Construction in Denmark - Key Trends and Opportunities to 2025

The Danish construction industry contracted by an estimated 3.5% in real terms in 2020, owing to a slowdown in building investments and civil engineering works due to outbreak of Coronavirus (COVID-19). Denmark was one of the first European countries to impose a lockdown in response to the COVID-19 pandemic, and construction activities were adversely affected as projects faced delays and subsequent cost overruns. According to Statistics Denmark, the industry's value-add declined by 6.7% year on year (YoY) in Q3 2020, and 5.9% in Q2 2020.

GlobalData expects the industry to recover in 2021 and grow by 1.7%, supported by investments in infrastructure, energy and utilities and residential construction projects. In a positive development, the government suspended the cap on the construction budget provided to municipalities, with an aim to increase funds provided to municipalities for development work, which in turn will boost the industry's output this year. According to Statistics Denmark, the sale of real estate property in the country grew by 30% YoY in November 2020 - this was preceded by growth of 21.6% in October and 21.4% in September 2020. However, a risk for the industry is the recent rise in infections across the country, which could lead to the slowdown of construction activities if containment measures are tightened.

Over the remainder of the forecast period, the industry is expected to register an average annual growth of 2.4% between 2022-2025, supported by improvements in investor and consumer confidence, and government investments on road, rail, renewable energy, and housing projects. The state-owned company Metroselskabet plans to invest DKK8.1 billion (US$1.2 billion) on M3 Cityring, M4 Nordhavn, and M4 Sydhavn metro projects between 2020-2024. Most planned spending, worth DKK6.9 billion (US$1 billion), is expected to be invested on the M4 Sydhavn metro project over the next four years. In addition to the ongoing metro projects, work on the Danish side of the DKK63.2 billion (US$9.5 billion) Fehmarn Belt link project, which started in January 2021, will support the industry's output in the medium term. In June 2020, the Danish parliament passed the Climate Act, legally binding the government to reach its target of reducing greenhouse gas emissions by 70% over the next ten years; this will attract investment towards renewable energy infrastructure in the long run.

This report provides detailed market analysis, information, and insights into the Danish construction industry, including -

• The Danish 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 Danish 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 Denmark. It provides -

• Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Denmark, 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.

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

• 3.1 Economic Performance
• 3.2 Political Environment and Policy
• 3.3 Demographics
• 3.4 COVID-19 Status

4 Construction Outlook

• 4.1 All Construction
• 4.2 Commercial Construction
• 4.3 Industrial Construction
• 4.4 Infrastructure Construction
• 4.5 Energy and Utilities Construction
• 4.6 Institutional Construction
• 4.7 Residential Construction

5 Key Industry Participants

• 5.1 Contractors
• 5.2 Consultants

6 Construction Market Data

7 Appendix

• 7.1 What is this Report About?
• 7.2 Definitions
• 7.3 GlobalData Construction

List of Tables

List of Tables

• Table 1: Construction Industry Key Data
• Table 2: Denmark, Key Economic Indicators
• Table 3: Denmark, Commercial Construction Output by Project Type (real % change), 2016-2025
• Table 4: Denmark, Top Commercial Construction Projects by Value
• Ta

List of Figures

List of Figures

• Figure 1: Western Europe, Construction Output (real % change), 2020 and 2021
• Figure 2: Denmark, Construction Projects Pipeline by Sector (US$ Billion)
• Figure 3: Denmark, COVID-19 Confirmed Cases
• Figure 4: Denmark, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate), 2016-2025
• Figure 5: Denmark, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
• Figure 6: Denmark, Construction Value-Add (DKK Billion, 2010 Chained Prices)
• Figure 7: Denmark, Construction Production Index (2015=100, % Change YoY)
• Figure 8: Denmark, Total Outstanding Domestic Mortgage Loans for the Construction Sector (in DKK Billion)
• Figure 9: Denmark, Construction Projects Momentum Index
• Figure 10: Denmark, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 11: Denmark, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 12: Denmark, Total Number of Overnight Stay (in Thousands)
• Figure 13: Denmark, Retail Trade Value Index (2015=100, % Change YoY)
• Figure 14: Denmark, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 15: Denmark, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 16: Denmark, Manufacturing Value-Add (DKK Million, 2010 Constant Prices)
• Figure 17: Denmark, Total Exports (DKK Billion)
• Figure 18: Denmark, Industrial and Manufacturing Production Index (2015=100, % Change YoY)
• Figure 19: Denmark, Total Floor Area of Factories and Workshops Completed (in Thousands m2)
• Figure 20: Denmark, Total Floor Area of Permits Approved for Factories and Workshops (in Thousands m2)
• Figure 21: Denmark, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 22: Denmark, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 23: Denmark, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 24: Denmark, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 25: Denmark, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 26: Denmark, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 27: Denmark, Public Administration, Health and Education Value-Add (DKK Billion, 2010 Chained Prices)
• Figure 28: Denmark, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 29: Denmark, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 30: Denmark, Total Floor Area of Residential Building Permits (in Thousands m2)
• Figure 31: Denmark, Total floor Area of Residential Buildings Completed (in Thousands m2)
• Figure 32: Denmark, Sales of One-Family Houses and Owner-Occupied Flats, % Change Y-o-Y
• Figure 33: Denmark, House Price Index (2015=100), % Change YoY
• Figure 34: Denmark, House sales transactions index (2015=100), % Change YoY
• Figure 35: Denmark, Headquarters of Key Contractors (% of Total Project Pipeline)
• Figure 36: Denmark, Headquarters of Key Consultants (% of Total Project Pipeline)