Dublin, May 04, 2022 (GLOBE NEWSWIRE) -- The "France Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2020-2025" report has been added to ResearchAndMarkets.com's offering.
The French construction industry is expected to have expanded by 13% in real terms in 2021, supported by a very low base in 2020, coupled with an increase in the construction of residential and non-residential buildings.
The industry is expected to expand by 3.3% in real terms in 2022, before stabilizing at an annual average of 2% growth from 2023 to 2026. However, the industry's output could be affected by weak investor and consumer confidence in the short -term, due to a spike in Coronavirus (COVID-19) cases caused by the spread of the Omicron variant of the virus.
Additionally, falling levels of employment within the construction industry and rising costs of materials pose a potential downside risk to the industry's output.
Over the medium and long term, the industry's output will be supported by investments as part of the EUR30 billion (US$36.5 billion) 'France 2030' plan unveiled by the French President Emmanuel Macron in October 2021. EUR8 billion (US$9.7 billion) of this funding will be invested on renewables, nuclear and hydrogen; over the next nine years, the plan aims to promote the emergence of small innovative nuclear reactors with better waste management, become a leader in green hydrogen by building at least two giga factories with electrolysers, and decarbonise French industry by reducing greenhouse gas (GHG) emissions by 35% compared to 2015 levels.
Additionally, EUR4 billion (US$4.9 billion) is earmarked for transport and mobility, with funding allocated to help reach the government's domestic production target of two million full-electric and hybrid vehicles by 2030, as well as producing the first low-carbon aircraft by the same year. This plan comes on top of the EUR100 billion (US$114 billion) economic recovery plan unveiled by the government in September 2020.
The industry's output over the forecast period will also be supported by public and private sector investments in housing, healthcare, transport, energy, and tourism infrastructure projects, particularly in preparation for the upcoming summer Olympic games in Paris in 2024. The government plans to spend EUR6.8 billion (US$8 billion) to upgrade the country's infrastructure by 2024.
The government's plan to invest EUR80 billion (US$94.4 billion) in transport infrastructure, emissions reduction, and support for energy-efficient buildings through renovation will also support the industry's growth over the forecast period.