Germany Construction Market Report and Forecast 2024-2032

Germany Construction Market Size

The Germany construction market reached approximately USD 193.39 billion in 2023. The market is projected to grow at a CAGR of 5.8% between 2024 and 2032, to reach a value of around USD 321.44 billion by 2032.

Germany Construction Market Outlook

• In the month of May 2024, the construction of 17,800 dwellings was approved in Germany. These include building permits for construction of apartments in new areas as well as for new apartments in existing buildings.

• Howden Broking Group’s DUAL, expands construction market reach through a partnership in Germany in July 2024

• Berlin is estimated to make 18 billion euros available until 2027 for affordable housing out of the 45-billion-euro relief package announced by the German government in September 2023.

Germany Construction Market Growth

The key drivers of the construction demand growth in Germany include the increased residential construction due to favourable financing and the continuously high demand for housing, supported by the government. The residential sector demands a significant portion of energy use in Germany and the country has a special focus on becoming energy efficient as it aims to become carbon neutral by 2045. Thus, the country is looking at alternate materials like the incorporation of wood such as timber, which has helped in reducing the use of fossil fuels in construction. 19.6% of the total timber was used for the construction of non-residential buildings. The remaining was directed towards building residential buildings.

Some of the other Germany construction market dynamics and trends are the country’s persistently growing HVAC (heating, cooling, air conditioning) industry, increasing population as well as the high immigration rates. According to ETIAS reports, Germany’s net immigration was between an estimated 680,000 to 710,000 in the year 2023. A significant segment of the construction market is working towards the modernization and renovation of existing buildings to create extra living space and to make them more energy efficient. The construction of these follows the latest set of Energy Performance of Building Directive (EPBD) that provide clarity about which parts of the building segment will need to be upgraded. This is further aiding the growth of the market.

Key Trends and Recent Developments

New technologies such as 3D printed houses, Building Information Modelling (BIM), and increase in housing units are expected to boost the demand of Germany construction market.

July 2024

Austrian-based construction company Strabag was awarded the contract for the replacement the Uttrichshausen viaduct on the A7 motorway in the German federal state of Hessen. The motorway, which is 962 km long, is the longest motorway in Germany and the viaduct is its busiest travel bridge. It is expected to be used by 51,000 motor vehicles by 2030. 

July 2024

Germany’s first nearly carbon-free asphalt mixing plant started its production in Bavaria with the goal of producing net zero green asphalt. Previously, the plant used non-renewable energy sources such as heating oil for asphalt production. However, in collaboration with Benninghoven, a power limiter has been installed to reduce burner performance and carbon emissions. Asphalt has high demand in the construction of roadways and railways in Germany. 

July 2024

All five production lines of the Fehmarnbelt tunnel project are operational. This is a new milestone in the project’s development. The tunnel, once completed, will be the world’s longest immersed tunnel, linking Denmark and Germany via roadway and railway travel in just 10 minutes and 7 minutes respectively.

July 2024

Cobra IS, a subsidiary of the French construction giant, Vinci, was awarded a contract worth EUR 74 million to carry out the piping and mechanical work in Thyssenkrupp Steel Europe’s plant in Germany. The plant has a production capacity of 2.5 million tonnes of direct reduced iron (DRI) and is the first site in Germany to use renewable green hydrogen as the energy source.

3D Printed Houses

German construction giants such as Peri 3D constructions are using 3D printing to build houses in collaboration with Danish Tech partner, Cobod, which is a leading global manufacturer of concrete 3D printers. The trend will see an expansion in the coming years, transforming Germany’s residential construction to a completely new level.

Use of BIM transforming Germany’s construction sector

As per Germany construction industry analysis, German construction companies are increasingly adopting the Building Information Modelling (BIM) technology to transform the way in which construction projects are implemented traditionally. BIM is a digital process that enables the digital creation and management of places where construction projects are planned. All the physical and functional features of the places remain intact and architects, engineers, contractors, as well as owners can collaborate easily to plan and execute the projects efficiently.

Germany’s Formwork and Precast Technology in Construction are Global Trends

Germany’s construction technologies of Formwork and Precast are increasingly being adopted by construction companies worldwide, especially in Europe and Asia-Pacific. Formwork, also known as In-situ concrete, is a method of pouring concrete directly into the ‘in position’ Formwork at the building site, followed by curing. On the other hand, Precast allows building components to be manufactured in a plant and then brought to the building site for assembly.

Growing Demand for Housing Units

Population growth is one of the main drivers of Germany's rising housing demand. In Europe, Germany has one of the biggest immigrant populations despite having a relatively low birth rate. Due to this, there was a rise in population and the resulting need for homes. Furthermore, the federal government has enacted measures to promote homeownership, like subsidies for first-time buyers, which have raised the demand for houses.

Germany Construction Industry Segmentation

“Germany Construction Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments.

Market Breakup by Type

• New Construction

• Renovations

Market Breakup by End Use

• Commercial

• Residential

• Industrial

• Institutional

Market Breakup by Region

• North Rhine-Westphalia

• Bavaria

• Baden-Württemberg

Germany Construction Market Share

The residential sector is expected to grow at a CAGR of 6.4% between 2024 and 2032 due to the increasing demand for affordable housing in the country. Between 2023 and 2030, the Germany’s population is projected to cross the 85 million marks. There is an increasing demand for the development of multi-family housing construction due to rising urbanisation and the growing population of countries in Germany.

Leading Companies in Germany Construction Market

The market players are actively using collaborations and partnerships as a method to grow.

• HOCHTIEF Aktiengesellschaft

• STRABAG SE

• GOLDBECK GmbH

• Zech Group SE

• VINCI Group

• LEONHARD WEISS GmbH & Co. KG

• Max Bögl Bauservice GmbH & Co KG

• PORR AG

• BREMER AG

• Implenia AG

• Others

Key Highlights of the Report

Germany Construction Market Report Snapshots

Germany Construction Market Size

Germany Construction Market Growth

Germany Construction Market Share

Germany Construction Companies