Sweden Construction Market by Type (Renovation, and New Construction), by Construction Method (Traditional, Prefabricated/Modular, 3D-Printed, and Green/Sustainable), by Contractor Type (Large Contractor, Medium Contractor, and Small Contractor), and Sector (Real Estate, Commercial, Infrastructure, Industrial) – Industry Trends and Forecast, 2025–2030
Industry: Construction & Manufacturing | Publish Date: 09-Jun-2025 | No of Pages: 85 | No. of Tables: 118 | No. of Figures: 63 | Format: PDF | Report Code : CM2206
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Sweden Construction Industry Overview
The Sweden Construction Market size was valued at USD 49.30 billion in 2024, and is projected to grow to USD 56.54 billion by 2025. Additionally, the industry is expected to continue its growth trajectory, reaching USD 77.80 billion by 2030, with a CAGR of 6.6% from 2025 to 2030.
Sweden construction market is experiencing strong growth, primarily fueled by government-backed infrastructure projects aimed at enhancing the country's railway and transportation systems.
The launch of a national infrastructure investment plan and major rail initiatives are reinforcing sustainable mobility and regional connectivity. This sector’s substantial contribution to Sweden’s GDP reflects its central role in the nation's economic development.
However, the market faces notable challenges from complex regulatory frameworks that slow project execution and inflate costs. Amid these hurdles, the increasing adoption of digital tools such as Building Information Modeling (BIM), along with AI, IoT, and cloud integration, is creating new opportunities for improved collaboration, efficiency, and digital transformation across construction activities.
Government-Backed Infrastructure Projects is Driving Sweden Construction Market Growth
The construction market in Sweden is witnessing robust growth, propelled by an increasing number of infrastructure projects supported by the government. These initiatives primarily target the enhancement of railway and transportation systems, serving as key catalysts for the industry's expansion.
In December 2024, the Swedish government approved a national infrastructure investment plan for 2026–2037, valued at USD 111.52 billion, to modernize and elevate the country’s infrastructure, with a focus on transportation networks. This plan, overseen by Trafikverket, includes significant rail-centric projects such as the 120-km Dåva–Skellefteå section of the North Bothnia Line, with construction starting in 2025 to connect Umeå to Luleå, capacity enhancements on the Ore Line (Luleå to Narvik) through expanded marshalling yards and extended passing loops, and upgrades to the Hässleholm–Helsingborg line to increase speed and capacity. These projects, supported by the Ministry of Infrastructure, aim to boost sustainable mobility and regional connectivity.
Growth of the Infrastructure Sector is Contributing to Sweden Construction Market Trends
The overall market expansion in Sweden is attributed to the significant growth of the construction market, which commands a substantial portion of the GDP.
According to Statistics Sweden, the infrastructure sector’s contribution to Sweden’s GDP reached 6.8% in 2024, surpassing that of other European countries such as Spain, Norway, and the Netherlands.
This growth is driven by a 5.64% CAGR in the transportation infrastructure sector, valued at USD 16.81 billion in 2024 and projected to reach USD 17.81 billion in 2025, fueled by investments like the USD 1.75 billion EIB loan for 25 high-speed trains and USD 607 million allocated for transport system development in 2026–2037. This noteworthy contribution of the infrastructure sector to Sweden’s economy serves as a primary driver for the market’s overall growth trajectory.
Challenges of Regulatory Complexities in Infrastructure Hinders the Sweden Construction Market Expansion
Navigating through regulatory complexities presents a formidable challenge for the construction market. Infrastructure endeavors encounter hurdles due to the intricate maze of government regulations and permitting procedures.
Infrastructure projects require a multitude of permits and approvals from various governmental bodies, spanning local, regional, and national levels. These permissions involve adherence to zoning regulations, environmental assessments, compliance with building codes, safety standards, and other regulatory requirements. Lengthy permit acquisition processes, bureaucratic inefficiencies, and regulatory variations among jurisdictions can significantly extend project timelines and escalate costs.
Moreover, fluctuations in regulations or unexpected policy changes can disrupt ongoing projects and deter potential investments.
Integration of Digitalization and BIM Presents Lucrative Opportunity for the Market Expansion
The Sweden construction market is experiencing a notable digital transformation, largely driven by the rising adoption of Building Information Modeling (BIM), which is creating new opportunities for growth. BIM facilitates digital design, simulation, and infrastructure management, enhancing accuracy, teamwork, and resource efficiency.
In line with this shift, ALLPLAN unveiled Allplan 2024-1 in April 2024 to boost BIM functionality and optimize cloud-based workflows, highlighting the sector’s transition to fully digital project delivery. Additionally, the integration of AI, IoT, and cloud technologies is enabling real-time collaboration, predictive maintenance, and more efficient facility management.
Competitive Landscape
The key players operating in the Sweden construction industry include JM AB, NCC, Peab AB, Skanska, Veidekke Sverige, AF Group, Svevia AB, Erlandsson Holding AB, Wastbygg Gruppen AB, Jan Frohlund Construction Company AB, Bygglogistik, EGH Bygg, Caverion Corporation, BDX Foretagen AB, Bravida Holding AB, and others.
Sweden Construction Market Key Segments
By Type
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Renovation
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New Construction
By Construction Method
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Traditional Construction
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Prefabricated/Modular Construction
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3D-Printed Construction
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Green/Sustainable Construction
By Type of Contractor
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Large Contractor
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Medium Contractor
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Small Contractor
By Sector
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Real Estate
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Residential
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Affordable
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Luxury
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Commercial
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Retail Buildings
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Office Buildings
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Hospitality
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Healthcare Facilities
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Educational Institutes
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Entertainment Ventures
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-
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Infrastructure
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Transportation
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Airport
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Port
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Rail
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Road
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Water and Wastewater
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Energy
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Telecommunication
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Industrial
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Manufacturing Plant
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Warehouses
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Power Plants
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Oil Refineries
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Chemical Plants
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Key Players
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M AB
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NCC
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Peab AB
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Skanska
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Veidekke Sverige
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AF Group
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Svevia AB
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Erlandsson Holding AB
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Wastbygg Gruppen AB
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Jan Frohlund Construction Company AB
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Bygglogistik
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EGH Bygg
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Caverion Corporation
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BDX Foretagen AB
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Bravida Holding AB
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2024 |
USD 49.30 Billion |
|
Revenue Forecast in 2030 |
USD 77.80 Billion |
|
Growth Rate |
CAGR of 6.6% from 2025 to 2030 |
|
Analysis Period |
2024–2030 |
|
Base Year Considered |
2024 |
|
Forecast Period |
2025–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
15 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
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