Summary
Finland’s construction industry expanded at a relatively fast pace in 2016-2017, averaging 6.3% per year in real terms. This in part reflects the continuing recovery from the weakness recorded in the early part of the review period (2013-2017). The recent period of solid growth was also driven by positive developments in regional economic conditions, a revival in both investor and consumer confidence and government investment in renewable energy and social infrastructure. Furthermore, the European Union’s (EU) financial aid to enhance the country’s competitiveness supported the industry’s growth during the review period.
Over the forecast period (2018-2022), the industry’s expansion is expected to be supported by investments in transport, energy and residential infrastructure projects. The implementation of government flagship programs such as the General Government Fiscal Plan for 2017−2020 and the National Energy and Climate Strategy 2030 are also expected to support the industry’s growth over the forecast period.
GlobalData’s "Construction in Finland - Key Trends and Opportunities to 2022", report provides detailed market analysis, information and insights into the Finnish construction industry, including -
- The Finnish 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 the Finnish construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Key Highlights
- GlobalData expects the residential construction market to retain its leading position over the forecast period, with a share of 36.7% of the industry’s total value in 2022, supported by an increase in the number of residential buildings permits issued in the country. Market output is also expected to be driven by the rising demand for new residential units due to the country’s expanding population and ongoing urbanization.
- Forecast-period growth in the Infrastructure construction market will be supported by the government’s focus on the expansion and maintenance of road, rail and sea ports with an aim to tackle traffic congestions and retain the quality of country’s transport network. The government plans to spend EUR2.8 billion (US$3.2 billion) annually on the maintenance and modernization of transport infrastructure during the period of 2018-2021.
- Under the National Energy and Climate Strategy 2030, the government aims to increase the share of renewable energy in the country’s total energy mix from 36% in 2017 to 50% by 2030. Accordingly, the government plans to invest EUR23.0 billion (US$26.0 billion) to build the renewable energy related infrastructure by 2030. The government’s initiative will drive funding towards renewable energy projects over the forecast period.
- The Finnish energy and utilities construction market’s growth will be supported by the Government’s focus on high-speed broadband connectivity. The government aims to provide an internet connection speed of up to 1.0Gbps to 98% of the population by 2025. Accordingly, in 2017, the Ministry of Transport and Communications initiated the preparation of a new national broadband strategy, under which it aims to develop wireless broadband and fiber-optic networks across the country in order to provide high-speed internet access.
- The total construction project pipeline in Finland - as tracked by GlobalData and including all mega projects with a value above US$25 million - stands at EUR64.6 billion (US$73.0 billion). The pipeline, which includes all projects from pre-planning to execution, is relatively balanced, with 51.9% of the pipeline value being in projects in the late stages as of October 2018.
Scope
This report provides a comprehensive analysis of the construction industry in Finland and also provides -
- Historical (2013-2017) and forecast (2018-2022) 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
- 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.
