Poland Construction Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 116.22 Billion |
| Market Size (2029) | USD 145.66 Billion |
| CAGR (2024 - 2029) | 4.62 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Poland Construction Market Analysis
The Poland Construction Market size is estimated at USD 116.22 billion in 2024, and is expected to reach USD 145.66 billion by 2029, growing at a CAGR of 4.62% during the forecast period (2024-2029).
During the COVID-19 pandemic, most construction sites were closed due to the fear of infection. The projects are already delayed in relation to completion and handover. The developers are not facing the cost escalation risk only, also afraid of the spreading of COVID-19 in projects.
After a 3.5% contraction in 2020, Polish construction output is forecast to level off and then rebound by more than 7% in 2022. Apart from warehousing and transport-related building projects, commercial construction is performing poorly, as an investment in office buildings remains subdued. Civil engineering is set to grow, but the current dispute between the EU and Poland over the rule of law issues is putting a disbursement of EUR 36 billion from the Next Generation EU fund at risk. That said, the outlook for residential construction is more positive as demand continues to exceed supply.
While profit margins of construction businesses remained stable in 2020 and H1 of 2021, they are expected to deteriorate in 2022 due to higher prices for construction materials and increasing labor costs. Payments in the Polish construction industry take 83 days on average. Payment behavior has been rather bad over the past two years, and overdue payments of up to 30 days are common.
Poland Construction Market Trends
This section covers the major market trends shaping the Poland Construction Market according to our research experts:
Demand for Infrastructure to Boost the Construction Sector
The construction sector in Poland is expected to grow during the forecast period, the main contributors being ongoing road and railway infrastructure projects, residential housing, office, and warehouse construction. According to the data from Statistics Poland, the number of residential buildings finished increased more than 10% year-on-year between January and November 2021, together with a 4.5% increase in construction permits.
There is currently a need for 2-2.5 million dwellings in Poland. Infrastructure development is ongoing, especially railway and road construction. Planned expenditures for road construction in 2022 amount to USD 9.97 billion. The government plans to invest USD 11.1 billion to develop a high-speed rail network and USD 9.7 billion to construct a new hub airport under the Central Communications Port (CCP) project by 2027.
The Mazowieckie and Pomeranian voivodeships are leading the investments, with each province planning projects totaling about USD 12.5 billion. Mazowieckie's largest investments are planned in transport infrastructure, whereas the Pomeranian region has large projects in energy construction and water structures.
Low Interest Rates to Boost the Polish Construction Sector
The construction sector in Poland is expected to grow during the forecast period, given the low-interest rates. The interest rate in Poland averaged 6.57% in the last two decades till 2021, reaching an all-time high of 24% in March 1998 and a record low of 0.10% in May 2020. The mortgage interest rate in Poland decreased overall during the period under observation, reaching a value of 2.9% as of the fourth quarter of 2021. The largest mortgage interest rate during this period was found in the first quarter of 2016 when a mortgage interest rate of 4.5% was recorded. The annual average interest rate of new residential loans decreased overall from a height of over 8% to 2.9% in 2020. Between 2016 and 2021, the annual average interest rate on new residential loans in Poland stayed constant at 4.4%.
Poland Construction Industry Overview
Poland's market is highly competitive, with a few players occupying the major share. The market is fragmented, and the market is expected to grow during the forecast period due to the increase in the construction investments and upcoming major projects in the country, and other few factors are driving the market. Some of the players include Budimex SA, Skanska SA, Strabag SP ZOO, Porr SA, and Warbud SA.
Poland Construction Market Leaders
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BUDIMEX SA
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SKANSKA S A
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STRABAG SP Z O O
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PORR S A
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WARBUD S A
*Disclaimer: Major Players sorted in no particular order
Poland Construction Market News
February 2022: The General Directorate for National Roads and Motorways (GDDKiA) awarded the construction of an approximately 14 km section of the S19 expressway to the Polish STRABAG subsidiary STRABAG Sp. z o.o. The contract, to be implemented over a period of 42 months as a design-and-build project, represents a further expansion of the European transport axis Via Carpatia between Klaipėda in Lithuania and Thessaloniki in Greece. The contract value of approximately EUR 85.5 million (USD 93.29 Million).
