MARKET INSIGHT | ITALY
agreement, worth €36.7bn ($40bn), was signed between the Italian government and the UAE government in February 2025 for 40 new projects in Italy. The projects cover various priority sectors, such as energy, artificial intelligence (AI), telecommunications and defence. The industrial construction sector is
expected to contract in real terms by 3.8% in 2025 and 1.1% in 2026, owing to weak external demand, and a decline in industrial production. According to the ISTAT, the average IPI, measured in seasonally adjusted terms declined by 3.4% YoY in the first three months
of 2024; by segments, the manufacturing index fell by 4.7% YoY, while the mining and quarrying index fell by 2.6% YoY, during that period. According to the ISTAT, the business confidence index in the manufacturing industry declined by 1.8% YoY in the first five months of 2025, preceded by an annual decline of 2.3% in 2024. Over the remainder of the forecast period, however, the industrial sector is expected to recover at an average annual rate of 2.4% during 2027–29, supported by investments in manufacturing plants, coupled with government initiatives to support the small and medium-sized enterprises (SMEs).
Italy – Construction output value by sector (real, $ millions), 2020–2029
350,000 300,000 250,000 200,000 150,000 100,000 50,000 0
Residential Institutional Energy and utilities Infrastructure Industrial Commercial 2020
2021 2022 2023 2024 2025 2026 2027 2028
Italy – Industrial construction output by project type (real, $ millions), 2020–2029
10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
2020 2021 2022 2023 2024 2025 2026 2027 2028
Waste processing plants Metal and material production and processing plants Manufacturing plants Chemical and pharmaceutical plants
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www.hoistmagazine.com 2029 2029
Among recent developments, in April 2025, a Canadian technology company Anaergia signed a contract with the Italian construction company Techbau for the construction of five new biomethane production plants in Italy by mid-2026. Previously, in March 2025, Metinvest Group announced a plan to invest €2.5bn ($2.7bn) on the construction of a green steel plant in the Piombino municipality by 2028.
Project pipeline The industrial construction projects pipeline in Italy, as tracked by GlobalData and including all mega projects with a value above $25m,
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