Italy Construction Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Italy Construction Market is segmented by Sector (Residential, Commercial, Industrial, Infrastructure, and Energy and Utilities). The report offers the market size and forecasts in value (USD billion) for all the above segments.

Market Snapshot

italy construction market
Study Period: 2018-2027
Base Year: 2021
CAGR: >4.5 %
italy construction industry

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Market Overview

The Italian construction market is expected to register a CAGR of more than 4.5% during the forecast period.

The COVID-19 pandemic adversely affected the construction industry in Italy, recording a 6.3% contraction in output in 2020. However, the sector is recovering from the crisis and reaching the pre-pandemic levels. Meanwhile, the growth was supported by EU recovery funds. The EU recovery funds will allow the government to accelerate investments in some projects.

Furthermore, to recover from the pandemic, the Italian government unveiled a USD 299 billion spending package in 2021. This reform package included USD 230 billion from the EU recovery funds, and USD 37 billion will be raised from the Italian budget. Meanwhile, an additional USD 32 billion will be spent on upgrading the country’s transport infrastructure.

In addition, the residential sector, infrastructure sector, and civil engineering are driving the growth of the sector. Meanwhile, the Italian government offers various housing aid initiatives and funds for urban regeneration, including home purchase and/or renovation funds, ECO Bonus, Urban Renaissance Plan, Superbonus 110%, funds for social housing in earthquake areas, etc. Furthermore, the Italian government has allocated EUR 10.8 billion of its EUR 191.5 RRP to promote social infrastructure and communities and EUR 4.2 billion to develop territorial cohesion.

Scope of the Report

Construction is the installation, maintenance, and repair of buildings and other stationary structures, as well as the construction of roadways and service facilities that form fundamental components of structures and are required for their operation. Construction encompasses the processes involved in constructing buildings, infrastructure, and industrial facilities, as well as related operations, from start to finish. Furthermore, the report on the Italian construction market includes market dynamics, technological trends, insights, and government initiatives related to the market. Also, the report covers segmentation by sector (residential, commercial, industrial, infrastructure, and energy and utilities). The report offers the market size and forecasts in value (USD billion) for all the above segments.

Sector
Residential
Commercial
Industrial
Infrastructure
Energy and Utilities

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Key Market Trends

The Residential Sector is Witnessing Lucrative Growth

The pandemic affected the residential sector, but now the sector is recovering to pre-pandemic levels as the number of residential dwellers increased. In addition, in residential buildings, the number of dwellings increased at a growth rate of 2.9% in Q3 2021 compared to the previous quarter. Also, the useful floor area increased at a growth rate of 3.6% compared to the previous quarter.

Building permits for new dwellings increased by 17.7% in Q3 2021 compared to the same quarter in 2020. Meanwhile, the useful floor area was up by 17.5% compared to 2020. In addition, building permits for non-residential buildings increased by 15.5% in Q3 2021 compared to the previous quarter and experienced a growth rate of 22.4% in Q3 2021 compared to the same quarter in 2020.

According to ISTAT, more than 15,295 housing permits were given in Q3 2021, with a floor area of 1.35 million square meters. Furthermore, Southern Italy experienced growth in the residential sector due to the rise of “smart working” and work-from-home setups. Also, the country’s low property tax is boosting house ownership in the sector.

 construction industry

The Construction Sector is Experiencing Significant Growth

The Italian construction sector was hard hit by the pandemic, but despite the crisis, the sector has been recovering to the pre-pandemic levels. Construction activities in the residential sector, infrastructure sector, and commercial sector increased significantly. For instance, in January 2022, the architecture studio Barreca & La Varra designed a social housing project for Milan called L'Innesto, which will be carbon-neutral and encourage community self-management through shared spaces. This project includes 400 apartments, 300 student housing units, and four hectares of public green space.

