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 Portugal - Key Trends and Opportunities to 2023

Summary

Portugal’s construction industry registered growth of 6.3% and 2.2% in real terms in 2017 and 2018 respectively, following an average annual growth of -3.1% during 2014-2016. This growth can be attributed to an increase in private consumption, rising household real disposable income, declining unemployment and rising wages.

Over the forecast period (2019-2023), the industry is expected to be supported by the government’s focus on developing cross-border transport infrastructure to improve the country’s trade activities. The government plans to build the Southern European Rail Line to connect Évora in Portugal to Elvas, a town bordering Spain. The project is a part of the EUR2 billion (US$2.4 billion) - Ferrovia 2020 plan, and involves an investment of EUR509 million (EUR592 million) by 2022. Of this total, EUR232 million (EUR269.8 million) will be invested by the European Union (EU). The government’s focus on developing the renewable energy infrastructure and rising building construction permits are also expected to drive public and private sector funding towards construction projects.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 2.50% over the forecast period, compared to 1.99% during the review period.

Key Highlights

- GlobalData expects the infrastructure construction market to retain its leading position over the forecast-period, and account for 38.2% of the industry’s total value in 2023, driven by the government’s focus on developing the port infrastructure in the country to attract and boost new cargo shipments and become one of the main ports in the west Mediterranean region. In July 2019, the government approved a plan for the expansion of Terminal XXI and construction of the new Vasco de Gama Terminal on the Port of Sines in Setúbal to expand the port’s capacity and address the rising demand for containerized cargo. The plan involves an investment of EUR547 million (US$636.2 million) to expand and renovate the Terminal XXI, while EUR642 million (US$746.7 million) will be invested on the construction of the Vasco de Gama Terminal.
- In January 2019, the government approved the 10-year National Investment Program (PNI). As a part of this program, the government plans to invest EUR22 billion (US$25.9 billion) on transport, energy, environment and irrigation projects by 2030. Of the total, EUR12.7 billion (US$15 billion) will be spent on 44 transport projects, EUR4.9 billion (US$5.8 billion) on eight energy projects, EUR3.6 billion (US$4.2 billion) on 18 environment projects and EUR750 million (US$884 million) on irrigation projects.
- GlobalData expects the energy and utilities construction market to post a forecast-period CAGR of 4.40% in nominal terms in 2023, driven by the government’s effort to develop the country’s renewable energy sources, reduce greenhouse gas emissions and increased energy efficiency. Under the National Energy-Climate Plan 2030 (PNEC) released by the government in January 2019, the government plans to invest EUR21.9 billion (US$25.5 billion) to produce 80% of the country’s total electricity from renewable energy sources - mainly solar energy. This will support the government’s plan to become a carbon-neutral country by 2050.
- Institutional construction market’s growth over the forecast period will be driven by the government’s focus on improving the healthcare facilities in the country. In May 2019, the government approved the Health Investment Program under which it plans to invest EUR91 million (US$105.8 million) on the renovation of 10 healthcare buildings in the country by 2021.
- The total construction project pipeline in Portugal - as tracked by GlobalData, and including all mega projects with a value above US$25 million - stands at EUR19.3 billion (US$22.8 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards early-stage projects, with 65.9% of the pipeline value being in projects in the pre-planning and planning stages as of September 2019.

GlobalData’s Construction in Portugal - Key Trends and Opportunities to 2023 report provides detailed market analysis, information and insights into the Portuguese construction industry, including -
- The Portuguese 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 Portuguese 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 Portugal. It provides -
- Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Portugal, 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.