Italy Construction Market Size, Share, Industry Trends, and Growth Forecast, 2026-2031 | EU Infrastructure and Energy-Efficient Retrofits Drive Growth to USD 278.29 Billion

Dublin, Oct. 30, 2026 (GLOBE NEWSWIRE) -- "Italy Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

Italy Construction Market to Reach USD 278.29 Billion by 2031 as Infrastructure and Energy Renovation Investment Accelerates

The Italy construction market is expected to increase from USD 228.70 billion in 2025 to USD 236.32 billion in 2026. It is forecast to reach USD 278.29 billion by 2031, expanding at a 3.33% CAGR from 2026 to 2031. Growth will be supported by large-scale public infrastructure programs, residential energy-efficiency requirements, renewable energy projects and investment in sustainable transport networks.

Public Infrastructure Modernization Supports Market Growth

Infrastructure modernization under national and European Union stimulus plans remains a central driver of Italy construction market growth. The National Recovery and Resilience Plan allocates USD 217 billion for 2021-2026, including USD 78 billion for ecological transition and infrastructure improvements. Public works spending increased by 13.7% in 2024 as transport, water and digital infrastructure projects moved into construction, helping offset weaker residential activity.

Targeted investment is also improving regional development. Southern provinces recorded construction growth of 0.9% in 2024, compared with 0.7% in northern Italy, reflecting efforts to address long-standing connectivity and infrastructure gaps. Major projects such as the Brenner Base Tunnel and the Tyrrhenian Link incorporate resilience standards, advanced digital design and low-carbon materials. Contractors offering integrated engineering, procurement and environmental compliance capabilities are well positioned to secure multi-year project frameworks.

Energy-Efficient Residential Renovation Gains Momentum

Residential renovation is becoming increasingly important as Italy works toward European building energy-performance targets. The Energy Performance of Buildings Directive requires residential properties to achieve energy class D by 2033. Nearly 60% of Italy's housing stock is currently classified in the lowest G or F categories, creating substantial demand for deep-retrofit renovation.

Lombardy and Piedmont alone may require approximately USD 135 billion in building upgrades, equivalent to 20.2% of regional GDP. Although the Superbonus incentive is being phased out, stronger consumer awareness, energy costs and tighter resale requirements continue to support investment in heat-pump systems, triple glazing, smart metering and advanced insulation.

Specialized design-build companies are responding by combining energy modelling, financing guidance and performance guarantees. Partnerships with utilities and financial technology providers are also expanding access to mortgage-linked retrofit loans. Energy-performance contracting models can transfer upfront capital risk to energy service companies, enabling more property owners to undertake comprehensive renovation programs.

Construction Costs Remain a Key Market Constraint

Elevated prices for steel, cement, bitumen and energy continue to pressure contractor margins. Northern regions are particularly exposed because of their concentration of steel-intensive industrial construction. Companies are mitigating volatility through bulk material purchases, long-term supplier agreements and greater use of recycled-content materials.

Digital procurement platforms featuring live pricing data and AI-powered forecasting are gaining adoption across the Italy construction market. These tools help mid-tier contractors negotiate index-linked contracts, improve cost visibility and manage supply chain risk. However, high interest rates continue to restrict mortgage access and private residential investment, creating uneven conditions across construction segments.

Infrastructure Leads Sector Expansion

Infrastructure is forecast to be the fastest-growing construction sector, advancing at a 3.94% CAGR between 2026 and 2031. High-speed rail corridors, urban mobility networks, electricity grid connections and water infrastructure projects are expected to dominate procurement schedules. Terna's USD 26 billion investment program and Webuild's high-speed rail packages demonstrate how long-cycle assets are strengthening contractor order books.

Infrastructure contracts increasingly require detailed environmental, social and governance reporting, digital twin integration and lifecycle performance assessments. These requirements are changing bid-evaluation priorities and favoring contractors with strong digital delivery, sustainability and compliance capabilities.

The residential segment accounted for 41.02% of market revenue in 2025. Its outlook remains mixed as demand for energy-efficient properties rises while tax incentives decline. Commercial construction is also divided, with data centres, logistics facilities and selected industrial developments maintaining stronger pipelines than traditional office projects. Investor scrutiny of embodied carbon is encouraging contractors to verify material sourcing and lifecycle emissions.

New Construction Retains the Largest Market Share

New construction represented 54.62% of Italy construction market share in 2025 and is projected to expand at a 3.74% CAGR. Large public projects, including the proposed Strait of Messina bridge valued at USD 15.3 billion, provide long-term revenue visibility for major contractors. Private industrial and logistics developments are also benefiting from pre-lease agreements that support project financing.

