Germany Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q1 2025)

The analyst expects the construction industry in Germany to fall in real terms by 1.8% in 2025, marking its fifth consecutive year of decline, owing to the headwinds caused by elevated inflation rate, high construction material costs, and weak demand especially from industrial and residential construction sectors. According to Destatis, the construction cost index for residential buildings rose by 1.6% year-on-year (YoY) in the first nine months of 2024, increasing from 116.9 in January-September 2023 to 118.7 in January-September 2024. Furthermore, rapidly falling building permits are also contributing to the decline of the German construction sector. According to Destatis, the total number of building permits issued in the country fell by 11.5% YoY in 2024, with residential building permits and non-residential building permits falling by 13.4% YoY and 5.8% YoY, respectively, during the same period. Moreover, rising political instability following the collapse of Chancellor Olaf Scholz’s government in December 2024 is exacerbating challenges for the construction industry. The new government, elected in February 2025, now faces multiple hurdles, including reducing high energy costs.

The German construction industry is expected to record an average annual growth rate of 3.1% between 2026 to 2029, supported by investments majorly in transport, energy, and industrial projects. In mid-December 2024, the government committed EUR40 billion ($43.6 billion) to modernize the country’s rail infrastructure by 2027, including major projects such as the Stuttgart 21 rail hub redevelopment and Munich’s Second S-Bahn Core Line. Recently, in February 2025, the European Commission (EC) approved a grant of EUR920 million ($1 Billion) to support the construction of a semiconductor plant in Dresden, Germany. The project is scheduled for completion by 2031.

The Construction in Germany - Key Trends and Opportunities to 2029 (Q1 2025) report provides detailed market analysis, information and insights into the German construction industry, including:

The German 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 German 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 Germany. It provides:

Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Germany, 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 our 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 business strategies using the analyst's critical and actionable insight
Assess business risks, including cost, regulatory and competitive pressures
Evaluate competitive risk and success factors

1 Executive Summary2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

Outlook
Latest news and developments
Construction Projects Momentum Index

4.2 Commercial Construction

Outlook
Project analytics
Latest news and developments

4.3 Industrial Construction

Outlook
Project analytics
Latest news and developments

4.4 Infrastructure Construction

Outlook
Project analytics
Latest news and developments

4.5 Energy and Utilities Construction

Outlook
Project analytics
Latest news and developments

4.6 Institutional Construction

Outlook
Project analytics
Latest news and developments

4.7 Residential Construction

Outlook
Project analytics
Latest news and developments

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 CRI Methodology

About the Analyst
Contact the Publisher

List of Tables

Table 1: Construction Industry Key Data
Table 2: Germany, Key Economic Indicators
Table 3: Germany, Commercial Construction Output by Project Type (Real % Change), 2020-29
Table 4: Germany, Top Commercial Construction Projects by Value
Table 5: Germany, Industrial Construction Output by Project Type (Real % Change), 2020-29
Table 6: Germany, Top Industrial Construction Projects by Value
Table 7: Germany, Infrastructure Construction Output by Project Type (Real % Change), 2020-29
Table 8: Germany, Top Infrastructure Construction Projects by Value
Table 9: Germany, Energy and Utilities Construction Output by Project Type (Real % Change), 2020-29
Table 10: Germany, Top Energy and Utilities Construction Projects by Value
Table 11: Germany, Institutional Construction Output by Project Type (Real % Change), 2020-29
Table 12: Germany, Top Institutional Construction Projects by Value
Table 13: Germany, Residential Construction Output by Project Type (Real % Change), 2020-29
Table 14: Germany, Top Residential Construction Projects by Value
Table 15: Germany, Key Contractors
Table 16: Germany, Key Consultants
Table 17: Germany, Construction Output Value (Real, $ Million)
Table 18: Germany, Construction Output Value (Nominal, EUR Million)
Table 19: the analyst Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions

