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Switzerland Construction Industry Report 2025: After 0.7% Expansion in 2025, Output to Grow at an AAGR of 1.6% During 2026-2029, Supported by Government Investments in Transport, Housing, and Energy
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Switzerland Construction Industry Report 2025: After 0.7% Expansion in 2025, Output to Grow at an AAGR of 1.6% During 2026-2029, Supported by Government Investments in Transport, Housing, and Energy
Research and Markets
Mon, February 23, 2026 at 9:57 PM GMT+9 4 min read
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The Swiss construction industry is poised for growth, driven by investments in affordable housing, transport infrastructure, and renewable energy projects. Opportunities also arise from modernizing railway systems and addressing housing deficits, despite short-term challenges due to governmental budget cuts.
Dublin, Feb. 23, 2026 (GLOBE NEWSWIRE) – The “Switzerland Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)” report has been added to ** ResearchAndMarkets.com’s** offering.
The construction industry in Switzerland is expected to have expanded in real terms by 0.7% in 2025, supported by investments in affordable housing infrastructure, amid reduced interest rates, coupled with developments in the renewable energy sector.
According to Eurostat, the Swiss construction industry’s value-add grew by 0.7% year-on-year (YoY) in the first nine months of 2025. This was preceded by an annual growth 0.3% in 2024. The industry is, however, expected to face challenges in the short term, due to the government’s proposed spending cuts caused by budget limitations.
In September 2025, the Swiss National Science Foundation (SNSF) paused some of its funding schemes and reduced its allocation to others. This announcement includes federal budget cuts of 10% in 2027 and 11% in 2028, totaling CHF 270 million ($317.8 million) in cuts; additionally, the government has also paused several funding schemes.
The analyst expects the construction industry in Switzerland to record an annual average growth of 1.6% between 2026 and 2029, supported by rising government investments in transport infrastructure, housing, and energy projects. The Swiss government projects that by 2040, the nation will encounter a significant housing deficit and will need to construct over 500,000 new affordable housing units to satisfy the rising demand.
Forecast period growth will also be driven by the government’s goal of producing all electricity from renewable energy sources by 2050, coupled with the government’s target of reducing greenhouse gas emissions by at least 65% compared to 1990 levels, and achieve net-zero emissions by 2050. Furthermore, the government of Switzerland is also looking into lifting the prohibition on building new nuclear power facilities, a proposal supported by the Swiss Nuclear Forum.
In December 2025, Hitachi Rail, a UK-based rail transportation company, secured a contract worth CHF1.4 billion ($1.6 billion) with Swiss Federal Railways (SBB) to modernize Switzerland’s railway signaling infrastructure. The agreement involves replacing around 80% of the country’s existing interlocking systems with advanced digital technology over the next two decades, significantly enhancing safety, efficiency, and sustainability across the Swiss rail network. In March 2025, the Swiss Federal Railways announced a plan that includes a direct link to London, which is expected to be operational by 2030. Additionally, the Swiss Federal Council intends to allocate CHF16.4 billion ($19.3 billion) for railway infrastructure from 2025 to 2028.
Report Scope
Reasons to Buy
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
4 Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
For more information about this report visit
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