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Market Research Report

Scandinavia Construction Market - Growth, Trends, and Forecasts (2020 - 2025)

Published by Mordor Intelligence LLP Product code 945962
Published Content info 150 Pages
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Scandinavia Construction Market - Growth, Trends, and Forecasts (2020 - 2025)
Published: June 1, 2020 Content info: 150 Pages
Description

The Scandinavia Construction Market is estimated to grow at a CAGR of approximately 4% during the forecast period, driven by the government's plans to upgrade infrastructure.

One of the most promising markets in Sweden is the construction and infrastructure sector. The industry is expected to grow at a CAGR of around 3% during the forecast period. The sector value-added growth in percentage is 1.2% in 2019 and 3.6 % in 2018. The average sector growth of the Sweden Construction industry over the past 3 years is 3.4 % while the average sector growth over the past 5 years is 4%. Moreover, expanded item costs and significant-high prices for building sites in Sweden negatively affect construction sector development. The 2020 domestic growth performance viewpoint stays repressed, as Sweden's monetary development stays unassuming at about 1%. Then again, investments in public construction (chiefly infrastructure) are expected to increase.

Denmark's construction sector is expected to grow during the forecast period. Growth will be fueled by various investments in commercial, infrastructure, and renewable energy projects. The industry's output value in real terms is expected to post a CAGR of 2.94% over the forecast period. In Denmark, Demand for construction has increased over the past five years. The sector value added growth in percentage is 2.2% in 2019 and 4% in 2017. The average sector growth of the Denmark Construction industry over the past 3 years is 3.5 % while the average sector growth over the past 5 years is 3.7%. According to Statistics Denmark, the country's average construction production index in 2015 base prices grew by 4.1% in 2018 and 4.5% in 2017. Moreover, the construction production index for civil engineering grew by 4.3% in 2018 and 4.6% in 2017. Accounting for 42.4% of the industry's total value in 2018, residential construction was the largest market in the Danish construction industry during the review period. The total construction project pipeline in Denmark including all mega projects with a value above USD 25 million - stands at USD 77.6 billion. The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 59.3% of the pipeline value being in projects in the pre-execution and execution stages as of August 2019.

Norway construction sector is expected to grow during the forecast period with a CAGR of around 6%. Expanding government expenditure towards sustainable framework improvement with proceeded interest in energy effective and naturally manageable resources is advancing the market interest for Norway's construction sector. Growing demand for Building Information Modelling, Modular development, and building materials industry is being seen over the Norway Construction and Infrastructure advertise. Investment in large scale foundation ventures is one of the key systems of Norway to fuel economic development. The administration's push to improve the nation's infrastructure to continue development in the manufacturing sector and extend civil utilities will add to the development in construction spending. Rising individual salary levels, family unit development, and populace relocation from rustic to urban regions will expand the requirement for better construction facilities and road infrastructure in the nation.

Key Market Trends

Ongoing Demand for Infrastructure

Sweden will have invested over USD 170 billion on new housing by 2025 in a plan to build 700,000 new homes resulting in huge opportunities for the construction market, both internally and externally. The market for building new shopping centers and inns is progressively mature. The private and residential subsector gives indications of diminishing interest, which will negatively affect organizations' margins. Between now and 2030, the nation will spend USD 72.5 billion on railroads, streets, and other significant activities. In January 2019, another Ministry of Infrastructure was framed to concentrate on the advancement of the Swedish infrastructure and its drawn-out requests. An arrangement has been made, named; The Swedish National Transport plan 2018-2029, which contains roughly USD 79.23 billion of financed foundation ventures. Along with another USD 79.23 billion from the territorial and local venture plans, it is anything but difficult to perceive any reason why Sweden's infrastructure sector is booming. Sweden likewise plans to put an expected USD 28.29 billion in a High-Speed Rail to connect the three biggest urban areas: Stockholm, Gothenburg, and Malmo.

The Need for the Construction Sector to be Circular

Our present economy with its "take, make, dispose of" model, isn't practical over the long haul, as people's interest in crude materials exceeds what our earth is able to supply. It is important to move towards a Circular Economy (CE) in which we reexamine, reuse, and reestablish our reality's assets. This is particularly valid for the construction sector, as construction and demolition waste (CDW) are one of the heaviest and biggest waste streams. The construction can benefit from a circular approach because of material costs which make up to 35 %-40 % of the costs in the sector. Reducing these costs by becoming circular significantly reduces construction costs. It also helps in reducing international dependency as there is increasing geopolitical uncertainty. The government is also encouraging companies that emphasize on technological advancements and standardizing modern methods of construction. Norway is the country that has already reached a high level of performance in the transition process from linear to circular economy model. in 2018, more than 80% of the construction waste is recycled. CDW recycling rate in Sweden is currently about 50-60% as of 2019.

Competitive Landscape

The report covers the major players operating in the Scandinavia Construction Market. The Scandinavia 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 up-coming major projects in the country and other few factors are driving the market.

Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Table of Contents
Product Code: 70622

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 Scandinavia
  • 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

  • 5.1 Drivers
  • 5.2 Restraints
  • 5.3 Opportunitites
  • 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

  • 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
  • 6.2 By Country
    • 6.2.1 Denmark
    • 6.2.2 Sweden
    • 6.2.3 Norway

7 COMPETITIVE LANDSCAPE

  • 7.1 Overview (Market Concentration and Major Players)
  • 7.2 Company Profiles
    • 7.2.1 Skanska Sverige AB
    • 7.2.2 NCC Sverige AB
    • 7.2.3 PEAB Sverige AB
    • 7.2.4 Serneke Sverige AB
    • 7.2.5 Per Aarsleff A/S
    • 7.2.6 Mt Højgaard A/S
    • 7.2.7 A. Enggaard A/S
    • 7.2.8 Bonava Sverige AB
    • 7.2.9 Bane Nor Sf
    • 7.2.10 Sola Kommune
    • 7.2.11 AF Gruppen Norge AS
    • 7.2.12 Veidekke ASA *

8 MARKET OPPORTUNITIES AND FUTURE TRENDS

9 APPENDIX

  • 9.1 Marcroeconomic Indicators (GDP breakdown by sector, Contribution of construction to economy, etc.)
  • 9.2 Key Production , Consumption,Exports & import statistics of construction Materials
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