The demolition works market - France

The global demolition market grew significantly after 2020 despite the challenges posed by the COVID-19 pandemic. In France, the market almost doubled and recorded sales of 1.3 billion euros in 2023, reflecting a recovery beyond pre-pandemic levels. Growing urbanization has increased demand for demolition. Technological advances have fuelled sub-markets, with the demolition robots segment set to grow at a compound annual growth rate (CAGR) of 15.7% between 2021 and 2031.

The construction and demolition waste recycling market also saw an increase, forecasting growth from 32.6 billion euros in 2021 to an estimated 55.54 billion in 2028. Despite a fragmented market with 625 companies and 7,921 employees in 2022, the sector is demonstrating profitability with Eiffage's demolition subsidiary, Demcy, involved in 150 deconstruction projects in 2020 and generating nearly 75 million euros in sales in 2021.

However, the industry faces challenges in managing the 46 million tonnes of construction waste produced in France by 2022, underlining the need for effective recycling and waste management.

As regulatory frameworks tighten, including mandatory EWMP diagnostics from July 2023 and Extended Producer Responsibility (EPR) policies, the market is moving towards sustainable demolition practices.

demand and trends in the French demolition market

The French demolition market is characterized by an upward trend influenced by rapid urbanization and the growing need to maximize space in major cities. As the global landscape evolves towards more sophisticated demolition methods, such as demolition robots, and a greater emphasis on recycling debris, the French market is experiencing substantial growth.

Demand for demolition services in France is driven by a number of key factors. Chief among these is the correlation between new construction and demolition activity. As new structures often replace old ones, we observe a parallel between the increase in new building construction and the need for demolition. Despite this relationship, it should be noted that not all new construction requires demolition, with many opting for previously unused space.

However, the long-term trend indicates that demolition remains an essential component of urban development. The number of companies active in the demolition sector was around 625 in 2022, employing between 7,500 and 8,500 workers. This fragmentation of the sector has led to intense competition and a market structure where the average company employs between 10 and 15 people. The regional distribution of demolition companies is uneven across France, with Île-de-France, Auvergne-Rhône-Alpes and Nouvelle-Aquitaine hosting the highest concentrations of these specialist firms.

Demolition permits reflect the volatility of the market, with notable fluctuations every year. However, a general upward trend in permits can be observed, with between 16,000 and 17,500 demolition permits issued by 2022, demonstrating sustained demand for demolition services.

The sector's profitability is promising, with EBITDA and net income trending upwards, albeit with a dip during the COVID-19 health crisis in 2020. It should be noted that the demolition sector represents a modest proportion of the wider construction industry, accounting for around 1% of registered construction companies.

Geographically, regions such as Occitanie and Auvergne-Rhône-Alpes saw the highest demolition rates, perhaps due to the presence of older structures requiring deconstruction. The dynamic nature of annual regional demolition activity suggests that this work is spread throughout France rather than concentrated in specific areas.

Pioneers of urban transformation

The demolition market, an essential but often underestimated component of urban redevelopment and construction, is dominated by a mix of specialist indiesubsidiaries of larger construction conglomerates, each bringing its own expertise to the forefront of this demanding industry.

Independent demolition specialists lead the way:

• Avenir Déconstruction: Avenir Déconstruction is the epitome of the independent demolition company that has made a name for itself in the French demolition market. Proud to offer complete demolition services, from obtaining the necessary permits to the precise dismantling of structures, this company has distinguished itself by its commitment to safety and environmental responsibility.
  
  
• Brunel Demolition: Another titan of the independent sector, Brunel Demolition has built a solid reputation for executing a wide range of demolition projects with unrivalled precision. Its adaptability and use of state-of-the-art technology have earned it a reputation in the industry as a reliable specialist capable of tackling complex projects across the country.
  
  
• Occamat: Occamat may not be the largest demolition company, but their focused and agile approach to the business has ensured them a reliable customer base. Their commitment to meeting the unique needs of each project, coupled with a strong emphasis on safety and environmental protection, sets them apart in the field.

Heavyweights:

• Cardem (Vinci Group): As an extension of the Vinci Group, Cardem is a giant with considerable resources and cutting-edge technology. It operates with the meticulousness expected of a subsidiary of one of the world's leading construction companies, bringing a powerful combination of experience and innovation to large-scale demolition projects.
  
  
• Demcy (Eiffage Group): With the strong backing of the Eiffage Group, Demcy takes on the ambitious and complex demolition work that often accompanies major urban redevelopment projects. Its expertise is demonstrated not only by the success of many complex deconstruction projects, but also by its leadership in sustainable practices, with an emphasis on materials recovery and recycling.

These key players form the backbone of the French demolition market, advancing industry standards and meeting the ever-increasing demand for safe and efficient clearance of space for new construction. Whether independent or backed by the resources of a larger company, these businesses continue to pave the way for the regeneration of urban landscapes and the evolution of smart demolition practices.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 02/01/2024

Summary and extracts

List of charts

• Number of employees and companies in the demolition sector (NAF 43.11Z)
• Size of demolition market (NAF 43.11Z)
• New buildings
• Construction cost index (ICC)
• Number of demolition permits for housing and premises
• Size of the construction and demolition waste recycling market
• Size of the global market for demolition robots
• Impact of COVID-19 on sales of demolition activities (NAF 43.11Z)
• Number of property demolition permits
• Distribution of the number of companies in the construction industry, by type
• Breakdown of waste emitted by the building sector
• Number of churches destroyed per year