Italy Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)
Description
Italy 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 construction industry in Italy to contract in real terms by 3.8% in 2025 and 5.7% in 2026, owing to falling building permits, rising public debt, and weakness in the residential sector. According to the Bank of Italy, public debt of the country reached an all-time high of EUR3.034 trillion ($3.3 trillion) in March 2025, a 0.3% increase compared to February 2025. In May 2025, the European Commission reported that Italy’s public debt is expected to reach 136.7% of GDP in 2025 and 138.2% in 2026. In a setback to the construction industry’s output, the annual gross fixed capital formation in dwellings declined by 6% year-on-year (YoY) in Q1 2025, according to the Italian National Institute of Statistics (Istat), this was preceded by a YoY decline of 7.1% in Q4 and 5.5% in Q3 2024. Additionally, the Italian government is planning to cut EUR4.6 billion ($5 billion) of the EUR5.8 billion ($6.3 billion) earmarked to fund the automotive sector during 2025-2030 period, due to a global slowdown in sales of electric vehicles (EVs). In another setback to the industry, the U.S. tariffs, including a 10% general tariff and a 25% tariff on steel, iron, and automotive goods, are likely to raise short-term costs in Italy's construction industry. These tariffs increase the price of imported machinery, materials, and components, leading to more expensive projects.
The Italian construction industry is however expected to recover in 2027 and record an average annual growth of 1.4% between 2027 and 2029, supported by investments in renewable energy and transport infrastructure. Growth will be driven by the government's aim to increase the share of renewable energy in the total power mix from 18.5% in 2022 to 59% in 2030. In line with this, in March 2025, the national transmission grid operator Terna revealed its plans to invest EUR23.5 billion ($25.6 billion), from 2025 to 2034, to boost the energy capacity in the country
GlobalData’s Construction in Italy - Key Trends and Opportunities to 2029 (Q2 2025) report provides detailed market analysis, information, and insights into the Italian construction industry, including -
This report provides a comprehensive analysis of the construction industry in Italy. It provides -
Summary
GlobalData expects the construction industry in Italy to contract in real terms by 3.8% in 2025 and 5.7% in 2026, owing to falling building permits, rising public debt, and weakness in the residential sector. According to the Bank of Italy, public debt of the country reached an all-time high of EUR3.034 trillion ($3.3 trillion) in March 2025, a 0.3% increase compared to February 2025. In May 2025, the European Commission reported that Italy’s public debt is expected to reach 136.7% of GDP in 2025 and 138.2% in 2026. In a setback to the construction industry’s output, the annual gross fixed capital formation in dwellings declined by 6% year-on-year (YoY) in Q1 2025, according to the Italian National Institute of Statistics (Istat), this was preceded by a YoY decline of 7.1% in Q4 and 5.5% in Q3 2024. Additionally, the Italian government is planning to cut EUR4.6 billion ($5 billion) of the EUR5.8 billion ($6.3 billion) earmarked to fund the automotive sector during 2025-2030 period, due to a global slowdown in sales of electric vehicles (EVs). In another setback to the industry, the U.S. tariffs, including a 10% general tariff and a 25% tariff on steel, iron, and automotive goods, are likely to raise short-term costs in Italy's construction industry. These tariffs increase the price of imported machinery, materials, and components, leading to more expensive projects.
The Italian construction industry is however expected to recover in 2027 and record an average annual growth of 1.4% between 2027 and 2029, supported by investments in renewable energy and transport infrastructure. Growth will be driven by the government's aim to increase the share of renewable energy in the total power mix from 18.5% in 2022 to 59% in 2030. In line with this, in March 2025, the national transmission grid operator Terna revealed its plans to invest EUR23.5 billion ($25.6 billion), from 2025 to 2034, to boost the energy capacity in the country
GlobalData’s Construction in Italy - Key Trends and Opportunities to 2029 (Q2 2025) 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.
