Summary
Norway’s construction industry registered a growth of 4.4% in real terms in 2017. This was preceded by annual growth of 2.5% in 2014, 2.9% in 2015 and 4.2% in 2016. Growth during the review period (2013-2017) was driven by positive developments in regional economic conditions and government investment in energy and transport infrastructure.
The industry is expected to expand over the forecast period (2018-2022), albeit at a slightly slower pace. The industry’s expansion over this period is expected to be mainly supported by the government’s efforts to improve the quality of infrastructure across the country. The industry will be supported by the government’s ongoing efforts to develop infrastructure through large-scale investments under the National Transport Plan 2018-2029.
According to Statistics Norway, the country’s gross fixed capital formation in the construction industry grew by 3.2% in real terms in the first half of 2018 (the latest data available at the time of writing), compared to the same period in 2017. The pace of growth of gross fixed capital formation is expected to remain positive throughout the remainder of 2018, and will continue to support the Norwegian construction industry’s growth over the forecast period.
The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 2.65% over the forecast period, compared to 3.51% during the review period (2013-2017).
GlobalData’s "Construction in Norway - Key Trends and Opportunities to 2022", report provides detailed market analysis, information and insights into the Norwegian construction industry, including -
- The Norwegian 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 Norwegian 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 41.5% of the industry’s total value in 2022.. The country’s rising population, ongoing urbanization and positive developments in regional economic conditions are expected to increase demand for residential construction over the forecast period.
- GlobalData expects the infrastructure construction market output to record a forecast-period CAGR of 6.21% in nominal terms. In 2017, the government launched the National Transport Plan 2018-2029 in order to cut travel times, increase access and improve transport services across the country. The government plans to invest NOK1.1 trillion (US$128.7 billion) in developing infrastructure between 2018 and 2029, in order to improve mobility across the country.
- The government’s plan to increase the total wind power production capacity by 2020 will support growth in the energy and utilities construction market over the forecast period. According to the Ministry of Petroleum and Energy, the country’s total installed wind power capacity is expected to increase from 3.6Twh in 2017 to 10Twh in 2020.
- In July 2018, Bane NOR, the government agency responsible for the maintenance, operation and development of the Norwegian railway network, announced a plan to issue tenders worth NOK60.0 billion (US$7.2 billion) over the next three years for the development of inter-city routes.
- The total construction project pipeline in Norway - as tracked by GlobalData and including all mega projects with a value above US$25 million - stands at NOK1.7 trillion (US$203.4 billion). The pipeline, which includes all projects from pre-planning to execution, is relatively well balanced, with 48.2% of the pipeline value being in projects in the pre-planning and planning stages as of October 2018.
Scope
This report provides a comprehensive analysis of the construction industry in Norway and also provides -
- Historical (2013-2017) and forecast (2018-2022) valuations of the construction industry in Norway, 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 11
4.1. Economic Performance 11
4.2. Political Environment 11
4.3. Demographics 11
4.4. Risk Profile 12
5. CONSTRUCTION OUTLOOK 13
5.1. All Construction 13
5.1.1. Outlook 13
5.1.2. Project analytics 15
5.2. Commercial Construction 18
5.2.1. Outlook 18
5.2.2. Project analytics 20
5.3. Industrial Construction 22
5.3.1. Outlook 22
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 31
5.6. Institutional Construction 33
5.6.1. Outlook 33
5.6.2. Project analytics 35
5.7. Residential Construction 37
5.7.1. Outlook 37
5.7.2. Project analytics 39
6. KEY INDUSTRY PARTICIPANTS 41
6.1. Contractors 41
6.2. Consultants 43
7. APPENDIX 45
7.1. What is this Report About? 45
7.2. Definitions 45
8. ABOUT GLOBALDATA 49
8.1. GlobalData at a Glance 49
8.2. GlobalData Construction 50
8.3. Disclaimer 51
8.4. Contact Us 51
List of Tables
Table 1: Construction Outlook 3
Table 2: Norway, Key Economic Indicators 11
Table 3: Norway, Construction Output Value (nominal, NOK Million) 16
Table 4: Norway, Construction Output Value (nominal, US$ Million) 17
Table 5: Norway, Top Commercial Construction Projects by Value 21
Table 6: Norway, Top Industrial Construction Projects by Value 25
Table 7: Norway, Top Infrastructure Construction Projects by Value 28
Table 8: Norway, Top Energy and Utilities Construction Projects by Value 32
Table 9: Norway, Top Institutional Construction Projects by Value 36
Table 10: Norway, Top Residential and Mixed-Use Construction Projects by Value 40
Table 11: Norway, Key Contractors 41
Table 12: Norway, Key Consultants 43
Table 13: GlobalData Construction Market Definitions 46
Table 14: Construction Risk Index Ratings and Scores 48
List of Figures
Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix 3
Figure 2: Norway, Construction Projects Pipeline by Sector (NOK Billion) 3
Figure 3: Norway, Real estate activities (NOK Million) 9
Figure 4: Norway, Price Index for New Dwellings 10
Figure 5: Norway, Risk Profile, Q3 2018 12
Figure 6: Norway, Risk Comparison, Q3 2018 12
Figure 7: Norway, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate) 13
Figure 8: Norway, Construction Output Value, Growth Matrix 14
Figure 9: Norway, Construction Output Value, by Sector (NOK Million), 2013-2022 14
Figure 10: Norway, Construction Projects Pipeline, Projected Annual Spending by Stage (NOK Million), 2017-2022 15
Figure 11: Norway, Construction Projects Pipeline, Value by Stage (NOK Million) 15
Figure 12: Norway, Commercial Construction Output by Project Type (NOK Million), 2013-2022 19
Figure 13: Norway, Commercial Construction Projects Pipeline, Value by Stage (NOK Million) 20
Figure 14: Norway, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (NOK Million) 21
Figure 15: Norway, Industrial Construction Output by Project Type (NOK Million), 2013-2022 23
Figure 16: Norway, Industrial Construction Projects Pipeline, Value by Stage (NOK Million) 24
Figure 17: Norway, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (NOK Million) 25
Figure 18: Norway, Infrastructure Construction Output by Project Type (NOK Million), 2013-2022 26
Figure 19: Norway, Infrastructure Construction Projects Pipeline, Value by Stage (NOK Million) 27
Figure 20: Norway, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (NOK Million) 28
Figure 21: Norway, Energy and Utilities Construction Output by Project Type (NOK Million), 2013-2022 30
Figure 22: Norway, Energy and Utilities Construction Projects Pipeline, Value by Stage (NOK Million) 31
Figure 23: Norway, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (NOK Million) 32
Figure 24: Norway, Institutional Construction Output by Project Type (NOK Million), 2013-2022 34
Figure 25: Norway, Institutional Construction Projects Pipeline, Value by Stage (NOK Million) 35
Figure 26: Norway, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (NOK Million) 35
Figure 27: Norway, Residential Construction Output by Project Type (NOK Million), 2013-2022 38
Figure 28: Norway, Residential Construction Projects Pipeline, Value by Stage (NOK Million) 39
Figure 29: Norway, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (NOK Million) 40
Figure 30: Norway, Headquarters of Key Contractors (% of Total Project Pipeline) 42
Figure 31: Norway, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor) 42
Figure 32: Norway, Headquarters of Key Consultants (% of Total Project Pipeline) 44
Figure 33: Norway, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants) 44
