Building materials made of steel, copper and other metals had some of the highest price growth rates in the U.S. in the first half of 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.

In March 2025, Poland's price growth rate for construction materials was negative, reaching **** percent, a *** percentage point decrease from the previous year.

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

The construction output price in the United Kingdom has reached an annual growth rate of *** percent in June 2025 compared to the same month of the previous year. Construction costs had been increasing at a lower rate than in 2022 and 2023, but started rising again slowly in late 2024. The year-over-year growth rate was over ** percent in May and July 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 ** 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 ** percent of the sector's earnings in the United Kingdom in 2024. In the past years, the size of labor costs as a share of the construction sector have increased slightly, but they were still lower than in before 2014. As of June 2025, the construction output price growth rate has been revised to *** percent.

Construction Output Price Indices (OPIs) from January 2014 to September 2025, UK. Summary

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

US Residential Construction Market Size 2025-2029

The us residential construction market size is valued to increase USD 242.9 million, at a CAGR of 4.5% from 2024 to 2029. Increasing household formation rates will drive the us residential construction market.

Major Market Trends & Insights

By Product - Apartments and condominiums segment was valued at USD 509.50 million in 2022
By Type - New construction segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 39.65 million
Market Future Opportunities: USD 242.90 million
CAGR from 2024 to 2029 : 4.5%

Market Summary

The Residential Construction Market in the US is a dynamic and evolving industry, shaped by various factors and trends. Core technologies and applications, such as Building Information Modeling (BIM) and energy-efficient systems, are increasingly adopted to enhance project efficiency and sustainability. In fact, the use of BIM in residential construction is projected to reach 50% penetration by 2025, according to industry reports. Service types and product categories, including general contracting, design-build, and modular housing, cater to diverse residential construction needs. However, challenges persist, including rising material costs and skilled labor shortages for large-scale residential real estate projects. Regulations, such as the International Energy Conservation Code, drive the focus on sustainability in residential construction projects. The regional landscape is diverse, with the South and West regions leading in residential construction activity due to population growth and favorable economic conditions. These evolving market dynamics offer significant opportunities for industry players to innovate and adapt to the changing landscape.

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

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How is the Residential Construction in US Market Segmented and what are the key trends of market segmentation?

The residential construction in us 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. ProductApartments and condominiumsLuxury HomesOther typesTypeNew constructionRenovationApplicationSingle familyMulti-familyConstruction MaterialWood-framed ConcreteSteel Modular/PrefabricatedGeographyNorth AmericaUS

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 continues to evolve, with apartments and condominiums being key contributors to its growth. Urbanization is a significant driver, as more Americans opt for the convenience and amenities of city living. In response, developers are constructing modern, sustainable, and community-focused high-rise buildings and condominium complexes. Smart home technology and energy efficiency standards are becoming increasingly important in these projects, with Building Information Modeling (BIM) software guiding the design process. Modular construction, geotechnical engineering, and quality control measures ensure structural integrity and safety. Building codes and permitting processes are strictly adhered to, with green building certifications such as LEED and Energy Star driving the adoption of sustainable building practices. Masonry techniques, foundation design, and exterior cladding are essential elements of the construction process, with insulation materials and HVAC systems ensuring energy efficiency. Safety regulations govern electrical wiring, roofing systems, and plumbing fixtures. Construction scheduling is facilitated by project management software, with prefabricated components and 3D building modeling streamlining the process. Construction automation and waste management are also crucial considerations, with cost estimation models helping developers stay within budget. Environmental impact assessments and structural engineering studies are essential to minimize the environmental footprint and ensure safety. Framing techniques and foundation design are optimized for durability and cost-effectiveness. Safety regulations and quality control measures are strictly enforced to ensure the safety and satisfaction of residents. Overall, the residential construction market in the US is dynamic and forward-thinking, with a focus on sustainability, safety, and community.

