Spain Construction Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Report Covers Construction Companies in Spain and the Market is Segmented by Sector (Residential, Commercial, Industrial, Infrastructure (Transportation), and Energy and Utilities). The market size and forecasts are provided in terms of value (USD million) for all the above segments.

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Spain Construction Market Size

Spain Construction Market Summary
Study Period 2019-2028
Base Year For Estimation 2022
Market Size (2023) USD 186.94 Billion
Market Size (2028) USD 216.72 Billion
CAGR (2023 - 2028) 3.00 %
Market Concentration Medium

Major Players

Spain Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Spain Construction Market Analysis

The Spain Construction Market size is expected to grow from USD 186.94 billion in 2023 to USD 216.72 billion by 2028, at a CAGR of 3% during the forecast period (2023-2028).

Over the 2010-2020 period, Spain's GDP declined by 1.3%, standing at USD 1.3 trillion in 2020. In 2020, the country's GDP declined by 10.8% compared to the previous year. In 2021, however, the GDP of Spain grew by 5.1%.

Due to COVID-19, the construction industry witnessed a decline of 9.6% in investments in the first quarter of 2020. The construction activity output in the transport and hotel sector also declined by 11% in the first quarter of 2020. Following a 4.1% annual loss faced by the construction industry in 2021, the construction industry in Spain was predicted to grow by 8.3% in real terms in 2022 primarily due to the favorable base effect, increased spending under the EU's Recovery and Resilience Facility (RRF), and favorable monetary circumstances.

Spain has allocated 28.2% (around USD 22.1 billion) of the total grant toward digital activities. This will be used for the promotion of business digitalization for SMEs. The aim is to strengthen the digital skills of the Spanish population, improve country‑wide digital connectivity, continue the digitalization of the public administration, support R&D, and deploy digital technologies. Overall, the Spanish broad construction sector has a positive outlook as the investments in public sector infrastructure, digitalization, and energy-efficient housing renovations as well as a green circular economy, backed by EU funding, is projected to drive the future growth of the sector.

Spain Construction Market Trends

This section covers the major market trends shaping the Spain Construction Market according to our research experts:

Increase in Housing Permits Likely to Boost the Construction Sector

The market is expected to observe growth during the forecast period driven by the increase in housing permits issued. According to information released by the Ministry of Public Works, in March 2022, 10,899 new building licenses were authorized by the Spanish Board of Architects. The number was higher than the 8,603 and 8,366 permits issued in March 2021 and February 2022, respectively. Following a 7.0% increase in February, permits jumped 26.7% annually. The moving three-month aggregate of permits, meanwhile, reached 28,165 in March, an increase of 18.4% from the same period in 2021.

According to the latest data published by the Ministry of Public Works, construction costs in buildings, including labor and material consumption, have grown at an annual rate of over 14%. New non-residential construction, which includes office, industrial, and other building types, has climbed by 21%, a significant gain over the residential sector's growth of 10.6%. Building renovations, which include work on both residential and non-residential structures, rose by 12.8%.

Despite this situation, the primary indicators of the residential sector—such as building permits, the volume of transactions, and prices—remain in positive expansion for the time being. According to the most recent data available, the pandemic caused a dip in housing approvals in 2020, which directly contributed to the loss in building completion certificates recorded in the first few months of 2022.

Spain Construction Market: Number of New Construction Buildings for Residential use with Professional Board Certification in Spain, 2021, by Type of Dwelling

Planned Investments in the Transportation and Infrastructure Market to Support Sustainable Development Goals 2030

The construction industry is expected to grow over the forecast period (2020-2025), fueled by the government's focus on infrastructure in the country. Continued growth in the construction industry is expected over the next few years, supported by road and rail infrastructure expansion. All sectors, including housing, non-residential construction, and civil engineering, are expected to expand in volume.

Investments in infrastructures amounted to USD 11.308 billion in 2019, which represents an increase of 11.6% over the budgeted amount in 2018. Transport sectors such as railways and roads accounted for almost 70% of the total investment.

Moreover, in 2020, the government adopted the decision to invest almost USD 2.255 billion to carry out the expansion of Barajas Airport (Madrid) and ease mobility, with two extensions of the underground line, in the region of Madrid. Spain focuses on implementing a series of measures to guarantee compliance with the "Sustainable Development Goals" for 2030, which require the improvement of the infrastructure system, and the necessary investment has amounted to USD 116.84 billion. Other transport projects such as Highway Olivar Úbeda (Jaén)-Estepa (Seville), Lines 2, 3, and 4 of the Seville underground and Rail corridor of the Costa del Sol will be the key investments that support the construction sector in Spain.

Spain Construction Market: Amount of Money Invested in Road Transport Infrastructure in Spain, 2012 to 2021, in Euro Millions

Spain Construction Industry Overview

The market is fragmented with a large number of players, including Acciona SA, Elecnor SA, Fomento de Construcciones y Contratas SA, Dragados SA, Cobra Instalaciones y Servicios SA, Ferrovial, Obrascón Huarte Lain, Administrador de Infraestructuras Ferroviarias (Adif), Adif Alta Velocidad, and Adif Alta Velocidad. The competition amongst service providers is further heightened by the strict regulatory requirements that must be met. Businesses participate in M&A transactions to develop their product lines and expand regionally.