Furthermore, the infrastructure sector is witnessing robust growth in construction activities because under the National Plan for Recovery and Resilience (PNRR), the Italian government approved USD 266 billion in 2021 for the renovation of the country’s economy from the pandemic crisis. From this recovery and resilience plans (RRPs) infrastructure for the sustainable mobility mission, the government has allocated EUR 32.0 billion for infrastructural investment, including EUR 28.3 billion in high-speed railways and road maintenance EUR 4 billion as well as EUR 3.7 billion in intermodal transport and integrated logistics.

Under the RRPs mission 3, megaprojects will be constructed in the span of five years (2021-2026), such as the construction of Southbound high-speed rail links for passengers and freight, high-speed lines in the north connecting Europe, diagonal connections, and increasing port capacity by expanding the port constructions.

Furthermore, in January 2022, the construction output slightly declined by 0.9% over the previous month, despite the decline in the production index in construction increasing by 4%. In addition, year-on-year, the unadjusted index for construction output increased by 17.2%, while the calendar-adjusted index rose by 13.2% in January 2022.

italy construction market size

Competitive Landscape

The report covers the major players operating in the Italian construction market. The Italian market is highly competitive, with several players competing for the major share. The market is fragmented, and it is expected to grow during the forecast period due to the increase in construction investments and upcoming major projects in the country. Furthermore, most of the players in the market are expanding their business by investing strategically in partnerships, acquisitions, etc. Some of the major players include Saipem, WeBuilder, Bentini Construction SpA, Grandi Lavori Fincosit SpA, etc.

Recent Developments

In December 2021, European Investment Bank (EIB) supported the construction and renovation of energy-efficient housing units in the Autonomous Province of Bolzano with a framework investment of EUR 126 million for the construction of 280 new affordable and energy-efficient housing units and enhancement of the energy efficiency of 6,450 existing units, benefiting 6,730 people through this investment.

In August 2021, Webuild (an Italian infrastructure giant) completed the acquisition of the tunneling specialist Seli Overseas. This acquisition will allow the firm to progress with its plan to consolidate the ownership of Italy’s construction sector, titled Progetto Italia. In addition, Seli Overseas has already undertaken several projects with Webuild Group in Italy and internationally, including the under-construction Terzo Valico dei Giovi high-speed line between Milan and Genoa.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Economic and Construction Market Scenario

    2. 4.2 Technological Innovations in the Construction Sector

    3. 4.3 Insights into Costs Related to Construction and Building Materials

    4. 4.4 Impact of Government Regulations and Initiatives on the Industry

    5. 4.5 Value Chain/Supply Chain Analysis

    6. 4.6 Impact of the COVID-19 Pandemic on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

    2. 5.2 Market Restraints

    3. 5.3 Market Opportunities

    4. 5.4 Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers / Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 Sector

      1. 6.1.1 Residential

      2. 6.1.2 Commercial

      3. 6.1.3 Industrial

      4. 6.1.4 Infrastructure

      5. 6.1.5 Energy and Utilities

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles

      1. 7.2.1 GLF SpA

      2. 7.2.2 Bentini Construction SpA

      3. 7.2.3 Salcef Group SpA

      4. 7.2.4 SAIPEM SpA

      5. 7.2.5 Webuild

      6. 7.2.6 Cooperativa Muratori Cementisti Ravenna

      7. 7.2.7 MaireTecnimont Spa

      8. 7.2.8 Astaldi SpA

      9. 7.2.9 Rizzani de Eccher SpA

      10. 7.2.10 Cimolai SpA

      11. 7.2.11 Impresa Pizzarotti & C. SpA

      12. 7.2.12 Bonatti Societa per Azioni

      13. 7.2.13 Itinera*

    3. *List Not Exhaustive
  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

  9. 9. APPENDIX

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Frequently Asked Questions

The Italy Construction Market market is studied from 2018 - 2027.

The Italy Construction Market is growing at a CAGR of >4.5% over the next 5 years.

GLF SpA, Bentini Construction SpA, Salcef Group SpA, SAIPEM SpA, Webuild are the major companies operating in Italy Construction Market.

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