Demolition in France - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Demolition in France industry analysis

Demolition contractors play a crucial role in the pre-construction phase of building construction and infrastructure developments. Demand is intrinsically linked to activity in the wider construction sector, which has faced significant challenges in recent years. The introduction of strict environmental legislation has led to a shift in the type of services offered by demolition contractors, with an increased focus on materials recovery leading them to pivot operations from demolition to deconstruction.
Revenue is set to climb at a compound annual rate of 4.4% over the five years through 2025 to reach €1.5 billion. Following significant disruption to construction activity during the pandemic, demand for demolition services rebounded in 2021. Growth was maintained in the following year, as an ongoing recovery in building construction markets was compounded by public funding for infrastructure developments and preparations for the 2024 Paris Olympics. Against a backdrop of high inflation, rising interest rates and economic uncertainty, building construction activity slumped over the two years through 2024. This spurred a drop-off in demand for preparatory works, including demolition services. Revenue is set to inch up by 3.1% in 2025, as receding inflationary pressures spur a return to growth throughout the construction sector.
Over the five years through 2030, revenue is slated to rise at a compound annual rate of 3.7% to reach €1.8 billion. Sustainability requirements are set to continue to shape the industry in the medium term, with demolition contractors set to continue to boost their environmental credentials to attract new work. Despite remaining subdued in the near term, downstream construction activity is set to pick up as interest rates come down and economic growth gathers pace. Public-sector investment is also expected to create tender opportunities for contractors as government agencies seek to improve France’s ageing infrastructure.

Trends and Insights

• COVID-19 cuts on construction activity. Many governments ordered the temporary closure of construction sites until safe working procedures had been established, reducing the need of pre-construction demolition activities.
• Rising interest rates weigh on new work. A lack of new work is stifling demand for demolition services, which are needed before the construction process begins.
• The industry is highly fragmented. Most demolition contractors run small-scale operations and tend to focus on limited regional markets, but larger contractors do exist – they focus more on large-scale and multi-year projects, like nuclear decommissioning.