Infrastructure

The construction industry is clearly a key sector for Germany. In 2020, the construction industry contributed 6.1% to the overall economic gross value added - companies in the construction industry generated sales of approx. EUR 368 bn. The industry is made up of the main construction trade with approximately 75 k companies and the finishing trade with approx. 250 k companies. With annual growth rates of 4.9% since 2012, the construction industry is a clear growth market.

LAST UPDATE

01/10/2021

TYPE

Executive Summary

CONTRIBUTORS

Felix Engelhardt, CFA

Current Developments

Clear growth market with scope for digitalisation

The construction sector in Germany is booming. Population growth, demographic change and a favourable economic environment are creating high demand for residential buildings. In addition, interesting niches such as multi-generation houses, micro-apartments and prefabricated houses are becoming increasingly important.

Growth Rates

2020

+4.9%

2021

+5.1%

2022

+5.2%

Trends

Building Information Modelling (BIM)

BIM aims to digitise the collaboration between the different parties in a construction project. Its use increases transparency and plan accuracy of the process.

Transactions

Our Sector Transactions

0

Highlight Transaction

GWB Immobilien AG x Privater Investor

Number of M&A transactions - DACH region, 2021 (as of August)

85

Significant Transactions

Global Infrastructure Management LLC X Suez SA (2021)

Brookfield Business Partners L.P. X Modulaire Group (2021)

Future Trends

Innovative solutions increasingly enable the interactive involvement of customers in planning processes. In addition, the growing environmental awareness within society will be reflected in a sustainable construction industry - e.g., through the reuse of materials within a closed cycle. Along with this, the role of software solutions, for instance in the form of new simulation and calculation methods, is continuously increasing.

Our View

Advancing digitalisation is increasingly transforming the construction industry. Greater efficiency and lower construction costs through machine learning, artificial intelligence and 3D printing are on the horizon. At the same time, the shortage of skilled workers will continue to accompany the construction industry. The growth potential of the industry as a whole is heavily dependent on the personnel situation within the companies. As a result, consolidation pressure is increasing, especially for small and medium-sized players.

People & Voices

Saxenhammer has in-depth professional and industry knowledge and can draw on a broad network of industry experts who have gained many years of transaction experience.

„Die Bauwirtschaft ist ein spannender und wachsender Markt mit großzügigen Wachstumsprognosen – die Nachfrage nach Investitionsmöglichkeiten im mittelständisch geprägten Marktumfeld ist groß. Wir erleben eine kontinuierliche Zunahme der M&A-Transaktionen parallel zur Erholung von der Pandemie.“

Felix Engelhardt, CFA

Managing Director

Sector Update

Saxenhammer professionals regularly release content on current affairs and market trends to stimulate thought and discussion. We share exciting analyses, real-time market insights, and company news with the world.