Italy’s construction industry is entering a challenging phase marked by slowing activity, weaker business sentiment, and external economic pressures. After several years of moderate growth, the sector is forecast to contract in 2025 and 2026, reflecting declines in building permits, a subdued residential market, and the impact of new US tariffs on the wider economy. Despite these headwinds, government-backed investments in energy infrastructure, renewable capacity, and digital transformation are expected to lay the groundwork for recovery from 2027 onward, setting the stage for a more resilient and sustainable construction landscape.
Construction Contraction
The Italian construction industry is expected to contract in real terms by 0.8% in 2025 and 4.1% in 2026, owing to declining building permits issued, rising public debt, and a weaker residential and industrial construction sector, finds international business information provider GlobalData (GlobalData is the owner of BTMI which publishes Cranes Today).
According to the Italian National Institute of Statistics (Istat) the business confidence index in the construction industry declined by 1% year-on-year (YoY) in the first eight months of 2025, preceded by an annual decline of 2.3% in 2024.
Istat reported that the total floor area for new residential and non-residential buildings issued fell by 11.7% YoY in Q1 2025, preceded by a YoY decline of 6% in Q4 and a growth of 8.3% in Q3 2024.
Moreover, Italy is facing major challenges due to the new US tariffs, which threaten the country’s export driven economy. The US President Donald Trump announced a 30% tariff on imports from all EU countries starting from August 1, 2025.
Over the remainder of the forecast period, the Italian construction industry is however expected to recover in 2027 and record an average annual growth of 1.4% between 2027 and 2029, supported by investments in energy, transport infrastructure, and hospitality sectors, coupled with the government’s aim to increase the share of renewable energy in the total power mix from 18.5% in 2022 to 59% in 2030.
In line with this, in March 2025, the government-owned national transmission grid operator, Terna, approved an updated 2024–28 Industrial Plan with a record investment of EUR17.7 billion ($19.3 billion) to develop the energy sector, which is EUR1.2 billion ($1.3 billion) more than the previous plan, which was presented in March 2024, representing a 7% increase.
The plan targets the integration of 107GW of renewable capacity by 2030 and aims for a 40% increase in cross-border electricity exchange capacity by expanding and strengthening the national transmission grid. In this plan, EUR2.4 billion ($2.6 billion) is allocated to digital transformation, while EUR2.3 billion ($2.5 billion) is dedicated to grid security and climate resilience measures. The plan aims to cut CO2 emissions by 46% by 2030 from 2019 levels and reach net zero by 2050.
Commercial Construction
The commercial construction sector is expected to remain weak, growing marginally in real terms by 0.4% in 2025 and decline by 1.3% in 2026, owing to decline in tourism activity and service activities. The commercial construction sector, however, is expected to register an average annual growth of 1.3% from 2027 to 2029, supported by investments in data centres, hospitality and stadium projects.
Industrial Construction
The industrial sector is forecasted to register marginal annual growth in real terms of 0.3% in 2025 and decline by 1% in 2026, owing to decrease in exports due to tariffs and a decline in industrial building activities. Over the remainder of the forecast period, the sector is expected to recover at an average annual rate of 2.4% during 2027-29, supported by investments in the steel and production plants.
Infrastructure Construction
The infrastructure construction sector is expected to expand in real terms by 5.6% in 2025, before registering an average annual growth of 1.5% between 2026 and 2029, supported by the government’s plan to upgrade the country’s bridge, railway and tunnel infrastructure.
Energy and Utilities Construction
The energy and utilities construction sector is estimated to grow in real terms by 5.4% in 2025, before registering an average annual growth rate of 1% during 2026-29, supported by investments in renewable energy, along with the government’s commitment to increase the share of renewable energy in the total power mix.
Institutional Construction
The institutional construction sector is forecasted to grow in real terms by 1% in 2025, before registering an annual average growth of 1.6% during 2026- 29, supported by public and private sector investments in healthcare and educational facilities.
