Summary

Growth in the Italian construction industry picked up slightly in 2018, with output expanding by 1.7% in real terms that year, improving from 0.7% in 2017 and 0.4% in 2016. This outcome was driven mainly by the government’s investment in transport and energy infrastructure projects, coupled with private investment in the services sector.

Investment in housing, transport, energy and tourism infrastructure projects is expected to support the industry output over the forecast period (2019-2023). In March 2019, the government signed an agreement with the Chinese government worth EUR2.5 billion (US$2.8 billion) for a range of projects as part of a new “Silk Road” in the country. However, the high budget deficit, unemployment rate and sluggish economic growth are expected to constrain the industry’s growth over the forecast period.

The industry’s output value in real terms is expected to record a compound annual growth rate (CAGR) of 1.73% over the forecast period - up from 0.47% during the review period (2014-2018). The industry is consequently expected to rise from US$226.4 billion in 2018 to US$246.7 billion in 2023, measured at constant 2017 US dollar exchange rates.

Residential construction was the largest market in the Italian construction industry during the review period, accounting for 57.9% of its total value in 2018. The market is expected to retain its position over the forecast period, constituting a 57.8% share of the industry’s total value in 2023. Market growth over the forecast period will be supported by the low housing loan interest rate and government efforts to balance housing demand. Infrastructure construction accounted for 15.7% of the industry’s total output in 2018, followed by commercial construction with 11.1%, institutional construction with 7.3%, energy and utilities construction with 4.7% and industrial construction with 3.3%.

The total construction project pipeline in Italy including all mega projects with a value above US$25 million - stands at EUR152.5 billion (US$179.7 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 74.6% of the pipeline value being in projects in the pre-execution and execution stages as of August 2019.


Scope

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

  • Historical (2014-2018) and forecast (2019-2023) 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




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