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Finland Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

Finland Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

  • August 2022
  • 53 pages
  • ID: 6353018
  • Format: PDF
  • GlobalData

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Finland Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

Summary
The construction industry in Finland is expected to expand by 1.8% in real terms this year, following an annual growth of 3.4% in 2021. The industry’s output in 2022 will be supported by Finland’s national Recovery and Resilience Plan (RRP) under the EU’s recovery and Resiliency Facility (RRF), as well as separate funding from the EU to support small and mid-sized enterprises (SMEs). However, high construction costs and supply chain disruptions will continue to weigh on the industry in the short term amid the ongoing war in Ukraine, while disruptions on the demand side stemming from high inflation, rising interest rates, and weak investor confidence is likely to dampen construction activity over the medium term. Between 2023 and 2026, the industry is expected to register an annual average growth of 1.9%, supported by the government’s focus developing infrastructure, as well as planned projects in the energy and utilities sector. To support its net-zero targets, the Ministry of Transport and Communications announced that an investment amount of EUR3.3 billion ($3.7 billion) will be allocated every year between 2023 and 2026, for developing sustainable green infrastructure.

Under the RRP, the government plans to invest EUR619 million ($698.2 million) in 2023, EUR421 million ($474.9 million) in 2024, EUR197 million ($222.2 million) in 2025, and EUR75 million ($84.6 million) in 2026 to promote sustainable growth in transport infrastructure, education, healthcare, and clean energy sectors. Additionally, the government will reduce taxes on new electric vehicles and research and development (R&D) activities in 2023, as well as subsidising clean energy costs to promote clean energy consumption. The European Commission disbursed EUR2 billion ($2.3 billion) to Finland in July 2022 to stimulate industrial growth via the construction of new plants and has also provided funds from Connecting Europe Facility (CCF) to spur infrastructure construction. The European Commission plans to authorize further disbursements in September 2022 for the projects that did not receive funding. Within the roadmap for the country’s economic growth and sustainability, the government has laid focus upon increasing the proportion of the usage of renewable energy to fossil fuels, thereby reducing climate risk, as well geopolitical risk associated with energy import dependency

The report provides detailed market analysis, information, and insights into Finland’s construction industry, including -
- Finland’s 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 Finland’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline

Scope
This report provides a comprehensive analysis of the construction industry in Finland.

It provides -
- Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Finland, 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

Reasons to Buy
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- 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 critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.

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