The European construction sector is entering a period of profound structural transformation between 2025 and 2026, driven by the twin green and digital transitions. Following a moderate recovery from previous years’ slowdown, the projected annual growth of 2.1% is underpinned by public investment focused on energy-efficient renovation, affordable housing, and resilient infrastructure.

Energy efficiency is emerging as a strategic priority, with a strong emphasis on retrofitting the existing building stock to reduce consumption and combat energy poverty, which continues to affect millions of vulnerable households. These interventions not only enhance the thermal performance of buildings but also strengthen social cohesion and urban resilience.

However, the green transition faces structural barriers, most notably the shortage of skilled labour. Despite financial momentum from European funds and national policies, the sector struggles to attract and retain technical professionals specialised in energy efficiency, industrialised construction, and digitalisation. This shortage threatens to delay the implementation of key projects and highlights the urgent need for vocational training programmes and improved working conditions.

In parallel, technological innovation—such as modular construction, low-impact materials, and digital solutions—is emerging as a critical lever to boost productivity and meet the EU’s climate targets.