Spain Construction Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 192.55 Billion |
| Market Size (2029) | USD 223.22 Billion |
| CAGR (2024 - 2029) | 3.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Spain Construction Market Analysis
The Spain Construction Market size is estimated at USD 192.55 billion in 2024, and is expected to reach USD 223.22 billion by 2029, growing at a CAGR of 3% during the forecast period (2024-2029).
The industry's development amid the figure period will be backed by ventures within the vitality, transportation, lodging, and mechanical segments.
- The development industry in Spain is anticipated to extend by 3.5% in genuine terms this year, upheld by a positive base, coupled with ventures within the vitality and transport framework divisions and payment as a portion of the NextGenerationEU (NGEU) Recuperation Finance, beneath which, the government plans to spend EUR28.4 billion (USD 29.1 billion) in 2022. Despite this development in 2022, yield in genuine terms is still around 13% lower than in 2019, reflecting the industry's battle to bounce back from the COVID-19 disturbance. The brief terms viewpoint is additionally decently bleak, with the Spanish development industry anticipated to shrivel hardly by 0.3% in 2023, owing to headwinds caused by rising intrigued rates and tall vitality and development fabric costs. Concurring to the Eurostat, the normal development fetched file rose by 13.8% YoY within the seven months of 2022.
- However, there are a few positive signs of enhancement in common. For illustration, the nation added up to EUR15.6 billion (USD 16 billion) in remote ventures amid the primary half of the year 2022, which speaks to 53.4% year-on-year (Y-o-Y) development. Yield will moreover proceed to be supported by speculations within the electricity, transport, lodging, and mechanical divisions. Within the to begin with two rounds of the renewable vitality barters that the government held in 2021, the government granted 5.6GW of wind and 3.8GW of sun-oriented vitality capacity. In October 2022, through the third sell-off, the government apportioned 177MW - of which 31MW to dispersed sun-based photovoltaic (PV) and 141MW to biomass.
- For the improvement of the private division, in September 2022, the Spanish Government proposed a modern arrangement of remodeling around half a million homes by the conclusion of 2026, which includes an allotment of EUR6.8 billion (USD 7 billion) from the EU's following Era support.
Spain Construction Market Trends
Increase in housing construction drives the market
The market is expected to observe growth during the forecast period driven by the increase in housing permits issued. Spain is a popular, safe, and stable international destination for visitors, investors, and those looking to relocate with a rich cultural tradition. International interest from buyers both inside and outside the European Union is increasing. Real estate regained popularity, especially in seaside resorts and Spain's major cities. In terms of investment, Madrid, Valencia, and Malaga are the provinces with the highest possibilities for recovery.
According to the latest Ministry of Public Works data, construction costs in buildings, including labor and material consumption, have grown annually by over 14%. New non-residential construction, which includes office, industrial, and other building types, has climbed by 21%, a significant gain over the residential sector's growth of 10.6%. Building renovations, including work on residential and non-residential structures, rose by 12.8%.
Despite this situation, the primary indicators of the residential sector—such as building permits, the volume of transactions, and prices—remain in positive expansion for the time being. According to the most recent data, the pandemic caused a dip in housing approvals in 2020, which directly contributed to the loss in building completion certificates recorded in the first few months of 2022.
Increasing demand for leisure and hospitality development projects due to travel and tourism
In Spain, the hotel industry is preparing for tourism to resume its pre-pandemic levels. Investors are purchasing real estate that can be converted into hotels and land for new hotel construction projects. Southern Europe has been a popular travel destination, and in 2022, activity in Italy, Spain, and Portugal will virtually match pre-COVID levels. 2023 is expected to bring about growth and prosperity.
Hotel investment in Spain totaled EUR 3.3 billion in 2022. In contrast to 127 hotels and 19,043 rooms in 2021, 133 hotels and 17,754 rooms were transacted last year. Another 30 properties, including plots of land for hotel developments and structures for hotel conversion, were also bought and sold. By exceeding the EUR 3 billion mark and maintaining its position as the third-best record in the historical series, 2022 has come to a fantastic end in terms of hotel investment (up 3.1% from 2021). Additionally, money is being spent renovating some existing hotels to make them top-notch establishments capable of providing what modern tourists want after a protracted length of time.
Additionally, investors' interest in the 4- and 5-star categories expanded with the entry of foreign brands and hotel repositioning, with sales of these asset classes accounting for almost 80% of the overall investment volume. With 49% of the total expenditure, the 4-star category continued to be the most popular overall. Investment firms continued to dominate the investor landscape in 2022, accounting for 59% of the total volume invested. Additionally, hotel groups were quite active, bringing up 25% of purchasers (compared to 16% in 2021). Individual and family offices showed slightly more caution (5%), while REITs (6%) stayed consistent with last year.
