Content of the study
The German construction industry is undergoing the biggest transformation process of the last 70 years. The European Union's Climate Action Plan 2050, which aims to reduce greenhouse gas emissions by 80 to 95% by 2050 compared to 1990 levels, will require new concepts in the planning and expansion of buildings and infrastructure in the coming years. In addition, the digitalisation of the construction industry is enabling increasingly faster and simpler construction projects by reducing the complexity of planning, processes and products, which is leading to a break-up of the traditional three-stage sales process.
The current COVID-19 crisis is acting as a turbocharger for these overarching trends: the increased consolidation associated with the crisis will lead to more harmonisation, pressure for efficiency and direct sales. Expected ‘green recovery’ economic programmes will favour companies that offer solutions for climate-neutral construction even more, especially in the area of building renovation.
Against this background, S&B Strategy has therefore divided the German construction industry into the relevant sub-segments and examined their attractiveness in order to analyse the applicability of three different investment strategies. The result shows that there are exciting growth and profitability opportunities for investors on the manufacturing, trading and construction execution side, which cannot be realised solely through the acquisition of pure ‘technology players’. This makes the construction industry an attractive breeding ground for genuine value creation.
PLEASE NOTE: The study is currently only available in German.