to approximately EUR 182.65 billion.
This report provides a detailed data-centric analysis of the construction sector in France, offering a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in the country, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.
It offers a comprehensive analysis of market dynamics in the construction sector through a range of KPIs such as value, volume, and number of units. The building construction covers detailed segmentation over 40+ segments in residential, commercial, industrial, and institutional sectors.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.
Key Insights

France Residential Construction
France's residential construction sector is in a downturn, driven by weak affordability, tighter credit conditions, and pressure on feasibility from still-high input costs. The market is increasingly bifurcating: new-build volumes remain constrained, while energy renovation remains structurally supported (but policy execution/processing stability are critical swing factors). The near-term recovery profile depends on financing relief (rates/credit access) and policy certainty, especially around renovation incentives and first-time buyer support.

Project Landscape

• New-build pipeline: Concentrated in projects that can secure pre-sales or public facilitation; otherwise, developers prioritize phasing and smaller lot releases to manage risk.
• Renovation pipeline is the "volume anchor": Deep retrofits and targeted upgrades (insulation/HVAC/heat pumps) remain an important backlog driver, but timing is sensitive to scheme windows and administrative throughput.
• Private vs. public involvement: New-build is predominantly private-led; renovation volumes are heavily influenced by public support, design, and controls (anti-fraud, eligibility filters).

Industry-Specific Developments

• Industrialization of renovation delivery: Bundling works, standardized packages, and "accompaniment" models are becoming central as the state tightens fraud controls and quality assurance.
• Sustainability pull remains strong: Energy-performance and carbon expectations increasingly shape specifications and materials choices, particularly for high-performing envelopes and low-carbon heating.
• Workforce pressure point: Shortages are most acute in renovation-specialist trades (HVAC/heat pumps, insulation crews, energy diagnostics), creating lead-time and cost risk.

France Commercial Construction
France's commercial construction story is increasingly about "upgrade vs. expand." Offices are pressured by hybrid work demand patterns and high vacancy rates in parts of Greater Paris, pushing investment toward refurbishment, repositioning, and energy compliance. Logistics and select mixed-use schemes are more resilient, while the compliance environment (notably the Tertiary Decree) is accelerating retrofit capex across large tertiary buildings.

Project Landscape

• Office projects: Strongest activity is in "flight-to-quality" refurbishments (modern MEP, thermal upgrades, ESG reporting readiness), not ground-up speculative towers.
• Tertiary retrofit wave: Owners of?1,000 m tertiary assets face a structured compliance pathway that effectively creates a multi-year retrofit pipeline (audits, BMS upgrades, envelope/plant).
• Private vs. public: Predominantly private-led, but policy-driven compliance and green-finance channels influence investment prioritization (especially for large portfolios).

Industry-Specific Developments

• Tech stack becoming standard in refurb: Advanced building management systems (GTB/BMS), metering, commissioning, and digital monitoring are now central to achieving measured savings and reporting.
• Sustainability is shifting from "certification" to "compliance economics": Energy and carbon performance are directly tied to leasing liquidity and asset value.
• Skills demand: Shortage of energy engineers, commissioning leads, and retrofit program managers, especially for multi-site portfolios and fast-tracked rollouts.

France Institutional Construction
Institutional construction in France is being reshaped by two policy imperatives: (1) modernizing healthcare capacity and digitization, and (2) making public buildings, especially schools, resilient to climate stress (notably heatwaves) while reducing energy bills. Budget constraints exist, but climate events and service expectations are raising political urgency and driving targeted investment.

Project Landscape

• Healthcare mega-projects continue (multi-year rebuilds/modernisations): New Nantes University Hospital (CHU) is a large-scale reconstruction, described as "halfway through," with completion targeted for end-2026 (project execution focus: logistics/care flows and campus integration).
• CHU Montpellier modernisation appears in EIB project pipelines as a multi-annual renovation/extension programme illustrating continued institutional capex supported by development finance.
• Schools: Adaptation and thermal renovation demand is accelerating: heatwaves in 2025 forced school closures and highlighted the scale of retrofit needs and funding gaps.
• Public vs. private: Overwhelmingly public-led, but financing structures increasingly include public banks and European financing lines in addition to conventional public budgets.

