Market Research Report
Construction in Norway - Key Trends and Opportunities to 2023
|Published by||GlobalData||Product code||308194|
|Published||Content info||52 Pages
Delivery time: 1-2 business days
|Construction in Norway - Key Trends and Opportunities to 2023|
|Published: October 24, 2019||Content info: 52 Pages||
In real terms, the Norwegian construction industry registered growth of 4.6% and 3.9% in 2017 and 2018 respectively, following an average annual growth of 3.5% during 2014-2016. Consequently, the industry's output value, measured at constant 2017 US dollar exchange rates, increased from US$69.4 billion in 2017 to US$72.1 billion in 2018; this was due to positive developments in economic conditions and investments in transport infrastructure, energy and housing construction projects.
The industry is expected to continue to expand in 2019, with the industry's output expected to expand by 4% in real terms that year. However, the construction industry is expected to suffer a downturn in 2020, contracting by an estimated 0.3% in real terms, due to a deceleration in gross fixed capital formation in the construction industry and contraction in the total number of dwellings started in 2017 and 2018, but will then pick up steadily to record an annual average growth of 2.7% during 2021-2023.
Over the forecast period (2019-2023), the industry's growth will be driven by the government's focus to develop the transport infrastructure in the country. The government plans to invest NOK120 billion (US$14.7 billion) in railways during the period of 2018-2023. In addition, the government's aim to improve local energy resources is expected to support 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 2.34% over the forecast period. The industry is consequently expected to rise from a value of US$72.1 billion in 2018 to US$80.9 billion in 2023, measured at constant 2017 US dollar exchange rates.
Residential construction was the largest market in the Norwegian construction industry during the review period, accounting for 43.4% of its total value in 2018. The market is expected to account for 40% of the industry's total value in 2023. Infrastructure construction accounted for 21.2% of the industry's total output in 2018, followed by commercial construction with 20.5%, energy and utilities construction with 5.8%, institutional construction with 5.4% and industrial construction with 3.6%.
The total construction project pipeline in Norway including all mega projects with a value above US$25 million - stands at NOK1.7 trillion (US$209.1 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 52.5% of the pipeline value being in projects in the pre-execution and execution stages as of October 2019.
The report "Construction in Norway - Key Trends and Opportunities to 2023" provides detailed market analysis, information and insights into the Norwegian construction industry, including -
This report provides a comprehensive analysis of the construction industry in Norway. It provides -