Egypt Construction Market

Egypt Construction Market Overview:

The Egypt construction market size reached US$ 65.6 Billion in ​2023​. Looking forward, IMARC Group expects the market to reach US$ 146.04 Billion by ​2032​, exhibiting a growth rate (CAGR) of 8.70% during ​2024-2032​. The market is experiencing robust growth, driven by urbanization, extensive infrastructure projects, and increased foreign investments. Key trends include sustainable construction practices, technological advancements, and significant government-led initiatives, such as the development of new cities and major transportation projects, thereby enhancing the sector's expansion and modernization.

Egypt Construction Market Trends:

Rapid Urbanization

Rapid urbanization in Egypt is significantly fueling the demand for residential and commercial buildings leading to a rise in construction activities. The migration of people from rural to urban areas in search for better employment opportunities and improved living standards is driving this trend. According to a report published by the UN Habitat, currently 43% of Egypt’s population lives in 23 cities with 56% concentrated in Greater Cairo Region (GCR) and Alexandria. As cities nowadays are expanding there is an increasing need for housing, office spaces, retail complexes and infrastructure to support the growing urban population. Government initiatives such as construction of new cities like New Administrative Capital is further amplifying this demand. These projects aim to decongest existing urban centers and provide modern well planned and working environments. Furthermore, foreign and local investments in real estate development are accelerating the construction activities thereby contributing to the economic growth. This administration wave not only boosts the construction sector but also stimulates related industries.

Rise in Sustainable Construction

In Egypt, there is a growing emphasis on sustainable construction practices and remove buildings to reduce environmental impact. The shift is mainly driven by the rising awareness of environmental issues, strict government regulations and the rising demand for energy efficient buildings. In March 2024, SK Eco Plant and CSCEC partner to develop renewable energy, green hydrogen and green ammonia projects in Egypt. The joint venture includes the construction of a 778 MW renewable energy power plant along with 500 MW of solar power and 278 MW onshore wind power. The project aims to produce 50,000 tonnes of green hydrogen and 250,000 tonnes of green ammonia annually with commercial operations expected to start by end of 2029. Egypt’s support for green hydrogen projects makes it a significant player in the global market. Sustainable construction includes the use of ecofriendly materials, renewable energy sources like solar and wind power and water conservation techniques. These practices not only reduce the carbon footprint of buildings but also enhance their energy efficiency, leading to long-term cost savings. The partnership between SK Eco Plant and CSCEC to develop renewable energy projects is a notable example of this trend, showcasing the integration of green energy solutions in construction. This focus on sustainability is transforming the construction landscape in Egypt, promoting environmentally responsible and resource-efficient building practices.

Egypt Construction Market News:

• In June 2024, Egis, a global architecture and consulting group, has been awarded a major contract to lead the transformation of Alexandria's metro line in Egypt. Egis will provide crucial services for the project, including Project Implementation Unit support, contract management, and construction supervision. The project, named Abou Qir Metro, aims to modernize the existing diesel train service into an efficient electric metro system, spanning 22 kilometers and featuring new, sustainable metro stations along the route.
• In May 2024, Siemens Mobility achieved major milestones by advancing the construction and delivery of high-speed rail infrastructure and rolling stock in Egypt. The project encompasses the development of electrified lines spanning 2,000 km that are designed to run at speeds of up to 250 km/h. Siemens is also tasked with supplying essential railway systems and management tools. The upcoming network will function autonomously from the current main lines of Egyptian National Railways.
   

Egypt Construction Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for ​2024-2032​. Our report has categorized the market based on sector.

Sector Insights:

• Residential
• Commercial
• Industrial
• Infrastructure (Transportation)
• Energy and Utilities
   

The report has provided a detailed breakup and analysis of the market based on the sector. This includes residential, commercial, industrial, infrastructure (transportation), and energy and utilities.

Regional Insights: 

• Greater Cairo
• Alexandria
• Suez Canal
• Delta
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Greater Cairo, Alexandria, Suez Canal, Delta, and Others.  

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Egypt Construction Market Report Coverage:

Key Questions Answered in This Report:

• How has the Egypt construction market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Egypt construction market?
• What is the breakup of the Egypt construction market on the basis of sector?
• What are the various stages in the value chain of the Egypt construction market? 
• What are the key driving factors and challenges in the Egypt construction?
• What is the structure of the Egypt construction market and who are the key players?
• What is the degree of competition in the Egypt construction market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Egypt construction market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Egypt construction market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Egypt construction industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.