Dublin, Dec. 24, 2024 (GLOBE NEWSWIRE) -- The "Denmark Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (H2 2024)" report has been added to ResearchAndMarkets.com's offering.
Denmark's construction industry is projected to encounter a downturn with an estimated contraction in real terms by 3.7% in 2024, followed by a further 0.8% in 2025. Key contributing factors to this outlook are identified as high construction material prices, elevated inflation rates, and an increase in interest rates. The implications of these economic conditions have been noticeable, particularly in the elevated costs associated with both road projects and residential properties during the first half of 2024.
Market Analysis
A comprehensive analysis observes the industry being further impacted by a decrease in the issuance of construction permits. The total floor area of construction permits approved experienced a striking 9.4% decline year-on-year in H1 2024. This constriction in the industry is further compounded by delays and postponements of significant renewable energy projects, indicating a cautious environment for large-scale developments.
Future Outlook and Opportunities
Looking beyond 2025, a recovery phase is predicted with an average annual growth rate of 3.9% from 2026 to 2028. This optimistic forecast is supported by strategic investments in transport and renewable energy projects. In addition, the Danish government's Infrastructure Plan 2035, which involves an investment of DKK157.6 billion, is expected to catalyze growth. The Plan includes pivotal projects such as the construction of the Copenhagen M5 metro line, which is anticipated to bolster the industry's prospects.
Strategic Insights
The report provides a detailed evaluation of the construction industry's growth, dissected by market, project type, and construction activity. It affords critical insights into the impact of industry trends and issues, including an analysis of key risks and opportunities. The focus also spans to the analysis of the mega-project pipeline, covering development stages and participant analysis along with a listing of major projects in the pipeline.
Kickstarting Growth
Given the present and near-term challenges, the Danish construction industry's path to resurgence is contingent on adjusting to the market's constraints while harnessing the impending inflow of state-funded projects. Integral to this recovery will be the strategic allocation of resources and the innovative orchestration of impending infrastructure and energy projects.
In conclusion, while near-term prospects present several challenges for Denmark's construction industry, the alignment of government initiatives and investment plans portend a rejuvenation of the industry and its growth trajectory towards the late 2020s.
For more information about this report visit https://www.researchandmarkets.com/r/pmxfqn
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