Summary

Switzerland’s construction industry’s output grew at a compound annual growth rate (CAGR) of 1.17% in real terms during the review period (2013-2017). Although output growth slowed in 2017, this general upward trend can be attributed to public and private sector investment in transport infrastructure, energy and utilities construction projects.

Over the forecast period (2018-2022), the government’s efforts to develop transport and commercial infrastructure will support the growth of the industry. In addition, the government’s aim to improve local energy resources with an aim to reduce the country’s reliance on imported energy is expected to support investments in energy infrastructure projects, which will in turn fuel growth in the industry. However, ongoing geopolitical tension, rising protectionism and uncertainties with new corporate tax referendum are expected to depress investor confidence, which is in turn expected to hold back growth in the industry over the forecast period.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 1.43% over the forecast period.

GlobalData’s "Construction in Switzerland - Key Trends and Opportunities to 2022", report provides detailed market analysis, information and insights into the Swiss construction industry, including -
- The Swiss 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 Swiss 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 driven by demand for new residential units due to the country’s rising population, immigrants and urbanization. Growth will also be supported by the low mortgage interest rates which would attract investment towards residential buildings in the country. The market is expected to record a forecast-period CAGR of 2.43% in nominal terms.
- The energy and Utilities market’s growth will be supported by the government’s focus on the high-speed internet connection across the country. Under the Digital Switzerland strategy, the government plans to provide ultra-high speed broadband connection to all municipalities by 2020, as well as Fifth Generation (5G) mobile network coverage. Through this, the government plans to provide an internet speed of 10.0Gbps to the mobile network by 2020.
- GlobalData expects the industrial construction market to expand over the forecast period and register a forecast-period CAGR of 2.56% in nominal terms. Growth will be driven by the government’s focus to attract foreign manufacturing companies and expand the country’s small and medium enterprises (SMEs). In January 2018, the government launched Innosuisse, a federal organization under public law, to provide technical and financial support to SMEs.
- Forecast-period growth in the Infrastructure construction market will be supported by the government’s efforts to reduce traffic congestion in the country. In October 2017, the Swiss Federal Council proposed to invest CHF11.5 billion (US$11.9 billion) to develop and modernize the country’s busiest railway routes by 2035. In addition, the Federal Office of Transport is investing CHF13.2 billion (US$13.4 billion) for the maintenance of country’s railway during the period of 2017-2020.
- The total construction project pipeline in Switzerland - as tracked by GlobalData and including all mega projects with a value above US$25 million - stands at CHF85.9 billion (US$87.3 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late stage projects, with 78.2% of the pipeline value being in projects in the pre-execution and execution stages as of November 2018.

Scope

This report provides a comprehensive analysis of the construction industry in Switzerland. It provides -
- Historical (2013-2017) and forecast (2018-2022) valuations of the construction industry in Switzerland, 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.