Rising Demand for Housing Units to Boost Construction Market in Germany
The construction market research report by Technavio predicts the market in Germany to post a CAGR of close to 5% during the period 2019-2023.
A key driver for the construction market in Germany is the growing demand for housing units. According to the Federal Office for Building and Regional Planning, Germany requires about 350,000 new housing units per year by 2021. In 2018, the German government made an announcement regarding its plan to construct around 1.5 million housing units by 2021. Additionally, the high population growth in major cities and the increase in immigrant influx will drive the increase in residential construction projects.
This construction market research report also provides an analysis of the most important trends expected to impact the market outlook in Germany during the period 2019-2023. Technavio classifies an emerging trend as a major factor that has the potential to significantly impact the market and contribute to its growth or decline.
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In this report, Technavio highlights the ongoing use of digital technologies as one of the key trends in the construction market in Germany:
Construction market in Germany: Use of digital technologies
The adoption of BIM in construction projects in Germany has resulted in improved productivity, quality, work speed, and low cost for vendors. In April 2013, the Federal Ministry of Transport and Digital Infrastructure in Germany, founded the Construction of Major Projects Reform Commission to improve public confidence in certain projects. This commission assisted in developing solutions to enhance true-cost pricing, increase cost transparency, augment efficiency, and facilitate timely completion of significant projects.
“The development of standards is further assisting the adoption of BIM in the construction industry. The Association of German Engineers has been working on developing building standards VDI 2552 series for BIM. VDI 2552 will become the German national BIM standard after completion,” says a senior analyst at Technavio for research on construction.
Construction market in Germany: Segmentation analysis
This construction market analysis report segments the market in Germany by end-user sectors (residential, public, and commercial) and by type (renovation and modernization and new installations).
The residential segment held the largest construction market share in 2018, accounting for over 53% of the market. This end-user segment is expected to dominate the market throughout the forecast period.
Of the two segments based on type, the renovation and modernization segment held the largest construction market share in 2018, accounting for nearly 62% of the market. This segment is anticipated to dominate the market throughout the period 2019-2023.
