Germany Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2030 (Q1 2026)
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GlobalData forecasts the German construction industry to register a real term growth of 2.1% in 2026, supported by a favorable inflation rate, higher investments in housing and infrastructure, and a rise in Gross Fixed Capital Formation (GFCF). According to Destatis, the total nominal Gross Fixed Capital Formation (GFCF) in construction grew by 2.5% in 2025. By segments, GFCF in civil engineering works rose by 6.2% in 2025, while that for non-residential buildings rose by 4.6%, and residential buildings by 1%, during the same period. Also, according to Destatis, the inflation rate in the country fell to 1.8% in December 2025, compared to 2.3% recorded in November 2025. In January 2026, the European Investment Bank (EIB) announced EUR175 million ($202.7 million) for the financing of new housing and energy projects in the country. Also, in January 2026, the local government of Dresden announced that it plans to construct 21,000 new apartments in the region by 2035, at an annual rate of 1,900 apartments per year. However, rising labor prices, rising government debt, and widening budget deficit are likely to impact the growth of the construction industry over the short to medium-term.
The German construction industry is expected to register an average annual growth rate of 3.5% between 2027 and 2030, supported by investments in manufacturing and energy construction projects, coupled with the government's goal of having 15 million electric vehicles (EVs) on the road by 2030. In line with this, the government in January 2026 announced an EV incentive scheme worth EUR3 billion ($3.5 billion) running until 2029. Under this scheme, the government will pay an EV buyer between EUR1,500 to 6,000 ($1,737.7 to $6,950.9), depending on the model of the vehicle and the household’s earnings and size. Growth over the forecasted period will also be supported by the government’s target to generate 80% of electricity from renewables by 2030 and achieve carbon neutrality by 2045. In line with this, in February 2026, the government announced EUR6 billion ($7 billion) for green hydrogen infrastructure and carbon capture projects. Also, in the same month, the government introduced the Hydrogen Acceleration Act to remove red tape and fast-track the hydrogen projects.
GlobalData’s Construction in the Germany – Key Trends and Opportunities to 2030 (Q1 2026) report provides detailed market analysis, information, and insights into the German construction industry, including:
• The German 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 German construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Germany. It provides:
• Historical (2021–2025) and forecast (2026–2030) valuations of the construction industry in Germany, 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
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