Building materials made of steel, copper and other metals had some of the highest price growth rates in the U.S. in early 2025 in comparison to the previous year. The growth rate of the cost of several construction materials was slightly lower than in late 2024. It is important to note, though, that the figures provided are Producer Price Indices, which cover production within the United States, but do not include imports or tariffs. This might matter for lumber, as Canada's wood production is normally large enough that the U.S. can import it from its neighboring country. Construction material prices in the United Kingdom Similarly to these trends in the U.S., at that time the price growth rate of construction materials in the UK were generally lower 2024 than in 2023. Nevertheless, the cost of some construction materials in the UK still rose that year, with several of those items reaching price growth rates of over **** percent. Considering that those materials make up a very big share of the costs incurred for a construction project, those developments may also have affected the average construction output price in the UK. Construction material shortages during the COVID-19 pandemic During the first years of the COVID-19 pandemic, there often were supply problems and material shortages, which created instability in the construction market. According to a survey among construction contractors, the construction materials most affected by shortages in the U.S. during most of 2021 were steel and lumber. This was also a problem on the other side of the Atlantic: The share of building construction companies experiencing shortages in Germany soared between March and June 2021, staying at high levels for over a year. Meanwhile, the shortage of material or equipment was one of the main factors limiting the building activity in France in June 2022.

Graph and download economic data for Producer Price Index by Industry: Building Material and Supplies Dealers (PCU44414441) from Dec 2003 to May 2025 about dealers, materials, supplies, buildings, PPI, industry, inflation, price index, indexes, price, and USA.

In the first quarter of 2025, San Francisco, Chicago, New York, and Honolulu were some of the U.S. cities with the highest housing construction costs. Meanwhile, Phoenix had one of the lowest construction costs for high-end multifamily homes at 190 U.S. dollars per square foot and Las Vegas for single-family homes between 240 and 480 U.S. dollars per square foot. Construction cost disparities As seen here, the construction cost for a high-end multi-family home in San Francisco in the first quarter of 2024 was over twice more expensive than in Phoenix. Meanwhile, there were also great differences in the cost of building a single-family house in New York and in Portland or Seattle. Some factors that may cause these disparities are the construction materials, installation, and composite costs, differing land values, wages, etc. For example, although the price of construction materials in the U.S. was rising at a slower level than in 2022 and 2023, several materials that are essential in most construction projects had growth rates of over five percent in 2024. Growing industry revenue Despite the economic uncertainty and other challenges, the size of the private construction market in the U.S. rose during the past years. It is important to consider that supply and demand for housing influences the revenue of this segment of the construction market. On the supply side, single-family home construction fell in 2023, but it is expected to rise in 2024 and 2025. On the demand side, some of the U.S. metropolitan areas with the highest sale prices of single-family homes were located in California, with San Jose-Sunnyvale-Santa Clara at the top of the ranking.

Graph and download economic data for Producer Price Index by Commodity: Special Indexes: Construction Materials (WPUSI012011) from Jan 1947 to May 2025 about materials, construction, commodities, PPI, inflation, price index, indexes, price, and USA.

United States - Producer Price Index by Industry: Building Material and Supplies Dealers was 224.75400 Index Dec 2003=100 in May of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Industry: Building Material and Supplies Dealers reached a record high of 259.21300 in March of 2022 and a record low of 100.00000 in December of 2003. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Industry: Building Material and Supplies Dealers - last updated from the United States Federal Reserve on June of 2025.

This dataset contains the indices of UK hourly Construction Wage Costs (quarterly; not seasonally adjusted; 2000 = 100) and UK Construction Material Prices for New Housing, Other New Work, Repair and Maintenance, and All Work (monthly; 2010 = 100).

In April 2025, the price index for building construction materials in Japan stood at ***** index points. Prices for building construction materials declined by *** point compared to the same month of the previous year.

Finland - Construction cost index: Input prices for materials was EUR116.50 points in September of 2021, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Finland - Construction cost index: Input prices for materials - last updated from the EUROSTAT on July of 2025. Historically, Finland - Construction cost index: Input prices for materials reached a record high of EUR116.50 points in September of 2021 and a record low of EUR64.20 points in March of 1996.

