Construction In Italy – Key Trends And Opportunities To 2023

Growth in the Italian construction industry picked up slightly in 2018, with output expanding by 1.7% in real terms that year, improving from 0.7% in 2017 and 0.4% in 2016. This outcome was driven mainly by the government’s investment in transport and energy infrastructure projects, coupled with private investment in the services sector.

Investment in housing, transport, energy and tourism infrastructure projects is expected to support the industry output over the forecast period (2019–2023). In March 2019, the government signed an agreement with the Chinese government worth EUR2.5 billion (US$2.8 billion) for a range of projects as part of a new “Silk Road” in the country. However, the high budget deficit, unemployment rate and sluggish economic growth are expected to constrain the industry’s growth over the forecast period.

The industry’s output value in real terms is expected to record a compound annual growth rate (CAGR) of 1.73% over the forecast period – up from 0.47% during the review period (2014–2018).

GlobalData’s Construction in Italy – Key Trends and Opportunities to 2023 report provides detailed market analysis, information and insights into the Italian construction industry, including:

– The Italian 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 Italian construction industry

– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Key Highlights

– GlobalData expects the residential construction market to retain its leading position over the forecast period and account for 57.8% share of the industry’s total value in 2023, driven by low housing loan interest rate and the government’s effort to provide affordable houses to the citizens. In the 2019 budget, the government announced plans to provide individual loans of up to EUR200,000 (US$235,737) to low- and middle-income families for a zero-interest rate to construct their first home.

– To support economic development and growth, the government is focusing on development of a broadband network across the country, through which the government aims to create investment opportunities and ensure social and economic inclusion. The government plans to spend EUR11 billion (US$12.4 billion) to deploy an ultra-fast broadband network across the country to meet the EU’s target to provide internet access to all households by 2020.

– GlobalData expects the energy and utilities construction market to post a forecast-period CAGR of 4.21% in nominal terms, supported by the government’s aims to generate 30% of the total energy consumption from renewable sources by 2030. Accordingly, the government plans to generate 50GW of power from solar photovoltaic (PV), 18.4GW from wind energy, 3.8GW from bioenergy and 950MW from geothermal. Moreover, in January 2019, the government issued the new National Integrated Plan for Climate and Energy 2030, under which it announced plans to increase the solar energy target from 72TWh to 74TWh by 2030.

– Forecast-period growth in the infrastructure construction market will be driven by the government’s focus on the development, modernization and maintenance of transport infrastructure. In March 2019, the government signed an agreement with China’s government worth EUR2.5 billion (US$2.8 billion) under the country’s Belt and Road Initiative. In June 2018, the government announced plans to spend EUR1.6 billion (US$1.9 billion) on the maintenance of transport infrastructure within metropolitan and provincial areas across the country during 2018–2023.

– The total construction project pipeline in Italy – as tracked by GlobalData, and including all mega projects with a value above US$25 million – stands at EUR152.5 billion (US$179.7 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 74.6% of the pipeline value being in projects in the pre-execution and execution stages as of August 2019.

Scope

This report provides a comprehensive analysis of the construction industry in Italy. It provides –

– Historical (2014–2018) and forecast (2019–2023) valuations of the construction industry in Italy, 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 GlobalData's 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 strategy using GlobalData's critical and actionable insight.

– Assess business risks, including cost, regulatory and competitive pressures.

– Evaluate competitive risk and success factors.

