Scandinavia Construction Market Research Report By Building Type (Residential, Non-Residential, Infrastructure), By Construction Phase (Planning and Design, Construction, Maintenance and Repair), By Technology (Traditional Construction, Modular Construction, Smart Construction), By Sustainability (Green Building, Energy Efficiency, Renewable Energy) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Scandinavia Construction Market Overview

The Scandinavia Construction Market Size was estimated at 124.7 (USD Billion) in 2022.The Scandinavia Construction Industry is expected to grow from 126.59(USD Billion) in 2023 to 145.0 (USD Billion) by 2032. The Scandinavia Construction Market CAGR (growth rate) is expected to be around 1.52% during the forecast period (2024 - 2032).

Key Scandinavia Construction Market Trends Highlighted

The Scandinavian construction market is poised for continued growth, driven by urbanization, infrastructure development, and sustainability initiatives. The green building segment is particularly promising, with increasing demand for energy-efficient and eco-friendly construction practices. Digital technologies are also transforming the industry, facilitating collaboration, optimizing processes, and enhancing productivity. Moreover, the market is characterized by a strong focus on prefabrication and modular construction, as well as a shift towards personalized and customer-centric approaches. Opportunities for growth lie in meeting the demand for affordable housing, addressing labor shortages through automation, and leveraging advanced materials and technologies to enhance project efficiency and sustainability.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Scandinavia Construction Market Drivers

Increasing Infrastructure Investment

One of the key drivers of growth for the Scandinavia construction market is the increasing investment in infrastructure projects across the region. With governments focusing on building new roads, bridges, railways, and other infrastructure projects to improve connectivity and foster economic growth, this trend is likely to continue in the upcoming years. A related benefit is that this situation brings considerable opportunities for construction companies to excel.Furthermore, it also allows firms operating in this market to perform high-quality builds that are also sustainable and environmentally friendly.

Growing Demand for Residential and Commercial Construction

The growing demand for residential and commercial construction is another key driver of growth for the Scandinavia construction market. The region is experiencing a growing population and increasing urbanization, leading to a rising demand for new housing and commercial space. This demand is being further fueled by the strong economic growth in the region, which is creating new jobs and businesses. Construction companies are responding to this demand by investing in new projects and expanding their operations.

Technological Advancements and Innovation

Growth in the Scandinavia construction market is also ogmented by the adoption of new technologies and innovative construction methods. Construction companies are increasingly employing digital tools and technologies to facilitate their operations. For instance, modular construction, prefabrication, and the use of building information modeling  are becoming more popular and help to increase project speed and reduce costs. Moreover, and more importantly, such technologies help to improve the sustainability and environmental performance of construction projects.

Scandinavia Construction Market Segment Insights

Scandinavia Construction Market Building Type Insights  

The Scandinavia construction market is segmented by building type into the residential, non-residential, and infrastructure. The residential segment is the largest, and it will account for more than 50% of the market in 2023. The non-residential segment comes next at slightly more than 30% of the market. Infrastructure is the smallest segment of the construction market in this region; it will account for more than 20% of the market in 2023. According to the forecast, the residential segment will grow at a CAGR of 1.5% from 2023 to 2032. It will amount to USD 72.65 billion by 2032.The non-residential segment will grow at a CAGR of 1.6%, reaching USD 43.48 billion by 2032. Infrastructure will grow at a CAGR of 1.4%, reaching USD 29.37 billion by the same year. This shows that the demand in all segments is gradually growing from 2023 to 2032. The economic conditions remain favorable to ensure that they grow over the period. The demand for new construction in this market is expected to be on an upward trend, especially in the residential and non-residential segments.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Scandinavia Construction Market Construction Phase Insights  

The Scandinavia Construction Market is segmented into three key phases, which are Planning and Design, Construction, as well as Maintenance and Repair. The Construction phase had the highest market share as of 2023 by holding nearly 60.0% of the total market revenue. During construction, new construction projects are developed and built, and already existing ones are further maintained and repaired. Over the forecast period, this segment is expected to dominate the market since new construction projects will be on-demand, and maintenance of already existing buildings and infrastructure repair will be needed.The Planning and Design phase involves expertise activities and the development of plans, specifications and drawings of constructed building parameters. The segment will maintain steady growth over the forecast period, under the influence of the increasing complexity of constructed facilities and buildings, requiring specialized equipment and design. The third segment Maintenance and Repair refer to the repair and maintenance of an already existing constructed building or infrastructure. The projected growth of the segment will be moderate over the forecast period due to the demographic aging of population.

Scandinavia Construction Market Technology Insights  

The Scandinavia construction market is segmented based on technology into traditional construction, modular construction, and smart construction. Traditional construction methods continue to dominate the market, accounting for the majority of construction projects. However, modular construction is gaining popularity due to its efficiency and cost-effectiveness. The market growth is attributed to increasing investment in infrastructure development, rising demand for sustainable construction solutions, and technological advancements in the construction industry.The market is fragmented with the presence of numerous regional and international players. Key players are focusing on expanding their geographical presence and investing in research and development to gain a competitive edge. The market is expected to witness increased adoption of digital technologies, such as Building Information Modeling (BIM) and Virtual Reality (VR), to enhance project efficiency and reduce costs.

