Italy Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q3 2025)
Description
Italy Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q3 2025)
Summary
GlobalData expects the Italian construction industry to contract in real terms by 0.8% in 2025 and 4.1% in 2026, owing to declining building permits issued, rising public debt, and a weaker residential and industrial construction sector. According to the Italian National Institute of Statistics (Istat), the business confidence index in the construction industry declined by 1% year-on-year (YoY) in the first eight months of 2025, preceded by an annual decline of 2.3% in 2024. According to Istat, the total floor area for new residential and non-residential buildings issued fell by 11.7% YoY in Q1 2025, preceded by a YoY decline of 6% in Q4 and a growth of 8.3% in Q3 2024. Moreover, Italy is facing major challenges due to the new US tariffs, which threaten the country’s export-driven economy. The US President Donald Trump announced a 30% tariff on imports from all EU countries starting from August 1, 2025.
Over the remainder of the forecast period, 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 energy, transport infrastructure, and hospitality sectors, coupled with 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 government-owned national transmission grid operator, Terna, approved an updated 2024-28 Industrial Plan with a record investment of EUR17.7 billion ($19.3 billion) to develop the energy sector, which is EUR1.2 billion ($1.3 billion) more than the previous plan, which was presented in March 2024, representing a 7% increase. The plan targets the integration of 107GW of renewable capacity by 2030 and aims for a 40% increase in cross-border electricity exchange capacity by expanding and strengthening the national transmission grid
GlobalData’s Construction in Italy - Key Trends and Opportunities to 2029 (Q3 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 Italian construction industry to contract in real terms by 0.8% in 2025 and 4.1% in 2026, owing to declining building permits issued, rising public debt, and a weaker residential and industrial construction sector. According to the Italian National Institute of Statistics (Istat), the business confidence index in the construction industry declined by 1% year-on-year (YoY) in the first eight months of 2025, preceded by an annual decline of 2.3% in 2024. According to Istat, the total floor area for new residential and non-residential buildings issued fell by 11.7% YoY in Q1 2025, preceded by a YoY decline of 6% in Q4 and a growth of 8.3% in Q3 2024. Moreover, Italy is facing major challenges due to the new US tariffs, which threaten the country’s export-driven economy. The US President Donald Trump announced a 30% tariff on imports from all EU countries starting from August 1, 2025.
Over the remainder of the forecast period, 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 energy, transport infrastructure, and hospitality sectors, coupled with 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 government-owned national transmission grid operator, Terna, approved an updated 2024-28 Industrial Plan with a record investment of EUR17.7 billion ($19.3 billion) to develop the energy sector, which is EUR1.2 billion ($1.3 billion) more than the previous plan, which was presented in March 2024, representing a 7% increase. The plan targets the integration of 107GW of renewable capacity by 2030 and aims for a 40% increase in cross-border electricity exchange capacity by expanding and strengthening the national transmission grid
GlobalData’s Construction in Italy - Key Trends and Opportunities to 2029 (Q3 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
53 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, Labor Cost Index (2020=100, Seasonally Adjusted)
- Figure 14: Italy, Construction Projects Momentum Index
- Figure 15: Western Europe, Construction Projects Momentum Index
- Figure 16: Italy, Commercial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 17: Italy, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 18: Italy, Services Value-add (EUR Million, 2020 Chained Prices)
- Figure 19: Italy, Wholesale and Retail Trade Value-add (EUR Million, 2020 Chained Prices)
- Figure 20: Italy, Foreign Tourist Arrivals and Overnight Stays (In Thousands)
- Figure 21: Italy, Industrial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 22: Italy, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 23: Italy, Manufacturing Value-add (EUR Million, 2020 Chained Prices)
- Figure 24: Italy, Industrial Production Index, (2021=100), % Change YoY
- Figure 25: Italy, Construction Costs Index for Industrial Building, (2021=100), % Change YoY
- Figure 26: Italy, Business Confidence in the Manufacturing Industry (2010=100, Seasonally Adjusted)
- Figure 27: Italy, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 28: Italy, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 29: Italy, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 30: Italy, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 31: Italy, Information and Communication Value-add (EUR Million, 2020 Chained Prices)
- Figure 32: Italy, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 33: Italy, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 34: Italy, Public Administration and Defense, Compulsory Social Security, Education, Human Health and Social Work Activities (EUR Million, 2020 Chained)
- Figure 35: Italy, Residential Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 36: Italy, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 37: Italy, Real estate Value-add (EUR Million, 2020 Chained Prices)
- Figure 38: Italy, Number of permits approved for new residential buildings
- Figure 39: Italy, Construction Costs Index for Residential Building, (2021=100)
- Figure 40: Italy, Value of Gross Fixed Capital Formation in Dwellings (EUR, Million 2020 Chained Prices)
- Figure 41: Italy, Housing Price Index (2015=100)
- Figure 42: Italy, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 43: Italy, Headquarters of Key Consultants (% of Total Project Pipeline)
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