Ireland Construction Industry Databook 2025: Construction Sector Set to Expand from €11.1 Billion in 2024 to Reach €15.38 Billion by 2029 - ResearchAndMarkets.com

The "Ireland Construction Industry Databook Series - Market Size & Forecast by Value and Volume, Q1 2025 Update" report has been added to ResearchAndMarkets.com's offering.

The construction market in Ireland is expected to grow by 6.6% on annual basis to reach EUR 11.83 billion in 2025. Ireland's construction market experienced robust growth during 2020-2024, achieving a CAGR of 8.4%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 5.2% during 2025-2029. By the end of 2029, the construction sector is projected to expand from its 2024 value of EUR 11.10 billion to approximately EUR 15.38 billion.

This report provides a detailed data-centric analysis of the construction sector in Ireland, offering a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in the country, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.

It offers a comprehensive analysis of market dynamics in the construction sector through a range of KPIs such as value, volume, and number of units. The building construction covers detailed segmentation over 30+ segments in residential, commercial, industrial, and institutional sectors.

Key Insights

Ireland Residential Construction

The Irish residential construction sector is poised for growth, supported by government initiatives like the "Housing for All" plan and significant investments in urban housing and renovations. The commitment to sustainable, energy-efficient housing and expanding modular construction methods are expected to improve project completion rates and affordability. However, rising material costs, supply chain disruptions, and regulatory hurdles continue to impact the pace of development, requiring streamlined policies and better infrastructure planning to ensure long-term stability. Addressing skilled labor shortages through vocational training and apprenticeship programs will be essential to meeting Ireland's housing targets. Public-private partnerships (PPPs) will be key in balancing housing supply across affordable and premium segments. Additionally, adopting technology, such as Building Information Modeling (BIM) and sustainability initiatives, will enhance project efficiency and attract investment. Stakeholders must adapt to these industry shifts by prioritizing resilience in project execution and aligning with government-led housing strategies to drive sectoral growth.

Macroeconomic Factors

• Rising construction costs due to inflation and material shortages significantly affect residential project budgets, particularly in urban areas. Supply chain disruptions have further led to price volatility, impacting the overall affordability of new housing developments.
• The industry is shifting towards sustainable, energy-efficient housing, with a growing focus on urban redevelopment and renovation of vacant properties. Modular construction and prefabricated housing solutions are gaining traction as cost-effective and time-saving alternatives to traditional building methods.
• However, bureaucratic delays and environmental clearance requirements continue to slow project approvals, creating bottlenecks in the construction process. A shortage of skilled labor, particularly in carpentry and electrical trades, is driving wage inflation, further escalating construction costs.

Project Landscape

• Major ongoing projects, such as new housing units in Dublin and redevelopment initiatives across regional areas, are being undertaken to address Ireland's housing crisis. The government's target of constructing 250,000 new homes within five years aims to alleviate the supply-demand imbalance in the market.
• While public sector projects focus on affordable housing and urban regeneration, private developers lead premium residential and mixed-use projects in high-demand locations. Public-private partnerships (PPPs) are emerging as a key funding mechanism to bridge the housing gap.
• Government investment in residential construction remains strong under the National Development Plan, but high public debt levels could limit future spending on new large-scale projects. Increased private sector participation and foreign investment in real estate are expected to support long-term housing supply.

Government Policies & Programs

• The "Housing for All" plan is the government's flagship initiative to increase housing supply, offering first-time homebuyers and developers incentives. Grants and financial assistance for housing projects in rural areas aim to address regional housing shortages.
• The government provides tax incentives and subsidies for affordable housing projects to encourage developers. Recent regulatory changes, including fast-track approvals and streamlined planning permissions, are being introduced to reduce bureaucratic delays in project execution.
• Housing policy implementation is divided between central government funding and local authority execution. Local governments manage social housing programs and zoning approvals, while the national government oversees investment allocations and regulatory frameworks.

Industry-Specific Developments

• Adopting Building Information Modeling (BIM) and digital construction technologies enhances residential project efficiency. AI-driven project management tools are integrated to optimize planning, budgeting, and execution timelines.
• Sustainability remains a key focus, with government incentives promoting energy-efficient homes and low-carbon construction materials. Net-zero housing initiatives and integrating solar and smart energy systems are becoming standard in new developments.
• Labor shortages in the residential construction sector continue to be challenging, leading to increased investment in apprenticeships and vocational training. Skill development programs and workforce expansion initiatives are being introduced to meet the growing demand for qualified professionals.

