Summary

This paper provides a comprehensive, data-driven overview of the German construction industry, with a dedicated focus on infrastructure construction as the core of national modernization and investment. Structured across eleven chapters, the study examines market structures, financial metrics, operational benchmarks, and investment implications for the period 2025–2035. The document is designed as a strategic guide for consultants, investors, M&A professionals, and decision-makers navigating growth, transformation, turnaround, and crisis phases in the built environment.

Market segments

The paper begins by segmenting the German construction industry into its two primary divisions: building construction and infrastructure construction. It outlines the structural logic behind this segmentation and introduces the sub-domains of structural and civil engineering as well as road and civil works. This foundation enables the subsequent quantitative and strategic analyses.

Market size

This chapter quantifies the overall market volume of the German construction industry and details the respective contributions of building construction and infrastructure construction. Infrastructure construction represents the dominant share of addressable construction activity, both in absolute terms and in strategic relevance to public and private investment.

Market growth

Growth projections for the period 2025–2030 indicate diverging trends: while building construction faces stagnation due to regulatory constraints and demand shifts, infrastructure construction continues to expand, fueled by megaprojects in rail, roads, energy, and water management. Structural and civil engineering works lead growth, followed by targeted segments in road and energy-related civil works.

Market composition

The chapter breaks down market composition by company type and specialization, differentiating between general contractors, technical infrastructure firms, and niche providers. The data reflects a fragmented market structure in infrastructure construction, with a large share held by mid-sized, family-owned businesses and specialized subcontractors.

Market shares

Building on the previous chapter, this section provides a competitive landscape analysis, estimating market shares across infrastructure segments. It highlights the dominance of selected national champions in rail and energy infrastructure and underscores the opportunity for consolidation among medium-sized providers in roadworks, drainage systems, and site development.

Margins

Margin analysis reveals a clear split: infrastructure segments - especially in civil engineering and transport infrastructure - show higher EBITDA margins than building construction. Specialized players with low exposure to fixed-price contracts and strong public-sector pipelines achieve above-average profitability. This chapter provides margin benchmarks by segment and activity type.

CAPEX to EBITDA

This financial ratio is examined to assess asset intensity and reinvestment needs across market segments. Structural and civil engineering works show the highest CAPEX requirements, particularly in rail and bridge construction. Road construction and utility works exhibit more flexible investment patterns, allowing faster scalability for growth-oriented firms.

Net working capital to EBITDA

This chapter analyzes liquidity and working capital efficiency. Infrastructure construction shows significant variation across segments: rail and energy projects typically involve favorable pre-financing conditions, while road, sewer, and broadband-related civil works often require higher working capital buffers. The findings offer insight into financial health and cash flow dynamics.

Benchmarking excellence

The paper introduces a benchmarking framework for identifying top-performing infrastructure firms. It evaluates operational excellence, financial performance, digitization, governance, human capital, and ESG alignment. The chapter presents success patterns among industry leaders and outlines transformation paths for underperforming firms in turnaround scenarios.

M&A potentials

This section outlines the most attractive M&A targets in infrastructure construction between 2025 and 2030, categorized by strategic fit, capabilities, and financial metrics. It identifies bolt-on opportunities in high-growth verticals (e.g., pipeline and broadband civil works) and discusses the motives of strategic investors seeking platform expansion, ESG positioning, or regional access.

German infrastructure investment package

The final chapter analyzes the €500 billion infrastructure investment program (2025–2035). It breaks down investment flows across transport, energy, digital, and building transition priorities. The program disproportionately benefits infrastructure construction, with €370 billion of direct addressable volume across rail, roads, tunnels, pipelines, and water systems - offering long-term visibility for contractors and investors alike.

Germany’s construction industry is entering a decisive decade. While building construction is being redefined by sustainability and cost constraints, infrastructure construction is expanding in scale, funding, and strategic importance. For partners in the consulting, investment, and engineering sectors, this paper offers a clear roadmap to identify opportunities, mitigate risks, and support clients through growth, transformation, and long-term infrastructure delivery.