Construction, Europe lagging behind. Sector still below pre-Covid levels

The construction sector in Europe, despite representing one of the main pillars of the industrial economy with more than 27 million employees, 6.5 million enterprises and about 12% of the value generated in the Union, has not yet recovered its pre-Covid levels, confirming a structural delay in terms of productivity and innovation. This is what emerges from the 4th Strategic Report 2026 of the Community Smart Building by Teha Group - The European House Ambrosetti, which at the same time created the new ConTech Hub reality, dedicated to construction technology.

Although European turnover growth increased from EUR 1.33 billion to EUR 2.31 trillion between 2015 and 2023 (+73.7%), the ratio of added value to turnover remains stable at around 30%, signalling a still inefficient expansion driven more by volume than by innovation.

Also weighing heavily is the fragmented structure of the supply chain: 95% of companies in Europe are small and medium-sized enterprises, a configuration that limits economies of scale, standardisation and technology diffusion. At the same time, investment in research and development remains low, at around EUR 2.25 billion in 2024, a significantly lower level than in other industrial sectors.

The picture in Italia reflects similar dynamics: between 2016 and 2024, the sector's gross domestic product grew by 51.5%, but productivity by only 20.9%, with a slowdown recorded in 2024 after the expansionary phase supported by Superbonus and Pnrr. According to the Report's analyses, without the support of public incentives, the sector is now faced with a central issue: the ability to generate growth through innovation, digitisation and industrialisation of processes. Estimates indicate a potential increase in productivity of up to 60%, but the fragmentation of the supply chain and the low level of investment in research and development still limit its expression.

In the new scenario, the transformation of the sector requires going beyond the smart building alone and acting on the entire construction supply chain, integrating data, processes and technologies throughout the entire life cycle. The goal is to increase productivity, which is currently held back by data management inefficiencies and high fragmentation, reduce environmental impact and improve safety and compliance. Against this backdrop, smart buildings are expected to grow by more than 15% per year in Italia (2024-2027), while tools such as Building Information Modeling, which is expanding rapidly, are set to exceed USD 29 billion by 2034.