Construction in Spain - Key Trends and Opportunities to 2023

Construction in Spain - Key Trends and Opportunities to 2023

Summary

Spain’s construction industry grew by 7.6% in real terms in 2018, this followed average annual growth of 3.1% during the preceding four years. Growth during the review period (2014-2018) was driven by positive developments in regional economic conditions and government investment in commercial and industrial infrastructure, as well as recovery in the residential construction sector.

Over the forecast period (2019-2023), the industry’s output will be supported by improvements in consumer and investor confidence. The government’s efforts to enhance regional connectivity through the development of the country’s transport infrastructure, coupled with efforts to boost the residential construction market, will support the industry’s growth over the forecast period. An increase in the number of new building permits issued is expected to support new construction activity over the forecast period. In addition, the government’s aim to expand renewable energy resources is expected to attract investments in energy infrastructure projects, which will in turn fuel growth in the industry.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 2.62% over the forecast period.

Key Highlights

- GlobalData expects the residential construction market to account for 48.4% of the industry’s total value in 2023, supported by public and private sector investments in the construction of new residential buildings to meet the demand for housing. In March 2018, the government published the new State Housing Plan for the period of 2018-2021. Through this, the government aims to strengthen rental housing, urban rehabilitation and renovation in a bid to provide access to housing for the most vulnerable groups.
- Forecast-period growth in the energy and utilities construction market will be driven by the government’s efforts to develop renewable energy infrastructure to reduce the country’s reliance on fossil fuels to generate power. In the first quarter of 2019, the government approved the draft bill of Integrated National Energy and Climate Plan 2021-2030, a ten-year strategy of energy and climate measures, under which the government aims to supply 74% of the country’s total electricity through renewable sources by 2030, and 100% by 2050.
- GlobalData expects the infrastructure construction market to record a forecast-period CAGR of 4.29% in nominal terms in 2023, supported by the government’s plans to develop and modernize the country’s transport infrastructure. In 2019, the country will invest EUR2.3 billion (US$2.7 billion) in the construction and maintenance of roads, EUR829 million (US$964.1 million) in ports and EUR689 million (US$801.3 million) in airport infrastructure.
- Institutional construction market’s growth over the forecast-period will be supported by the public and private sector investment in research and development. In August 2018, an agreement was signed between Administrador de Infraestructuras Ferroviarias (ADIF), the state-owned rail infrastructure company and Virgin Hyperloop One, the US transportation technology company, to construct the 19,000m2 research center in the southern province of Malaga. The total investment in the project is anticipated to be EUR424.2 million (US$500 million), and is scheduled to be completed by 2020.
- The total construction project pipeline in Spain - as tracked by GlobalData, and including all mega projects with a value above US$25 million - stands at EUR67.7 billion (US$79.8 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 54.8% of the pipeline value being in projects in the pre-execution and execution stages as of June 2019.

GlobalData’s Construction in Spain - Key Trends and Opportunities to 2023 report provides detailed market analysis, information and insights into the Spanish construction industry, including -
- The Spanish 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 Spanish 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 Spain. It provides -
- Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Spanish, 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.