The global building material dealer market is experiencing robust growth, driven by the expanding construction sector and increasing home improvement activities worldwide. While the exact market size in 2025 is not provided, considering typical growth rates in this sector and the presence of major players like Home Depot and Lowe's, a reasonable estimate for the 2025 market size could be around $500 billion USD. Assuming a conservative Compound Annual Growth Rate (CAGR) of 5% over the forecast period (2025-2033), the market is projected to surpass $750 billion by 2033. This growth is fueled by several key factors, including rising disposable incomes in developing economies leading to increased housing construction, government initiatives supporting infrastructure development, and a growing trend toward home renovations and DIY projects. The market is segmented by product type (hardware and hand tools, plumbing and electrical supplies, paint and sundries, home lawn and garden tools, and other products) and application (household and commercial), allowing businesses to target specific customer needs effectively. Competitive pressures are intense, particularly among the major international players like Home Depot and Lowe's, who are continuously innovating and expanding their supply chains to maintain market share. Geographic growth varies, with North America and Europe currently dominating the market, but the Asia-Pacific region is expected to demonstrate significant expansion due to rapid urbanization and infrastructure investments in countries like China and India. Challenges include fluctuations in raw material prices, supply chain disruptions, and increasing labor costs. The success of building material dealers hinges on their ability to adapt to evolving customer preferences, embrace e-commerce solutions, and manage inventory effectively in a volatile market environment. Strategic partnerships, investments in logistics and technology, and a focus on sustainable and eco-friendly products will be crucial for growth. The increasing adoption of digital tools for online ordering and improved customer service are also changing the face of the industry. Regional differences in construction regulations, building codes, and customer preferences necessitate a nuanced approach to market penetration and localization strategies. Analyzing specific market segments – such as the growing demand for specialized tools and sustainable building materials – will be crucial for companies seeking a competitive edge. The long-term outlook for the building material dealer market remains positive, underpinned by consistent growth in global construction activities and rising consumer demand for home improvement products.

The Global Advanced Building Material market size was USD 57.21 million in 2022. Advanced Building Material Industry's Compound Annual Growth Rate will be 7.2% from 2023 to 2030. Growing Government Expenditure to Provide Viable Market Output

Rising government expenditures in infrastructural development projects have become a key driver for the Advanced Building Material market. Increased funding for projects such as roads, bridges, and urban development demands innovative and durable materials that offer enhanced performance and sustainability.

In May 2021, Saint-Gobain invested around $320 million in India to establish manufacturing facilities for advanced building materials like advanced concrete and 3D printing. This strategic move aims to expedite construction timelines and enable timely project completion. Such initiatives play a pivotal role in boosting the growth of the advanced building materials market.

(Source:timesofindia.indiatimes.com/city/chennai/saint-gobain-to-invest-6k-cr-to-8k-cr-by-cy2025/articleshow/99858754.cms?from=mdr)

This trend not only stimulates demand for advanced materials but also encourages industry research and development, further propelling market growth and innovation.

Market Dynamics of Advanced Building Material

High Initial Investments Challenging the Hinder Market Growth

High initial investments pose a significant challenge in the market. Adopting advanced building materials often requires substantial upfront research, development, production setup, and specialized equipment costs. This can deter some businesses, particularly smaller ones, from entering the market. Additionally, construction projects with budget constraints might shy away from these materials, impacting their widespread adoption. Overcoming this challenge requires demonstrating the long-term benefits, such as energy savings, durability, and reduced maintenance, to justify the initial investments and encourage more widespread use of advanced building materials.

Impact Of COVID-19 on the Advanced Building Material Market

COVID-19 disrupted the Advanced Building Material Market by causing supply chain disruptions, labor shortages, and project delays. Lockdowns and restrictions halted construction activities, leading to reduced demand. Uncertainty prompted cautious spending on new materials. However, the pandemic highlighted the importance of resilient and sustainable materials, accelerating innovation interest. Remote work trends influenced building designs, boosting demand for technology-integrated materials. Introduction of Advanced Building Material

The Advanced Building Material Market is experiencing growth due to several factors. Increasing construction and infrastructure projects, urbanization, and population growth drive demand. Technological advancements lead to innovative materials and sustainable solutions, attracting investment. Additionally, rising awareness about energy efficiency and environmental concerns promotes the adoption of eco-friendly materials. These factors collectively contribute to the expansion of the Advanced Building Material Market.

In April 2022, Sherwin-Williams Co. purchased Sika AG's European industrial coatings business to expand its coating solutions. This acquisition is expected to enhance the company's customer outreach significantly.

(Source:www.pcimag.com/articles/109982-sherwin-williams-completes-acquisition-of-sikas-european-industrial-coatings-business)

Italy - Construction cost index: Input prices for materials was EUR104.80 points in June of 2019, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Italy - Construction cost index: Input prices for materials - last updated from the EUROSTAT on July of 2025. Historically, Italy - Construction cost index: Input prices for materials reached a record high of EUR104.80 points in June of 2019 and a record low of EUR70.00 points in March of 1995.

