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Home > Construction >  Construction in Spain – Key Trends and Opportunities to 2025 (Q4 2021)

Construction in Spain – Key Trends and Opportunities to 2025 (Q4 2021)

The construction market output in Spain was valued at US$166.20 billion in 2020 and is forecast to record a marginal growth in 2021. The pace of recovery in 2021 has been curtailed by surging prices for construction materials and energy, while ongoing challenges in containing Coronavirus (COVID-19) infections has hampered the overall rebound in economic activity. Residential construction represented the largest sector in 2020 followed by infrastructure, commercial, institutional, energy and utilities and industrial.

The construction market in Spain is projected to register an average annual growth of more than 4% between 2022-2025. The government’s plan to spend EUR27 billion (US$29.7 billion) under the Next Generation EU (NGEU) Recovery Fund is expected to be a major driver in 2022 and in the following few years. Under the EU fund, EUR3.2 billion (US$3.9 billion) is allocated to industrial policy next year, EUR2.8 billion (US$3.4 billion) to energy efficiency works for buildings, EUR2.2 billion (US$2.7 billion) to green transport systems and EUR2.1 billion in aid for small and medium enterprises.

Overview of construction market in Spain

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What are the construction market dynamics in Spain?

The construction industry has been hampered by supply shortages and rising construction material prices, and owing to a worse performance than had been expected, GlobalData now expects the industry to grow negligibly in 2021. The government’s NGEU Recovery Fund is expected to be a major driver in 2022 and in the following few years. Moreover, the EU fund will support energy efficiency works for buildings, green transport systems and aid small and medium enterprises. 

Construction market in Western Europe, construction output (% change), 2020

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Including the EU fund, the government also plans to allocate EUR11.8 billion (US$14.4 billion) for resilient infrastructures and ecosystems under the 2022 budget. This includes EUR2.3 billion (US$2.8 billion) towards roads; EUR5.4 billion (US$6.6 billion) in railways; EUR1.7 billion (US$2.1 billion) in ports and airports; EUR995 million (US$1.2 billion) in hydraulic infrastructures; and EUR233 million (US$283.5 million) in investments that seek to regenerate the coasts. The government plans to allocate EUR1 billion (US$1.2 billion) of EU recovery funds in social housing.

The infrastructure sector is expected to decline in 2021, as some big investments in projects that are in the pipeline have been pushed back by the disruptions due to high energy prices and inflation. However, industrial activities have begun to pick up since the start of the year, with the latest figures from Eurostat showing value add of manufacturing growing by 1.4% YoY in Q3 2021. There are major downside risks in the form of supply chain disruption, owing to the sharp rise in demand amid transport disruptions and these issues will remain in 2022. The residential construction sector faced significant disruption last year, with demand weakened by an increase in unemployment and a fall in disposable income.

What are the sector classifications in Spain’s construction market? 

Commercial construction market in Spain: The commercial construction sector remains weak in 2021, having plummeted in 2020. Assuming a gradual improvement in retail trade and hospitality sector, new investment will pick up steadily. The forecast period will be supported by ongoing growth in investments in the construction of data centers across the country, coupled with the government’s Sustainable Tourism Strategy of Spain 2030. However, the surge of the new variant of COVID-19 across Europe is posing an uncertain outlook for the short and medium term.

Industrial construction market in Spain: The industrial construction sector has been sluggish, rebounding only marginally in real terms in 2021. However, the pace of growth will pick up, supported by improvements in manufacturing and industrial production, notwithstanding the severe microchip shortage across Europe that has hampered automotive production and weakened investor sentiment.

Infrastructure construction market in Spain: The infrastructure construction sector is expected to decline significantly in 2021 due to the delays and suspension of several projects across Spain and a decline in the civil engineering works production index. The outlook for 2022 is positive, with the government allocating EUR11.8 billion (US$14.4 billion) for resilient infrastructures and ecosystems.