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Table of Contents
1. EXECUTIVE SUMMARY 2
2. CONSTRUCTION OUTLOOK: AT-A-GLANCE 3
3. LATEST NEWS AND INDICATORS 9
4. KEY DRIVERS AND RISKS 12
4.1. Economic Performance 12
4.2. Political Environment 12
4.3. Demographics 12
4.4. Risk Profile 13
5. CONSTRUCTION OUTLOOK 14
5.1. All Construction 14
5.1.1. Outlook 14
5.1.2. Project analytics 17
5.2. Commercial Construction 20
5.2.1. Outlook 20
5.2.2. Project analytics 21
5.3. Industrial Construction 23
5.3.1. Outlook 23
5.3.2. Project analytics 24
5.4. Infrastructure Construction 26
5.4.1. Outlook 26
5.4.2. Project analytics 27
5.5. Energy and Utilities Construction 29
5.5.1. Outlook 29
5.5.2. Project analytics 30
5.6. Institutional Construction 32
5.6.1. Outlook 32
5.6.2. Project analytics 33
5.7. Residential Construction 35
5.7.1. Outlook 35
5.7.2. Project analytics 36
6. KEY INDUSTRY PARTICIPANTS 38
6.1. Contractors 38
6.2. Consultants 40
7. APPENDIX 42
7.1. What is this Report About? 42
7.2. Definitions 42
8. ABOUT GLOBALDATA 46
8.1. GlobalData at a Glance 46
8.2. GlobalData Construction 47
8.3. Disclaimer 48
8.4. Contact Us 48
List of Tables
Table 1: Construction Outlook 3
Table 2: Finland, Key Economic Indicators 12
Table 3: Finland, Construction Output Value (nominal, EUR Million) 18
Table 4: Finland, Construction Output Value (nominal, US$ Million) 19
Table 5: Finland, Top Commercial Construction Projects by Value 22
Table 6: Finland, Top Industrial Construction Projects by Value 25
Table 7: Finland, Top Infrastructure Construction Projects by Value 28
Table 8: Finland, Top Energy and Utilities Construction Projects by Value 31
Table 9: Finland, Top Institutional Construction Projects by Value 34
Table 10: Finland, Top Residential and Mixed-Use Construction Projects by Value 37
Table 11: Finland, Key Contractors 38
Table 12: Finland, Key Consultants 40
Table 13: GlobalData Construction Market Definitions 43
Table 14: Construction Risk Index Ratings and Scores 45
List of Figures
Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix 3
Figure 2: Finland, Construction Projects Pipeline by Sector (EUR Billion) 3
Figure 3: Finland, Export value of goods and services (EUR, Billion) 9
Figure 4: Housing Price Index 10
Figure 5: Total volume of new residential buildings started (Thousand M3) 11
Figure 6: Finland, Risk Profile, Q3 2018 13
Figure 7: Finland, Risk Comparison, Q3 2018 13
Figure 8: Finland, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate) 15
Figure 9: Finland, Construction Output Value, Growth Matrix 15
Figure 10: Finland, Construction Output Value, by Sector (EUR Million), 2013-2022 16
Figure 11: Finland, Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million), 2017-2022 17
Figure 12: Finland, Construction Projects Pipeline, Value by Stage (EUR Million) 17
Figure 13: Finland, Commercial Construction Output by Project Type (EUR Million), 2013-2022 20
Figure 14: Finland, Commercial Construction Projects Pipeline, Value by Stage (EUR Million) 21
Figure 15: Finland, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million) 22
Figure 16: Finland, Industrial Construction Output by Project Type (EUR Million), 2013-2022 23
Figure 17: Finland, Industrial Construction Projects Pipeline, Value by Stage (EUR Million) 24
Figure 18: Finland, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million) 24
Figure 19: Finland, Infrastructure Construction Output by Project Type (EUR Million), 2013-2022 26
Figure 20: Finland, Infrastructure Construction Projects Pipeline, Value by Stage (EUR Million) 27
Figure 21: Finland, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million) 27
Figure 22: Finland, Energy and Utilities Construction Output by Project Type (EUR Million), 2013-2022 29
Figure 23: Finland, Energy and Utilities Construction Projects Pipeline, Value by Stage (EUR Million) 30
Figure 24: Finland, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million) 31
Figure 25: Finland, Institutional Construction Output by Project Type (EUR Million), 2013-2022 32
Figure 26: Finland, Institutional Construction Projects Pipeline, Value by Stage (EUR Million) 33
Figure 27: Finland, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million) 33
Figure 28: Finland, Residential Construction Output by Project Type (EUR Million), 2013-2022 35
Figure 29: Finland, Residential Construction Projects Pipeline, Value by Stage (EUR Million) 36
Figure 30: Finland, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (EUR Million) 37
Figure 31: Finland, Headquarters of Key Contractors (% of Total Project Pipeline) 39
Figure 32: Finland, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor) 39
Figure 33: Finland, Headquarters of Key Consultants (% of Total Project Pipeline) 41
Figure 34: Finland, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants) 41
