Report Overview

The government’s increasing investments and rapid urbanization are expected to boost the growth of Israel Construction Market during the forecast period between 2024 and 2030.

Israel Construction Market - Industry Trends & Forecast Report, 2030

Israel Construction Market size was estimated to be worth USD 64.21 billion in 2023. During the forecast period between 2024 and 2030, the Israel Construction Market size is projected to grow at a CAGR of 4.36%, reaching a value of USD 72.19 billion by 2030. Major growth factors for the Israel Construction Market include an increasing population and rising demand for housing in the country. As a result, the government has been significantly investing in the construction of residential complexes. In addition, the expanding commercial sector and rapid industrialization are anticipated to present lucrative growth opportunities to the Israel Construction Market during the forecast period.

Construction – Overview

Construction includes building new buildings, roads, residences, railroads, and other structures and renovating or repairing existing ones. It also involves several procedures like planning, financing, and developing the assets so that they are used. The construction industry, vital to a region's economic growth, laid the technological and physical foundations for modern civilization. Also, the rise in eco-awareness hastened the creation of energy-efficient, net-zero structures. Aerial lifts, backhoe loaders, cranes, excavators, and welders are just a few of the various tools and equipment used in the construction industry.

Israel Construction Market

Growth Drivers

Increasing Population and Rising Housing Demand

The increasing population and rising housing demand are the major factors driving the Israel construction market. The Israeli government has been significantly investing in the infrastructural development of the country, including the construction of residential and commercial spaces, roads, and public facilities. The government is also focused on providing affordable housing to its citizens and investing in public infrastructure projects to boost urbanization and economic growth. The public sector is also receiving significant focus and investment in the construction of transportation systems, the renewable energy sector, energy grids, and communication networks, which is anticipated to drive the Israel Construction Market during the forecast period.

Challenges

Shortage of Skilled Labor

Israel Construction Market is struggling with a huge gap in skilled labor supply and demand, which is acting as a major deterrent to its market growth. In addition, safety concerns are at an all-time high; construction sites can be dynamic, putting workers at an increased risk of injury; the nature of the job can be physically demanding and can take a toll on mental wellness; these factors limit the number of people pursuing careers in the construction sector.

Impact of Escalating Geopolitical Tensions on the Israel Construction Market

The escalating geopolitical tensions are negatively impacting the growth of the Israel construction market. For instance, Israel’s continuous bombardment of Palestine resulted in a shortage of labor in the sector since Palestinian workers were the major workforce of the Israel Construction Market. The tensions between Israel and its neighboring countries threatened the safety of workers in the construction sector, especially those working in or visiting border areas in north and south Israel. Furthermore, the international call for divestment against Israel is also gaining traction, which could affect foreign investments in the country, consequently limiting the growth of the Israel Construction Market.

Israel Construction Market

Segmental Coverage

Israel Construction Market – By Type of Construction

Based on the type of construction, the Israel Construction Market is segmented into building construction, heavy & civil engineering construction, specialty trade contractors, land planning, and development. The building construction segment holds the largest share of the Israel Construction Market. The growth of the segment is mainly attributed to the rising demand for housing and the increasing construction of residential buildings to accommodate the surge in population. Furthermore, a rising focus on the industrial and commercial sectors is also anticipated to drive building construction in Israel during the forecast period.

Israel Construction Market – By Type of Contractor

By the type of contractor, the Israel Construction Market is split into large contractors and small contractors segments. The large contractor segment accounts for a higher market share. Large contractors have the material and financial resources as well as specialized knowledge in the field, which allows them to efficiently handle big construction projects. However, the small contractor segment is projected to register a significant growth rate during the forecast period. Contractors on a small scale engage the local workforce, suppliers, and support professionals, which drives the segment’s market growth.

Israel Construction Market – By End Use

Based on end use, the Israel Construction Market is segmented into public and private. The public sector dominates the Israel Construction Market. The Israeli government significantly invests in residential, commercial, and industrial facilities for infrastructural development in the country. The construction of residential complexes is aimed at providing affordable housing to its citizens and promoting urbanization. However, the private sector is anticipated to register a substantial growth rate during the forecast period.

Competitive Landscape

Israel Construction Market is highly fragmented with numerous companies. Major players operating in the Israel Construction Market include Danya Cebus Ltd, Shikun & Binui Ltd, Electra Construction Ltd, Solel Boneh Infrastructure Ltd, Mansfeld-Kehat Architects, Systran SA, WSP Global Inc., Yenon Research and Design Ltd, D.E.L. Group, Parsons Corp., and Dov Koren Architects.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Type of Construction

• Buildings Construction

• Heavy and Civil Engineering Construction

• Specialty Trade Contractors

• Land Planning and Development

By Type of Contractor

• Large Contractor

• Small Contractor

By End Use

• Public

• Private