Energy and utilities construction market in Spain: The energy and utilities construction sector is expected to decline significantly in real terms in 2021 due to a fall in volume of production in civil engineering works, coupled with a weak investment scenario. Over the remainder of the forecast period, the sector is expected to project a stable annual average rate supported by investments in renewable energy projects and increasing energy generation capacity.

Institutional construction market in Spain: The institutional construction sector is expected to rebound in 2021 and project a stable growth during the forecast period, supported by increased investment by the government towards healthcare services and education.

Residential construction market in Spain: With a recovery in the job market and improvement in employment, the demand for housing is expected to recover in 2021. The outlook for medium and long term is also expected to be promising, with government focusing to improve housing market and invest in affordable housing.

Construction market in Spain, by sector

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Who are the major players in the Spanish construction market?

Domestic contractors account for a majority share of the project pipeline for which a contract has been awarded, as they are involved in 89% of projects in the pipeline by value in Spain. Among foreign firms, Mexico-based firms are the dominant foreign contractors. Sacyr SA is the leading contractor by value of project pipeline, followed by Acciona SA, Grupo Carso SA de CV, Ferrovial SA and Grupo Villar Mir SAU.

Consultants with headquarters within Spain are involved in more than 80% of the overall project pipeline by value, featuring only projects for which a consultant has been appointed. Italy-based firms are involved in 30% of the project pipeline in which a foreign consultant is operating, followed by consultants from Belgium and the US. Impulsa Group was the leading consultant, followed by GEODATA SpA, Ingenieria y Economia del Transporte SA, Subterra Inc. and TYPSA Group.

Construction market in Spain, by key players

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Scope

Market size (Year – 2020)US$166.20 billion
Growth rateCAGR of >4% from 2021 to 2025
Base year for estimation2020
Segmentation by sectorCommercial, Industrial, Infrastructure, Energy and Utilities, Institutional, Residential
Key contractorsSacyr SA; Acciona SA; Grupo Carso SA de CV; Ferrovial SA; Grupo Villar Mir SAU; Actividades de Construccion y Servicios SA; Grupo Empresarial San Jose SA; Ortiz Construcciones y Proyectos SA; Romero Gamero, SA; Altec Empresa de Construccion y Servicios SA
Key consultantsImpulsa Group; GEODATA SpA; Ingenieria y Economia del Transporte SA; Subterra Inc.; TYPSA Group; Applus Services SA; TPF SA; Actividades de Construccion y Servicios SA; IDOM Consulting, Engineering, Architecture SAU; Tecnoambiente SL

This report provides a comprehensive analysis of the construction market in Spain. It provides:

  • Historical (2016-2020) and forecast (2021-2025) valuations of the construction market in Spain, 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

Key Highlights

  • What is Spain’s construction market output in 2020?

    • The construction market output in Spain was estimated at US$166.20 billion in 2020.

  • What is the construction market growth rate in Spain?

    • The construction market in Spain is projected to register an average annual growth of more than 4% between 2021-2025.

  • What are the key sectors in the Spanish construction market?

    • Key sectors in the Spanish construction market include commercial, industrial, infrastructure, energy and utilities, institutional and residential.

  • Who are the key contractors in the Spanish construction market?

    • Sacyr SA is the leading contractor by value of project pipeline, followed by Acciona SA, Grupo Carso SA de CV, Ferrovial SA and Grupo Villar Mir SAU.

  • Who are the key consultants in the Spanish construction market?

    • Impulsa Group was the leading consultant, followed by GEODATA SpA, Ingenieria y Economia del Transporte SA, Subterra Inc. and TYPSA Group.

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.

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 COVID-19 Status

3.5 Risk Profile

4 Construction Outlook

4.1 All Construction

– Outlook

– Latest news and developments

– Construction Projects Momentum Index

4.2 Commercial Construction

– Outlook

– Project analytics

– Latest news and developments

4.3 Industrial Construction

– Outlook

– Project analytics

– Latest news and developments

4.4 Infrastructure Construction

– Outlook

– Project analytics

– Latest news and developments

4.5 Energy and Utilities Construction

– Outlook

– Project analytics

– Latest news and developments

4.6 Institutional Construction

– Outlook

– Project analytics

– Latest news and developments

4.7 Residential Construction

– Outlook

– Project analytics

– Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?

