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Iran Construction Industry Report 2025 | Output to Witness a Slight Contraction of 0.6% This Year, Due to High Inflation, Political Instability, Devaluation of the Iranian Rial - Forecast to 2029 - ResearchAndMarkets.com

The "Iran Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)" report has been added to ResearchAndMarkets.com's offering.

Construction industry in Iran to see a slight contraction of 0.6% in real terms in 2025, due to headwinds such as high inflation, the ongoing war in the country with Israel and the US, recent tariff implications by the US, political instability, the devaluation of the Iranian Rial against the US Dollar, and a growing energy imbalance.

In October 2024, Iran launched hundreds of ballistic missiles at Israel in retaliation for the assassination of key allies, declaring war on Israel. The conflict escalated in early April 2025 when Israel struck Iran's consulate in Damascus, killing two Iranian generals, and in mid-April 2025, Iran responded by launching 300 missiles and drones at Israel. The war became full-scale in mid-June 2025, when Israel initiated "Operation Rising Lion," attacking Iran's nuclear sites, killing top Iranian commanders and scientists, and destroying air defenses, prompting Iran to retaliate with a missile barrage on Israeli cities, including Beersheba, Tel Aviv, and Haifa.

Over the remainder of the forecast period, between 2025 and 2028, the construction industry is expected to register an annual average growth rate of 3.8%, supported by investments in industrial, transport, housing, and energy sectors, in line with the government's plan to add 30GW of renewable energy generation by 2030. To support this, in June 2025, the government reported that it had signed an agreement for the construction of eight nuclear power plants in the country with Russia.

Apart from this, Russia will also help in the construction of two additional reactors at the nuclear plant of Bushehr to push the country's nuclear power generation from 1GW to 3GW, once completed by 2026

Scope

  • Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Iran, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

  • Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts
  • Understand the latest industry and market trends
  • Formulate and validate business strategies using the analyst's critical and actionable insight
  • Assess business risks, including cost, regulatory and competitive pressures
  • Evaluate competitive risk and success factors

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Latest news and developments

4 Project analytics

5 Construction Market Data

6 Risk Profile

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/x98qu

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