Germany's Construction Industry Outlook and Transition to Hydrogen Energy
Key Ideas
- Construction industry in Germany projected to decline in 2024 due to various economic factors but expected to grow steadily at an average annual rate of 2.4% between 2025-2028.
- Government plans to transition to clean energy, aiming to shut down coal-fired power plants and invest in subsidies for hydrogen conversion, with a target completion between 2035-2040.
- Infrastructure investments in transport and renewable energy projects, including the installation of offshore wind power and construction of natural gas power plants to be converted to hydrogen, driving industry growth.
- Significant infrastructure program launched by DB InfraGO AG to renew Germany's railway network in 2024, showcasing a commitment to modernize the country's infrastructure.
The construction industry in Germany is facing a decline in 2024 due to factors like insolvencies, high inflation, and low industrial demand. However, the outlook for the industry between 2025 and 2028 appears positive, with an expected average annual growth rate of 2.4%. The government's emphasis on transitioning to clean energy is a key driver of this growth. Plans include shutting down coal-fired power plants, investing in subsidies for hydrogen conversion, and aiming to have 70GW of offshore wind power by 2045. The New Power Plant Strategy involves constructing natural gas power plants to be later converted to hydrogen, with a target completion period between 2035-2040. The government is committed to investing in infrastructure, with a particular focus on transport and renewable energy projects.
The launch of a significant infrastructure program by DB InfraGO AG to renew Germany's railway network in 2024 further highlights the country's dedication to modernizing its infrastructure. Despite the challenges faced in 2024, the construction industry in Germany is poised for growth, driven by a shift towards cleaner energy sources and substantial investments in key sectors. ResearchAndMarkets.com offers valuable insights into the market trends, providing opportunities for businesses to assess growth potential and formulate strategies in line with the evolving industry landscape.
Topics
Utilities
Renewable Energy
Investment
Economic Outlook
Market Analysis
Government Initiatives
Power Plants
Construction Industry
Infrastructure Projects
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