Europe Construction Industry Databook 2024 - Tech Giants Expanding Data Center Capacity to Aid Construction Sector Growth Across Europe - ResearchAndMarkets.com

The "Europe Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.

The construction market is expected to recover over the medium term in Europe. The macroeconomic factors, including elevated inflation and interest rates, have dampened the market growth in 2024. However, infrastructure spending by the government in the United Kingdom and Germany is also expected to drive the growth recovery of the construction market in 2024.

The gross domestic product (GDP) increased by 0.2%, according to the Office for National Statistics, in January 2024. The growth was primarily driven by a stronger-than-expected performance in the construction sector. The investments by global tech firms in data center construction projects will also lend support to the recovery of the broader construction industry over the medium term in Europe.

Construction market drives economic growth in the recession-hit United Kingdom

The gross domestic product (GDP) increased by 0.2%, according to the Office for National Statistics, in January 2024. It comes after a slight contraction of 0.1% in December, with the United Kingdom economy experiencing a mild recession in H2 2023.

The growth was primarily driven by a stronger-than-expected performance in the construction sector, which saw a 1.1% increase in output for January. However, over a three-month period, construction output decreased by 0.9%. Despite the monthly growth, when compared to January of the previous year, GDP was estimated to have contracted by 0.3%. Additionally, over the three months leading up to January 2024, GDP fell by 0.1%.

The recovery in the United Kingdom construction market is expected to keep providing growth support to the broader economy over the medium term. As the infrastructure spending by the government is expected to rise, the publisher maintains a strong growth recovery in the construction sector over the next three to four years.

Homebuilding permits continue to decline significantly in the German market in 2024

In Germany, building permits for apartments declined by 18.3% in February 2024, compared to the year before. The data, according to the German government, underscores the continued downturn in demand in the construction and real estate market.

The government data shows that some 18,200 permits were issued, which is 4,100 less compared to the 2023 period. The number of building permits, notably, is a good indicator of the health of the construction industry. The German Property Federation has called on the states to cut property sales tax to stem the decline.

For years, real estate has been a major growth driver for the German economy. Driven by low-interest rates, billions of dollars were invested into the property sector in Germany. However, the sharp increase in interest rates over the last 12 months has put an end to the flourishing construction industry. With rates expected to remain at elevated levels in H1 2024, the short-term outlook for the market remains bleak in Germany.

Tech giants expanding data center capacity will aid construction sector growth across Europe

Several leading tech giants are planning to expand their data center capacity in the European region. Microsoft, Google, and TikTok are among the tech firms that have announced new data center construction projects in 2024.

• Microsoft, for instance, has announced new data center projects in the United Kingdom and Sweden. The US$3.2 billion project in the United Kingdom is aimed at meeting the rising demand among its customers.
• TikTok has also pledged €12 billion in European investments, part of which will be used for the construction of three data centers in the region. Construction activities on the previously announced Norwegian data center have also begun, as of November 2023.

Google, in January 2024, announced a US$1 billion investment towards the development of a new data center in the United Kingdom. This is part of the firm's strategy to expand its data center presence in the European market. These investments, in the commercial construction sector, are projected to support the growth of the broader market over the medium term.

This report provides data and trend analyses on Europe construction industry, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 1,500+ charts and 1,200+ tables. It details market size & forecast, top cities construction data, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.

This title is a bundled offering, comprising 10 country reports. Each country report covers the following modules:

• Market Dynamics by Value, Volume, and No. of Units: Provides a comprehensive data-centric view of size and structure, industry dynamics, and end market opportunities in the building and infrastructure construction industry.
• Residential Construction Outlook: Provides market analysis by type of construction, development stage, price point, and key cities. KPIs include value, volume and number of units.
• Commercial Construction Outlook: Provides construction outlook by value and volume across office buildings, retail buildings, hospitality buildings, restaurant buildings, and sports facilities.
• Institutional Construction Outlook: Provides construction outlook by value and volume across manufacturing plant buildings, metal & material processing buildings, chemical & pharmaceutical buildings.
• Industrial Construction Outlook: Provides construction outlook by value and volume across manufacturing plants, educational buildings.
• Infrastructure Construction Outlook: Provides growth dynamics and market analysis by three key sections such as marine and inland, utility system and transport infrastructure construction.
• City Level Analysis: Provides outlook of top 10 cities by construction value for each country.

Report Scope

Each country report covers the following:

Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2019 - 2028. KPIs covered include the following:

• Market size by value
• Market size by volume of construction
• Number of units
• Economic Indicators

Top Cities Construction Data

Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Other commercial building construction
• Construction stage (new construction, re-development & maintenance)

Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

• Manufacturing Plants building construction
• Chemical & Pharmaceutical building construction
• Metal & Material Processing building construction
• Construction stage (new construction, re-development & maintenance)

Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction
• Educational construction
• Other building construction
• Construction stage (new construction, re-development & maintenance)

Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction
• Educational green building construction

Infrastructure Construction Sectors: 10- year market size & forecast in value terms by

• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

Green Infrastructure Construction: 10- year market size & forecast in value terms

Construction Cost Structure Analysis: 10- year market size & forecast in value terms

• Cost Analysis by Type (Material, Labour, Equipment, Others)
• By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
• By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
• By Type of Construction (New, Re-Development)
• By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
• Type of Labour (Skilled Vs Unskilled)
• Type of Labour (Skilled Vs Unskilled) 

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