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The Apartments and condominiums segment was valued at USD 509.50 million in 2019 and showed a gradual increase during the forecast period.

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Market Dynamics

Our researchers analyzed the data with 2024 as

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

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. Market Dynamics of Advanced Building Material

Key Drivers of Advanced Building Material Market

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.

Key restraints in Advanced Building Material Market

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)

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?

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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 resistan

The North American residential construction market, valued at $850 million in 2025, is projected to experience robust growth, driven by several key factors. A steadily increasing population, particularly in urban centers, fuels the demand for new housing units, both single-family homes and multi-family dwellings. Furthermore, favorable government policies aimed at stimulating housing development and improving infrastructure contribute to this positive market outlook. The renovation segment also presents a significant opportunity, as older homes require upgrades and modernizations, catering to a rising preference for energy efficiency and sustainable building practices. While rising material costs and labor shortages pose challenges, the market's resilience stems from consistent demand and the innovative solutions adopted by major players like Lennar, D.R. Horton, and PulteGroup. These companies are strategically investing in technological advancements and streamlined construction processes to mitigate these challenges and maintain profitability. The market is segmented by property type (single-family and multi-family) and construction type (new construction and renovation), allowing for targeted investment and development strategies. The continued expansion of suburban areas and the increasing preference for larger living spaces further contribute to the market's expansion. The projected Compound Annual Growth Rate (CAGR) of 4.5% from 2025 to 2033 indicates sustained growth. This growth, however, is expected to fluctuate year-over-year depending on macroeconomic conditions such as interest rates and overall economic performance. Factors like fluctuating material prices, potential changes in building codes, and shifts in consumer preferences will influence the market’s trajectory. Nevertheless, the long-term forecast remains optimistic, supported by the continued need for affordable and sustainable housing solutions across North America, particularly in high-growth regions within the United States and Canada. The competitive landscape is characterized by both large national builders and regional players, leading to constant innovation and competition in pricing and design. This comprehensive report provides a detailed analysis of the North America residential construction market, offering invaluable insights for investors, builders, and industry stakeholders. Covering the period from 2019 to 2033, with a focus on 2025, this report meticulously examines market trends, growth drivers, challenges, and opportunities within the single-family, multi-family, new construction, and renovation sectors. Utilizing data from the historical period (2019-2024), the base year (2025), and an estimated forecast period (2025-2033), this report paints a clear picture of the market's trajectory. Recent developments include: December 2022: In southeast Columbus, D.R. Horton intends to build homes for USD 215 million., December 2022: According to the company's fourth-quarter results call, Lennar Corp. has decided not to proceed with its plans to spin off its multifamily subsidiary, Quarterra, by the end of the year owing to adverse market circumstances., December 2022: At the southeast corner of Idlewild Street and Plantation Road in south Fort Myers, a 17-acre site is being cleared. According to Lee County documents, the area will be transformed into the 52-home neighborhood of Addison Square. The land was purchased by Pulte Homes for USD 2.4 million in a deal facilitated by Chuck Mayhugh of Mayhugh Commercial Advisors. The homes will vary in price from more than USD 500,000 and have 1,600 to 3,400 square feet of living space, with the majority of the homesites being grouped together along a sizable, central lake. According to Pulte executives, construction on the model houses should start by the spring, with some of them being done by the summer.. Key drivers for this market are: Population Growth and Disposable Income, Demand from Office Sector Returning Post COVID-; Non-residential Construction on Upward Trend. Potential restraints include: Interests and Financing, Increase in Cost of Raw Materials. Notable trends are: 800,000 Housing Units Must Be Built Annually in Mexico to Keep Up with Demand.

