The EU construction industry, a formidable economic engine valued at nearly €1.9 trillion, is not just pouring concrete but is reshaping the continent's landscape and future through a dynamic mix of robust growth, ambitious green initiatives, and unprecedented investment.
Key Takeaways
- In 2022, the total output of the EU construction sector was €1,877 billion, accounting for 5.4% of the EU27 GDP.
- The EU construction industry's value added grew by 2.1% in 2023 compared to 2022, reaching €512 billion.
- Between 2019 and 2023, the EU construction turnover increased by 12.5% in nominal terms.
- In 2022, the EU construction sector employed 13.3 million people directly.
- EU construction employment rate was 6.8% of total employment in 2022.
- Germany had 2.3 million construction workers in 2022.
- EU residential construction output was €650 billion in 2022.
- Non-residential building construction in EU: €450 billion turnover 2022.
- Civil engineering works in EU generated €777 billion in 2022.
- 40% of new EU buildings in 2022 were NZEB compliant.
- EU construction sector's CO2 emissions totaled 400 million tonnes in 2022.
- Share of renewable energy in EU building sector: 22% in 2022.
- EU public investment in green construction €50 billion in 2022.
- Private investment in EU construction €1.2 trillion in 2022.
- Recovery and Resilience Facility allocated €190 billion for construction by 2026.
The EU construction industry is a massive economic sector that is steadily growing and transforming.
Employment & Workforce
- In 2022, the EU construction sector employed 13.3 million people directly.
- EU construction employment rate was 6.8% of total employment in 2022.
- Germany had 2.3 million construction workers in 2022.
- France employed 1.5 million in construction in 2023.
- Italy's construction workforce numbered 1.2 million in 2022.
- Spain construction employment reached 1.1 million in 2023.
- Poland had 700,000 construction employees in 2022.
- Netherlands construction jobs: 450,000 in 2022.
- Average hourly labor cost in EU construction was €27.5 in 2022.
- Sweden construction employment 300,000 in 2022.
- Belgium 250,000 construction workers in 2022.
- Austria construction jobs 280,000 in 2022.
- Denmark 180,000 in construction employment 2022.
- Finland construction workforce 200,000 in 2022.
- 25% of EU construction workers are self-employed.
- Czech Republic 400,000 construction employees in 2022.
- Hungary construction jobs 250,000 in 2022.
- Romania 500,000 in construction workforce 2022.
- Bulgaria construction employment 180,000 in 2022.
- Slovakia 150,000 construction workers 2022.
- Lithuania construction jobs 120,000 in 2022.
- Latvia 80,000 in construction employment 2022.
- Estonia construction workforce 60,000 in 2022.
- Ireland 150,000 construction employees 2022.
- Portugal construction jobs 300,000 in 2022.
- Croatia construction employment 100,000 in 2022.
- Slovenia 70,000 construction workers 2022.
Employment & Workforce Interpretation
While Germany shoulders the sector as its heavyweight champion and a quarter of all workers proudly fly the solo banner, the EU construction industry, with its 13.3 million-strong workforce, is quite literally the concrete foundation upon which the European economy is built.
Investments, Challenges & Outlook
- EU public investment in green construction €50 billion in 2022.
- Private investment in EU construction €1.2 trillion in 2022.
- Recovery and Resilience Facility allocated €190 billion for construction by 2026.
- EU construction faces 25% labor shortage in skilled trades 2023.
- Inflation in construction materials: 10% rise in 2022.
- Germany invests €100 billion in infrastructure 2023-2027.
- France MaPrimeRénov' scheme: €5 billion for renovations 2022.
- Italy PNRR construction funding €110 billion to 2026.
- Spain housing investment plan €3.4 billion 2022-2025.
- Poland EU funds for construction €40 billion 2021-2027.
- Cost overrun average in EU mega-projects: 20%.
- Netherlands invests €80 billion in housing 2023-2030.
- Sweden infrastructure budget SEK 700 billion 2023-2034.
- EU construction insolvency rate up 15% in 2022.
- Belgium NextGenerationEU €5 billion for green infra.
- Austria housing subsidies €2 billion 2022.
- Denmark construction forecast growth 1.5% 2024.
- Supply chain delays affected 60% of EU projects 2022.
- Finland invests €10 billion in rail 2023-2030.
- EU digitalization investment gap in construction €100 billion.
Investments, Challenges & Outlook Interpretation
We're trying to build a greener, digital future on a massive scale, but the industry is currently held together by public money, duct tape, and a dwindling number of skilled workers who can't find materials that haven't doubled in price.
Market Size & Growth
- In 2022, the total output of the EU construction sector was €1,877 billion, accounting for 5.4% of the EU27 GDP.
- The EU construction industry's value added grew by 2.1% in 2023 compared to 2022, reaching €512 billion.
- Between 2019 and 2023, the EU construction turnover increased by 12.5% in nominal terms.
- Germany's construction sector contributed €382 billion to the economy in 2022, the largest in the EU.
