Global Nonresidential Building Construction market size is expected to reach $3589.99 billion by 2029 at 3.8%, segmented as by type, institutional buildings, commercial buildings

The value of non-residential building construction put in place in 2029 in the United States is expected to reach *** billion U.S. dollars. Non-residential construction can include segments like the construction of lodging, offices, commercial buildings, health care, and education. Generally, the U.S. construction industry is linked to the economic wellbeing of the country. Construction industry needs Within the non-residential building industry, commercial building construction in the U.S. decreased in 2024 after increasing considerably the prior two years. However, the construction industry faces challenges such as the rising construction costs. The modernization of a typically conservative industry will be important in the near future to support customer demands and to improve operation models. Integrating sustainable building processes and features in projects as well as establishing technological advancements like building information modeling (BIM) will be essential for the future of the construction industry. Non-residential vs. residential During the past years, new residential construction in the United States usually had a higher value than non-residential construction. Until 2019, the values of new residential and non-residential construction had remained fairly similar. However, the value of new residential construction started quite fast between 2020 and 2022. Nevertheless, the number of permits for private housing construction started decreasing since late 2022

Nonresidential Building Construction Market Outlook

The global nonresidential building construction market is projected to reach a market size of approximately USD 3.5 trillion by 2032, growing from USD 2.2 trillion in 2023, with a compound annual growth rate (CAGR) of 5.1%. This growth is primarily driven by the rapid urbanization and industrialization across various regions, coupled with the increasing demand for infrastructure development. The burgeoning investments in commercial spaces, institutional buildings, and industrial facilities are further propelling the market dynamics. As countries continue to focus on enhancing their economic infrastructure, the demand for nonresidential construction projects remains robust, paving the way for market expansion over the forecast period.

A significant growth factor in the nonresidential building construction market is the surging demand for commercial spaces, including offices, retail outlets, and hospitality structures. As economies evolve and businesses expand, there is an essential requirement for state-of-the-art office complexes and retail spaces to accommodate growing workforces and consumer bases. This demand is particularly pronounced in emerging markets where urbanization is accelerating, and new business hubs are being developed. Moreover, the rise of e-commerce has further stimulated the need for logistical and distribution centers, driving additional growth in the commercial construction segment. The synergy between technological advancements and architectural innovation also continues to shape the market, with smart building solutions gaining prominence.

The institutional segment, encompassing educational and healthcare facilities, contributes significantly to the growth of the nonresidential building construction market. There is an increasing emphasis on improving educational infrastructure to support burgeoning student populations in both developed and developing nations. Additionally, the healthcare sector is witnessing substantial investment in the construction of hospitals, clinics, and research facilities to cater to the rising demand for healthcare services. This trend is driven by the aging global population, advancements in medical technology, and the need for specialized healthcare facilities. Governments and private entities alike are investing heavily in these projects to ensure the provision of high-quality education and healthcare services, thereby fueling the growth of the institutional construction segment.

Industrial growth is another critical driver of the nonresidential building construction market, as industries strive to enhance their production capabilities and operational efficiency. The construction of manufacturing plants, warehouses, and processing facilities is being prioritized to meet the increasing production demands across various sectors such as automotive, electronics, pharmaceuticals, and food and beverage. The move towards sustainable and green construction practices is also becoming more pronounced within the industrial sector, as companies seek to minimize their environmental impact while optimizing their operations. The adoption of advanced construction techniques and materials is further propelling the growth of industrial nonresidential construction projects, thereby contributing to the overall market expansion.

In terms of regional outlook, the Asia Pacific region is expected to dominate the nonresidential building construction market due to rapid urbanization and infrastructure development in countries such as China and India. These nations are investing heavily in commercial, institutional, and industrial projects to support their growing economies and accommodate expanding urban populations. North America and Europe also present substantial growth opportunities, driven by the need to upgrade existing infrastructure and embrace sustainable construction practices. Meanwhile, the Middle East & Africa are witnessing increased investments in large-scale construction projects, particularly in commercial and industrial sectors, as part of their economic diversification efforts. The diverse regional demands and developmental agendas play a pivotal role in shaping the market landscape across the globe.

