Ireland Construction Industry Report 2023: Market to Shrink by 2.6% in Real Terms in 2023 and 1% in 2024 – Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2027

DUBLIN, Nov. 29, 2023 /PRNewswire/ — The “Ireland Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2027” report has been added to ResearchAndMarkets.com’s offering.

The publisher expects the construction industry in Ireland to shrink by 2.6% in real terms in 2023 and 1% in 2024, owing to headwinds caused by high inflation, hikes in interest rates, and elevated construction material prices.

According to the Central Statistics Office (CSO), the average wholesale price index (excluding VAT) for building and construction materials rose by 9.2% year on year (YoY) in the first eight months of 2023, following overall annual increases of 17.5% in 2022 and 8.5% in 2021.

Residential construction, which accounted for 39.5% of the Irish construction industry’s total output in 2022, is expected to be the hardest-hit sector in the initial part of the forecast period, owing to subdued investor confidence amid falling dwelling permits and residential property transactions.

According to the CSO, the total number of planning permissions granted for dwellings fell by 24% YoY in the first half of 2023, following overall annual fall of 16.4% in 2022. The industry is however expected to rebound at an average annual growth rate of 4.3% from 2025 to 2027, supported by investments in transport and energy infrastructure projects.

According to the ‘Summer Economic Statement’, which was signed off by the Irish Cabinet in July 2023, the government plans to increase core public expenditure by EUR5.2 billion ($5.3 billion) in 2024, marking an estimated 6.1% annual increase in core public spending. To accelerate the delivery of enhanced infrastructure, the government will utilise EUR2.3 billion ($2.3 billion) of windfall receipts for infrastructure projects from 2024 to 2026.

A windfall tax receipt is a tax collected by the government from certain industries when economic conditions allow companies functioning in those industries to experience significantly above average profits.

The report provides detailed market analysis, information, and insights into Ireland’s construction industry, including –

Ireland’s 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 Ireland’s construction industry
Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Ireland, 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 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 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