Wholesale Price Index: Construction Materials: Commodities: Crushed Stones data was reported at 102.400 2023=100 in Nov 2025. This records an increase from the previous number of 100.890 2023=100 for Oct 2025. Wholesale Price Index: Construction Materials: Commodities: Crushed Stones data is updated monthly, averaging 99.370 2023=100 from Feb 2024 (Median) to Nov 2025, with 22 observations. The data reached an all-time high of 102.400 2023=100 in Nov 2025 and a record low of 99.030 2023=100 in Feb 2025. Wholesale Price Index: Construction Materials: Commodities: Crushed Stones data remains active status in CEIC and is reported by Statistics Indonesia.IB: Wholesale Price Index: by Sector: Construction Materials.

As of August 2025, the monthly price index for construction materials in Japan stood at ***** points. This represented an increase of *** index points compared to the previous month.

United States - Producer Price Index by Industry: Building Material and Supplies Dealers was 219.88900 Index Dec 2003=100 in August 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 October of 2025.

BCIS forecast data showing 15% construction cost increases over five years, broken down by labour costs (16% increase), materials (13% increase), Building Safety Act compliance costs, and programme extension impacts on SME residential developers

According to Cognitive Market Research, the global Construction Materials market size was 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 for s...

Protective Building Materials Market Outlook

The protective building materials market is a burgeoning sector with a significant market size, valued at approximately USD 45 billion in 2023. It is poised to expand at a compound annual growth rate (CAGR) of around 6.5% from 2024 to 2032, reaching an estimated value of USD 78 billion by the end of the forecast period. This growth is driven by several key factors including the increasing demand for sustainable and resilient building solutions, advancements in material technology, and the rising awareness of safety standards in construction practices worldwide.

A significant growth factor contributing to the expansion of the protective building materials market is the accelerating urbanization and industrialization across various regions, primarily in emerging economies. As urban areas expand, the need for robust and durable infrastructure becomes paramount. Protective building materials such as reinforced concrete, high-strength steel, and impact-resistant glass are essential in ensuring the longevity and safety of urban infrastructure. Additionally, the continuous development of residential complexes, commercial establishments, and industrial facilities further stimulates the demand for these materials, promoting market growth.

Technological advancements in material science also play a crucial role in propelling the market forward. Innovations in nanotechnology and the development of smart materials have significantly enhanced the durability, efficiency, and functionality of protective building materials. For example, self-healing concrete and high-performance thermal insulation materials have shown promising potential in reducing maintenance costs and enhancing energy efficiency, which are critical considerations in modern construction projects. These advancements not only increase the appeal of protective building materials but also provide cost-effective and environmentally friendly solutions, further driving their adoption across various applications.

Another critical driver for the market is the increasing focus on safety and regulatory compliance within the construction industry. Stringent building codes and safety regulations, aimed at ensuring the resilience of buildings against natural disasters and man-made hazards, are compelling construction companies to incorporate advanced protective materials in their projects. Governments worldwide are enforcing these regulations to safeguard public safety and infrastructure, thereby boosting the demand for high-quality protective building materials. This trend is particularly pronounced in regions prone to seismic activities, floods, and harsh weather conditions, where the need for durable and impact-resistant materials is paramount.

Building Materials are at the heart of the construction industry, serving as the foundation for creating structures that are both functional and aesthetically pleasing. The choice of materials can significantly influence the durability, safety, and sustainability of a building. As the industry evolves, there is a growing emphasis on selecting materials that not only meet structural requirements but also contribute to energy efficiency and environmental conservation. This shift is driven by the increasing awareness of the impact of construction on the environment and the need for buildings that can withstand the challenges posed by climate change and urbanization. The integration of innovative building materials is crucial in addressing these demands, offering solutions that enhance the performance and lifespan of structures while minimizing their ecological footprint.

Regionally, the Asia Pacific region stands out as a significant market for protective building materials, driven by rapid urbanization, infrastructural development, and economic growth in countries like China and India. This region is expected to witness a substantial CAGR due to the large-scale construction projects and government initiatives aimed at improving infrastructure. Meanwhile, North America and Europe continue to be key markets due to their well-established construction industries and stringent safety regulations. These regions are leading the adoption of innovative materials and technologies, further enhancing their market positions.

