The biggest concern in the construction sector of the European Union (EU-27) was insufficient demand. Approximately 33 percent of respondents as of January 2025 mentioned that insufficient demand was limiting their activities. However, there was an even higher percentage of construction companies that mentioned that there were no constraints limiting their activities.

Europe construction market size reached US$ 3.38 Billion in ​2023​. Looking forward, IMARC Group expects the market to reach US$ 5.42 Billion by ​2032​, exhibiting a growth rate (CAGR) of 5.10% during 2024-2032. The market is mainly driven due to rapid urbanization, along with an increasing number of infrastructure projects and green building initiatives. The rising demand in residential and commercial sector mainly in Germany, France and the United Kingdom is also driving the market toward growth across the European region.

Germany, France, and Italy were the European countries with the highest construction turnover as of 2023. That year, Germany had a revenue of 426 billion euros, followed by France at 401 billion euros. In 2023, the construction turnover of the EU as a whole amounted to approximately 2.3 trillion euros.

The total turnover of the construction industry in the European Union (EU-27) increased by roughly 155 billion euros in 2023. That year, the turnover peaked at 2.3 trillion euros. For comparability's sake, these figures show the size of the current EU-27 even for the years when the EU had a different number of member states. In 2023, Vinci (France) was the biggest construction firm in Europe.

Europe's Residential Construction Market Report is Segmented by Property Type (single-Family and Multi-Family), Construction Type (new Construction and Renovation), and Country (Germany, United Kingdom, France, Italy, and the Rest of Europe). The Europe Residential Construction Market Report Offers the Market Sizes and Forecasts in Value (USD) for all the Above Segments

Eastern Europe Construction Market. The market is segmented by Sector (Residential, Commercial, Industrial, Infrastructure (Transportation), Energy and Utilities) by Geography (Romania, Hungary, Croatia, Ukraine, Bulgaria and Rest of Eastern Europe)

In 2022, there were nearly 11 million workers in the construction industry of the European Union (EU-27). Most of those workers were employed in the specialized construction activities, which includes demolition, site preparation, and certain trades such as electrical installation, HVAC installation, plumbing, roofing, painting, scaffolding, etc. Building construction was the second segment with the highest number of employees.

The production of the construction industry in the European Union (EU-27) decreased slightly in 2020. That year, it was valued at roughly 1.66 trillion euros, while the previous year it reached 1.71 trillion euros. That year, the annual turnover of the EU-27 amounted to approximately 1.7 trillion euros.

The Report Covers Europe Transportation Infrastructure Construction Companies and It is Segmented by Mode (roads, Railways, Airways, and Waterways) and Country (Germany, The UK, France, Spain, Italy, The Netherlands, and the Rest of Europe). The Market Size and Forecasts are Provided in Terms of Values (in USD) for all the Above Segments.

Building contractors and developers depend on various socio-economic factors, including property values, underlying sentiment in the housing market, the degree of optimism among downstream businesses and credit conditions. All of these drivers typically track in line with economic sentiment, with recent economic shocks spurring a difficult period for building contractors and developers. Nonetheless, the enduring need for building services, particularly to tackle housing shortages across the continent, ensures a strong foundation of work. Revenue is forecast to decline at a compound annual rate of 2.9% to €1.1 trillion over the five years through 2024. Building construction output recorded strong and consistent growth across Europe in the years leading up to the pandemic, buoyed by rising house prices and a return to economic stability as the effects of the financial crisis faded. Operational and supply chain disruption caused by the pandemic reversed the fortunes of building contractors and developers in 2020, as on-site activity tumbled and downstream clients either cancelled, froze or scaled back investment plans. Aided by the release of pent-up demand and supportive government policy, building construction output rebounded in 2021. Excess demand for key raw materials led to extended lead times during this period, while input costs recorded a further surge as a result of the effects of rapidly climbing energy prices following Russia’s invasion of Ukraine. Soaring costs and the impact of the economic slowdown on both the housing market and investor sentiment have led to a renewed slowdown in building construction activity across the continent. Revenue is forecast to decline by 1.5% in 2024. Revenue is forecast to increase at a compound annual rate of 4.9% to €1.5 trillion over the five years through 2029. Activity is set to remain sluggish in the medium term, as weak economic growth continues to constrain investor sentiment and high borrowing costs hold back the housing market. Contractors and developers will increasingly rely on public sector support, including measures to boost the supply of new housing as countries seek to tackle severe housing shortages.

