France Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)

France Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)

Summary

GlobalData expects the French construction industry to decline in real terms by 1.3% in 2025, owing to several headwinds caused by high interest rates, falling building permits, political instability, lower construction activity and labor shortages in the country, coupled with a high budget deficit. According to Eurostat, the average construction production index declined by 4.7% year-on-year (YoY), in the first three months of 2025, owing to a decline in the index for the construction of buildings (-6.9% YoY), specialized construction activities (-5.1% YoY) and civil engineering (-1.3% YoY), over the same period. According to the industry federation Fédération Française du Bâtiment (FFB), the total volume of construction in 2024 fell by 5.5% YoY compared to a marginal growth of 0.3% in 2023. Moreover, in March 2025, the government reported that it is trying to cut the budget deficit to 5.4% of GDP in 2025, down from 5.8% in 2024. However, on a positive note, in February 2025, the government approved the 2025 Budget which includes net expenditure of EUR518.8 billion ($551.7 billion), an increase of 1.2% compared to the 2024 Budget.

Over the remainder of the forecast period, the construction industry is expected to grow at an average annual rate of 2.5% from 2026 to 2029, driven by investments in the industrial and energy sectors, as well as the national electricity transmission manager RTE (Réseau de Transport d'Électricité), aim to upgrade about 40,000km of the electricity network, by 2040 with an investment of EUR100 billion ($109 billion). The industry’s growth will also be supported by the government's aim to expand its renewable energy capacity to 175GW by 2035, with significant targets for solar (75-100GW), offshore wind (18GW), and hydropower (28GW). In line with this, in February 2025, French government-owned electricity operator, Enedis announced its plan to invest EUR53 billion ($57.7 billion) by 2040 to foster the energy transition in the country by investing in the development of overall energy infrastructure in the country. Growth over the forecast period will also be supported by the France Railway Network Redevelopment Program, under which the government plans to redevelop 800km of railway track by 2030. The program, with an investment of EUR1.4 billion ($1.5 billion), involves the construction of access roads, crossing points, and other infrastructure facilities by 2030.

GlobalData’s Construction in France - Key Trends and Opportunities to 2029 (H1 2025) 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.

Scope

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

• Historical (2020-2024) and forecast (2025-2029) 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 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