February 2022: ERBUD was awarded a contract by Popowice Sp. z o.o. to construct a multi-family residential building with commercial premises and a two-story underground garage. Under the contract, ERBUD will prepare the internal and external technical infrastructure and will be responsible for the development and provision of utilities to the site, including the landscape structures, green areas, and the traffic system at Białowieska Street in Wrocław. The total value of the contract is PLN 57.5 million (USD 13.09 Million).
Poland Construction Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Methodology
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Current Economic and Construction Market Scenario
- 4.2 Technological Innovations in the Construction Sector
- 4.3 Insights on Costs Related to Construction and Building Materials
- 4.4 Impact of Government Regulations and Initiatives on the Industry
- 4.5 Spotlight on Prefabricated Buildings Market in Poland
- 4.6 Brief on the Real Estate Market and Key Real Estate Players
- 4.7 Insights on Services Allied to Construction (Design and Engineering, Fit-out Services, Facility management, etc.)
- 4.8 Insights on Key Distributors/Traders of Construction Materials
- 4.9 Value Chain / Supply Chain Analysis
- 4.10 Impact of COVID-19 on the market
5. MARKET DYNAMICS
- 5.1 Drivers
- 5.2 Restraints
- 5.3 Opportunitites
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5.4 Porter's Five Forces Analysis
- 5.4.1 Bargaining Power of Suppliers
- 5.4.2 Bargaining Power of Consumers / Buyers
- 5.4.3 Threat of New Entrants
- 5.4.4 Threat of Substitute Products
- 5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
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6.1 By Sector
- 6.1.1 Residential
- 6.1.2 Commercial
- 6.1.3 Industrial
- 6.1.4 Infrastructure
- 6.1.5 Energy and Utilities
7. COMPETITIVE LANDSCAPE
- 7.1 Overview (Market Concentration and Major Players)
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7.2 Company Profiles
- 7.2.1 BUDIMEX SA
- 7.2.2 SKANSKA SA
- 7.2.3 Strabag Sp. z o.o.
- 7.2.4 Mobile Services Team Sp. z o.o.
- 7.2.5 PORR SA
- 7.2.6 WARBUD SA
- 7.2.7 ERBUD SA
- 7.2.8 TORPOL SA
- 7.2.9 UNIBEP SA
- 7.2.10 PRZEDSIEBIORSTWO USLUG TECHNICZNYCH INTERCOR Sp. z o.o.
- 7.2.11 EUROVIA POLSKA SA
- 7.2.12 Panattoni Development Europe Sp. z o.o.
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. APPENDIX
- 9.1 Macroeconomic Indicators (GDP Breakdown by Sector, Contribution of Construction to Economy, etc.)
- 9.2 Key Production, Consumption, Exports, and Import Statistics of Construction Materials
Poland Construction Industry Segmentation
The construction market consists of the sales revenues earned by entities (organizations, sole traders, and partnerships) that construct buildings or engineering projects. This report analyses the key players and the competitive landscape in Poland's Construction Market. The impact of COVID-19 has also been incorporated and considered during the study.
Poland's construction market is segmented by Sector (Residential, Commercial, Industrial, Infrastructure (Transportation), Energy, and Utilities). The report offers market size and forecasts for the Polish construction market in value (USD Billion) for all the above segments.
| By Sector | Residential |
| Commercial | |
| Industrial | |
| Infrastructure | |
| Energy and Utilities |
Poland Construction Market Research FAQs
How big is the Poland Construction Market?
The Poland Construction Market size is expected to reach USD 116.22 billion in 2024 and grow at a CAGR of 4.62% to reach USD 145.66 billion by 2029.
What is the current Poland Construction Market size?
In 2024, the Poland Construction Market size is expected to reach USD 116.22 billion.
Who are the key players in Poland Construction Market?
BUDIMEX SA, SKANSKA S A, STRABAG SP Z O O, PORR S A and WARBUD S A are the major companies operating in the Poland Construction Market.
What years does this Poland Construction Market cover, and what was the market size in 2023?
In 2023, the Poland Construction Market size was estimated at USD 111.09 billion. The report covers the Poland Construction Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Poland Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Poland Construction Industry Report
Statistics for the 2024 Poland Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Poland Construction analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
