Construction in France - Key Trends and Opportunities to 2025 (Q3 2021)

Construction in France - Key Trends and Opportunities to 2025 (Q3 2021)

Summary

The French construction industry was weakened in 2020 as a result of the Coronavirus (COVID-19) outbreak, suffering the steepest contraction when compared to other industries, with a fall of 13.2% in real terms. However, the construction industry recovered in the first quarter of 2021, growing by 6.9% year on year (YoY), preceded by Y-o-Y declines of 8% in Q4 and 13.8% in Q3 2020, according to data released by Eurostat. This improvement is due to the pick-up in economic activity. In June 2021, the European Commission approved a plan to invest EUR39.5 billion (US$48.1 billion) to transform the economy into greener and more digitalised in coming years.

GlobalData expects the industry to grow by 10.5% this year, registering an annual average growth of 2.2% between 2022-2025. The sharp growth in 2021 will mainly be driven by the very low starting base in the previous year, particularly in the second quarter. The industry’s output over the forecast period will be supported by government spending in infrastructure, particularly in preparation for the upcoming summer Olympic games in Paris in 2024. The government plans to spend EUR6.8 billion (US$8 billion) to upgrade the country’s infrastructure by 2024.

Long-term growth in the industry will be also driven by the government’s plan to invest EUR80 billion (US$94.4 billion) on transport infrastructure between 2018 and 2037. On a positive note, work is progressing on the EUR31.7 billion (US$37.4 billion) Grand Paris Express Metro Rail project, which is claimed to be the biggest urban mobility project currently underway in Europe.

This report provides detailed market analysis, information, and insights into the French construction industry, including -
- The French construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the French construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in France. It provides -
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in France, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

- Identify and evaluate market opportunities using GlobalData'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 GlobalData's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.