Operating environment

Caverion is among Europe’s leading providers of technical solutions for buildings and industries. Our market position remained strong in 2015.

Competitive landscape and market position

Based on revenue, we were the sixth largest among European building systems companies. The European market for technical solutions for buildings and industries is very fragmented. Most players in the field are smaller companies with a limited range of services. The fragmented market provides opportunities for growth.

Competition in the large project market typically takes place on the national or international level with a relatively low number of companies capable of tendering and managing large projects. In managed services, the competitor spectrum covers everything from large international companies to small local ones and there are clearly less competitors than in the traditional maintenance market. Technical installation and maintenance is typically very local or regional business and it is the most competitive of our businesses, mainly due to very low barriers of entry.

In 2015, we ranked among the five largest players in all of our largest operating countries: Finland, Sweden, Norway, Denmark, Germany and Austria. Germany was clearly our largest addressable market in 2015. Therefore, based on the size of the market alone, there is big growth potential in Germany.

Caverion's market position*

 

Market outlook for Caverion’s business in 2016
Technical Installation and
Maintenance
Large
Projects
Managed
Services
  • Markets expected to remain stable.
  • Requirements for increased energy efficiency, better indoor conditions and tightening environmental legislation support market development.
  • In Norway, general economy impacted by slowdown in the oil industry.
  • Positive signs in tendering activity.
  • In certain industries (nuclear in Germany and Sweden, mining in Sweden and oil in Norway) less investments resulting in project postponements or cancellations.
  • Demand for design & build of total technical solutions expected to develop favourably.
  • Need for new services and the demand for life cycle solutions are expected to increase.
  • Customers’ focus on their core operations opens opportunities in outsourced operation and maintenance mainly for public authorities, industries and utilities.

 

Short-term demand prospects in Caverion's divisions

Division / CountryTechnical Installation and
Maintenance
Large
Projects
Managed
Services
Sweden
Finland
Norway
Germany
Austria
Denmark
Industrial solutions
Eastern Europe

Sources: Euroconstruct, management estimates

 

 Competitors by businesses
Technical Installation and 
Maintenance
Large 
Projects
Managed
Services
  • Alpic Intec
  • Are
  • Bilfinger
  • Bravida
  • Goodtech
  • Gunnar Karlsen
  • Imtech Nordic
  • Ortner
  • ROM Technik
  • SPIE
  • Strabag PFS
  • Vinci
  • Alpic Intec
  • Are
  • Bilfinger
  • Bravida
  • Cofely
  • Imtech Nordic
  • Ortner
  • ROM Technik

 

  • Bilfinger
  • SPIE
  • Vinci
  • Wisag PFS

 

 

Clients

Based on the needs and the purchase behaviour, Caverion has identified five client segments:

  • Public
  • Industry
  • Real Estate Investors and Developers
  • Real Estate Users
  • General Contractors

Our objective is to foster long-term client relationships with our competence and local presence. Long-term relationships with clients and a wide client base support the stability of cash flow.

Caverion is not dependent on individual clients: in 2015, the three largest clients represented less than 5% of our revenue and the ten largest less than 12%. In addition, different client groups in the private and public sectors and geographically extensive presence reduce our dependency on economic cycles.