Residential Construction
The residential construction sector is expected to contract in real terms by 3.5% in 2025 and further by 7.5% in 2026, owing to decline in residential building permits issued and low construction business confidence. However, the residential sector is expected to record recover and register an annual average growth of 1.3% between 2027 and 2029, supported by the government emphasis on providing affordable housing and investment in housing projects.
Conclusion
Despite short-term headwinds Italy’s construction industry retains the potential for gradual recovery in the latter half of the decade. The near-term outlook remains subdued, weighed down by declining permits, weaker business confidence, and the external pressures of rising public debt and new US tariffs. However, the sector’s long-term fundamentals are supported by ambitious government initiatives in energy transition, infrastructure modernisation, and digital transformation.
Significant investments – such as Terna’s EUR17.7 billion Industrial Plan – signal a strategic pivot toward sustainability, grid resilience, and renewable integration, aligning with Italy’s broader net-zero ambitions. While the residential and industrial markets face a challenging period through 2026, momentum is expected to build from 2027 onwards, driven by the energy, transport, and hospitality sectors.
Ultimately, the Italian construction market’s trajectory reflects both its current fragility and its resilience. As the nation navigates economic pressures and policy shifts, the industry’s commitment to modernisation and green investment positions it for steady, if modest, growth through 2029 and beyond.
This article was compiled using data from Global Data’s ‘Construction in Italy – Key Trends and Opportunities to 2029 (Q3 2025)’ report. The full report is available for purchase here: www.globaldata.com
Increased Dealership Network Means Strong Tradeshow Presence for Jekko
The last few months have been particularly busy for Italian mini crane manufacturer Jekko which has attended an extensive list of international tradeshows. The expansion of Jekko’s global dealer network has helped facilitate a strong presence at these international tradeshows.
Some of the shows Jekko has participated in, for example, include: Maxpo, Finland; Transport Expo, Denmark; Vertikal Days, United Kingdom; Innovationstage Höhenzugangstechnik, Germany; Matexpo, Belgium; Lift’N’Load, The Netherlands; ForArch, Czech Republic; JDL Expo, France; Rettermesse, Austria; and Internationale Schwerlasttage, Germany.
A highlight of its exhibition calendar was the GIS show in Piacenza, Italy in September. At GIS Jekko showcased the TRX32 – its first truck-mounted mini crane. The TRX32 is a 3.2 tonne-capacity mini crane mounted on a compact truck for standard Category B driving license and Jekko believes the model has great market potential in Italy.
Jekko also showed its new SPX532.2 minicrane with improved stability system, a new software and user interface, plus variable speed motor management.
Its first telescopic crawler crane, the JCX80, was also on display. It’s an eight-tonne mini crane with a counterweighted base on robust tracks, a mobile turret and a boom that operates up to 90°.
Visitors could also see: the SPX328EVO with new software improvement; the SPX328EVO+ with integrated electric jib; the SPX650 and SPX1280; the JF235 and JF545.2 articulated cranes; plus the new improved MPK20.2 minipicker range.
Fassi unveils new corporate identity at GIS
The GIS show provided the perfect platform for the Fassi Group to launch a new group identity symbolised by new logos for all the group’s companies: Fassi, Marrel, Cranab, Vimek, Slagkraft and Forez Bennes.
“In an increasingly divided world, we need to be more united than ever,” explained Giovanni Fassi, president of Fassi Gru and the chief executive officer of the Fassi Group. “Unity also needs to be recognisable with a logo that unequivocally tells the world who we are. We are now more united than ever: our identity has taken on a coordinated and shared aspect. We are underscoring our standing and our essence, remaining true to our values.”
Along with the new logo, the company launched the website fassi.com to reflect the new identity. The new website will be regularly updated with new content and solutions to strengthen ties to the market says Fassi.
Another important change at Fassi is the appointment of Victor Gottardi as the new Chief Executive Officer of Fassi Gru, effective June this year. Prior to the appointment Gottardi had been global CEO and co-investor of ARAG, a global provider of solutions and components for precision agriculture.
“Victor Gottardi has joined Fassi bringing with him essential skills and fundamental experience for the process of development for the company and the Group which, over the last two years, has seen growth that has culminated in a new record for turnover in its 60 years of operations,” said Giovanni Fassi.
