The Western Europe Infrastructure Construction Market was worth US$ 473.9 billion in 2021 and is expected to expand at a CAGR of 2.6% between 2022 and 2026. The framework development market development over the gauge period in the Western Europe locale is upheld by the public authority’s endeavors to resuscitate monetary improvement by means of extreme public ventures.
However, rising material and energy costs slowed down the launch of new projects in the region in 2021 and 2022, reducing growth momentum. The Recovery and Resilience Facility (RRF), backed by the EU, is expected to provide approximately US$ 790 billion in funding for infrastructure construction over the forecast period.
GlobalData estimates that the pandemic caused the infrastructure construction market in Western Europe to decline by nearly 2.4% in 2020. In 2021, following the pandemic, the industry saw significant growth of more than 7.0%, supported by public investments in regional infrastructure in an effort to revive economic activity. The regional governments’ actions were successful and resulted in a substantial pipeline of upcoming projects.
The construction of infrastructure in Western Europe encompasses a variety of fields, including roads, water and sewage, electricity, and power, among others. The roads category, which was responsible for more than 46.1% of the total in 2021, is anticipated to maintain its dominance throughout the forecast period.
Roads: Western Europe’s roads sector is highly developed and represents a robust pre-existing network that connects key cities and rural areas. This region has some of the best roads in the world, and most of the money spent there is going toward keeping the existing network running smoothly. Nevertheless, with new projects in the works, the region’s roadway infrastructure construction is likely to continue growing at a steady rate. For instance, the Oosterweel Link project in Belgium has a total value of over US$ 4.9 billion and includes the construction of a roadway for an underground tunnel, security barriers, bridges, and other facilities related to it.