Table of Contents

Table of contents

1 Executive Summary

2 Construction Outlook: At-a-glance

3 Latest News and Indicators

4 Key Drivers and Risks

4.1. Economic Performance

4.2. Political Environment

4.3. Demographics

4.4. Risk Profile

5 Construction Outlook

5.1. All Construction

5.1.1. Outlook

5.1.2. Project analytics

5.2. Commercial Construction

5.2.1. Outlook

5.2.2. Project analytics

5.3. Industrial Construction

5.3.1. Outlook

5.3.2. Project analytics

5.4. Infrastructure Construction

5.4.1. Outlook

5.4.2. Project analytics

5.5. Energy and Utilities Construction

5.5.1. Outlook

5.5.2. Project analytics

5.6. Institutional Construction

5.6.1. Outlook

5.6.2. Project analytics

5.7. Residential Construction

5.7.1. Outlook

5.7.2. Project analytics

6 Key Industry Participants

6.1. Contractors

6.2. Consultants

7 Appendix

7.1. What is this Report About?

7.2. Definitions

8 About GlobalData

8.1. GlobalData at a Glance

8.2. GlobalData Construction

8.3. Disclaimer

8.4. Contact Us

List of Tables

List of Tables

Table 1: Construction Outlook

Table 2: Italy, Key Economic Indicators

Table 3: Italy, Construction Output Value (nominal, EUR Million)

Table 4: Italy, Construction Output Value (nominal, US$ Million)

Table 5: Italy, Top Commercial Construction Projects by Value

Table 6: Italy, Top Industrial Construction Projects by Value

Table 7: Italy, Top Infrastructure Construction Projects by Value

Table 8: Italy, Top Energy and Utilities Construction Projects by Value

Table 9: Italy, Top Institutional Construction Projects by Value

Table 10: Italy, Top Residential and Mixed-Use Construction Projects by Value

Table 11: Italy, Key Contractors

Table 12: Italy, Key Consultants

Table 13: GlobalData Construction Market Definitions

Table 14: Construction Risk Index Ratings and Scores

List of Figures

List of Figures

Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix

Figure 2: Italy, Construction Projects Pipeline by Sector (EUR Billion)

Figure 3: Italy, Total Export Value (EUR, Million)

Figure 4: Italy, New Residential Property Prices Index

Figure 5: Italy, Risk Profile

Figure 6: Italy, Risk Comparison

Figure 7: Italy, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)

Figure 8: Italy, Construction Output Value, Growth Matrix

Figure 9: Italy, Construction Output Value, by Sector (EUR Million), 2014–2023

Figure 10: Italy, Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million), 2018–2023

Figure 11: Italy, Construction Projects Pipeline, Value by Stage (EUR Million)

Figure 12: Italy, Commercial Construction Output by Project Type (EUR Million), 2014–2023

Figure 13: Italy, Commercial Construction Projects Pipeline, Value by Stage (EUR Million)

Figure 14: Italy, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million), 2018–2023

Figure 15: Italy, Industrial Construction Output by Project Type (EUR Million), 2014–2023

Figure 16: Italy, Industrial Construction Projects Pipeline, Value by Stage (EUR Million)

Figure 17: Italy, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million), 2018–2023

Figure 18: Italy, Infrastructure Construction Output by Project Type (EUR Million), 2014–2023

Figure 19: Italy, Infrastructure Construction Projects Pipeline, Value by Stage (EUR Million)

Figure 20: Italy, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million), 2018–2023

Figure 21: Italy, Energy and Utilities Construction Output by Project Type (EUR Million), 2014–2023

Figure 22: Italy, Energy and Utilities Construction Projects Pipeline, Value by Stage (EUR Million)

Figure 23: Italy, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million), 2018–2023

Figure 24: Italy, Institutional Construction Output by Project Type (EUR Million), 2014–2023

Figure 25: Italy, Institutional Construction Projects Pipeline, Value by Stage (EUR Million)

Figure 26: Italy, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million), 2018–2023

Figure 27: Italy, Residential Construction Output by Project Type (EUR Million), 2014–2023

Figure 28: Italy, Residential Construction Projects Pipeline, Value by Stage (EUR Million)

Figure 29: Italy, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million), 2018–2023

Figure 30: Italy, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 31: Italy, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)

Figure 32: Italy, Headquarters of Key Consultants (% of Total Project Pipeline)

Figure 33: Italy, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)

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