Ireland Commercial Construction

The commercial construction sector in Ireland is evolving to meet businesses' changing demands, particularly with the rise of hybrid work models and sustainability requirements. While urban regeneration projects and green-certified buildings present new opportunities, inflation and economic uncertainty pose significant challenges to investment feasibility. Developers focus on flexible office spaces and mixed-use developments to maintain relevance in a shifting commercial real estate market. To remain competitive, stakeholders must prioritize innovation and sustainable building practices, leveraging smart technologies and energy-efficient designs. The government's tax incentives and urban revitalization programs provide crucial support, but streamlined regulatory approvals will be necessary to accelerate project execution. As demand for specialized skills in modern construction methods grows, investing in workforce training programs will be critical for long-term sector resilience.

Ireland Institutional Construction

The institutional construction sector in Ireland is poised for long-term growth, fueled by government investments in healthcare, education, and infrastructure projects. However, persistent labor shortages, cost overruns, and supply chain disruptions remain key concerns, requiring streamlined policies and improved project management strategies to maintain momentum. To capitalize on emerging opportunities, stakeholders must integrate innovative construction technologies such as BIM, AI, and modular building techniques to enhance efficiency and reduce costs. The public-private collaboration will be crucial in overcoming financial and regulatory hurdles and ensuring the timely execution of large-scale projects. Expanding workforce training programs will help address labor shortages, equipping the sector with the necessary skills to support Ireland's long-term institutional construction ambitions.

Ireland Industrial Construction

Ireland's industrial construction sector is expanding, with high-tech manufacturing, pharmaceutical production, and renewable energy projects driving growth. Government-backed initiatives and foreign direct investment (FDI) incentives strengthen Ireland's position as a global hub for advanced manufacturing. However, rising material costs, regulatory complexities, and land acquisition hurdles delay project execution, necessitating more efficient approval processes and strategic policy interventions to maintain momentum.

To remain competitive, stakeholders must focus on automation, AI-driven industrial processes, and sustainable manufacturing practices. Public-private partnerships (PPPs) will play a vital role in financing large-scale industrial zones, while continuous investment in vocational training and workforce development is essential to address skill shortages. As green industrial policies and digital infrastructure gain traction, adopting smart technologies and sustainable building solutions will ensure long-term cost efficiency and sectoral resilience.

Ireland Infrastructure Construction

Ireland's infrastructure construction sector is positioned for growth, with government-backed investments in transport, energy, and housing projects driving expansion. Despite the contraction, the sector is expected to recover. However, high construction costs, regulatory delays, and a lack of streamlined planning processes continue to hinder progress. Addressing these issues through policy reforms and increased development financing will be crucial for sustained sectoral growth. To maximize opportunities, stakeholders should adopt modern construction methods that enhance efficiency and reduce costs. Public-private partnerships (PPPs) will be vital in funding and executing sustainable infrastructure projects, particularly green energy and smart urban developments. Additionally, expanding vocational training programs to bridge labor shortages and improve workforce capacity will be key to ensuring that Ireland's infrastructure sector remains resilient, competitive, and aligned with long-term national development goals.

Project Landscape

• The National Development Plan (NDP) 2021-2030 has allocated €165 billion to key infrastructure projects, including the National Broadband Plan, which aims to expand digital connectivity across Ireland. Other large-scale projects focus on road expansions, public transport, and renewable energy facilities.
• The public sector leads infrastructure investments, while public-private partnerships (PPPs) are increasingly used for green energy and sustainable industrial developments. The private sector is key in commercial and transport-related projects, particularly logistics and smart city initiatives.
• Despite economic challenges, Ireland's infrastructure will grow. The focus on energy-efficient projects and resilient infrastructure will shape long-term investment strategies.

Industry-Specific Developments

• Ireland lags in adopting modern construction methods, with traditional labor-intensive practices still dominant. Newer techniques, such as modular construction and prefabrication, could cut costs by 20-40% and reduce labor dependency.
• Sustainability is a major focus, with investments in renewable energy infrastructure, circular economy practices, and green building materials. Net-zero energy projects and climate-resilient urban planning are gaining priority in upcoming developments.
• The industry operates at 77% capacity, requiring more skilled labor to meet project demands. Expanded vocational training and recruitment initiatives are addressing workforce shortages in engineering, skilled trades, and project management.

Market Data and Insights:

This report provides market size and forecast across 40+ construction segments for ten years from 2020 - 2029 in Ireland.

KPIs covered include the following:

• Market size by value
• Market size by volume of construction
• Number of units
• Ireland Economic Indicators
• Ireland Top Cities Construction Data
• Ireland Residential Building Construction Coverage
• Ireland Residential Green Building Construction Coverage
• Ireland Commercial Building Construction Coverage
• Ireland Commercial Green Building Construction Coverage
• Ireland Industrial Green Building Construction Coverage
• Ireland Institutional Building Construction Coverage
• Ireland Institutional Green Building Construction Coverage
• Ireland Infrastructure Construction Sectors
• Ireland Green Infrastructure Construction: 10-year market size & forecast in value terms
• Ireland Construction Cost Structure Analysis

For more information about this report visit https://www.researchandmarkets.com/r/jnf2ym

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