Construction In Denmark – Key Trends And Opportunities To 2023

Denmark’s construction industry regained growth momentum in 2018, with output expanding by 5.7% in real terms – up from 3.3% in 2017. Growth during the review period (2014-2018) averaged 6.2% a year, and was supported by public and private sector investment in infrastructure, energy and residential construction projects. Financial assistance from the European Union (EU) to develop the country’s overall infrastructure also supported industry growth during the review period. In the current Multiannual Financial Framework (2014-2020), the EU plans to allocate DKK11.1 billion (US$2.0 billion) to Denmark, of which DKK7.2 billion (US$1.3 billion) was allocated by the end of 2018.

The industry is expected to continue to expand over the forecast period (2019-2023), however, with a decelerating growth rate. The industry's output is forecasted to register growth rates of 3.3% in 2019 and 3.1% in 2020. Growth will be supported by investment in commercial, infrastructure and renewable energy projects. To reduce traffic congestions in the country, the government is focusing on the development of road and rail transport infrastructure. Moreover, the government’s plan to make the country fossil fuel-free by 2050 will attract investment in renewable energy infrastructure.

The industry’s output value in real terms is expected to post a CAGR of 2.94% over the forecast period.

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

– The Danish 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 Danish 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 energy and utilities construction market to record a forecast-period CAGR of 7% in nominal terms, driven by the government’s focus on developing the renewable energy infrastructure in the country. In June 2018, the government signed an energy agreement which strengthens the country’s goal of becoming free from fossil fuels by 2050, and producing 55% of its total energy from renewable energy sources by 2030. As a part of this agreement, the government plans to build three off-shore wind farms with a combined capacity of 2,400MW by 2030.

– Growth in the commercial construction market will be supported by investment in logistic buildings, due to rising online e-commerce activity in the country. To support rising demand for e-commerce across the world and provide timely and quality services, in January 2019 the Germany-based logistics company DHL announced plans to expand its business by constructing a logistics hub at Copenhagen International airport. The plan is to invest DKK1 billion (US$0.2 billion) on the construction of a 26,172m2 building, which would also include office buildings. The project is slated for completion in 2023.

– GlobalData expects the infrastructure construction market to record a forecast-period CAGR of 6.58% in nominal terms, driven by the government’s focus on improving regional connectivity and investing in new transport networks to reduce travel times. The Fehmarnbelt Fixed Link project aims at connecting Denmark and Germany by a combined road and rail tunnel to reduce transit time. The project involves an investment of DKK52.6 billion (US$8.2 billion) to construct a double-track electrified railway track and a four-lane motorway by 2028. In March 2019, the Danish government announced that construction on the Danish side of the project would commence in the third quarter of 2019.

– Forecast-period growth in the institutional construction market is expected to be driven the government’s focus on strengthening research and development (R&D) in the country. In November 2018, the government announced its plan to invest DKK1.4 billion (US$0.2 billion) on R&D throughout 2019. Moreover, in July 2019, the government announced plans to invest DKK1.5 billion (US$0.2 billion) to develop R&D in Artificial Intelligence (AI) in order to reduce costs in the energy, construction, healthcare and transport sectors.

– The total construction project pipeline in Denmark – as tracked by GlobalData, and including all mega projects with a value above US$25 million – stands at DKK490.2 billion (US$77.6 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 59.3% 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 Denmark. It provides –

– Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Denmark, 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: Denmark, Key Economic Indicators

Table 3: Denmark, Construction Output Value (nominal, DKK Million)

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

Table 5: Denmark, Top Commercial Construction Projects by Value

Table 6: Denmark, Top Industrial Construction Projects by Value

Table 7: Denmark, Top Infrastructure Construction Projects by Value

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

Table 9: Denmark, Top Institutional Construction Projects by Value

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

Table 11: Denmark, Key Contractors

Table 12: Denmark, 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: Denmark, Construction Projects Pipeline by Sector (DKK Billion)

Figure 3: Denmark, House Price Index

Figure 4: Denmark, Risk Profile

Figure 5: Denmark, Risk Comparison

Figure 6: Denmark, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)

Figure 7: Denmark, Construction Output Value, Growth Matrix

Figure 8: Denmark, Construction Output Value, by Sector (DKK Million), 2014-2023

Figure 9: Denmark, Construction Projects Pipeline, Projected Annual Spending by Stage (DKK Million), 2018-2023

Figure 10: Denmark, Construction Projects Pipeline, Value by Stage (DKK Million)

Figure 11: Denmark, Commercial Construction Output by Project Type (DKK Million), 2014-2023

Figure 12: Denmark, Commercial Construction Projects Pipeline, Value by Stage (DKK Million)

Figure 13: Denmark, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (DKK Million), 2018-2023

Figure 14: Denmark, Industrial Construction Output by Project Type (DKK Million), 2014-2023

Figure 15: Denmark, Industrial Construction Projects Pipeline, Value by Stage (DKK Million)

Figure 16: Denmark, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (DKK Million), 2018-2023

Figure 17: Denmark, Infrastructure Construction Output by Project Type (DKK Million), 2014-2023

Figure 18: Denmark, Infrastructure Construction Projects Pipeline, Value by Stage (DKK Million)

Figure 19: Denmark, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (DKK Million), 2018-2023

Figure 20: Denmark, Energy and Utilities Construction Output by Project Type (DKK Million), 2014-2023

Figure 21: Denmark, Energy and Utilities Construction Projects Pipeline, Value by Stage (DKK Million)

Figure 22: Denmark, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (DKK Million), 2018-2023

Figure 23: Denmark, Institutional Construction Output by Project Type (DKK Million), 2014-2023

Figure 24: Denmark, Institutional Construction Projects Pipeline, Value by Stage (DKK Million)

Figure 25: Denmark, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (DKK Million), 2018-2023

Figure 26: Denmark, Residential Construction Output by Project Type (DKK Million), 2014-2023

Figure 27: Denmark, Residential Construction Projects Pipeline, Value by Stage (DKK Million)

Figure 28: Denmark, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (DKK Million), 2018-2023

Figure 29: Denmark, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)

Figure 30: Denmark, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)

Figure 31: Denmark, Headquarters of Key Consultants (% of Total Project Pipeline)

Figure 32: Denmark, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)

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