Spain Construction Industry Overview
The market is fragmented with a large number of players, including Acciona SA, Elecnor SA, Fomento de Construcciones y Contratas SA, Dragados SA, Cobra Instalaciones y Servicios SA, Ferrovial, Obrascón Huarte Lain, Administrador de Infraestructuras Ferroviarias (Adif), etc. The competition amongst service providers is further heightened by the strict regulatory requirements that must be met. Businesses participate in M&A transactions to develop their product lines and expand regionally.
The report covers the major players operating in the Spanish construction market. The market is expected to grow during the forecast period due to the increase in construction investments, upcoming major projects in the country, and other related factors.
Spain Construction Market Leaders
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ACCIONA CONSTRUCCION SA.
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DRAGADOS SOCIEDAD ANONIMA
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FERROVIAL CONSTRUCCION SA.
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COSENTINO GLOBAL SOCIEDAD LIMITADA
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COBRA INSTALACIONES Y SERVICIOS SA
*Disclaimer: Major Players sorted in no particular order
Spain Construction Market News
July 2023: The company has decided to use hydrogen fuel cells to contribute to decarbonizing its construction projects in its upcoming two projects. The company would install a zero-emission hydrogen fuel cell generator set (GEH2) developed by EODev for these projects. In addition, the company has installed a “zero emissions” lighting tower based on a hydrogen fuel cell developed by ATLAS COPO. This prototype has been installed in the area adjacent to the project’s office huts.
May 2023: Cosentino, the leading global manufacturer and distributor of innovative and sustainable surfaces for architecture and design, has announced plans to expand its manufacturing to North America, which would mark Cosentino’s first manufacturing facility beyond its Industrial Park in Almería, Spain, and natural stone factory in Vitoria, Brazil. Subject to closing, the ground is slated to break in Jacksonville, Florida, by January 2025 at the latest, with a target completion date by the end of 2028 and an estimated investment of USD 270 million (EUR 249,5 million).
Spain 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 Spain
- 4.6 Brief on 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
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5.1 Drivers
- 5.1.1 Increasing demand for Housing
- 5.1.2 Increasing demand for transportation infrastructure
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5.2 Restraints
- 5.2.1 High Cost of Labour
- 5.2.2 Rising material costs
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5.3 Opportunitites
- 5.3.1 Adoption of recent technologies
- 5.3.2 Eco-friendly and sustainable construction
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5.4 Industry Attractiveness - 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 (Transportation)
- 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 ACCIONA CONSTRUCCION SA
- 7.2.2 ELECNOR SA
- 7.2.3 FCC CONSTRUCTION SA
- 7.2.4 DRAGADOS SOCIEDAD ANONIMA
- 7.2.5 COBRA INSTALACIONES Y SERVICIOS SA
- 7.2.6 FERROVIAL AGROMAN SA
- 7.2.7 TSK ELECTRONICA Y ELECTRICIDAD SA
- 7.2.8 ACS, ACTIVIDADES DE CONSTRUCCION Y SERVICIOS, SA
- 7.2.9 ADMINISTRADOR DE INFRAESTRUCTURAS FERROVIARIAS
- 7.2.10 OBRASCON HUARTE LAIN SA
- 7.2.11 ADIF ALTA VELOCIDAD
- 7.2.12 SACYR CONSTRUCCION SAU*
- *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 & Import Statistics of Construction Materials
Spain Construction Industry Segmentation
Construction is the process of planning, designing, and constructing infrastructure and buildings in Spain. It involves using a range of materials, methods, and technologies to create various structures, including roads, bridges, tunnels, dams, airports, and buildings.
The Spanish construction market is segmented by sector (residential, commercial, industrial, infrastructure (transportation), and energy and utilities). The report also analyses the Spanish construction market's key players and competitive landscape. The impact of COVID-19 has also been incorporated and considered during the study. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Sector | Residential |
| Commercial | |
| Industrial | |
| Infrastructure (Transportation) | |
| Energy and Utilities |
Spain Construction Market Research FAQs
How big is the Spain Construction Market?
The Spain Construction Market size is expected to reach USD 192.55 billion in 2024 and grow at a CAGR of 3% to reach USD 223.22 billion by 2029.
What is the current Spain Construction Market size?
In 2024, the Spain Construction Market size is expected to reach USD 192.55 billion.
Who are the key players in Spain Construction Market?
ACCIONA CONSTRUCCION SA., DRAGADOS SOCIEDAD ANONIMA, FERROVIAL CONSTRUCCION SA., COSENTINO GLOBAL SOCIEDAD LIMITADA and COBRA INSTALACIONES Y SERVICIOS SA are the major companies operating in the Spain Construction Market.
What years does this Spain Construction Market cover, and what was the market size in 2023?
In 2023, the Spain Construction Market size was estimated at USD 186.94 billion. The report covers the Spain Construction Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Spain Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Spain Construction Industry Report
Statistics for the 2024 Spain Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Spain Construction analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
