Construction Market in Germany 2019-2023
About this market
The construction industry in Germany is increasingly adopting new digital technologies such as BIM. BIM is a 3D modeling tool that generates a digital image of a building and its assets. The adoption of this technology has allowed the construction companies in Germany to improve their productivity, work speed, and quality. As per the recommendations provided by the Construction of Major Projects Reform Commission, all transportation projects must use BIM by the end of 2020. In February 2015, Planen Bauen 4.0 was formed to streamline the implementation of BIM in the German construction industry. The implementation of BIM in the construction market will help in achieving cost efficiencies. Thus, the ongoing use of digital technologies in the construction market in Germany will drive the growth of the market during the forecast period. Technavio’s analysts have predicted that the construction market in Germany will register a CAGR of almost 5% by 2023.Market Overview
Growing demand for housing units
The residential property market in Germany has been growing rapidly. The population in large cities of Germany such as Cologne, Frankfurt, Hamburg, Berlin, and Munich have been increasing. Also, Germany is one of the healthiest economies in Europe, which have attracted several immigrants into the country. This have resulted in a housing supply demand gap. The German government intends to build 1.5 million housing units by 2021 to close this gap. This will lead to increasing construction activities during the forecast period, which will lead to growth of the construction market in Germany.
Rise in cost of construction
The price of raw materials used in construction such as metals, wood, lime, plaster and concrete has been increasing. The rising cost of specialized services such as metal construction work, plumbing work, and HVAC add to the increasing cost of construction. The operating costs of the construction industry in Germany is also increasing due to rising labor costs. Thus, the rising cost of construction will hamper the growth of the market in Germany during the next five years.
For the detailed list of factors that will drive and challenge the growth of the construction market in Germany during 2019-2023, view our report.
The market appears to be fragmented and with the presence of several companies including BAUER Group, and Bilfinger the competitive environment is quite intense. Factors such as the increasing demand for housing projects, will provide considerable growth opportunities to the construction companies in Germany. BAUER Group, Bilfinger, HOCHTIEF, Max Bögl Group, STRABAG, and Stumpf Group are some of the major companies covered in this report.
Technavio Announces the Publication of its Research Report – Construction Market in Germany 2019-2023
Technavio recognizes the following companies as the key players in the construction market in Germany: BAUER Group, Bilfinger, HOCHTIEF, Max Bögl Group, STRABAG, and Stumpf Group.
Commenting on the report, an analyst from Technavio’s team said: “The German construction industry is implementing digital technologies such as BIM to improve productivity, cost efficiency, and lower costs for the vendors. This use of digital technologies will be a key trend driving the market growth in Germany.”
According to the report, one of the major drivers for this market is the growing demand for housing units in Germany. Rising population and immigrant influx are creating a demand for housing units in Germany. To cater to the growing demand the German government is investing considerably to build new housing units.
Further, the report states that one of the major factors hindering the growth of this market is the rising cost of construction. This increase in cost of construction can be attributed to factors such as rising cost of raw materials, labor, and specialized services.
Max Bögl Group
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