Estonia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)
Description
Estonia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)
Summary
GlobalData expects the Estonian construction industry to grow in real terms by 3.5% in 2025, supported by rising building construction activities, coupled with investments in the commercial, and transport infrastructure sectors. According to Statistics Estonia, the average construction volume index grew by 5.1% year-on-year (YoY) in Q1 2025, with that for building construction works growing by 10% YoY, in the same period. The industry’s growth in 2025 will also be supported by investments as part of the 2025 Budget, which includes an expenditure of EUR18.2 billion ($19.8 billion) in 2025, marking an increase of 2.8% compared to the 2024 Budget. The Budget includes EUR268.4 million ($292.4 million) for the construction of Rail Baltic, EUR165 million ($179.8 million) for the development of the eastern border, EUR160 million ($174.3 million) to support the construction of large-scale investments in the manufacturing sector, EUR74 million ($80.6 million) for the construction of electricity networks and EUR50 million ($54.5 million) for the development of energy-efficient buildings.
Over the remainder of the forecast period, the construction industry in Estonia is expected to record an annual average growth rate of 4.7% between 2025 and 2028, supported by investments in the renewable energy, green hydrogen, and transport infrastructure projects. Growth will also be supported by the Estonian government’s announcement, made in April 2025, to upgrade its main highways to meet EU standards by 2030. Under the development plan, the government will construct the Tallinn-Tartu and Tallinn-Pärnu-Ikla highways. Furthermore, in May 2025, Rail Baltic Estonia signed the largest infrastructure contracts with two international consortiums for the construction of key sections of the Rail Baltica high-speed railway. The contract valued EUR932 million ($1 billion), involves construction of passenger line from Tallinn to Ikla by 2030. The first contract, worth EUR394 million ($429.3 million), involves overground and underground works on the Ülemiste-Pärnu and Tootsi-Pärnu sections. The second contract, worth EUR332 million ($361.7 million), covers the full cycle of design and construction of the Pärnu-Ikla section.
GlobalData’s Construction in Estonia - Key Trends and Opportunities to 2029 (H2 2025) report provides detailed market analysis, information, and insights into the Estonian construction industry, including-
This report provides a comprehensive analysis of the construction industry in Estonia. It provides-
Summary
GlobalData expects the Estonian construction industry to grow in real terms by 3.5% in 2025, supported by rising building construction activities, coupled with investments in the commercial, and transport infrastructure sectors. According to Statistics Estonia, the average construction volume index grew by 5.1% year-on-year (YoY) in Q1 2025, with that for building construction works growing by 10% YoY, in the same period. The industry’s growth in 2025 will also be supported by investments as part of the 2025 Budget, which includes an expenditure of EUR18.2 billion ($19.8 billion) in 2025, marking an increase of 2.8% compared to the 2024 Budget. The Budget includes EUR268.4 million ($292.4 million) for the construction of Rail Baltic, EUR165 million ($179.8 million) for the development of the eastern border, EUR160 million ($174.3 million) to support the construction of large-scale investments in the manufacturing sector, EUR74 million ($80.6 million) for the construction of electricity networks and EUR50 million ($54.5 million) for the development of energy-efficient buildings.
Over the remainder of the forecast period, the construction industry in Estonia is expected to record an annual average growth rate of 4.7% between 2025 and 2028, supported by investments in the renewable energy, green hydrogen, and transport infrastructure projects. Growth will also be supported by the Estonian government’s announcement, made in April 2025, to upgrade its main highways to meet EU standards by 2030. Under the development plan, the government will construct the Tallinn-Tartu and Tallinn-Pärnu-Ikla highways. Furthermore, in May 2025, Rail Baltic Estonia signed the largest infrastructure contracts with two international consortiums for the construction of key sections of the Rail Baltica high-speed railway. The contract valued EUR932 million ($1 billion), involves construction of passenger line from Tallinn to Ikla by 2030. The first contract, worth EUR394 million ($429.3 million), involves overground and underground works on the Ülemiste-Pärnu and Tootsi-Pärnu sections. The second contract, worth EUR332 million ($361.7 million), covers the full cycle of design and construction of the Pärnu-Ikla section.
GlobalData’s Construction in Estonia - Key Trends and Opportunities to 2029 (H2 2025) report provides detailed market analysis, information, and insights into the Estonian construction industry, including-
- The Estonian 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 Estonian construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
This report provides a comprehensive analysis of the construction industry in Estonia. It provides-
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Estonia, 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
- Identify and evaluate market opportunities using our 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 business strategies using GlobalData's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
31 Pages
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Latest news and developments
- 4 Project analytics
- 5 Construction Market Data
- 6 Risk Profile
- 7 Appendix
- 7.1 Definitions
- 7.2 CRI Methodology
- 7.3 About GlobalData
- 8 Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Estonia, Top Construction Projects by Value
- Table 3: Estonia, Construction Output Value (Real, $ Million)
- Table 4: Estonia, Construction Output Value (Nominal, EUR Million)
- Table 5: GlobalData Construction Market Definitions
- Table 6: Risk Dimensions
- Table 7: Ratings, Scores and Definitions
- List of Figures
- Figure 1: Estonia, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020–29
- Figure 2: Estonia, Construction Output Value, by Sector (Real, $ Million), 2020–29
- Figure 3: Eastern Europe, Construction Output (Real % Change), 2023–29
- Figure 4: Estonia, Construction Output by Sector (Real % Change), 2023–25 and 2026–29
- Figure 5: Estonia, Construction Value-add (EUR Million, 2020 Constant Prices)
- Figure 6: Estonia, Construction Volume Index, 2021=100
- Figure 7: Estonia, Total Gross Fixed Capital Formation in Construction (EUR Million)
- Figure 8: Estonia, Construction Price Index (2015=100)
- Figure 9: Estonia, Construction Turnover (EUR Million)
- Figure 10: Estonia, Labor Cost Index, 2020=100
- Figure 11: Estonia, Real Estate Value-add (EUR Million, 2020 Chained Linked Prices)
- Figure 12: Estonia, Dwelling Price Index (2010=100)
- Figure 13: Estonia, Total Number of Dwelling Permits Issued
- Figure 14: Estonia, Total Number of Dwellings Completed
- Figure 15: Estonia, Wholesale and Retail Trade Value-add (EUR Million, 2020 Chained Linked Prices)
- Figure 16: Estonia, Accommodation and Food Service Value-add (EUR Million, 2020 Chained Linked Prices)
- Figure 17: Estonia, Retail Sales Index (2021=100)
- Figure 18: Estonia, Manufacturing Value-add (EUR Million, 2020 Chained Linked Prices)
- Figure 19: Estonia, Export of Goods, In EUR Million
- Figure 20: Estonia, Total Civil Engineering Construction Volume Index, 2021=100
- Figure 21: Estonia, Transportation and Storage Value-add (EUR Million, 2020 Chained Linked Prices)
- Figure 22: Estonia, Information and Communication Value-add (EUR Million, 2020 Chained Linked Prices)
- Figure 23: Estonia, Education Value-add (EUR Million, 2020 Chained Linked Prices)
- Figure 24: Estonia, Human health and social work activities Value-add (EUR Million, 2020 Chained Linked Prices)
- Figure 25: Estonia, Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 26: Estonia, Risk Summary
- Figure 27: Estonia, Risk Regional Comparison
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