Czech Republic Infrastructure Report

Providing expert analysis, independent forecasts and competitive intelligence on the Infrastructure industry.

Report includes: BMI Industry View, Industry SWOT Analysis, BMI Industry Forecast, BMI's Infrastructure Risk Reward Index, Market Overview and Company Profiles.

Why you should buy this report

  • Gain independent insight into the outlook for the infrastructure industry through BMI's 10 year forecasts
  • Understand the market through analysis of projects , investment plans and key players
  • Understand the threats to your operations and investments and protect your company against future risks
×

Sign up to download the Czech Republic Infrastructure Report

By submitting this form you are acknowledging that you have read and understood our Privacy Policy.

Thank you for your interest

You will shortly receive your free executive summary by email.

Czech Republic Infrastructure Report
Product Price
$1,295.00

BMI View: The Czech construction industry is expected to expand 5.9 5 % y-o-y in 2016, slightly higher than the already strong figures of 2015. This year, the main growth drivers are expected to be t he non-residential and transport sectors. T he latter through the rail and roads sub-sectors, are still enjoying EU-driven investment , set to remain strong to 2020 . The r esidential and non-residential building industry will be another bright spot in 2016 and 2017 as robust Czech economy and high household disposable income increase housing demand.

Latest Updates And Structural Trends

  • Following the years of recession after the 2008 financial crisis, the Czech construction sector was and still is a symbol of the country's economic resurgence. In 2015, the sector grew 5.26% y-o-y and it is expected to expand by a slightly higher growth rate in 2016. Increasing household consumption, a low inflation and unemployment rate in combination with higher investment activity facilitated growth in the economy, which started in 2013. However, legislative changes need to be implemented in the construction sector to create a more functional industry and there are current positive indications in that direction.

  • This quarter, we have revised up our 2019 and 2020 construction industry growth outlook to reflect an anticipated uptick in EU fund absorption towards the tail-end of the 2014-2020 funding period.

  • The Czech residential and non-residential building industry will grow moderately over our 10-year forecast period to 2025. This is mainly due to the increasing growth in the non-residential sector at least until 2020 as a result of the growing office space and industrial real estate. Furthermore, due to domestic economic growth and increased housing demand, residential prices increased in 2015 and in Q116, which is another indication of growth in the residential industry. The residential and non-residential sector is expected to grow 3.4% yearly between 2016 and 2025, on average.

  • Despite the decreasing EU funding, the transport infrastructure industry is expected to grow substantially by 8.2%% y-o-y in 2017, mainly due to the roads and railways sectors, which are still its main growth drivers, expanding by 7.6% and 9.4% y-o-y respectively the same year.

  • This quarter, we revised our 2019 and 2020 transport sector growth forecasts upwards to reflect an anticipated uptick in EU fund absorption towards the tail-end of the 2014-2020 funding period. However, our forecasts account for the eventual slowing of this funding and sector growth will taper off past 2020 as projects wind up and as the 2014-2020 funding period comes to an end. Yet as the macroeconomic picture continues to brighten, the government should find themselves better placed to increase investment. Transport sector growth in 2017 of 8.2% y-o-y is forecast to take the industry value to USD3.9bn in 2017.

  • The weak performance of the Power Plant and Transmission Grid infrastructure sub-sector will drag down on the overall energy and utilities infrastructure sector growth, at a 3.4% yearly growth rate over the forecast period due to a lack of large-scale projects in the pipeline.

Infrastructure - Construction Industry Forecasts (Czech Republic 2015-2025)
2015 e 2016f 2017f 2018f 2019f 2020f 2021f 2022f 2023f 2024f 2025f
e/f = BMI estimate/forecast. Source: Czech Statistical Office, BMI
Construction industry value, CZKbn 233.82 249.01 263.72 281.26 305.16 335.07 356.73 379.55 401.03 425.57 450.34
Construction Industry Value, Real Growth, % y-o-y 5.26 5.95 4.41 4.15 5.50 6.80 3.47 3.40 2.66 3.12 2.82
Construction Industry Value, % of GDP 5.2 5.4 5.5 5.6 5.8 6.0 6.1 6.2 6.2 6.2 6.3

Risk/Reward Index

  • The Czech Republic's Infrastructure RRI score increased slightly to 68.0 out of 100, compared to the previous quarter and is still high compared to the regional average of 61.6.

  • The improving economic environment, strengthening public sector investment outlook and increased EU funding lead to the country's Industry Rewards score of 60.0 out of 100, which is high by regional standards (50.3).

  • Compared to the regional average of 67.1, the country scores well in terms of Industry Risks (75.0 out of 100), owing to its competitive and open infrastructure market as well as the presence of the world's largest construction companies.

Infrastructure Risk Reward Index (Czech Republic 2016)
Risk/Reward Index Rewards Industry Rewards Country Rewards Risks Industry Risks Country Risks
BMI
Czech Republic68.0 66.9 60.0 79.7 70.5 75.0 67.5
BMI Industry View
5
Table: Infrastructure - Construction Industry Forecasts (Czech Republic 2015-2025)
6
Table: Infrastructure Risk Reward Index (Czech Republic 2016)
6
SWOT
7
Infrastructure SWOT
7
Industry Forecast
9
Construction And Infrastructure Forecast Scenario
9
Table: Construction And Infrastructure Industry Data (Czech Republic 2015-2025)
10
Transport Infrastructure - Outlook And Overview
18
Table: Transport Infrastructure Industry Data (Czech Republic 2015-2025)
19
Table: Transport Projects
27
Energy And Utilities Infrastructure - Outlook And Overview
28
Table: Energy And Utilities Infrastructure Data (Czech Republic 2015-2025)
28
Table: Energy And Utilities Projects
32
Residential/Non-Residential Building - Outlook And Overview
33
Table: Residential and Non-Residential Building Industry Data (Czech Republic 2015-2025)
33
Table: Construction And Social Infrastructure Key Projects
38
Industry Risk Reward Index
39
Czech Republic - Infrastructure Risk/Reward Index
39
Rewards
39
Risks
39
CEE Infrastructure RRI: EU Funding Essential As Risks Deter Private Investors
41
Table: Infrastructure Risk/Reward Index
46
Market Overview
47
Competitive Landscape
47
Table: Key Companies Financial Data
48
Company Profile
49
Skanska CZ
49
Metrostav
51
PSJ, a
53
Methodology
55
Industry Forecast Methodology
55
Sector-Specific Methodology
56
Risk/Reward Index Methodology
60
Sector-Specific Methodology
61
Table: Infrastructure Risk/Reward Index Indicators
61
Table: Weighting Of Indicators
62

The Czech Republic Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's Czech Republic Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Czech infrastructure and construction industry.

Key Benefits

  • Benchmark BMI's independent infrastructure industry forecasts for Czech Republic to test other views - a key input for successful budgetary and planning in the Czech infrastructure market.
  • Target business opportunities and risks in the Czech infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Czech Republic.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).

Industry SWOT Analysis

Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:

Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).

Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.

The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).

BMI’s Infrastructure Risk Reward Index

BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and  demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.

Market Overview

An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.