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Construction in France - Key Trends and Opportunities to 2022

Construction in France - Key Trends and Opportunities to 2022

Summary

France’s construction industry recovered in 2017, after sustained weakness since 2008. This was driven by positive developments in regional economic conditions, a revival in both investor and consumer confidence and government investment in transport infrastructure. Thus, the country’s construction industry registered growth of 2.6% in 2017 in real terms.

The industry is expected to continue to register positive growth over the forecast period (2018-2022), driven by investments in transport infrastructure, energy, commercial and industrial projects, and improved consumer and investor confidence.

Under the 2030 Agenda for Sustainable Development, the government is focusing on the development of affordable houses as well as renewable energy infrastructure. Accordingly, the government plans to invest EUR5.0 billion (US$5.6 billion) for renewable and sustainable energy infrastructure by 2030. To develop new affordable community houses across the country, the government plans to invest EUR4.0 billion (US$4.5 billion) until 2020.

The industry’s output value in real terms is expected to record a compound annual growth rate (CAGR) of 1.95% over the forecast period - up from -0.19% during the review period (2013-2017).

GlobalData’s Construction in France - Key Trends and Opportunities to 2022 report provides detailed market analysis, information and insights into the French construction industry, including -

  • The French construction industry's growth prospects by market, project type and construction activity.
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the French construction industry.
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Key Highlights
  • GlobalData expects the residential construction market to retain its leading position over the forecast period, with a share of 40.3% of the industry’s total value in 2022. Market growth over the forecast period will be supported by rising residential building permits, the low housing loan interest rate and government efforts to balance housing demand and supply through the construction of affordable houses. Under the Housing First plan, the government plans to build 40,000 affordable housing units per year by 2020.
  • In June 2018, Renault SA announced plans to invest EUR1.0 billion (US$1.2 billion) to boost their production of electric vehicles. Moreover, in January 2018, Toyota announced a plan to invest EUR300.0 million (US$352.9 million) to expand their manufacturing facility in the country. Both of these investments will in-turn help in the development of the industrial construction market over the forecast period.
  • GlobalData expects infrastructure construction market output to record a forecast-period CAGR of 2.51% in nominal terms, supported by the government’s investment on transport infrastructure with an aim to reduce traffic congestion. In February 2018, the government announced plans to spend EUR80.0 billion (US$94.1 billion) on the development of transport infrastructure by 2037. Accordingly, for the period of 2018-2020, the government allocated EUR2.4 billion (US$2.8 billion) annually for the transport infrastructure.
  • Under the Plan de Programmation Pluriannuelle de l'Energie, the government plans to generate 40% of the country’s total energy mix from renewable sources by 2030. Accordingly, the government plans to install 3.0GW of wind power plants during 2017-2023, and another 3.0GW during 2024-2030. The government also plans to install 18.4GW of solar energy power plants by 2023 and 25.0GW of hydropower plants by 2023.
  • The total construction project pipeline in France - as tracked by the Construction Intelligence Center (CIC) and including all mega projects with a value above US$25 million - stands at EUR374.8 billion (US$422.7 billion). The pipeline, which includes all projects from pre-planning to execution, is well balanced, with 49.6% of the pipeline value being in projects in the late stages as of July 2018.
Scope

This report provides a comprehensive analysis of the construction industry in France. It provides -
  • Historical (2013-2017) and forecast (2018-2022) valuations of the construction industry in France, 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 GlobalData's 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 strategy using GlobalData's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.


  • Executive Summary
  • Construction Outlook: At-a-glance
    • Table Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix
    • Table Figure 2: France, Construction Projects Pipeline by Sector (EUR Million)
  • Latest News and Indicators
    • Table Figure 3: France, Total Number of Authorized Dwellings (Units)
    • Table Figure 4: France, Total Housing Loan Issued (EUR, Billion)
    • Table Figure 5: France, Total Authorized Floor Area of Industrial Premises (Area, m2)
  • Key Drivers and Risks
    • Economic Performance
      • Table France, Key Economic Indicators
    • Political Environment
    • Demographics
    • Risk Profile
      • Table Figure 6: France, Risk Comparison, Q2 2018
      • Table Figure 7: France, Risk Comparison Review
  • Construction Outlook
    • All Construction
      • Outlook
        • Table Figure 8: France, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)
        • Table Figure 9: France, Construction Output Value, Growth Matrix
        • Table Figure 10: France, Construction Output Value, by Sector (EUR Million), 2013–2022
      • Project analytics
        • Table Figure 11: France, Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million), 2017–2022
        • Table Figure 12: France, Construction Projects Pipeline, Value by Stage (EUR Million)
        • Table France, Construction Output Value (nominal, EUR Million)
        • Table France, Construction Output Value (nominal, US$ Million)
    • Commercial Construction
      • Outlook
        • Table Figure 13: France, Commercial Construction Output by Project Type (EUR Million), 2013–2022
      • Project analytics
        • Table Figure 14: France, Commercial Construction Projects Pipeline, Value by Stage (EUR Million)
        • Table Figure 15: France, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million)
        • Table France, Top Commercial Construction Projects by Value
    • Industrial Construction
      • Outlook
        • Table Figure 16: France, Industrial Construction Output by Project Type (EUR Million), 2013–2022
      • Project analytics
        • Table Figure 17: France, Industrial Construction Projects Pipeline, Value by Stage (EUR Million)
        • Table Figure 18: France, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million)
        • Table France, Top Industrial Construction Projects by Value
    • Infrastructure Construction
      • Outlook
        • Table Figure 19: France, Infrastructure Construction Output by Project Type (EUR Million), 2013–2022
      • Project analytics
        • Table Figure 20: France, Infrastructure Construction Projects Pipeline, Value by Stage (EUR Million)
        • Table Figure 21: France, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million)
        • Table France, Top Infrastructure Construction Projects by Value
    • Energy and Utilities Construction
      • Outlook
        • Table Figure 22: France, Energy and Utilities Construction Output by Project Type (EUR Million), 2013–2022
      • Project analytics
        • Table Figure 23: France, Energy and Utilities Construction Projects Pipeline, Value by Stage (EUR Million)
        • Table Figure 24: France, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million)
        • Table France, Top Energy and Utilities Construction Projects by Value
    • Institutional Construction
      • Outlook
        • Table Figure 25: France, Institutional Construction Output by Project Type (EUR Million), 2013–2022
      • Project analytics
        • Table Figure 26: France, Institutional Construction Projects Pipeline, Value by Stage (EUR Million)
        • Table Figure 27: France, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million)
        • Table France, Top Institutional Construction Projects by Value
    • Residential Construction
      • Outlook
        • Table Figure 28: France, Residential Construction Output by Project Type (EUR Million), 2013–2022
      • Project analytics
        • Table Figure 29: France, Residential Construction Projects Pipeline, Value by Stage (EUR Million)
        • Table Figure 30: France, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million)
        • Table France, Top Residential and Mixed-Use Construction Projects by Value
  • Key Industry Participants
    • Contractors
      • Table France, Key Contractors
      • Table Figure 31: France, Headquarters of Key Contractors (% of Total Project Pipeline)
      • Table Figure 32: France, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)
    • Consultants
      • Table France, Key Consultants
      • Table Figure 33: France, Headquarters of Key Consultants (% of Total Project Pipeline)
      • Table Figure 34: France, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)
  • Appendix
    • What is this Report About?
    • Definitions
      • Table GlobalData Construction Market Definitions
      • Table Construction Risk Index Ratings and Scores
    • About The Construction Intelligence Center
    • Disclaimer

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