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The European construction market

The Swedish Transport Administration has potential suppliers on the Euroconstruct market. We make a large number of targeted efforts to attract foreign suppliers.

The Euroconstruct market comprises 19 European countries. The market consists of almost all Western European countries (EU and EFTA) and a number of Eastern European states (EU candidate countries). The total value of the construction market in the Euroconstruct area amounts to approximately EUR 342 billion (2020). Several of the world’s largest contractors are to be found in the Euroconstruct market.

The Swedish Transport Administration’s experience from webinars and completed procurements shows that it is primarily Spanish, Italian, French and German contractors that are interested in projects in Scandinavia. Webinars for Dutch and Lithuanian suppliers are planned in spring 2021.

The construction economy in Europe

The total construction market for the Euroconstruct area in 2019 was EUR 1.7 trillion, as measured by 2019 prices. This is a level not expected again until 2023. This is partly because growth in the construction market has stagnated and partly because the Covid-19 pandemic has had negative effects on the societal economy.

In 2020, the total construction market is projected to decrease by 7.8 per cent compared to 2019. All but a few Euroconstruct countries are in decline in investment in the respective national construction markets. The biggest drops have been seen in the United Kingdom (-19.5%) and Ireland (-16%).

An upturn in the market is expected to take place in late 2021. Most countries are expected to be able to open up to operate under more normal conditions. Investment in the overall construction market for the 19 Euroconstruct countries is expected to increase by 4.1% in 2021 and 3.4% in 2022. This means that the level in 2022 is in line with that in 2018-2019. Although all building segments are negatively affected by the Covid-19 pandemic, the impact is different for different segments. The segment that has been least affected in the Euroconstruct area is construction (-3.8 per cent in 2020).

The total construction market for the Euroconstruct area in 2020 is estimated at EUR 342 billion. This represents approximately 21 per cent of the total construction sector. The total investment volume in the construction market is expected to increase by around 4.5 per cent annually in 2021 and 2022.

The Swedish Transport Administration's upcoming projects, which aim to attract foreign suppliers, compete to a large extent with the suppliers' home markets, which are now expected to grow.

The construction economy in the Nordic region

The pandemic still leaves a deep imprint on economic activity, both in the Nordic region and globally. However, despite a worse economic situation with reduced GDP, the building market in the Nordic region showed great resilience in 2020. The strongest development was in Norway, followed by Finland, where started housebuilding investments grew by 9 per cent and 6 per cent respectively in 2020. A common thread in the Nordic countries is, on the one hand, growing investments in the public sector and, on the other, stronger than expected development of the renovation investments. The construction market in the Nordic region continues to develop at a relatively good pace due to increased investments in public infrastructure. In Norway, the construction market is expected to grow by 13.5 per cent in 2021 (road investment +21.3 per cent, railways +12.7 per cent and other infrastructure by +7.4 per cent). The Swedish Transport Administration's projects compete to a large extent with other Nordic projects in the European building market