According to Cognitive Market Research, the global Construction Materials market size will be USD 1421542.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 4.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 568616.88 million in 2024 and will grow at a compound annual growth rate (CAGR) of 2.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 426462.66 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 326954.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.00% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 71077.11 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 28430.84 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.7% from 2024 to 2031.
The Aggregates is the fastest growing segment of the Construction Materials industry

Market Dynamics of Construction Materials Market

Key Drivers for Construction Materials Market

Urbanization and Infrastructure Development to Boost Market Growth

The speedy urbanization in growing countries is fueling massive growth in production sports, driving the call for key materials along with cement, metal, sand, gravel, and wood. As cities enlarge and infrastructure tasks increase, the need for these creation substances rises sharply. This surge is not most effective in reshaping urban landscapes but additionally impacts international markets, creating possibilities for providers and producers inside the creation sector. The non-stop boom in city populations and the rush for modern-day infrastructure underscore the crucial function these substances play in supporting sustainable development and meeting the infrastructure needs of increasing urban regions. For instance, In Heiligenhaus, North Rhine-Westphalia, HOCHTIEF and infrastructure investor Palladio Partners collaborated to construct and run a sustainable data center. They agreed to a contract for the brand-new, cutting-edge YEXIO facility in the university town's Innovation Park.

Infrastructure Projects to Drive Market Growth

Governments globally are heavily investing in infrastructure tasks, which include roads, bridges, railways, and airports, to decorate connectivity and assist financial growth. These formidable projects necessitate massive volumes of production substances consisting of cement, metal, asphalt, and aggregates. The elevated demand for these substances drives an increase in the creation area and stimulates associated industries. This funding in infrastructure now not handiest aims to modernize current facilities but also to deal with destiny needs, enhance public offerings, and foster economic improvement, highlighting the crucial role of strong and nicely-supplied construction cloth markets in achieving those goals.

Restraint Factor for the Construction Materials Market

Fluctuating Commodity Prices, will Limit Market Growth

Commodity charges for creation materials like cement, metallic, and wood regularly experience significant fluctuations because of global delivery and demand dynamics, monetary situations, and geopolitical activities. This volatility introduces uncertainty into construction tasks, probably affecting budgeting and profitability. Variations in fabric costs can lead to assignment delays, extended charges, and challenges in maintaining monetary balance. Contractors and builders need to navigate those uncertainties carefully, employing strategies that include cost forecasting and supply chain control to mitigate the effect of fee swings and make sure that a success final touch of creation tasks inside budget.

Impact of Covid-19 on the Construction Materials Market

The COVID-19 pandemic extensively impacted the development substances marketplace, causing disruptions in delivery chains, delays in production, and accelerated costs. Lockdowns and regulations led to a scarcity of labor and raw substances, while venture delays and cancellations affected demand. Supply chain disruptions led to fluctuating costs and multiplied expenses f...

Graph and download economic data for Import Price Index (End Use): Selected Building Materials, Except Metals (IR13) from Jan 2025 to May 2025 about end use, materials, imports, buildings, price index, indexes, price, and USA.

Argentina Construction Cost Index: Materials data was reported at 126,153.000 1993=100 in Mar 2025. This records an increase from the previous number of 125,354.400 1993=100 for Feb 2025. Argentina Construction Cost Index: Materials data is updated monthly, averaging 100.600 1993=100 from Jan 1970 (Median) to Mar 2025, with 663 observations. The data reached an all-time high of 126,153.000 1993=100 in Mar 2025 and a record low of 0.000 1993=100 in Mar 1975. Argentina Construction Cost Index: Materials data remains active status in CEIC and is reported by National Institute of Statistics and Censuses. The data is categorized under Global Database’s Argentina – Table AR.EA008: Construction Cost Index: 1993=100.

Latvia Construction Cost Index: Building Materials data was reported at 131.300 2021=100 in Mar 2025. This records a decrease from the previous number of 131.500 2021=100 for Feb 2025. Latvia Construction Cost Index: Building Materials data is updated monthly, averaging 89.600 2021=100 from Jan 2009 (Median) to Mar 2025, with 195 observations. The data reached an all-time high of 134.400 2021=100 in Jan 2023 and a record low of 84.200 2021=100 in Oct 2016. Latvia Construction Cost Index: Building Materials data remains active status in CEIC and is reported by Central Statistical Bureau of Latvia. The data is categorized under Global Database’s Latvia – Table LV.EA010: Construction Cost Index: 2021=100.

