France’s construction industry recovered in 2017, after sustained weakness since 2008. This was driven by positive developments in regional economic conditions, a revival in both investor and consumer confidence and government investment in transport infrastructure. Thus, the country’s construction industry registered growth of 2.6% in 2017 in real terms.
The industry is expected to continue to register positive growth over the forecast period (2018–2022), driven by investments in transport infrastructure, energy, commercial and industrial projects, and improved consumer and investor confidence.
Under the 2030 Agenda for Sustainable Development, the government is focusing on the development of affordable houses as well as renewable energy infrastructure. Accordingly, the government plans to invest EUR5.0 billion (US$5.6 billion) for renewable and sustainable energy infrastructure by 2030. To develop new affordable community houses across the country, the government plans to invest EUR4.0 billion (US$4.5 billion) until 2020.
The industry’s output value in real terms is expected to record a compound annual growth rate (CAGR) of 1.95% over the forecast period — up from -0.19% during the review period (2013–2017).
GlobalData’s Construction in France — Key Trends and Opportunities to 2022 report provides detailed market analysis, information and insights into the French construction industry, including —
— The French 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 French construction industry.
— Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
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Key Highlights:
- GlobalData expects the residential construction market to retain its leading position over the forecast period, with a share of 40.3% of the industry’s total value in 2022. Market growth over the forecast period will be supported by rising residential building permits, the low housing loan interest rate and government efforts to balance housing demand and supply through the construction of affordable houses. Under the Housing First plan, the government plans to build 40,000 affordable housing units per year by 2020.
— In June 2018, Renault SA announced plans to invest EUR1.0 billion (US$1.2 billion) to boost their production of electric vehicles. Moreover, in January 2018, Toyota announced a plan to invest EUR300.0 million (US$352.9 million) to expand their manufacturing facility in the country. Both of these investments will in-turn help in the development of the industrial construction market over the forecast period.
— GlobalData expects infrastructure construction market output to record a forecast-period CAGR of 2.51% in nominal terms, supported by the government’s investment on transport infrastructure with an aim to reduce traffic congestion. In February 2018, the government announced plans to spend EUR80.0 billion (US$94.1 billion) on the development of transport infrastructure by 2037. Accordingly, for the period of 2018–2020, the government allocated EUR2.4 billion (US$2.8 billion) annually for the transport infrastructure.
— Under the Plan de Programmation Pluriannuelle de l’Energie, the government plans to generate 40% of the country’s total energy mix from renewable sources by 2030. Accordingly, the government plans to install 3.0GW of wind power plants during 2017–2023, and another 3.0GW during 2024–2030. The government also plans to install 18.4GW of solar energy power plants by 2023 and 25.0GW of hydropower plants by 2023.
— The total construction project pipeline in France — as tracked by the Construction Intelligence Center (CIC) and including all mega projects with a value above US$25 million — stands at EUR374.8 billion (US$422.7 billion). The pipeline, which includes all projects from pre-planning to execution, is well balanced, with 49.6% of the pipeline value being in projects in the late stages as of July 2018.
Scope:
This report provides a comprehensive analysis of the construction industry in France. It provides —
— Historical (2013–2017) and forecast (2018–2022) valuations of the construction industry in France, 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.
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Reasons to buy:
- Identify and evaluate market opportunities using GlobalData’s 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 strategy using GlobalData’s critical and actionable insight.
— Assess business risks, including cost, regulatory and competitive pressures.
— Evaluate competitive risk and success factors.
Key Points from TOC:
1 Executive Summary
2 Construction Outlook: At-a-glance
3 Latest News and Indicators
4 Key Drivers and Risks
5 Construction Outlook
6 Key Industry Participants
7 Appendix
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