Italy Construction Market Size (2024 - 2029)

The Italian construction market is experiencing a recovery and growth trajectory, supported by significant government initiatives and EU recovery funds. Despite a contraction due to the COVID-19 pandemic, the sector is regaining its pre-pandemic momentum. The government's substantial spending package, which includes a major portion from EU funds, aims to boost investments in various projects, particularly in the residential, infrastructure, and civil engineering sectors. Additionally, numerous housing aid initiatives and funds for urban regeneration are contributing to the market's expansion, alongside targeted investments in social infrastructure and territorial cohesion.

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Market Size of Italy Construction Industry

italy construction market
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 4.50 %
Market Concentration Low

Major Players

italy construction industry

*Disclaimer: Major Players sorted in no particular order

Italy Construction Market Analysis

The Italian construction market is expected to register a CAGR of more than 4.5% during the forecast period.

The COVID-19 pandemic adversely affected the construction industry in Italy, recording a 6.3% contraction in output in 2020. However, the sector is recovering from the crisis and reaching the pre-pandemic levels. Meanwhile, the growth was supported by EU recovery funds. The EU recovery funds will allow the government to accelerate investments in some projects.

Furthermore, to recover from the pandemic, the Italian government unveiled a USD 299 billion spending package in 2021. This reform package included USD 230 billion from the EU recovery funds, and USD 37 billion will be raised from the Italian budget. Meanwhile, an additional USD 32 billion will be spent on upgrading the country's transport infrastructure.

In addition, the residential sector, infrastructure sector, and civil engineering are driving the growth of the sector. Meanwhile, the Italian government offers various housing aid initiatives and funds for urban regeneration, including home purchase and/or renovation funds, ECO Bonus, Urban Renaissance Plan, Superbonus 110%, funds for social housing in earthquake areas, etc. Furthermore, the Italian government has allocated EUR 10.8 billion of its EUR 191.5 RRP to promote social infrastructure and communities and EUR 4.2 billion to develop territorial cohesion.

Italy Construction Industry Segmentation

Construction is the installation, maintenance, and repair of buildings and other stationary structures, as well as the construction of roadways and service facilities that form fundamental components of structures and are required for their operation. Construction encompasses the processes involved in constructing buildings, infrastructure, and industrial facilities, as well as related operations, from start to finish. Furthermore, the report on the Italian construction market includes market dynamics, technological trends, insights, and government initiatives related to the market. Also, the report covers segmentation by sector (residential, commercial, industrial, infrastructure, and energy and utilities). The report offers the market size and forecasts in value (USD billion) for all the above segments.

Sector
Residential
Commercial
Industrial
Infrastructure
Energy and Utilities
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Italy Construction Market Size Summary

The Italian construction market is on a recovery path following the significant impact of the COVID-19 pandemic, which led to a contraction in output. The sector is regaining momentum, supported by European Union recovery funds and a substantial government spending package aimed at revitalizing the economy. This financial boost is facilitating investments in various projects, particularly in the residential, infrastructure, and civil engineering sectors. The Italian government's initiatives, such as housing aid and urban regeneration funds, are further propelling the market's growth. The residential sector, in particular, is witnessing a resurgence as the number of dwellings and building permits increases, driven by factors like smart working trends and favorable property tax conditions.

The infrastructure sector is experiencing robust growth, bolstered by the National Plan for Recovery and Resilience, which allocates significant funds for sustainable mobility and infrastructural investments. Major projects, including high-speed rail links and port expansions, are set to transform the landscape over the next few years. The market is highly competitive and fragmented, with key players like Saipem and Webuild actively expanding through strategic partnerships and acquisitions. These developments, alongside investments in energy-efficient housing, underscore the dynamic nature of the Italian construction market, which is poised for continued growth during the forecast period.

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Italy Construction Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Economic and Construction Market Scenario

    2. 1.2 Technological Innovations in the Construction Sector

    3. 1.3 Insights into Costs Related to Construction and Building Materials

    4. 1.4 Impact of Government Regulations and Initiatives on the Industry

    5. 1.5 Value Chain/Supply Chain Analysis

    6. 1.6 Impact of the COVID-19 Pandemic on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Sector

      1. 2.1.1 Residential

      2. 2.1.2 Commercial

      3. 2.1.3 Industrial

      4. 2.1.4 Infrastructure

      5. 2.1.5 Energy and Utilities

Italy Construction Market Size FAQs

The Italy Construction Market is projected to register a CAGR of greater than 4.5% during the forecast period (2024-2029)

GLF SpA, Bentini Construction SpA, Salcef Group SpA, SAIPEM SpA and Webuild are the major companies operating in the Italy Construction Market.

Construction Market in Italy Report Snapshots

Italy Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)