Construction in Ireland - Key Trends and Opportunities to 2022

Construction in Ireland - Key Trends and Opportunities to 2022

Summary

The Irish construction industry registered growth of 15.6% and 15.2% in real terms in 2016 and 2017 respectively, following average annual growth of 7.6% during 2013-2015.

Over the forecast period (2018-2022), the industry is expected to expand, albeit at a relatively slower pace. The government's focus on infrastructure and housing development in the country is expected to drive the growth of the industry over the forecast period. The government's focus on the education and health sectors will also support the growth of the industry. Under the National Development Plan, the government plans to invest EUR116.0 billion (US$130.9 billion) during 2018-2027 for sustainable economic growth and the overall development of the country’s infrastructure. Under this program, the government will invest in housing, roads, public transport, education and healthcare infrastructure in the country. In the budget 2018, the government increased its budget allocation for capital expenditure by 17.5%, going from EUR4.5 billion (US$5.1 billion) in 2017 to EUR5.3 billion (US$6.0 billion) in 2018. Furthermore, in the 2018 budget, the government allocated an additional investment of EUR310.0 million (US$349.8 million) and EUR471.0 million (US$531.5 million) for the period 2018-2021 on education and healthcare capital expenditure respectively.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 6.36% over the forecast period, compared to 10.99% during the review period (2013-2017).

GlobalData’s "Construction in Ireland - Key Trends and Opportunities to 2022", report provides detailed market analysis, information and insights into the Irish construction industry, including -
- The Irish 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 Irish construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Key Highlights

- GlobalData expects the residential construction market to register a forecast-period CAGR of 11.15% in nominal terms, driven by the government’s focus on addressing homelessness through building more homes and social housing schemes. The government aims to deliver 50,000 social housing homes by 2021. Accordingly, in the 2018 budget, the government increased its allotment for Social Housing Current Expenditure Program by 36.9%, going from EUR84.0 million (US$94.8 million) in 2017 to EUR115.0 million (US$139.5 million) in 2018, which will be used to deliver an additional 4,000 social houses by 2019.
- Forecast-period growth in the energy and utilities construction market will be driven by the government’s focus on the development of the country’s broadband network. The government aims to provide 540,000 families and businesses in rural areas with high-speed broadband connectivity under the National Broadband Plan (NBP). In September 2018, the consortium led by Granahan McCourt - including Nokia, Denis O'Brien's Actavo, the Kelly Group and KN Group - submitted a final tender for the NBP. Eir Group plc, the telecom company, plans to invest EUR1.0 billion (US$1.2 billion) on a high-speed fiber-to-the-home (FTTH) broadband network by 2022-2023.
- GlobalData expects the infrastructure construction market to register a forecast-period CAGR of 4.26% in nominal terms, driven by the government’s focus to develop the road infrastructure in the country. Investment in airports and port development is also expected to support the market output over the forecast period. The government plans to invest EUR7.3 billion (US$8.2 billion) to enhance the regional road connectivity from other regions to Dublin, especially the north-west region, by 2027.
- Commercial construction market’s growth in the forecast-period will be supported by the government’s focus on developing and promoting the tourism sector. The government aims to increase tourist arrivals from 8.9 million in 2017 to 13.7 million by 2025, and expenditure of foreign tourists from EUR4.9 billion (US$5.5 billion) to EUR8.1 billion (US$9.8 billion) over the same period. Accordingly, EUR2.5 billion (US$3.0 billion) is expected to be invested by 2021 to develop tourism-related infrastructure in the country.
- The total construction project pipeline in Ireland - as tracked by GlobalData, and including all mega projects with a value above US$25 million - stands at EUR68.6 billion (US$77.4 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards early-stage projects, with 57.9% of the pipeline value being in projects in the pre-planning and planning stages as of January 2019.

Scope

This report provides a comprehensive analysis of the construction industry in Ireland. It provides -
- Historical (2013-2017) and forecast (2018-2022) valuations of the construction industry in Ireland, 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.