This report provides a comprehensive analysis of the construction industry in Italy. It provides -
- Historical (2020-2024) and forecast (2025-2029) 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
- 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
51 Pages
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Context
- 3.1 Economic Performance
- 3.2 Political Environment and Policy
- 3.3 Demographics
- 3.4 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants
- 6 Construction Market Data
- 7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 8 About GlobalData
- 9 Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Italy, Key Economic Indicators
- Table 3: Italy, Commercial Construction Output by Project Type (Real % Change), 2020–29
- Table 4: Italy, Top Commercial Construction Projects by Value
- Table 5: Italy, Industrial Construction Output by Project Type (Real % Change), 2020–29
- Table 6: Italy, Top Industrial Construction Projects by Value
- Table 7: Italy, Infrastructure Construction Output by Project Type (Real % Change), 2020-29
- Table 8: Italy, Top Infrastructure Construction Projects by Value
- Table 9: Italy, Energy and Utilities Construction Output by Project Type (Real % Change), 2020-29
- Table 10: Italy, Top Energy and Utilities Construction Projects by Value
- Table 11: Italy, Institutional Construction Output by Project Type (Real % Change), 2020-29
- Table 12: Italy, Top Institutional Construction Projects by Value
- Table 13: Italy, Residential Construction Output by Project Type (Real % Change), 2020-29
- Table 14: Italy, Top Residential Construction Projects by Value
- Table 15: Italy, Key Contractors
- Table 16: Italy, Key Consultants
- Table 17: Italy, Construction Output Value (Real, $ Million)
- Table 18: Italy, Construction Output Value (Nominal, EUR Million)
- Table 19: GlobalData Construction Market Definitions
- Table 20: Risk Dimensions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: Western Europe, Construction Output (Real % Change), 2023–29
- Figure 2: Italy, Construction Output by Sector (Real % Change), 2023–25 and 2026–29
- Figure 3: Italy, Risk Summary
- Figure 4: Italy, Risk Regional Comparison
- Figure 5: Italy, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020–29
- Figure 6: Italy, Construction Output Value, by Sector (Real, $ Million), 2020–29
- Figure 7: Italy, Construction Value-add (EUR Million, 2020 chained prices)
- Figure 8: Italy, Gross Fixed Capital Formation in Construction (EUR, Million 2020 Chained Prices)
- Figure 9: Italy, Business Confidence in the Construction Industry (2010=100, Seasonally Adjusted)
- Figure 10: Italy, Total Number of People Employed in the Construction Industry, In Thousands (Seasonally Adjusted)
- Figure 11: Italy, Construction Producer Price Indices for Construction of Residential and Non-residential Buildings (2021=100)
- Figure 12: Italy, Total Floor Area for New Residential and Non-residential Buildings (Thousands m2)
- Figure 13: Italy, Construction Projects Momentum Index
- Figure 14: Western Europe, Construction Projects Momentum Index
- Figure 15: Italy, Commercial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 16: Italy, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 17: Italy, Services Value-add (EUR Million, 2020 chained prices)
- Figure 18: Italy, Wholesale and Retail Trade Value-add (EUR Million, 2020 chained prices)
- Figure 19: Italy, Foreign Tourist Arrivals and Overnight Stays (In Thousands)
- Figure 20: Italy, Industrial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 21: Italy, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 22: Italy, Manufacturing Value-add (EUR Million, 2020 chained prices)
- Figure 23: Italy, Industrial production index, (2021=100), % Change YoY
- Figure 24: Italy, Construction Costs Index for Industrial Building, (2021=100), % Change YoY
- Figure 25: Italy, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 26: Italy, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 27: Italy, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 28: Italy, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 29: Italy, Information and Communication Value-add (EUR Million, 2015 Chained Prices)
- Figure 30: Italy, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 31: Italy, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 32: Italy, Public administration and defense, compulsory social security, education, human health and social work activities (EUR Million, 2015 chained)
- Figure 33: Italy, Residential Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 34: Italy, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 35: Italy, Real estate Value-add (EUR Million, 2020 chained prices)
- Figure 36: Italy, Number of permits approved for new residential buildings
- Figure 37: Italy, Construction Costs Index for Residential building, (2021=100)
- Figure 38: Italy, Gross Fixed Capital Formation in dwellings (EUR, Million 2020 Chained Prices)
- Figure 39: Italy, Housing Price Index (2015=100)
- Figure 40: Italy, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 41: Italy, Headquarters of Key Consultants (% of Total Project Pipeline)
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