170 power and industrial projects worth €56bn to be constructed in Poland
08 sie 2021
The estimated value of over 170 major projects, both ongoing and planned, is €56bn, including €6.6bn (12% of the total amount) represented by ongoing projects, and nearly €50bn being the value of projects in the tender, planning or initial concept stages, according to the findings presented in our report entitled "Power and Industrial Construction in Poland 2021-2026". The sizeable gap between the value of ongoing projects and projects in the planning stage reveals a huge potential for the growth of this branch of the construction industry.
The aggregate annual revenue generated by top 80 power and industrial construction companies described in the report amounts to PLN 32bn (€7bn), including nearly PLN 20bn (over 60% of total revenue) contributed by hte segment of broadly-defined power and industrial projects, such as power-generation units, waste incinerators, CHP plants, boiler rooms, specialist industrial systems, renewable energy sources, and transmission networks.
The power and industrial construction sector is not overly concentrated. Out of the 80 companies covered in the report, the five largest firms account for nearly 40% of the market, top 10 enterprises contribute more than half of its output, and the 20 largest companies represent two-thirds (67%) of the market.
In 2017-2019, the average net profit margin for the 80 companies stood at 1.3% as it was adversely affected by financial problems faced a number of major market players. An analysis of financial results posted by the major companies shows that the industry’s net profit margin improved significantly in 2020, rising to just under 2%.
In view of projects involving the construction of power-generation units that were completed or are about to be finished, the market’s value is unlikely to change significantly in the next three years. The industry structure will evolve, though, with renewable energy sources steadily becoming more and more a component of the market landscape. Importantly, there has been considerable interest in large-scale photovoltaic and wind energy projects, not only from private investors but also from state-owned companies.
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