Market

Instalco operates in the technical installation and service market in Sweden, Norway, Finland, and more recently also Germany, with the majority of its business concentrated in Sweden. The market consists of players that primarily provide technical installation and service offerings within electrical installations, heating and sanitation, ventilation, industrial solutions, and technical consulting.

Market size and segmentation
The combined installation market in Sweden, Norway, and Finland is estimated at approximately SEK 214 billion, with Instalco holding a market share of 6.4 percent. The German installation market is many times larger than the other three combined. Market participants range from large groups with a Nordic presence to smaller local contractors. The sector is divided into three main market categories: projects valued below SEK 1 million, projects between SEK 1–75 million, and projects above SEK 75 million. Instalco mainly focuses on the mid-segment, which offers an optimal balance between cost efficiency, manageable project sizes, and low risk.

Development
The market is constantly evolving, with buildings becoming increasingly technically advanced, driving demand for services in electricity, HVAC, ventilation, industrial solutions, technical consulting, and climate-adapted solutions. Companies in the installation and service industry also benefit from continued urbanization and relocation as well as an aging building stock. This creates high demands for both new construction and renovation to meet needs for capacity and quality. The green transition and subsequent green industrial investments in the Nordics are also among the significant drivers contributing to the growing demand for Instalco’s core offering.

A stronger focus on more efficient energy solutions with lower consumption is also increasing the need for technical installation services. Overall, market growth is driven by structural factors that benefit the industry and create opportunities for Instalco to grow and develop.

Influencing factors
The installation and service market is influenced by both political decisions and business cycles. Political decisions drive sustainability requirements across society, and market players adapt their services and products to help customers meet these demands. Business cycles also have a significant impact on the market, as demand for services shifts and affects pricing. During economic upturns, the market tends to show increased growth and profitability, while downturns can lead to weaker demand and challenges for companies in the industry.

2024
There is strong underlying demand for Instalco’s energy-efficient and resource-saving installation services. During 2024, however, the Nordic market has been difficult to navigate. Weaker-than-normal demand due to the economic climate has led to increased competition for projects, with major regional differences in demand and pricing. New housing starts have been particularly affected, although Instalco has low direct exposure to this segment. Over the past year, raw material and component prices have remained at a high level, though the sharp increases have come to a halt.

Well-positioned

Instalco operates in Sweden, Norway and Finland, where we mainly focus on metropolitan regions with higher growth rates than the general market. These markets are characterised by housing shortages and an ageing property portfolio with large investment needs, which is beneficial to our business. Increased energy use regulation and an increased complexity in buildings and installation services are also factors that have a positive impact on the installation market.

Market size

The installation market in the Nordics remains highly fragmented. Sales for Instalco's core market (Sweden, Norway and Finland) amounted to SEK 221 billion in 2023 according to Navet Analytics. Instalco's total market share thereby amounted to 6.4%.