In the context of the global construction market, the Philippines Construction sector is emerging as a significant contributor to regional growth, driven by the country's robust economic development and urbanization efforts. The Philippine government has been actively investing in infrastructure projects, including roads, br

The Business Research Company offers the nonresidential building construction market research report 2022 with industry size, share, segments and market growth

Based on short-term projections, the U.S. non-residential construction market is expected to increase by approximately *** percent in 2025. That year, growth is expected to be the highest in the data center construction segment, with a year-on-year change of **** percent. Meanwhile, the value of spending on warehouses was expected to decrease that year, but to recover in 2026. The value of private non-residential buildings put in place in the U.S. soared in 2023 and continued growing in 2024. That was similar to how public non-residential construction has evolved, which also had a noticeable growth in 2023 and 2024. Non-residential construction market There are various drivers that impact the non-residential construction market and can be highly dependent on the sector. Demand for leisure travel has a major influence on the value of hotel construction in the United States. For example, construction spending on the hotels fell sharply in the first years of the COVID-19 pandemic, when travel was constrained. On the other hand, the growth in the office building market is guided to a large extent by corporate relocations, the lack of vacant spaces in major metropolitans, and trends in the hybrid working policies of companies. Industrial real estate receives most investment The value of investment in commercial real estate in the U.S. fell significantly in 2022 and 2023, but it started recovering slightly in 2024. The value of investment in office real estate fell the most in the past years, but it grew at a faster pace than other segments in 2024.

Graph and download economic data for All Employees: Construction: Nonresidential Building Construction in California (SMU06000002023620001) from Jan 1990 to Jun 2025 about nonresidential, buildings, construction, CA, employment, and USA.

Non-residential Building Construction Market size was valued at USD 3.09 Trillion in 2024 and is projected to reach USD 3.75 Trillion by 2032, growing at a CAGR of 2.4% during the forecast period 2026–2032.Global Non-residential Building Construction Market DriversThe market drivers for the non-residential building construction market can be influenced by various factors. These may include:Urbanization and Population Growth: Rapid urban expansion and population increase, particularly in emerging economies, drive the demand for commercial, institutional, and industrial infrastructure. This fuels growth in non-residential construction projects such as offices, schools, hospitals, and factories.Government Infrastructure Initiatives: Large-scale government spending on infrastructure such as transportation hubs, public facilities, and utility buildings stimulates demand for non-residential construction. Programs like the U.S. Infrastructure Investment and Jobs Act and similar initiatives globally support sector growth.

This statistic shows the revenue of the industry “nonresidential building construction“ in California from 2012 to 2017, with a forecast to 2024. It is projected that the revenue of nonresidential building construction in California will amount to approximately **** billion U.S. Dollars by 2024.

Graph and download economic data for Employment for Construction: Nonresidential Building Construction (NAICS 2362) in the United States (IPUDN2362W010000000) from 1987 to 2024 about nonresidential, NAICS, IP, buildings, construction, employment, and USA.

The size and share of this market is categorized based on Type (Office Buildings, Retail Buildings, Healthcare Facilities, Educational Buildings) and Application (Commercial Use, Public Infrastructure, Hospitality, Industrial Use, Government Projects) and geographical regions (North America, Europe, Asia-Pacific, South America, Middle-East and Africa).

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US Commercial Construction Market Size 2025-2029

The us commercial construction market size is forecast to increase by USD 191 billion at a CAGR of 2.7% between 2024 and 2029.

The Commercial Construction Market in the US is experiencing significant growth driven by the increasing trend towards sustainable building design and the emergence of smart cities. Green buildings, which incorporate energy-efficient designs and renewable energy sources, are gaining popularity due to their environmental benefits and cost savings over time. This trend is expected to continue, with the US Green Building Council reporting that nearly half of all new commercial construction projects in the US are now green certified. However, the market is not without challenges. One of the most pressing issues is the lack of skilled labor in the construction industry. According to the Associated General Contractors of America, over 80% of contractors report difficulty in filling hourly craft positions. This labor shortage is driving up costs and delaying project timelines, making effective workforce management a critical challenge for construction companies. To capitalize on the growth opportunities in the market, companies must focus on innovative solutions to address the labor shortage, such as training programs and partnerships with vocational schools. Additionally, leveraging technology, such as automation and modular construction, can help improve efficiency and reduce reliance on manual labor. Overall, the Commercial Construction Market in the US presents significant opportunities for companies that can effectively navigate these challenges and stay ahead of the trend towards sustainable and smart building design.

What will be the size of the US Commercial Construction Market during the forecast period?

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The commercial construction market in the US is experiencing significant dynamics and trends. Labor force shrinkage and escalating costs are major challenges for office building construction, repair and maintenance, water infrastructure projects, and mixed-use developments. Infrastructure development programs and urban regeneration are driving the need for energy-saving designs, outdoor leisure facilities, and renovation and retrofitting. Product lead times and fluctuating material prices add complexity to retail building projects in the non-residential building market. Labor shortages and rising building material prices are also impacting infrastructure projects and refurbishment and demolition activities. These factors necessitate innovative solutions and strategic planning for US businesses in the construction sector. Market research firms like FMI, Grand View Research, and Juniper Research provide valuable insights into these trends and dynamics.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. SectorPrivate constructionPublic constructionTypeBuildingOthersEnd-userOffice buildingsRetail spacesHotels and hospitalityHealthcare facilitiesOthersGeographyNorth AmericaUSEuropeMiddle East and AfricaAPACSouth AmericaRest of World (ROW)

By Sector Insights

The private construction segment is estimated to witness significant growth during the forecast period.