Building construction price indexes (BCPI), percent change, by type of building and construction division. Quarterly data are available from the first quarter of 1982. The table presents quarter-over-quarter and year-over-year percentage changes for various aggregation levels. The base period for the index is (2017=100).

Snapshot img

Advanced Building Materials Market Size 2025-2029

The advanced building materials market size is forecast to increase by USD 16.21 billion at a CAGR of 4.7% between 2024 and 2029.

Advanced building materials continue to gain traction in the construction industry due to several key trends. The rise in the number of smart cities is driving the demand for advanced building materials such as smart glass, solar panels, and digital technologies for energy efficiency and sustainability. Additionally, there is a growing preference for eco-friendly and recycled materials, including insulation, sealants, and greenhouse gases-absorbing concrete. Uncertain macroeconomic conditions have also led to an increased focus on cost-effective and durable construction materials such as Structural Insulated Panels (SIPs), ready-mix concrete, and steel. Furthermore, the trend towards green buildings and energy-efficient residential real estate is expected to continue, with a focus on reducing carbon footprints and improving indoor air quality. Boron-based materials, such as boron nitride nanotubes, are also gaining attention for their potential to enhance the properties of cement and roofing materials. Overall, the market in the US is poised for significant growth, driven by these trends and the need for sustainable, cost-effective, and energy-efficient solutions.

What will be the Size of the Advanced Building Materials Market During the Forecast Period?

Request Free Sample

The market encompasses a broad range of innovative and high-performance materials that are transforming the construction industry. These materials, which include cross-laminated timber, structural insulated panels, sealants, ready-mix concrete, precast products and elements, Ondura, advanced cement, and various green materials, are driving the sector's growth through their ability to reduce construction time, enhance energy efficiency, and offer cost-effective solutions. The market's size is significant, with continued expansion expected due to the global focus on decarbonization and the circular economy. Key trends include the increasing adoption of green materials, such as those derived from renewable sources, and the integration of smart technologies into building materials.
Traditional construction materials, such as cement and concrete, are also undergoing advancements to improve their sustainability and performance. Energy-efficient buildings and infrastructure are major applications for these advanced materials, with high-performance windows, insulation materials, and smart glass playing crucial roles. Companies are at the forefront of this innovation, developing and implementing new materials and technologies to meet the evolving needs of the construction industry.

How is this Advanced Building Materials Industry segmented and which is the largest segment?

The advanced building materials industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  ACC
  Cross-laminated timber
  Sealants
  Structural insulated panel
  Others


End-user

  Commercial
  Industrial
  Residential


Product Type

  Green materials
  Composite materials
  Smart materials
  Nanomaterials


Geography

  APAC

    China
    India
    Japan


  Europe

    Germany
    UK
    France
    Italy


  North America

    Canada
    US


  Middle East and Africa



  South America

    Brazil

By Type Insights

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

The advanced cement and concrete market is experiencing significant innovations, transforming the construction industry with materials offering superior durability, strength, and environmental benefits. Technologies such as photocatalytic cement, self-healing concrete, and high-performance additives are gaining popularity. Governments and organizations worldwide support the adoption of modern cement and concrete to reduce carbon emissions and enhance infrastructure durability. Notable advancements include Ultra-High-Performance Concrete (UHPC), which provides exceptional strength and longevity, reducing the need for bulky reinforcements and lowering maintenance costs. Cross-laminated timber, structural insulated panels, insulated concrete forms, energy-efficient windows, engineered lumber, and other green materials are also revolutionizing the building construction sector.

Companies are at the forefront of these innovations, focusing on sustainable construction practices and decarbonization. Infrastructure projects and urbanization in sectors such as residential, commercial, and infrastructure benefit from these high-performance materials, which offer energy efficiency, soundproofing, moisture resistance, and resi

The construction output price in the United Kingdom has reached an annual growth rate of two percent in September 2024. Construction costs have been increasing at a lower rate than in 2022 and 2023. The year-over-year growth rate reached over 10 percent in May and June of 2022. Public and private housing was the construction segment with the highest output price increase. How have material costs developed over the years? Several factors influence construction material costs, including supply and demand, regulatory requirements, and transportation logistics. Manufacturing efficiency and global trade policies also play a big part, along with economic factors like inflation and currency fluctuations. In June 2022, the price of construction materials for new houses in the UK were 53 percent higher than in 2015. What is the largest component of those costs? Labor costs are often one of the largest expenses in construction projects. That is due to the skilled nature of the work, which has a high demand for specialized trades. The construction sector's labor costs accounted for around 58 percent of the sector's earnings in the United Kingdom in 2023. In the past years, the size of labor costs as a share of the construction sector rose by more than three percentage points, indicating that labor costs have increased at a faster rate than the overall revenue of the industry.

