Dublin, Oct. 06, 2023 (GLOBE NEWSWIRE) -- The "Norway Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027" report has been added to ResearchAndMarkets.com's offering.
Norwegian construction industry to contract by 1.7% in real terms in 2023, following an annual expansion of 4.4% in 2022
The decline in construction activity in 2023 is expected to be driven by a continuation of the slowdown in the housing market amid rising interest rates and high inflation in terms of both consumer prices and construction costs.
Rising mortgage rates and elevated building costs feeding into house prices are expected to weaken demand in the real estate market, causing a reduction in new residential development starts. According to the Statistics Norway (SSB), the average construction cost index for residential buildings rose by 6.4% year on year (YoY) in the first three months of 2023; this increase is attributed to price increases in both materials (9% YoY) and labour (3.9% YoY), and it represents a 26% YoY increase over the same period of pre-pandemic levels of 2019.
The impact of high inflation and rising interest rates on household budgets, and thus demand in the retail and leisure sectors, will also weigh heavily on commercial construction this year. However, rising investments in manufacturing and oil and gas sectors will assist the industry's recovery in 2024. Earlier in January 2023, the government awarded 47 new oil and gas exploration permits to 25 companies under the predefined areas (APA) 2022 licensing round.
Over the remainder of the forecast period, the industry's output is expected to rebound at an annual average growth rate of 2.4% from 2024 to 2027, supported by investments in the transport and renewable energy sectors. In June 2022, the government unveiled a roadmap to drive green industrial growth in the country.
The roadmap aims to facilitate faster development of projects within seven areas, including offshore wind, hydrogen, batteries, and the maritime industry. As part of the roadmap, the government will develop a coherent and profitable battery value chain, develop a value chain for the production, distribution, and use of hydrogen, and allocate areas with potential for 30GW of offshore wind production by 2040, among others.
Scope
- Historical (2018-2022) and forecast (2023-2027) 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 the publisher'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 the publisher's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors.
Key Topics Covered:
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 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
For more information about this report visit https://www.researchandmarkets.com/r/eewmvs
Source: GlobalData
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