7.2 Definitions

7.3 CRI Methodology

7.4 GlobalData Construction

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List of Tables

List of Tables

Table 1: Construction Industry Key Data

Table 2: Spain, Key Economic Indicators

Table 3: Spain, Commercial Construction Output by Project Type (Real % Change), 2016-2025

Table 4: Spain, Top Commercial Construction Projects by Value

Table 5: Spain, Industrial Construction Output by Project Type (Real % Change), 2016-2025

Table 6: Spain, Top Industrial Construction Projects by Value

Table 7: Spain, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025

Table 8: Spain, Top Infrastructure Construction Projects by Value

Table 9: Spain, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025

Table 10: Spain, Top Energy and Utilities Construction Projects by Value

Table 11: Spain, Institutional Construction Output by Project Type (Real % Change), 2016-2025

Table 12: Spain, Top Institutional Construction Projects by Value

Table 13: Spain, Residential Construction Output by Project Type (Real % Change), 2016-2025

Table 14: Spain, Top Residential Construction Projects by Value

Table 15: Spain, Key Contractors

Table 16: Spain, Key Consultants

Table 17: Spain, Construction Output Value (Real, US$ Million)

Table 18: Spain, Construction Output Value (Nominal, EUR Million)

Table 19: GlobalData Construction Market Definitions

Table 20: Risk Dimensions

Table 21: Ratings, Scores and Definitions

List of Figures

List of Figures

Figure 1: Western Europe, Construction Output (Real % Change), 2021

Figure 2: Spain, Construction Projects Pipeline by Sector (US$ Billion)

Figure 3: Spain, COVID-19 Confirmed Cases

Figure 4: Spain, Risk Summary

Figure 5: Spain, Risk Regional Comparison

Figure 6: Spain, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025

Figure 7: Spain, Construction Output Value, by Sector (Real, US$ Million), 2016-2025

Figure 8: Spain, Construction Value Add (EUR Billion, 2015 Chain Linked Volume Prices), % Change YoY

Figure 9: Spain, Construction Production Index, 2015=100, % Change YoY

Figure 10: Spain, Gross Fixed Capital Formation in Construction Sector, 2015 Chain Linked Volume Measures, % Change YoY

Figure 11: Spain, Employment in the Construction Industry, in Thousands

Figure 12: Spain, Construction Projects Momentum Index

Figure 13: Western Europe, Construction Projects Momentum Index

Figure 14: Spain, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 15: Spain, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 16: Spain, International Tourist Arrivals (in Thousands) and Spending by International Tourists (In EUR Million)

Figure 17: Spain, Employment in the Hospitality Sector, in Thousands

Figure 18: Spain, Retail Turnover Index, Constant Prices, 2015=100, % Change YoY

Figure 19: Spain, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 20: Spain, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 21: Spain, Manufacturing Value Add (EUR Billion, 2015 Chain Linked Volume Prices), % Change YoY

Figure 22: Spain, Exports of Goods and Services, in Current Prices, EUR Billion, % Change YoY

Figure 23: Spain, Industrial Production Index, 2015=100, % Change YoY

Figure 24: Spain, Vehicle Production and Exports, In Thousands

Figure 25: Spain, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 26: Spain, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 27: Spain, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 28: Spain, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 29: Spain, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 30: Spain, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 31: Spain, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 32: Spain, Residential Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 33: Spain, Value Add of Real Estate Activities (EUR Billion, 2015 Chain Linked Volume Prices), % Change YoY

Figure 34: Spain, Gross Fixed Capital Formation on Dwellings (EUR Billion, 2015 Chain Linked Volume Prices), % Change YoY

Figure 35: Spain, Housing Price Index (IPV), 2015=100, % Change YoY

Figure 36: Spain, Housing Sales, in Thousands

Figure 37: Spain, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 38: Spain, Headquarters of Key Consultants (% of Total Project Pipeline)

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