Public sector construction on the rise in Sweden – up 9% in 2023

Public sector construction and large industrial projects are keeping the Swedish construction market afloat. That's according to a new report from Byggfakta and Tendium.

Housing construction has fallen sharply during the economic downturn, but a new report from Byggfakta and Tendium shows there are bright spots. Public sector construction spending continues to steadily rise, increasing by 9 percent in 2023.

In addition, a small number of large industrial projects had a major impact on the statistics, with the construction-start index landing at a 12 percent increase compared to the previous 12-month period, according to Byggfakta.

The most active players in the public sector construction market

Metropolitan areas top the list of the most active public sector buyers, with municipalities, regions, and municipal companies all featuring in the top ten. Between 2019 and 2023, both the City of Gothenburg and the City of Stockholm spent over SEK 10 billion on services from construction contractors – excluding municipal companies.

“The public sector is often a counterweight during downturns. It's an opportunity for construction contractors who want to invest in the public sector market,” says Hannes Dernehl, Tendium's CEO and co-founder.

The most active construction contractors in the public sector market were NCC, Skanska, and Peab. Byggdialog came fourth and Veidekke fifth.

Large industrial projects keeping housing construction afloat

In addition to increased public sector construction, large industrial projects are also visible in the construction statistics. Between July 2023 and June 2024, construction began on H2 Green Steel, a gigantic construction project and one of several large industrial projects keeping the construction-start statistics up.

If H2 Green Steel, which has an estimated cost of around SEK 35 billion, is excluded, Byggfakta's construction-start index for the period would instead sit at minus six (-6%) rather than plus 12 (+12%).

“In the construction industry, there has been talk of a crisis as a result of declining housing construction. The public sector's share of construction contracts, combined with large industrial projects, particularly in the north, has kept the construction cycle up and to some extent compensated for the slump in housing construction,” says Peter Åhs, business developer at Byggfakta.

Peab, Skanska, and NCC topped the list of construction companies behind the most projects with an estimated construction start during 2022, 2023, and January–June 2024.

You can download the report free of charge here.

About the report

The report Marknaden för byggentreprenörer is a collaboration between Byggfakta and Tendium. It is based partly on data about construction planning, and partly on data about public sector payments to construction companies. Read more about the data in the report.

Byggfakta provides the Nordic region's largest platform for project and market information, creating business opportunities and insights for all players in the construction industry.