| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2020 - 2023 |
| CAGR | 4.50 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Italy Construction Market Analysis
The Italy Construction Market is expected to register a CAGR of greater than 4.5% during the forecast period.
The COVID-19 pandemic adversely affected the construction industry in Italy, recording a 6.3% contraction in output in 2020. However, the sector is recovering from the crisis and reaching the pre-pandemic levels. Meanwhile, the growth was supported by EU recovery funds. The EU recovery funds will allow the government to accelerate investments in some projects.
Furthermore, to recover from the pandemic, the Italian government unveiled a USD 299 billion spending package in 2021. This reform package included USD 230 billion from the EU recovery funds, and USD 37 billion will be raised from the Italian budget. Meanwhile, an additional USD 32 billion will be spent on upgrading the country's transport infrastructure.
In addition, the residential sector, infrastructure sector, and civil engineering are driving the growth of the sector. Meanwhile, the Italian government offers various housing aid initiatives and funds for urban regeneration, including home purchase and/or renovation funds, ECO Bonus, Urban Renaissance Plan, Superbonus 110%, funds for social housing in earthquake areas, etc. Furthermore, the Italian government has allocated EUR 10.8 billion of its EUR 191.5 RRP to promote social infrastructure and communities and EUR 4.2 billion to develop territorial cohesion.
Italy Construction Market Trends
The Residential Sector is Witnessing Lucrative Growth
The pandemic affected the residential sector, but now the sector is recovering to pre-pandemic levels as the number of residential dwellers increased. In addition, in residential buildings, the number of dwellings increased at a growth rate of 2.9% in Q3 2021 compared to the previous quarter. Also, the useful floor area increased at a growth rate of 3.6% compared to the previous quarter.
Building permits for new dwellings increased by 17.7% in Q3 2021 compared to the same quarter in 2020. Meanwhile, the useful floor area was up by 17.5% compared to 2020. In addition, building permits for non-residential buildings increased by 15.5% in Q3 2021 compared to the previous quarter and experienced a growth rate of 22.4% in Q3 2021 compared to the same quarter in 2020.
According to ISTAT, more than 15,295 housing permits were given in Q3 2021, with a floor area of 1.35 million square meters. Furthermore, Southern Italy experienced growth in the residential sector due to the rise of 'smart working' and work-from-home setups. Also, the country's low property tax is boosting house ownership in the sector.
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The Construction Sector is Experiencing Significant Growth
The Italian construction sector was hard hit by the pandemic, but despite the crisis, the sector has been recovering to the pre-pandemic levels. Construction activities in the residential sector, infrastructure sector, and commercial sector increased significantly. For instance, in January 2022, the architecture studio Barreca & La Varra designed a social housing project for Milan called L'Innesto, which will be carbon-neutral and encourage community self-management through shared spaces. This project includes 400 apartments, 300 student housing units, and four hectares of public green space.
Furthermore, the infrastructure sector is witnessing robust growth in construction activities because under the National Plan for Recovery and Resilience (PNRR), the Italian government approved USD 266 billion in 2021 for the renovation of the country's economy from the pandemic crisis. From this recovery and resilience plans (RRPs) infrastructure for the sustainable mobility mission, the government has allocated EUR 32.0 billion for infrastructural investment, including EUR 28.3 billion in high-speed railways and road maintenance EUR 4 billion as well as EUR 3.7 billion in intermodal transport and integrated logistics.
Under the RRPs mission 3, megaprojects will be constructed in the span of five years (2021-2026), such as the construction of Southbound high-speed rail links for passengers and freight, high-speed lines in the north connecting Europe, diagonal connections, and increasing port capacity by expanding the port constructions.
Furthermore, in January 2022, the construction output slightly declined by 0.9% over the previous month, despite the decline in the production index in construction increasing by 4%. In addition, year-on-year, the unadjusted index for construction output increased by 17.2%, while the calendar-adjusted index rose by 13.2% in January 2022.
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Italy Construction Industry Overview
The report covers the major players operating in the Italian construction market. The Italian market is highly competitive, with several players competing for the major share. The market is fragmented, and it is expected to grow during the forecast period due to the increase in construction investments and upcoming major projects in the country. Furthermore, most of the players in the market are expanding their business by investing strategically in partnerships, acquisitions, etc. Some of the major players include Saipem, WeBuilder, Bentini Construction SpA, Grandi Lavori Fincosit SpA, etc.
Italy Construction Market Leaders
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GLF SpA
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Bentini Construction SpA
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Salcef Group SpA
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SAIPEM SpA
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Webuild
- *Disclaimer: Major Players sorted in no particular order
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Italy Construction Market News
In December 2021, European Investment Bank (EIB) supported the construction and renovation of energy-efficient housing units in the Autonomous Province of Bolzano with a framework investment of EUR 126 million for the construction of 280 new affordable and energy-efficient housing units and enhancement of the energy efficiency of 6,450 existing units, benefiting 6,730 people through this investment.
In August 2021, Webuild (an Italian infrastructure giant) completed the acquisition of the tunneling specialist Seli Overseas. This acquisition will allow the firm to progress with its plan to consolidate the ownership of Italy's construction sector, titled Progetto Italia. In addition, Seli Overseas has already undertaken several projects with Webuild Group in Italy and internationally, including the under-construction Terzo Valico dei Giovi high-speed line between Milan and Genoa.
Italy Construction Industry Segmentation
Construction is the installation, maintenance, and repair of buildings and other stationary structures, as well as the construction of roadways and service facilities that form fundamental components of structures and are required for their operation. Construction encompasses the processes involved in constructing buildings, infrastructure, and industrial facilities, as well as related operations, from start to finish. Furthermore, the report on the Italian construction market includes market dynamics, technological trends, insights, and government initiatives related to the market. Also, the report covers segmentation by sector (residential, commercial, industrial, infrastructure, and energy and utilities). The report offers the market size and forecasts in value (USD billion) for all the above segments.
| Sector | Residential |
| Commercial | |
| Industrial | |
| Infrastructure | |
| Energy and Utilities |
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Italy Construction Market Research FAQs
What is the current Italy Construction Market size?
The Italy Construction Market is projected to register a CAGR of greater than 4.5% during the forecast period (2025-2030)
Who are the key players in Italy Construction Market?
GLF SpA, Bentini Construction SpA, Salcef Group SpA, SAIPEM SpA and Webuild are the major companies operating in the Italy Construction Market.
What years does this Italy Construction Market cover?
The report covers the Italy Construction Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Italy Construction Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Construction in Italy Industry Report
Statistics for the 2025 Italy Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Italy Construction analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
