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Building Construction in Germany - Market Research Report (2015-2030)

Robert Maier Robert Maier Frankfurt, Germany Last Updated: July 2025 WZ F41.20DE

Revenue

€66.1bn

2025

€66.1bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

300k

Businesses

20,641

Wages

€XX.Xbn

Building Construction in Germany industry analysis

The building construction sector is part of the main construction industry and is therefore one of the leading sectors in the construction industry. At the beginning of the past five-year period, building construction was operating in a positive market environment, but this deteriorated significantly in the years after 2022. The tightening of the European Central Bank's monetary policy had a particularly negative impact on the construction industry, significantly reducing demand in residential construction in particular. In addition, the Russian invasion of Ukraine led to a sharp rise in energy prices in the European Economic Area, which further exacerbated the upward pressure on construction costs that had already persisted since 2021. As a result, building construction has recorded an average annual decline in turnover of 6.3% over the past five years.The industry is expected to generate sales of 66.1 billion euros in 2025. This corresponds to a decline of 4.5% compared to the previous year. Due to the long lead times in the construction industry, sector development in the current year is likely to be strongly characterised by the weak development of building permit figures in 2023 and 2024 as well as low profit margins. Even if there are currently signs of a stabilisation in incoming orders, a recovery in the building construction sector is not expected to begin until next year. In the coming five-year period, the building construction industry is expected to increase its turnover by an average of 2% annually and therefore reach a sector turnover of 72.9 billion euros in 2030. The significant fall in key interest rates since their peak in 2023 is likely to be reflected in lower effective interest rates for construction loans in the medium term, which should increase activity in important industry segments such as residential construction. The infrastructure package adopted by Parliament in 2025 should increase demand from public sector clients. At the same time, the worsening shortage of skilled labour in the skilled trades is likely to undermine some of the sector's growth. The implementation of digitalisation technologies offers potential for increasing efficiency and productivity, and mastering these technologies is becoming increasingly important for winning public construction contracts.

Trends and Insights

  • The shortage of skilled labour is one of the biggest challenges facing the building construction industry. The slowdown in the construction industry has eased the staffing situation in the sector somewhat, but the shortage of skilled labour is likely to worsen again in the future.
  • Multi-apartment buildings are the most important product group in the sector, followed by single-family homes. However, as the latter are considerably more expensive than a flat, the proportion of single-family homes in new builds has been falling for several years in favour of flats in multi-apartment buildings.
  • The highest number of companies is located in the centre region. The reason for this is the high population in the region, which leads to a high demand for living space.
  • Competition in building construction is fierce. Many players in the industry compete for contracts, some of them throughout Germany. In addition to small and medium-sized companies, the sector also includes large construction groups such as Strabag and Hochtief.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has declined at a CAGR of 6.3 % over the past five years, to reach an estimated €66.1bn in 2025.

Trends and Insights

The market environment for industry players has deteriorated noticeably since 2022

  • The fact that the European Central Bank kept key interest rates at a historically low level between 2016 and 2022 was of key importance for the positive development of building construction in the first half of the last five-year period, making loans to finance construction projects very favourable. The low base rate not only pushed down interest rates on construction loans, but also on savings deposits. In conjunction with rising rents, particularly in urban areas, this reduced the financing burden and made property a lucrative investment.
  • Additional trends and insights available with purchase
Building Construction in Germany
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

2025 could see a stabilisation of the order situation in building construction

  • The decline in financing costs, which have fallen since their peak in 2023 but are still high and led to a downward trend in the number of building permits in 2023 and 2024, are likely to continue to weigh on the sector in 2025. Nevertheless, the development of leading indicators such as incoming orders currently points to a stabilisation of the situation in building construction at a low level.

Biggest companies in the Building Construction in Germany

Company
Market Share (%)
2025
Revenue (€m)
2025
Strabag SE
2,725.0
Zech Group SE
2,350.0
Goldbeck GmbH
2,055.0

To view the market share and analysis for all 3 top companies in this industry, view purchase options.

