Italy Construction Industry Report 2025: Output to Contract by 0.8% This Year and 4.1% in 2026, Owing to Declining Building Permits, Rising Public Debt, Weaker Residential and Industrial Construction - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Italy Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q3 2025)" report has been added to ResearchAndMarkets.com's offering.

The analyst expects the Italian construction industry to contract in real terms by 0.8% in 2025 and 4.1% in 2026, owing to declining building permits issued, rising public debt, and a weaker residential and industrial construction sector.

According to the Italian National Institute of Statistics (Istat), the business confidence index in the construction industry declined by 1% year-on-year (YoY) in the first eight months of 2025, preceded by an annual decline of 2.3% in 2024. According to Istat, the total floor area for new residential and non-residential buildings issued fell by 11.7% YoY in Q1 2025, preceded by a YoY decline of 6% in Q4 and a growth of 8.3% in Q3 2024. Moreover, Italy is facing major challenges due to the new US tariffs, which threaten the country's export-driven economy. The US President Donald Trump announced a 30% tariff on imports from all EU countries starting from August 1, 2025.

Over the remainder of the forecast period, the Italian construction industry is however expected to recover in 2027 and record an average annual growth of 1.4% between 2027 and 2029, supported by investments in energy, transport infrastructure, and hospitality sectors, coupled with the government's aim to increase the share of renewable energy in the total power mix from 18.5% in 2022 to 59% in 2030.

In line with this, in March 2025, the government-owned national transmission grid operator, Terna, approved an updated 2024-28 Industrial Plan with a record investment of EUR17.7 billion ($19.3 billion) to develop the energy sector, which is EUR1.2 billion ($1.3 billion) more than the previous plan, which was presented in March 2024, representing a 7% increase. The plan targets the integration of 107GW of renewable capacity by 2030 and aims for a 40% increase in cross-border electricity exchange capacity by expanding and strengthening the national transmission grid

Scope

• Historical (2020-2024) and forecast (2025-2029) 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 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/c8f1eq

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