Industry-Specific Developments

• Healthcare construction is becoming more modular and systems-led: Modular design approaches and logistics-driven planning reduce disruption and improve operational efficiency in large hospital rebuilds.
• Climate adaptation becomes a design requirement for schools: Shading, ventilation, "cool surfaces," and outdoor microclimate improvements are increasingly treated as necessary, not optional, after repeated heat events.
• Workforce: Sustained demand for specialized MEP, medical-technical systems, and commissioning talent increases schedule risk for hospitals and complex school upgrades.

France Industrial Construction
France's industrial construction is being pulled by reindustrialisation and electrification themes, especially battery ecosystems in Hauts-de-France, while also facing constraints from grid connection, permitting complexity, and specialized labor availability. The sector's momentum is stronger than that of building markets because it is tied to strategic supply chains (EVs, energy, digital).

Project Landscape

• Battery gigafactories anchor the pipeline: ACC's Billy-Berclau/Douvrin site continues ramp and hiring plans, reinforcing France's "gigafactory" industrial footprint. Battery cluster analysis highlights staged capacities and investment envelopes in Hauts-de-France (pipeline depth beyond a single site).
• AI/data-center-linked industrial demand: RTE notes that grid planning must accommodate digital expansion, including data centers; Reuters also references large pledged investment tied to AI infrastructure.
• Private vs. public: Predominantly private-led industrial builds, but public financing (EIB/InvestEU-style support) and grid operator programs materially shape delivery timing and site economics.

Industry-Specific Developments

• Industrial delivery model is increasingly modular: Packaged MEP/process skids, standardized clean/controlled environments, and digital QA/commissioning reduce time-to-ramp for high-tech manufacturing.
• Sustainability expectations are tightening: Industrial projects face scrutiny on power sourcing, efficiency, and embodied carbon, making energy strategy and materials procurement part of early design.
• Workforce: Demand is strongest in high-voltage electrical, automation/controls, and commissioning roles that directly affect ramp-up schedules and operational readiness.

France Infrastructure Construction
France's infrastructure pipeline is increasingly dominated by urban rail expansion (Grand Paris Express and broader SNCF network programs) and power network reinforcement (transmission, interconnectors, and distribution modernization). This creates a multi-year civil and systems construction runway but also raises delivery risk due to scale, public acceptance, and supply chain constraints in electrical components.

Project Landscape

• Grand Paris Express (metro mega-program): Regional materials cite ~200 km of automatic metro and 68 new stations, with staged openings from 2026 and completion targeted 2031.
• Rolling stock and systems testing is advancing: Alstom announced delivery of the first Line 18 trainset and commencement of tests, with centralized command infrastructure completed in spring 2025.
• National rail modernization (SNCF Reseau): SNCF Reseau's "major development projects" portfolio includes Eole (RER E west extension), NExTEO/ATS+ signaling upgrades, CDG Express and other major works.
• Power grid and interconnection: RTE's investment roadmap (~€100bn to 2040) and the Bay of Biscay France-Spain interconnector (planned for 2028) reinforce a large electricity-infrastructure pipeline.

Industry-Specific Developments

• Digitalization of infrastructure delivery: Rail programs increasingly depend on systems integration (signaling, command centers), and grid upgrades require advanced monitoring, asset management, and resilience engineering.
• Sustainability and resilience are embedded: RTE explicitly links investment to decarbonization, electrification, climate resilience and new industrial/digital demand centers.
• Workforce and supply chain: Scaling grid investment from (2024) toward much higher annual levels implies sustained hiring needs and supply pressure (cables, transformers, HV components).

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