Table of Contents

1 Executive Summary

2 Construction Outlook: At-a-glance

3 Latest News and Indicators

4 Key Drivers and Risks

• 4.1. Economic Performance
• 4.2. Political Environment
• 4.3. Demographics
• 4.4. Risk Profile

5 Construction Outlook

• 5.1. All Construction
  • 5.1.1. Outlook
  • 5.1.2. Project analytics
• 5.2. Commercial Construction
  • 5.2.1. Outlook
  • 5.2.2. Project analytics
• 5.3. Industrial Construction
  • 5.3.1. Outlook
  • 5.3.2. Project analytics
• 5.4. Infrastructure Construction
  • 5.4.1. Outlook
  • 5.4.2. Project analytics
• 5.5. Energy and Utilities Construction
  • 5.5.1. Outlook
  • 5.5.2. Project analytics
• 5.6. Institutional Construction
  • 5.6.1. Outlook
  • 5.6.2. Project analytics
• 5.7. Residential Construction
  • 5.7.1. Outlook
  • 5.7.2. Project analytics

6 Key Industry Participants

• 6.1. Contractors
• 6.2. Consultants

7 Appendix

• 7.1. What is this Report About?
• 7.2. Definitions

8 About GlobalData

• 8.1. GlobalData at a Glance
• 8.2. GlobalData Construction
• 8.3. Disclaimer

Construction in Ireland - Key Trends and Opportunities to 2023

Summary

Ireland’s construction industry expanded by 11% in real terms in 2018, this was preceded by an average annual growth of 9.4% during the preceding four years. Growth during the review period (2014-2018) was driven by positive developments in regional economic conditions, as well as government and private sector investment across residential, institutional, commercial and transport infrastructure projects.

The industry is expected to continue to expand over the forecast period (2019-2023), albeit at a slower pace compared to the review period. Growth will be driven by the government’s efforts to develop the country’s transport infrastructure and improve the housing sector. In the 2019 budget, the government increased the total gross capital expenditure by 23.6%, going from EUR5.9 billion (US$7 billion) in 2018 to EUR7.3 billion (US$8.6 billion) in 2019. Of the total gross capital expenditure for 2019, the government allocated EUR1.6 billion (US$1.9 billion) towards the transport and tourism sector. The industry growth will also be driven by the National Development Plan 2018-2027, under which the government plans to develop the country’s overall infrastructure and achieve sustainable economic growth. Forecast-period growth will also be supported by the government’s focus on developing renewable energy sources.

The industry’s output value in real terms is expected to post a compound annual growth rate (CAGR) of 5.17% over the forecast period.

Key Highlights

- GlobalData expects the residential construction market to account for 49.3% of the industry’s total value in 2023, driven by public and private sector investments in the construction of new residential buildings to meet the increasing demand for housing. The government’s efforts to construct affordable housing units for the country’s low- and middle-income population are also expected to support the market over the forecast period. The government plans to increase the supply of new houses to 25,000 units annually by 2020, and deliver an additional 50,000 social houses by 2021.
- The government’s focus on the development of the country’s rail, road, airport and other core transport infrastructure under the National Development Plan for the period 2018-2027 is expected to support the infrastructure construction market’s growth over the forecast period. The plan seeks to invest EUR115.9 billion (US$136.6 billion) to develop the country’s infrastructure by 2027.
- GlobalData expects the energy and utilities construction market to record a forecast-period CAGR of 4.02% in nominal terms in 2023, supported by public and private sector investment in energy and utilities construction projects. Owing to urbanization, population growth and an expanding economy, energy demand is escalating. In July 2019, Energia, the electric utility provider, announced its plan to invest EUR3 billion (US$3.5 billion) in renewable energy infrastructure programs across the country over the next five years in a bid to cut carbon emissions, improve energy security and sustainable socio-economic development. The plan is to generate 1,500MW of renewable energy from onshore and offshore wind farms, hydrogen fuel generation, solar power and bio-energy facilities.
- Institutional construction market’s growth over the forecast-period will be driven by the government’s commitment to pursue quality development and continuous expenditure on the education and healthcare sector. In the 2019 budget, the government increased its gross capital expenditure on the education sector by 26.2%, going from EUR745 million (US$878.1 million) in 2018 to EUR941 million (US$1.1 billion) in 2019. Moreover, the government increased its 2019 budget gross capital expenditure for the healthcare sector by 30%, going from EUR513 million (US$604.7 million) in 2018 to EUR667 million (US$786.2 million) in 2019.
- The total construction project pipeline in Ireland - as tracked by GlobalData, and including all mega projects with a value above US$25 million - stands at EUR80.3 billion (US$94.7 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards early-stage projects, with 60.1% of the pipeline value being in projects in the pre-planning and planning stages as of September 2019.

GlobalData’s Construction in Ireland - Key Trends and Opportunities to 2023 report provides detailed market analysis, information and insights into the Irish construction industry, including -
- The Irish 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 the Irish 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

This report provides a comprehensive analysis of the construction industry in Ireland. It provides -
- Historical (2014-2018) and forecast (2019-2023) 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 GlobalData's 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 GlobalData's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.