The Croatian Competition Agency (AZTN) regularly publishes decisions, opinions, annual reports, work programs, sector inquiries, expert analyses, and press releases on initiated proceedings and adopted decisions through its official website. In line with its mandate to safeguard effective market competition, AZTN has conducted an analytical review of the construction sector in the Republic of Croatia for the period 2024–2025.
This review aims to enhance understanding of prevailing sectoral conditions and to identify areas where intensified analytical monitoring may be warranted—particularly in the field of public procurement.
Methodological Framework and Scope
The assessment is based primarily on secondary, publicly available data sources, including the InfoBIZ database of the Financial Agency and statistical data from the Croatian Bureau of Statistics. In addition, AZTN carried out an orientation-based review of selected data from the Electronic Public Procurement Notice (EOJN) system.
The analysis covers economic activities classified under Area F – Construction (NKD 2025) at the national level. It is important to note that this review does not constitute a formal sector inquiry and does not represent findings in any individual enforcement proceeding. Rather, the results are indicative and serve as a foundation for monitoring trends and potential competition risks.
Key Sector Indicators
In 2024, the construction sector accounted for slightly under nine percent of total revenues generated in Croatia and employed approximately 12 percent of the country’s total workforce. While the sector continued to grow, the pace of asset and income growth among construction undertakings slowed somewhat compared to 2023.
Regarding the structure of completed works, non-residential buildings represented the largest individual category by value (33.7 percent). However, infrastructure projects generated the largest share of revenues overall (just over 41 percent), including transport infrastructure (26.7 percent) and pipeline, communication, and energy networks (14.5 percent).
Sector Structure and Concentration Indicators
A focused analysis was conducted on 32 large undertakings, classified in accordance with accounting regulations. Collectively, these companies employed 7,307 workers in 2024 (six percent of total construction employment), held assets exceeding EUR 2 billion (12.1 percent of total sector assets), and generated EUR 2.55 billion in revenues (18.1 percent of total sector revenues).
Among these entities are four companies primarily performing construction services for their own operational needs: Hrvatske ceste d.o.o., Hrvatske autoceste d.o.o., BINA-Istra d.d., and Pružne građevine d.o.o. Publicly available registry data indicate that the Republic of Croatia is the sole founder of Hrvatske ceste and Hrvatske autoceste. Pružne građevine is wholly owned by HŽ Infrastruktura d.o.o., itself fully state-owned, while Hrvatske autoceste holds a business share in BINA-Istra.
At the level of the entire construction sector (Area F – NKD 2025), concentration indicators based on total revenue shares suggest a dispersed market structure. The Herfindahl–Hirschman Index (HHI) stands at 54. The CR5 ratio is 12.1 percent, and the CR10 ratio is 17.7 percent, indicating that total sector revenues are distributed among a large number of undertakings.
When focusing exclusively on large undertakings, concentration levels are more pronounced. In this segment, the HHI reaches 517, the CR5 ratio amounts to 39.7 percent, and the CR10 ratio stands at 58.2 percent. These undertakings typically participate in high-value public procurement procedures for infrastructure projects. It should be noted that the database used does not include undertakings established outside Croatia that nonetheless participate in Croatian public procurement procedures.
For medium-sized undertakings, concentration remains low: the HHI is 69, the CR5 ratio 8.6 percent, and the CR10 ratio 14.8 percent, indicating a competitive distribution of revenues within this segment.
These indicators provide a structural overview within the defined scope and do not prejudge possible market definitions or competitive assessments in specific enforcement cases.
Related Activities and Vertical Integration
In cement production, four undertakings operate five production facilities in Croatia: Nexe, Holcim, Calucem, and Cemex Croatia. Several of these producers also operate concrete plants.
The review also identified instances of vertical integration within the construction sector. Certain undertakings primarily engaged in construction are linked to complementary activities such as quarry operations, concrete plants, and asphalt production facilities. According to the Croatian Asphalt Association, 56 asphalt plants were operational in Croatia as of December 2025.
Public Procurement and Comparative Enforcement Practice
In preparing the review, AZTN examined comparative practices of other national competition authorities in the construction sector. Public procurement emerged as a particularly sensitive area due to heightened risks of prohibited horizontal agreements, including bid-rigging cartels.
To better understand procedural patterns in construction-related procurement, AZTN conducted an orientation-based review of selected high-value infrastructure tenders through the EOJN system. The review confirmed participation by both domestic undertakings and companies established outside Croatia.
Since late 2022, AZTN has benefited from functional access to EOJN data and documentation under a cooperation agreement with the Ministry of the Economy. This access enhances the Authority’s ability to monitor market patterns and detect potential risks in public procurement procedures.