List of Figures

Figure 1: Western Europe, Construction Output (Real % Change), 2023-29
Figure 2: Germany, Construction Output by Sector (Real % Change), 2023-25 and 2026-29
Figure 3: Germany, Risk Summary
Figure 4: Germany, Risk Regional Comparison
Figure 5: Germany, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020-29
Figure 6: Germany, Construction Output Value, by Sector (Real, $ Million), 2020-29
Figure 7: Germany, Construction value-add, 2015 Chained Linked Volume Measures (EUR Million)
Figure 8: Germany, Gross Fixed Capital Formation, Current Prices (% Change YoY)
Figure 9: Germany, New Orders Value Index for Building Construction and Civil Engineering Work (2015=100)
Figure 10: Germany, Total Number of Building Permits Approved
Figure 11: Germany, Construction Turnover (Companies With 20 and More Persons Employed), % Change YoY
Figure 12: Germany, Index of Employment in Construction (2021=100)
Figure 13: Germany, Construction Production Index (2021=100)
Figure 14: Germany, Construction Projects Momentum Index
Figure 15: Western Europe, Construction Projects Momentum Index
Figure 16: Germany, Commercial Construction Output by Project Type (Real, $ Million), 2020-29
Figure 17: Germany, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 18: Germany, Wholesale and Retail Trade, Transport, Accommodation, and Food Service Activities value-add, 2015 Chained Linked Volume Measures (EUR Million)
Figure 19: Germany, Commercial Building Construction Orders Value Index (2015=100)
Figure 20: Germany, Number of Permits Approved for Office and Administrative Buildings
Figure 21: Germany, Tourist Arrivals and Overnight Stays (Total Number in Thousand)
Figure 22: Germany, Turnover Index of Accommodation Service Activities in Constant Terms, 2015=100
Figure 23: Germany, Retail Sales Index in Constant Terms, 2015=100
Figure 24: Germany, Wholesale Turnover Index, (Constant Terms, 2015=100)
Figure 25: Germany, Industrial Construction Output by Project Type (Real, $ Million), 2020-29
Figure 26: Germany, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 27: Germany, Manufacturing value-add, 2015 Chained Linked Volume Measures (EUR Million)
Figure 28: Germany, Incoming Orders in Manufacturing Sector (Value Index), 2021=100
Figure 29: Germany, Manufacturing Production and Turnover Indices, 2021=100
Figure 30: Germany, Total Exports (EUR Billion)
Figure 31: Germany, Number of New Passenger Car Registrations, In Thousands
Figure 32: Germany, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
Figure 33: Germany, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 34: Germany, Gross Fixed Capital Formation in Civil Engineering, Current Prices (EUR Billion)
Figure 35: Germany, New Orders Value and Volume Indices for Road Construction (% Change YoY)
Figure 36: Germany, Road and Rail Construction Turnover (Companies With 20 and More Persons Employed), % Change YoY
Figure 37: Germany, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
Figure 38: Germany, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 39: Germany, Information and Communication value-add, 2015 Chained Linked Volume Measures (EUR Billion)
Figure 40: Germany, Civil Engineering and Sewage Treatment Plan Construction Turnover (Companies With 20 and More Persons Employed), EUR Million
Figure 41: Germany, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
Figure 42: Germany, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 43: Germany, Public Administration, Defense, Education, Human Health, and Social Work Activities value-add, 2015 Chained Linked Volume Measures (EUR Billion)
Figure 44: Germany, Total Number of Institutional Building Permits Issued
Figure 45: Germany, Residential Construction Output by Project Type (Real, $ Million), 2020-29
Figure 46: Germany, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 47: Germany, Real Estate value-add, 2015 Chained Linked Volume Measures (EUR Billion)
Figure 48: Germany, Total Fixed Capital Formation in Residential Buildings, Current Prices (EUR billion)
Figure 49: Germany, New Orders Value and Volume Indices for Housing Construction (2015=100)
Figure 50: Germany, Total Number of Residential Building Permits Approved
Figure 51: Germany, House Price Index (HPI) for Residential Real Estate, 2015=100
Figure 52: Germany, Construction Cost Index for Residential Buildings, 2015=100, % Change YoY
Figure 53: Germany, Construction Producer Price Index, New Residential Building (2021=100)
Figure 54: Germany, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 55: Germany, Headquarters of Key Consultants (% of Total Project Pipeline)

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The Construction in Germany - Key Trends and Opportunities to 2029 (Q1 2025) report provides detailed market analysis, information and insights into the German construction industry, including:

Scope

This report provides a comprehensive analysis of the construction industry in Germany. It provides:

Reasons to Buy

Table of Contents

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