Construction in Italy - Key Trends and Opportunities to 2025 (Q3 2021)

Construction in Italy - Key Trends and Opportunities to 2025 (Q3 2021)

Summary

The construction industry in Italy is forecasted to rebound and grow by 15.7% in real terms this year, following a decline of 6.3% in 2020. The country was placed under a partial lockdown in the first quarter of 2021; in the second quarter of this year, however, most restrictions were lifted, given that almost all the regions have been marked under the low-risk category. This was reflected in the latest construction value-add data which showed a year-on-year (Y-o-Y) expansion of 54.9% in Q2 2021.

While the Italian construction industry is expected to rebound strongly, following a difficult 2020 for the industry, a downside risk for the industry’s outlook arises from the recent price pressures in the Eurozone, driven by shortages in raw materials. However, the government is set to receive EUR191.5 billion (US$233 billion) in total under the EU Recovery and Resilience Facility (RRF), which is part of the NextGenerationEU plan. In August 2021, the European Commission disbursed EUR24.9 billion (US$30.3 billion) to Italy in pre-financing, equivalent to 13% of the country's grant and loan allocation under the RRF.

Over the remainder of the forecast period, the industry is expected to register an annual average growth of 2% between 2022-2025, supported by investments in housing, healthcare, transport, energy and tourism infrastructure projects. As part of the Health Mission plan under the National Recovery and Resilience Plan, the government plans to invest EUR15.6 billion (US$19 billion), while under the Infrastructure Operational Plan, the government plans to invest EUR5.3 billion (US$6.2 billion) during the period of 2019-2025. The government’s focus on reducing carbon emissions in the country, and support for renovating buildings to make them more energy efficient, will also support industry growth over the forecast period.

GlobalData’s Construction in Italy - Key Trends and Opportunities to 2025 (Q3 2021) report provides detailed market analysis, information and insights into the Italian construction industry, including -

• The Italian 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 Italian construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

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

• Historical (2016-2020) and forecast (2021-2025) 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 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.