Indonesia Wholesale Price Index: Construction Materials: Commodities: Bricks data was reported at 99.940 2023=100 in Apr 2025. This records an increase from the previous number of 99.840 2023=100 for Mar 2025. Indonesia Wholesale Price Index: Construction Materials: Commodities: Bricks data is updated monthly, averaging 99.890 2023=100 from Feb 2024 (Median) to Apr 2025, with 8 observations. The data reached an all-time high of 100.270 2023=100 in Mar 2024 and a record low of 98.910 2023=100 in Feb 2025. Indonesia Wholesale Price Index: Construction Materials: Commodities: Bricks data remains active status in CEIC and is reported by Statistics Indonesia. The data is categorized under Indonesia Premium Database’s Inflation – Table ID.IB007: Wholesale Price Index: by Sector: Construction Materials.

Snapshot img

US Residential Construction Market Size 2025-2029

The US residential construction market size is forecast to increase by USD 242.9 million at a CAGR of 4.5% between 2024 and 2029.

The Residential Construction Market in the US is experiencing significant growth driven by increasing household formation rates and a rising focus on sustainability in new projects. According to the latest data, household formation is projected to continue growing at a steady pace, fueling the demand for new residential units. This trend is particularly evident in urban areas, where population growth and limited space for new development are driving up demand. Meanwhile, the emphasis on sustainability in residential construction is transforming the market landscape. With consumers increasingly prioritizing energy efficiency and eco-friendly features in their homes, builders and developers are responding by incorporating green technologies and sustainable materials into their projects.
This shift not only appeals to environmentally-conscious consumers but also offers long-term cost savings and regulatory compliance benefits. However, the market is not without challenges. Skilled labor shortages continue to pose a significant hurdle for large-scale residential real estate projects. The ongoing shortage of skilled laborers, including carpenters, electricians, and plumbers, is driving up labor costs and delaying project timelines. To mitigate this challenge, some builders are exploring alternative solutions, such as modular construction and automation, to streamline their operations and reduce their reliance on traditional labor sources. The Residential Construction Market in the US presents significant opportunities for companies seeking to capitalize on the growing demand for new housing units and the shift towards sustainability.
However, navigating the challenges of labor shortages and rising costs will require innovative solutions and strategic planning. By staying informed of market trends and adapting to evolving consumer preferences, companies can effectively position themselves for success in this dynamic market.

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

Request Free Sample

The residential construction market in the United States continues to exhibit dynamic activity, driven by various economic factors. Housing supply remains a key focus, with ongoing discussions surrounding the affordable housing trend and efforts to increase inventory, particularly for single-family homes and new constructions. Mortgage and federal funds rates have an impact on residential investment, with fluctuations influencing buyer decisions and construction costs. The labor market plays a crucial role, as workforce availability and wages affect both housing starts and cancellation rates. Inflation and interest rates, monitored closely by the Federal Reserve, also shape the market's direction. Recession risks and economic conditions influence construction spending across various sectors, including multifamily and single-family homes.
Federal programs, such as housing choice vouchers and fair housing initiatives, continue to support home buyers and promote equitable housing opportunities. Building permits and housing starts serve as essential indicators of market health and future growth, with some sectors experiencing double-digit growth. Overall, the residential construction market in the US remains a significant economic driver, shaped by a complex interplay of economic, demographic, and policy factors.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Apartments and condominiums
  Luxury Homes
  Other types


Type

  New construction
  Renovation


Application

  Single family
  Multi-family


Construction Material

  Wood-framed
  Concrete
  Steel
  Modular/Prefabricated


Geography

  US

By Product Insights

The apartments and condominiums segment is estimated to witness significant growth during the forecast period.

The residential construction market in the US is experiencing growth in both the apartment and condominium sectors, driven by the increasing trend toward urbanization and changing lifestyle preferences. Apartments, typically owned by property management companies, and condominiums, with individually owned units within a larger complex, contribute significantly to the market. The Federal Reserve's influence on the economy through the federal funds rate and mortgage rates impacts borrowing rates and home construction activity. The affordability of housing, particularly for younger generations, is a concern due to factors such as inflation, labor market conditions, and savings