Renovation accounted for 45.38% of construction spending and is shifting from reactive maintenance toward strategic decarbonisation. Building-integrated photovoltaics, prefabricated facades, phase-change insulation panels and heat-pump systems are becoming more prominent in retrofit packages. Together, infrastructure modernization, digital construction practices and energy-focused renovation are expected to shape Italy's construction market through 2031.

Key Topics Covered:

1 Introduction

1.1 Study Assumptions & Market Definition

1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Insights and Dynamics

4.1 Market Overview (incl. Current Economic & Construction Scenario)

4.2 Market Drivers

4.2.1 Large-Scale Public Infrastructure Modernization Under National and EU Stimulus Plans

4.2.2 Structural Shift Toward Residential Energy Efficiency and Deep-Retrofit Renovations

4.2.3 Expansion of High-Speed Rail and Urban Mobility Networks for Sustainable Transport

4.2.4 Accelerated Growth in Utility-Scale Renewable Energy Construction Projects

4.3 Market Restraints

4.3.1 Elevated Construction Input Costs Due to Global Supply Chain Disruptions and Energy Prices

4.3.2 High Interest Rate Environment Reducing Mortgage Access and Private Residential Investment

4.4 Value / Supply-Chain Analysis

4.4.1 Overview

4.4.2 Real Estate Developers and Contractors - Key Quantitative and Qualitative Insights

4.4.3 Architectural and Engineering Companies - Key Quantitative and Qualitative Insights

4.4.4 Building Material and Equipment Companies - Key Quantitative and Qualitative Insights

4.5 Government Initiatives & Vision

4.6 Regulatory Outlook

4.7 Technological Outlook

4.8 Porter's Five Forces

4.8.1 Bargaining Power of Suppliers

4.8.2 Bargaining Power of Buyers

4.8.3 Threat of New Entrants

4.8.4 Threat of Substitutes

4.8.5 Intensity of Competitive Rivalry

4.9 Pricing (Construction Materials) and Construction Cost (Materials, Labour, Equipment) Analysis

4.10 Comparison of Key Industry Metrics of Italy with Other Countries

4.11 Key Upcoming/Ongoing Projects (with a focus on Mega Projects)

5 Market Size & Growth Forecasts (Value, USD Billion)

5.1 By Sector

5.1.1 Residential

5.1.1.1 Apartments/Condominiums

5.1.1.2 Villas/Landed Houses

5.1.2 Commercial

5.1.2.1 Office

5.1.2.2 Retail

5.1.2.3 Industrial and Logistics

5.1.2.4 Others

5.1.3 Infrastructure

5.1.3.1 Transportation Infrastructure (Roadways, Railways, Airways, others)

5.1.3.2 Energy & Utilities

5.1.3.3 Others

5.2 By Construction Type

5.2.1 New Construction

5.2.2 Renovation

5.3 By Construction Method

5.3.1 Conventional On-Site

5.3.2 Modern Methods of Construction (Prefabricated, Modular, etc)

5.4 By Investment Source

5.4.1 Public

5.4.2 Private

5.5 By Region

5.5.1 Milan

5.5.2 Rome

5.5.3 Turin

5.5.4 Rest of Italy

6 Competitive Landscape

6.1 Market Concentration

6.2 Strategic Moves (M&A, PPPs, Digitalisation)

6.3 Market Share Analysis

6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)}

6.4.1 Webuild SpA

6.4.2 Saipem SpA

6.4.3 Astaldi SpA

6.4.4 Salcef Group SpA

6.4.5 Maire Tecnimont SpA

6.4.6 Cimolai SpA

6.4.7 GLF SpA

6.4.8 Rizzani de Eccher SpA

6.4.9 Impresa Pizzarotti & C. SpA

6.4.10 Bonatti SpA

6.4.11 Itinera SpA

6.4.12 Cooperativa Muratori Cementisti Ravenna

6.4.13 Bentini Costruzioni SpA

6.4.14 Trevi Finanziaria SpA

6.4.15 Fincantieri Infrastructure SpA

6.4.16 Ghella SpA

6.4.17 Condotte d'Acqua SpA

6.4.18 Caltagirone Group

6.4.19 Todini Costruzioni SpA

6.4.20 De Eccher Italia Srl

7 Market Opportunities & Future Outlook

For more information about this report visit https://www.researchandmarkets.com/r/j3uoxj

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