Scandinavia Construction Market Sustainability Insights  

The sustainability segment of the Scandinavia Construction Market is experiencing significant growth, driven by increasing environmental concerns and government regulations promoting green building practices. Green building, with a market size projected to reach $34.86 billion by 2027, focuses on reducing the environmental impact of buildings throughout their lifecycle. Energy efficiency measures, such as improved insulation and energy-efficient appliances, are gaining traction, with the market size expected to reach $22.43 billion by 2027.Renewable energy sources, such as solar and wind power, are also gaining popularity, driven by government incentives and falling costs. The market size for renewable energy in construction is projected to reach $18.65 billion by 2027.

Scandinavia Construction Market Regional Insights  

The regional segmentation of the Scandinavia Construction Market offers valuable insights into the geographical distribution of the industry. North America holds a dominant position in the market, accounting for a significant share of the revenue. The region's robust construction sector, fueled by urbanization, infrastructure development, and technological advancements, drives its strong market presence. Europe follows closely behind, showcasing a high demand for construction services driven by renovation and modernization projects. The APAC region, led by China and India, exhibits rapid growth potential due to urbanization, expanding infrastructure, and government initiatives.South America and MEA regions represent emerging markets with considerable growth opportunities, supported by increasing investments in infrastructure and real estate development. These regional insights provide a detailed understanding of the market landscape and help identify key growth areas for businesses operating in the Scandinavia Construction Market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Scandinavia Construction Market Key Players And Competitive Insights

Major players in Scandinavia Construction Market are continuously innovating and developing new technologies to enhance the efficiency and sustainability of their operations. Leading Scandinavia Construction Market players are investing heavily in research and development to gain a competitive advantage and meet the increasing demand for sustainable infrastructure solutions. The Scandinavia Construction Market industry is characterized by a high level of competition among both domestic and international players. To stay competitive, companies are focusing on providing innovative products and services, as well as expanding their geographical presence. The competitive landscape is expected to remain fragmented in the coming years, with no single player holding a dominant market share.A leading player in the Scandinavia Construction Market is Skanska, a Swedish multinational construction and development company. Skanska has a strong presence in the region, with operations in Sweden, Norway, Finland, and Denmark. The company offers a wide range of construction services, including building, civil engineering, and infrastructure projects. Skanska is committed to sustainability and has set ambitious targets for reducing its environmental impact. The company has also invested heavily in digitalization and innovation to improve its efficiency and productivity.Another major player in the Scandinavia Construction Market is Veidekke, a Norwegian construction and property development company. Veidekke has a strong presence in Norway, Sweden, Denmark, and Finland. The company offers a wide range of construction services, including building, civil engineering, and infrastructure projects. Veidekke is also committed to sustainability and has set ambitious targets for reducing its environmental impact. The company has also invested heavily in digitalization and innovation to improve its efficiency and productivity.

Key Companies in the Scandinavia Construction Market Include

• Fira


• NCC


• Veidekke


• JM


• AF Gruppen


• YIT


• Serneke


• Skanska


• Bonava


• Peab


• Lemminkäinen


• Hartela


• OBOS


• SRV

Scandinavia Construction Market Industry Developments

The Scandinavia construction market is projected to grow from USD 126.59 billion in 2023 to USD 145.0 billion by 2032, exhibiting a CAGR of 1.52% during the forecast period. The growth of the market is attributed to increasing investments in infrastructure development, rising demand for sustainable construction solutions, and growing urbanization.Recent news developments in the market include: In January 2023, Skanska, a leading construction and development company in the Nordics, announced plans to invest SEK 4 billion (USD 385 million) in a new residential project in Stockholm, Sweden. In February 2023, AF Gruppen, a Norwegian construction company, secured a contract worth NOK 1.5 billion (USD 146 million) to build a new hospital in Stavanger, Norway. In March 2023, NCC, a Swedish construction company, announced a partnership with Einar Mattsson, a leading real estate developer in the Nordics, to develop a new residential neighborhood in Gothenburg, Sweden.These developments indicate the continued growth and investment in the Scandinavia construction market, driven by factors such as urbanization, infrastructure development, and sustainability.

Scandinavia Construction Market Segmentation Insights

• Scandinavia Construction Market Building Type Outlook
  
  
  
  • Residential
  
  
  • Non-Residential
  
  
  • Infrastructure
  
  
  
  

• Scandinavia Construction Market Construction Phase Outlook
  
  
  
  • Planning and Design
  
  
  • Construction
  
  
  • Maintenance and Repair
  
  
  
  

• Scandinavia Construction Market Technology Outlook
  
  
  
  • Traditional Construction
  
  
  • Modular Construction
  
  
  • Smart Construction
  
  
  
  

• Scandinavia Construction Market Sustainability Outlook
  
  
  
  • Green Building
  
  
  • Energy Efficiency
  
  
  • Renewable Energy
  
  
  
  

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  Scandinavia Construction Market Regional Outlook

  
  
  
  
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    North America

    
    
  
  
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    Europe

    
    
  
  
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    South America

    
    
  
  
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    Asia Pacific

    
    
  
  
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    Middle East and Africa