The commercial construction market in the US encompasses the development of various structures, including restaurants, grocery stores, shopping centers, office facilities, hospitals, and educational institutions. Notable projects, such as the El Paso VA Health Care Center in Fort Bliss, which had its groundbreaking on August 28, 2024, and Skymark Reston Town Center, the tallest residential tower in the Capital Region, which reached its topping out point in October 2023, contribute significantly to this sector's expansion. Infrastructure development programs, such as electric grid reconstruction and water infrastructure projects, are also driving the commercial construction market. For instance, the infrastructure bill, which includes funding for infrastructure projects, is expected to boost the market's growth. Additionally, the non-residential building market is experiencing a surge due to urban regeneration and renovation and retrofitting initiatives. However, the market faces challenges, including labor shortages, cost escalation, and fluctuating material prices. The construction industry's labor shortage is a significant concern, with an estimated 200,000 unfilled jobs in 2023. Furthermore, infrastructure projects often face delays due to labor shortages and rising material prices. The non-residential segment, including office buildings and retail buildings, is experiencing increased demand due to the shift towards energy-saving designs and the need for better communic

TBRC modular and prefabricated nonresidential building construction market report includes standard metal, agricultural metal, modular nonmetal, panelized precast nonmetal, private, public

Global Nonresidential Building Construction market size 2025 was XX Million. Nonresidential Building Construction Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

Global Modular and Prefabricated Nonresidential Building Construction market size is expected to reach $101.94 billion by 2029 at 5.6%, segmented as by type, standard metal, agricultural metal, modular nonmetal, panelized precast nonmetal

This statistic shows the revenue of the industry “nonresidential building construction“ in Washington by segment from 2012 to 2017, with a forecast to 2024. It is projected that the revenue of nonresidential building construction in Washington will amount to approximately **** billion U.S. Dollars by 2024.

Graph and download economic data for Producer Price Index by Industry: New Nonresidential Building Construction by Contractor Type/Region (PCU236400236400) from Feb 2014 to Jun 2025 about contractors, nonresidential, buildings, construction, new, PPI, industry, price index, indexes, price, and USA.

Building contractors and developers depend on various socio-economic factors, including property values, underlying sentiment in the housing market, the degree of optimism among downstream businesses and credit conditions. All of these drivers typically track in line with economic sentiment, with recent economic shocks spurring a difficult period for building contractors and developers. Nonetheless, the enduring need for building services, particularly to tackle housing shortages across the continent, ensures a strong foundation of work. Revenue is forecast to grow at a compound annual rate of 2.3% to reach €1.3 trillion over the five years through 2025. Operational and supply chain disruption caused by the pandemic reversed the fortunes of building contractors and developers in 2020, as on-site activity tumbled and downstream clients either cancelled, froze or scaled back investment plans. Aided by the release of pent-up demand and supportive government policy, building construction output rebounded in 2021. Excess demand for key raw materials led to extended lead times during this period, while input costs recorded a further surge as a result of the effects of rapidly climbing energy prices following Russia’s invasion of Ukraine. Soaring construction costs and the impact of interest rate hikes on both the housing market and investor sentiment led to a renewed slowdown in building construction activity across the continent. However, falling inflation and the start of an interest rate cutting cycle have spurred signs of a recovery in new work volumes, supporting anticipated revenue growth of 2.3% in 2025. Revenue is forecast to increase at a compound annual rate of 6.7% to €1.7 trillion over the five years through 2030. Activity is set to remain sluggish in the medium term, as weak economic growth and uncertainty surrounding the impact of the volatile global tariff environment on inflation and borrowing costs continue to weigh on investor sentiment. Contractors and developers will increasingly rely on public sector support, including measures to boost the supply of new housing, as countries seek to tackle severe housing shortages. Meanwhile, the introduction of more stringent sustainability requirements will drive demand for energy retrofits.

This statistic shows the revenue of the industry “nonresidential building construction“ in Georgia from 2012 to 2017, with a forecast to 2024. It is projected that the revenue of nonresidential building construction in Georgia will amount to approximately **** billion U.S. Dollars by 2024.

[Keywords] Market include Turner Construction, Clark Construction Group, China State Construction Engineering Corporation, Whiting-Turner Contracting, Balfour Beatty

Texas was the U.S. state with the highest value of new private sector non-residential construction put in place in 2023 at 89.7 billion U.S. dollars. Some of the other leading states in the list were Arizona, Florida, and California. In the U.S. as a whole, the type of amusement and recreation construction with the highest value put in place were sport-related projects.