Germany Construction Industry Report 2025 | Output to Decline by 1.8% in Real-terms this Year, Marking the 5th Consecutive Year of Decline - Forecast to 2029 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Germany Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)" report has been added to ResearchAndMarkets.com's offering.

Construction industry in Germany to decline in real terms by 1.8% in 2025, marking its fifth consecutive year of decline; the industry's weakness in 2025 is attributed to headwinds caused by high construction material costs and weak external demand, coupled with a decline in permits approved for buildings.

According to Destatis, the total number of building permits approved fell by 0.2% year-on-year (YoY) in the first three months of 2025, following an overall annual fall of 11.5% in 2024. Similarly, the construction production index declined by 3.3% YoY in the first three months of 2025, following an overall annual fall of 3.3% in 2024, according to Eurostat.

In another setback to the industry's output, the announcement of US tariffs on European imports is likely to weigh on the export-driven economy of Germany, making it vulnerable to rising trade barriers. The major export from Germany to the US is vehicles, especially cars. In 2024, Germany exported approximately 3.4 million new cars worldwide, worth EUR135 billion ($147.1 billion), with the US being a major importer.

The German construction industry is expected to recover at an average annual growth rate of 3.1% between 2026 to 2029, supported by the government's investments in transport and energy projects. Growth will be supported by investments in renewable energy projects, in line with the government's plan to generate 80% of electricity from renewable energy sources by 2030 and become carbon neutral by 2045.

Among the recent developments, in May 2025, the German electric utility EnBW Energie Baden-Wuerttemberg AG announced that it is planning to invest EUR50 billion ($54.5 billion) in the transformation of the energy system by 2030. The plan aims to expand transmission and distribution networks and construct new wind and solar power plants, including the planned hydrogen core network.

Scope

• Historical (2020-2024) and forecast (2025-2029) 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

Reasons to Buy

• Identify and evaluate market opportunities using our 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 business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

• Outlook
• Latest news and developments
• Construction Projects Momentum Index

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/a5aagu

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