The Europe Heavy Construction Equipment Market Report is Segmented by Machinery Type (Cranes, Telescopic Handling, Excavators, Loaders and Backhoes, Motor Graders, and Other Machinery Types), Drive Type (IC Engines and Electric and Hybrid), and Country (Germany, United Kingdom, France, Russia, Spain, and Rest of Europe). The Report Offers Market Size and Forecasts for European Construction Equipment in Value (USD) for all the Abovementioned Segments.

The Europe construction material handling machinery market was valued at USD 55.5 billion in 2024 and is projected to grow at a CAGR of 5.1% from 2024 to 2030.

The report covers Modular Construction For High Rise Buildings Market and is segmented by Type (Permanent and Relocatable), by Material (Steel, Concrete, Wood, Plastic), by End-user (Commercial, Industrial/Institutional, and Residential), and by Geography (Germany, United Kingdom, France, Italy, and the Rest of Europe). The report offers market sizes and forecasts for all the above segments in revenue (in USD million).

The Directorate General for Economic and Financial Affairs of the European Commission conducts regular harmonised surveys for different sectors of the economies in the European Union (EU) and in the applicant countries. They are addressed to representatives of the industry (manufacturing), services, retail trade and construction sectors, as well as to consumers. These surveys allow comparisons among different countries' business cycles and have become an indispensable tool for monitoring the evolution of the EU and the euro area economies, as well as monitoring developments in the applicant countries. Url of original source : https://ec.europa.eu/info/business-economy-euro/indicators-statistics/economic-databases/business-and-consumer-surveys/download-business-and-consumer-survey-data/time-series_en

In 2024, the size of the construction sector as a share of its gross domestic product (GDP) increased in Germany and the Netherlands. There was no data available for the UK, but the relative size of its construction industry rose in 2023. The size of the construction sector in Poland as a share of its GDP decreased the most in the past years, from 8.1 percent in 2020 to 6.9 percent in 2024. When looking at the continent as a whole, Albania and Romania were the countries with the highest construction sector as a share of their GDP in Europe.

Construction output In the Euro Area decreased 0 percent in January of 2025 over the same month in the previous year. This dataset provides the latest reported value for - Euro Area Construction Output - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Graph and download economic data for Total Industry Production Excluding Construction for the European Union (PRINTO01EUQ659S) from Q3 1976 to Q4 2019 about EU, Europe, IP, and construction.

Europe buildings and construction sheets market is segmented by material (bitumen, rubber, metal and polymer), by end user (residential, commercial and industrial) and by country (UK, Germany, France and Rest of Europe). The report offers market size and forecasts for Europe Building & Construction Sheets Market in value (USD Billion) for all the above segments.

Europe Residential Construction Market size was valued at USD 1.08 Trillion in 2024 and is projected to reach USD 1.64 Trillion by 2032, growing at a CAGR of 5.4% from 2026 to 2032.

Europe Residential Construction Market Drivers

Rising Demographic Shifts and Urbanization Trends: The continuous migration to urban centers across Europe is increasing the housing demands, particularly in major metropolitan areas. According to Eurostat’s 2023 data, 75% of the EU population now resides in urban areas, marking a 2.3% increase from the previous year. This urbanization trend has created substantial pressure on residential construction, especially in cities like Berlin, Paris, and Amsterdam, where housing shortages have become increasingly acute.

Growing Sustainable Building Requirements: European nations are witnessing a fundamental shift toward sustainable and energy-efficient housing construction. The European Commission reported in November 2023 that 42% of new residential building permits across the EU now incorporate renewable energy systems. This transformation is driven by stringent environmental regulations, including the EU’s Energy Performance of Buildings Directive, which mandates nearly zero-energy buildings for all new construction.

Escalating Government Housing Initiatives: The European government has intensified its commitment to addressing housing shortages through various support programs and incentives. The German Federal Statistical Office revealed in January 2024 that government spending on residential construction subsidies reached €18.2 billion, representing a 15% increase year-over-year. These initiatives have particularly focused on affordable housing development and first-time homebuyer assistance programs.

In 2023, Montenegro was the EU country with the highest share of construction companies using artificial technologies. Construction firms can use artificial intelligence to automate their processes or to assist in decision-making. Around 4.7 percent of all construction companies in the Netherlands used AI technologies in their processes.