- France's construction output was €294 billion in 2022, representing 12% of national GDP.
- The EU construction market is projected to grow at a CAGR of 2.8% from 2024 to 2028.
- In 2023, EU construction production index stood at 105.3 (2015=100).
- Italy's construction sector turnover reached €220 billion in 2022.
- Spain saw a 4.2% growth in construction output in 2023.
- The Netherlands construction market size was €85 billion in 2022.
- EU construction sector's gross value added per employee was €78,500 in 2022.
- Poland's construction output grew 5.8% in 2023.
- Sweden's construction industry valued at SEK 600 billion (€53 billion) in 2022.
- Belgium construction turnover €45 billion in 2022.
- EU average construction GDP share was 5.9% in 2021.
- Austria's construction output €42 billion in 2022.
- Denmark construction market €28 billion in 2022.
- Finland construction turnover €25 billion in 2022.
- Ireland construction value €15 billion in 2022.
- Portugal construction output €20 billion in 2022.
- Czech Republic construction grew 3.1% in 2023.
- Hungary construction turnover HUF 8 trillion (€20 billion) in 2022.
- Romania construction output RON 120 billion (€24 billion) in 2022.
- Bulgaria construction grew 4.5% in 2023.
- Slovakia construction €12 billion in 2022.
- Lithuania construction turnover €6 billion in 2022.
- Latvia construction output €3.5 billion in 2022.
- Estonia construction €2.8 billion in 2022.
- Croatia construction grew 2.8% in 2023.
- Slovenia construction €5 billion in 2022.
Market Size & Growth Interpretation
Even in an era obsessed with digital disruption, the EU remains stubbornly built on brick-and-mortar brawn, where Germany's €382 billion concrete empire and France's 12% GDP citadel prove that while software may be eating the world, construction is still busy laying its foundation.
Subsector Performance
- EU residential construction output was €650 billion in 2022.
- Non-residential building construction in EU: €450 billion turnover 2022.
- Civil engineering works in EU generated €777 billion in 2022.
- EU housing completions reached 1.7 million units in 2022.
- Germany's residential construction: 250,000 dwellings completed 2022.
- France new residential permits: 400,000 in 2022.
- Italy non-residential construction €120 billion 2022.
- Spain civil engineering output €100 billion 2022.
- Poland residential building permits 200,000 in 2022.
- Netherlands office construction completions 1.2 million m² 2022.
- Sweden industrial construction €20 billion 2022.
- Belgium road construction €10 billion 2022.
- Austria residential output €25 billion 2022.
- Denmark non-residential permits 5 million m² 2022.
- Finland civil engineering €15 billion 2022.
- EU share of residential in total construction: 35% in 2022.
- Czech Republic housing starts 50,000 in 2022.
- Hungary non-residential €15 billion 2022.
- Romania civil engineering RON 60 billion 2022.
- Bulgaria residential completions 20,000 units 2022.
- Slovakia industrial construction €5 billion 2022.
- Lithuania road works €2 billion 2022.
- Latvia residential permits 15,000 2022.
- Estonia non-residential €1.5 billion 2022.
- Ireland civil engineering €8 billion 2022.
- Portugal housing completions 40,000 2022.
- Croatia office construction 0.5 million m² 2022.
- Slovenia civil engineering €3 billion 2022.
Subsector Performance Interpretation
While the EU's €777 billion civil engineering sector is laying the continent's backbone, the €650 billion residential industry is struggling to keep up with demand, leaving a housing gap so significant it’s a wonder we’re not all just camping under the new bridges.
Sustainability & Green Building
- 40% of new EU buildings in 2022 were NZEB compliant.
- EU construction sector's CO2 emissions totaled 400 million tonnes in 2022.
- Share of renewable energy in EU building sector: 22% in 2022.
- Germany's green building certifications: 5,000 projects in 2022.
- France energy renovation subsidies covered 500,000 homes in 2022.
- Italy's nearly zero-energy buildings: 15% of new builds 2022.
- Spain solar PV installations in construction: 10 GW in 2022.
- Poland green public procurement in construction: 30% of projects 2022.
- Netherlands circular construction materials use: 20% in 2022.
- Sweden timber construction share: 25% in residential 2022.
- EU EPC ratings: 5% of buildings A-rated in 2022.
- Belgium low-carbon concrete use: 10% in new projects 2022.
- Austria passive house certifications: 2,000 in 2022.
- Denmark district heating in new builds: 60% coverage 2022.
- Finland wood-based construction: 40% of new homes 2022.
- 15% reduction in EU construction waste per capita 2018-2022.
- Czech Republic heat pump installations: 50,000 units 2022.
- Hungary green roofs: 1 million m² installed 2022.
- Romania energy-efficient retrofits: 100,000 buildings 2022.
- Bulgaria LEED certified projects: 20 in 2022.
Sustainability & Green Building Interpretation
One could say the EU's construction industry is frantically dressing its new buildings in green while the vast, poorly-insulated existing stock remains in its thermal pyjamas.
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