At GIS Fassi displayed its extended TECHNO range.
New Remote Control Transmitters from IMET
Italian manufacturer of industrial safety radio remote controls, Imet, used the GIS show to launch two new transmitters: the Zeus3 and Thor3.
The Zeus3 is designed for complex applications by enabling up to six single-axis joysticks or two dual-axis joysticks. Auxiliary controls can also be added to the transmitter’s lateral areas.
The Thor3 is configurable with up to 18 single-axis joysticks, or five dual-axis joysticks, on the main panel. Auxiliary controls can also be added.
The transmitter can be spec’d with various buttons, potentiometers, toggle switches, or rotary selectors to best suit a wide range of applications.
Imet also used GIS to celebrate that it gained official CANopen stack compliance certification, granted by CiA (CAN in Automation). This confirms Imet’s adherence to the CiA 301 V4.2 standard, reinforcing its commitment to interoperability and robust system integration.
Busy schedule for Autec
Italian cableless control systems manufacturer Autec has been enjoying a busy tradeshow schedule. The company says GIS, however, is a standout show for it, claiming it provided ‘a valuable opportunity for exchange, growth, and connection with an industry that reflects our core identity’.
The face-to-face contact at GIS gave Autec the opportunity to outline its propositions in depth to visitors. “We offer a wide range of products and components that can be customised to meet each customer’s specific requirements,” explained Fabio Pimpinicchio, head of sales Italy – hydraulic & construction machinery at Autec.
“We collaborate closely with manufacturers’ technical departments to co-design every detail – from basic configurations to complex systems featuring multiple actuators and joysticks.
“Each project is shaped through continuous dialogue, where dimensions, actuators, and displays are defined together. Our expertise enables us to deliver flexible and comprehensive solutions tailored to real-world needs.”
Visitors to Autec’s stand could see its portable Link JN line and the Curve JQ line which is capable of integrating up to three dual-axis joysticks or six single-axis levers, along with actuators, potentiometers, encoders, and LED displays programmable via Codesys or JMobile.
“We’ve chosen widely adopted and accessible programming languages to ensure maximum flexibility for our customers, even during updates and maintenance,” adds Pimpinicchio. “Our radio systems operate on both 870 MHz (standard in Europe) and 915 MHz (used in the USA, Australia, and Canada), with Frequency Hopping technology that guarantees robust performance and resistance to interference – essential in construction environments.”
Autec has also announced a couple of strategic partnerships. The first is a distribution partnership with Japanese industrial remote control company Kinryo Electric. The partnership will debut at the upcoming CSPI Expo 2026 in Tokyo, where Autec and Kinryo Electric will showcase their joint offerings.
Autec has also announced a strategic partnership with U-Control, a specialist in HMI and system integration for off-highway vehicles.
The goal is to combine complementary expertise to go beyond the traditional boundaries between remote control and vehicle control.
“With U-Control, we want to enhance our vision of technological evolution,” said Antonio Silvestri, co-managing director of Autec.
“Together, we can deliver innovative and reliable answers to a market that is constantly evolving, both in terms of product and service.”
Marchetti Showcases Electric Trio 0e at GIS
Italian crane manufacturer Marchetti showed its Trio 0e fully electric city crane, which was first seen at Bauma. The crane is powered by two rechargable LifePo Lithium batteries. The crane measures 6.1m long, 2m wide, and 2.9m high. It has a lifting capacity of 15 tonnes and a total weight of 14 tonnes. The five-section boom can extend up to just over 19m in length – giving a total height of 21 metres.
Niederstätter Partners with AMCS to equip its Fleet Of Tower Cranes
Earlier this year Bolzano, Italy-based crane rental company Niederstätter formed a new strategic partnership with French anti-collision systems manufacturer AMCS.
Niederstätter selected AMCS Technologies as its official supplier of anti-collision systems to equip its fleet of tower cranes. According to AMCS this collaboration reflects Niederstätter’s ongoing investment in cutting-edge solutions to elevate safety standards across construction sites and provide its clients with the highest level of operational reliability.