The report covers the major players operating in the Spanish construction market. The market is expected to grow during the forecast period due to the increase in construction investments, upcoming major projects in the country, and other related factors.

Spain Construction Market Leaders

  1. ACCIONA CONSTRUCCION SA.

  2. ELECNOR S A

  3. FCC CONSTRUCTION S A

  4. DRAGADOS SOCIEDAD ANONIMA

  5. COBRA INSTALACIONES Y SERVICIOS SA

*Disclaimer: Major Players sorted in no particular order

Spain Construction Market Concentration
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Spain Construction Market News

September 2021: The European Investment Bank (EIB) will provide Empresa Metropolitana de Abastecimiento y Saneamiento de Aguas de Sevilla SA (Emasesa) with the financing of up to USD 84.9 million to support water infrastructure investments in Seville and the surrounding municipalities between 2020 and 2024. Emasesa, whose majority shareholder is the Municipality of Seville, is the entity in charge of providing water services to the city of Seville and to 11 towns in the surrounding metropolitan area.

December 2021: The Spanish government announced investing USD 27.4 billion to develop rail infrastructure over the next five years. The money will go to both the high-speed lines and the regular Spanish rail network. Freight transporters will also benefit from the planned investments.

Spain Construction Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Economic and Construction Market Scenario

    2. 4.2 Technological Innovations in the Construction Sector

    3. 4.3 Insights on Costs Related to Construction and Building Materials

    4. 4.4 Impact of Government Regulations and Initiatives on the Industry

    5. 4.5 Spotlight on Prefabricated Buildings Market in Spain

    6. 4.6 Brief on Real Estate Market and Key Real Estate Players

    7. 4.7 Insights on Services Allied to Construction (Design and Engineering, Fit-out Services, Facility Management, etc.)

    8. 4.8 Insights on Key Distributors/Traders of Construction Materials

    9. 4.9 Value Chain/Supply Chain Analysis

    10. 4.10 Impact of COVID-19 on the market

  5. 5. MARKET DYNAMICS

    1. 5.1 Drivers

    2. 5.2 Restraints

    3. 5.3 Opportunitites

    4. 5.4 Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers/Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Sector

      1. 6.1.1 Residential

      2. 6.1.2 Commercial

      3. 6.1.3 Industrial

      4. 6.1.4 Infrastructure (Transportation)

      5. 6.1.5 Energy and Utilities

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles

      1. 7.2.1 ACCIONA CONSTRUCCION SA

      2. 7.2.2 ELECNOR SA

      3. 7.2.3 FCC CONSTRUCTION SA

      4. 7.2.4 DRAGADOS SOCIEDAD ANONIMA

      5. 7.2.5 COBRA INSTALACIONES Y SERVICIOS SA

      6. 7.2.6 FERROVIAL AGROMAN SA

      7. 7.2.7 TSK ELECTRONICA Y ELECTRICIDAD SA

      8. 7.2.8 ACS, ACTIVIDADES DE CONSTRUCCION Y SERVICIOS, SA

      9. 7.2.9 ADMINISTRADOR DE INFRAESTRUCTURAS FERROVIARIAS

      10. 7.2.10 OBRASCON HUARTE LAIN SA

      11. 7.2.11 ADIF ALTA VELOCIDAD

      12. 7.2.12 SACYR CONSTRUCCION SAU*

    3. *List Not Exhaustive

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

  9. 9. APPENDIX

    1. 9.1 Macroeconomic Indicators (GDP Breakdown by Sector, Contribution of Construction to Economy, etc.)

    2. 9.2 Key Production, Consumption, Exports & Import Statistics of Construction Materials

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Spain Construction Industry Segmentation

Construction is the process of planning, designing, and constructing infrastructure and buildings in Spain. It involves the use of a range of materials, methods, and technologies to create a variety of structures, including roads, bridges, tunnels, dams, airports, and buildings. 

The Spanish construction market is segmented by sector (residential, commercial, industrial, infrastructure (transportation), and energy and utilities). The report also analyses the key players and the competitive landscape in the Spanish construction market. The impact of COVID-19 has also been incorporated and considered during the study. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Sector
Residential
Commercial
Industrial
Infrastructure (Transportation)
Energy and Utilities
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Spain Construction Market Research FAQs

The Spain Construction Market size is expected to reach USD 186.94 billion in 2023 and grow at a CAGR of 3% to reach USD 216.72 billion by 2028.

In 2023, the Spain Construction Market size is expected to reach USD 186.94 billion.

ACCIONA CONSTRUCCION SA., ELECNOR S A, FCC CONSTRUCTION S A, DRAGADOS SOCIEDAD ANONIMA and COBRA INSTALACIONES Y SERVICIOS SA are the major companies operating in the Spain Construction Market.

Spain Construction Industry Report

Statistics for the 2023 Spain Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Spain Construction analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Spain Construction Market Report Snapshots

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