Products & Services Segmentation

Building Construction in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Apartment blocks, Detached houses and Office and administration building. Apartment blocks is the largest segment of the Building Construction in Germany.

Trends and Insights

Apartment blocks are taking up an ever larger share of living space in Germany

  • The apartment block segment includes the construction of two-family houses, apartment blocks, residential homes and similar residential buildings. As there are major differences in the design and use of these buildings, they cannot be categorised according to shape, size or builder. What they all have in common, however, is that they were designed for more than one family or user party for residential purposes.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The sector includes the construction of residential and non-residential buildings of all kinds. It does not include the development of land, finishing work, civil engineering and specialised construction as well as planning activities. The construction of buildings can be carried out on own account or subcontracted out.

What's included in this industry?

Products and services covered in the Building Construction industry in Germany include Apartment blocks, Detached houses, Office and administration building, Commercial and warehouse building and Factory and workshop building.

Companies

Companies covered in the Building Construction industry in Germany include Strabag SE, Zech Group SE and Goldbeck GmbH.

Purchase this report to view all 3 major companies in this industry.

Related Terms

Related terms covered in the Building Construction industry in Germany include construction, deep construction and construction.

Industry Code

WZ 2008

WZ 41.20 - Building Construction in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The shortage of skilled labour is one of the biggest challenges facing the building construction industry. The slowdown in the construction industry has eased the staffing si...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Multi-apartment buildings are the most important product group in the sector, followed by single-family homes. However, as the latter are considerably more expensive than a f...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The highest number of companies is located in the centre region. The reason for this is the high population in the region, which leads to a high demand for living space.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Competition in building construction is fierce. Many players in the industry compete for contracts, some of them throughout Germany. In addition to small and medium-sized com...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

There are no major players in the building construction industry. Although some large construction groups such as Strabag, Goldbeck, Zech and Hochtief are active in the secto...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Strabag SE's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Zech Group SE's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Goldbeck GmbH's performance by revenue, market share and profit margin from 2019 through 2025

Detailed analysis

  • Description and key data for Strabag SE, and factors influencing its performance in the industry
  • Description and key data for Zech Group SE, and factors influencing its performance in the industry
  • Description and key data for Goldbeck GmbH, and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The provisions of building regulations law are relevant for construction planning and site operation. They regulate the building permit procedure and the structural and techn...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The industry's profit margin in the current year is likely to be below the average of the previous five-year period. Demand remains weak due to more expensive financing condi...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Building Construction industry in Germany in 2025?

The market size of the Building Construction industry in Germany is €66.1bn in 2025.

How many businesses are there in the Building Construction industry in Germany in 2025?

There are 20,641 businesses in the Building Construction industry in Germany, which has declined at a CAGR of 1.7 % between 2020 and 2025.

How may import tariffs affect the Building Construction industry in Germany?

The Building Construction industry in Germany is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Building Construction industry in Germany?

The Building Construction industry in Germany is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Building Construction industry in Germany grown or declined over the past 5 years?

The market size of the Building Construction industry in Germany has been declining at a CAGR of 6.3 % between 2020 and 2025.

What is the forecast growth of the Building Construction industry in Germany over the next 5 years?

Over the next five years, the Building Construction industry in Germany is expected to grow.

What are the biggest companies in the Building Construction industry in Germany?

The biggest companies operating in the Building Construction industry in Germany are Strabag SE, Zech Group SE and Goldbeck GmbH

What does the Building Construction industry in Germany include?

Apartment blocks and Detached houses are part of the Building Construction industry in Germany.

Which companies have the highest market share in the Building Construction industry in Germany?

The company holding the most market share in the Building Construction industry in Germany is Strabag SE.

How competitive is the Building Construction industry in Germany?

The level of competition is high and steady in the Building Construction industry in Germany.

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.

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