Market Trends of europe construction chemicals Industry
Office building expansion projects in countries such as Spain and Italy are boosting the commercial construction market in Europe
- Europe witnessed a 12.70% surge in the new floor area for commercial construction in 2022, driven by an increased focus on constructing energy-efficient office buildings, which aligns with the region's 2030 carbon emission targets. As employees returned to office spaces, European companies, in turn, ramped up their leasing decisions, resulting in the addition of 5.7 million square feet of new office space in 2022. This growth was expected to persist in 2023, with a projected growth rate of 2.68% over 2022.
- The COVID-19 pandemic caused a significant labor and material shortage, leading to the cancellation or postponement of several commercial construction projects. However, as lockdowns eased and construction activities resumed, Europe witnessed a robust 16.60% growth in new floor area for commercial construction in 2021, with Spain being the leader with a 105.05% growth rate.
- The commercial construction sector in Europe is poised for substantial growth, with the new floor area anticipated to register a CAGR of 3.88% during the forecast period. Noteworthy projects, such as the USD 65 million Milan US Consulate General Complex in Italy, slated for completion by 2025, and the USD 260 million Arteixo Office Building Expansion in Spain, spanning 1.8 million square feet and set to be operational in 2024, are expected to bolster the region's commercial construction landscape. As consumer preferences shift from online to in-person retail experiences, the new floor area is expected to increase by 428.3 million square feet for retail shopping malls in Europe by 2030 compared to 2022.
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Affordable housing schemes in the UK and Europe and growth in housing project completions are expected to increase the new floor area for residential construction
- Europe's residential construction sector witnessed a 2.71% growth in new floor area in 2022 compared to the previous year. This can be attributed to the escalating urbanization rate, with the urban population accounting for 75% of the total in 2022, up from 73.5% in 2020. This trend was expected to persist in 2023, with a projected growth rate of 3.21% over 2022. According to the EURO CONSTRUCT network, Europe witnessed a 2.7% rise in housing project completions in 2023, with notable increases in Hungary, Ireland, Norway, and Poland.
- The COVID-19 pandemic led to an economic downturn, resulting in the cancellation or postponement of numerous residential construction projects. Consequently, the new floor area for residential construction in Europe plummeted by 9.40% in 2020 compared to the preceding year. However, as lockdown restrictions eased and construction activities resumed, the sector rebounded strongly, with an 18.28% surge in new floor area in 2021 compared to 2020. Spain led the growth with a remarkable 40.23% increase, followed by Italy at 25.07%.
- The new floor area for residential construction in Europe is projected to witness a CAGR of 3.89% during the forecast period. The United Kingdom is poised to lead this growth, recording a CAGR of 5.94%. This growth can be attributed to factors such as a mounting demand for affordable housing, particularly in urban centers grappling with population growth and limited housing supply. The UK government's Affordable Homes Programme, backed by an investment of USD 8 billion, aims to deliver 130,000 housing units by 2026, bolstering the nation's residential construction floor area.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing public-private investments in clean energy power plants will likely expedite the new floor area for industrial construction in Europe
- Increased infrastructure investments in the United Kingdom's telecommunication and transport infrastructure are projected to boost the market growth in Europe
