Summary

Sweden’s construction industry registered a growth of 4.4% in real terms in 2018, following an average annual growth of 4% during the preceding four years. Consequently, the industry’s output value, measured at constant 2017 US dollar exchange rates, increased from US$63.4 billion in 2017 to US$66.2 billion in 2018; this growth can be attributed to positive developments in economic conditions, improvement in investor confidence, and public and private sector investments in infrastructure, energy and housing construction projects.

The industry’s output is expected to contract during the early part of the forecast period (2019-2023), however, due to a decrease in domestic demand and private consumption, a weak housing sector and a decline in private sector investments in the country. Weakness in the Swedish krona (SEK) and overall slow economic growth is also expected to hamper the industry’s growth. In real terms, the industry is expected to contract by 2.5% in 2019, 1.3% in 2020 and 0.1% in 2021. Over the remaining part of the forecast period, however, the industry is expected to recover, mainly due to the government’s investment in transport infrastructure.

The industry’s output value in real terms is expected to post a compound annual growth rate (CAGR) of 0.03% over the forecast period. The industry is consequently expected to rise marginally, from a value of US$66.2 billion in 2018 to US$66.3 billion in 2023, measured at constant 2017 US dollar exchange rates.

Residential construction was the largest market in the Swedish construction industry during the review period (2014-2018), accounting for 50.4% of its total value in 2018. The market is expected to shrink over the forecast period, to account for 45.2% of the industry’s total value in 2023, due to the oversupply of residential buildings and tightened credit policies.

Infrastructure construction accounted for 15.3% of the industry’s total output in 2018, followed by commercial construction with 13.3%, industrial construction with 10.6%, institutional construction with 5.5% and energy and utilities construction with 4.9%.

The total construction project pipeline in Sweden including all mega projects with a value above US$25 million - stands at SEK1.1 trillion (US$124.6 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards early-stage development projects, with 55.6% of the project pipeline by value in the pre-planning and planning stages as of July 2019.


Scope

This report provides a comprehensive analysis of the construction industry in Sweden. It provides -

  • Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Sweden, 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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