Material Type Analysis

The protective building materials market, segmented by material type, includes concrete, steel, wood, glass, and others. Concrete, as a material type, remains dominant due to its unparal

Lumber fell to 537 USD/1000 board feet on December 1, 2025, down 1.29% from the previous day. Over the past month, Lumber's price has fallen 1.47%, and is down 9.54% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Lumber - values, historical data, forecasts and news - updated on December of 2025.

Snapshot img

Construction Market Size 2025-2029

The construction market size is valued to increase by USD 1288.3 billion, at a CAGR of 5.5% from 2024 to 2029. Increase in residential and commercial infrastructure projects will drive the construction market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 53% growth during the forecast period.
By Type - Buildings construction segment was valued at USD 1608.40 billion in 2023
By End-user - Private sector segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 63.08 billion
Market Future Opportunities: USD 1288.30 billion
CAGR from 2024 to 2029 : 5.5%

Market Summary

The market continues to be a significant economic driver, fueled by the increasing demand for infrastructure development in various sectors. This demand is spurred by population growth, urbanization, and technological advancements. One of the most notable trends shaping the industry is the integration of artificial intelligence (AI) in construction processes. AI is revolutionizing the sector by enhancing efficiency, reducing costs, and improving safety. However, the high cost of construction machinery and materials remains a significant challenge. To mitigate this, companies are exploring innovative solutions such as Modular construction and offsite fabrication. These approaches enable the production of high-quality structures at a lower cost and with reduced environmental impact.
Furthermore, the adoption of Building Information Modeling (BIM) and other digital technologies is enabling more accurate project planning, design, and execution. Despite these advancements, the market faces complex regulatory environments and labor shortages, which necessitate collaboration and innovation to overcome. The industry's future direction lies in the continued adoption of technology and the development of sustainable, cost-effective solutions.

What will be the Size of the Construction Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free Sample

How is the Construction Market Segmented ?

The construction industry 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.

Type

  Buildings construction
  Heavy and civil engineering construction
  Land planning and development
  Specialty trade contractors


End-user

  Private sector
  Public sector


Product

  Traditional
  Sustainable


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    China
    India
    Indonesia
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

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

The market continues to evolve, with buildings construction being a significant and dynamic segment. This sector encompasses residential, commercial, and multifamily buildings, each contributing to the overall growth and development of the global construction industry. For instance, Egypt's ambitious project to build a new administrative capital (NAC) 45 kilometers east of Cairo is a testament to this ongoing activity. With a goal to ease overcrowding and pollution in the current capital, NAC is expected to accommodate over six million residents and become Egypt's new political and administrative center. CSCEC, a leading Chinese state-owned enterprise, is a major player in this transformation.

Risk assessment methodologies, building envelope systems, and foundation engineering are essential elements in this evolving landscape. Innovative approaches, such as prefabricated construction methods, green building certifications, and cost estimation techniques, are shaping the future of construction. For example, 3D printing construction and modular construction techniques are revolutionizing the industry, offering faster and more cost-effective solutions. Quality control procedures, structural engineering software, and lifecycle cost analysis are crucial components in ensuring the long-term success of construction projects. Safety management systems, construction site safety, and digital twin technology are essential in minimizing risks and optimizing resource allocation. Concrete mix design, structural analysis software, and heavy equipment operation are other critical aspects that require continuous improvement.

Building automation systems, sustainable building materials, and smart building technologies are becoming increasingly important in creating energy-efficient and environmentally friendly structures. Compliance with building codes, Geotechnical engineering principles, and mep engineering design are also essential in ensuring safety and

The Building Materials Consulting Services market is experiencing robust growth, driven by increasing infrastructure development globally, stringent building codes and regulations necessitating expert advice, and the burgeoning adoption of sustainable and innovative building materials. The market's expansion is further fueled by the need for optimizing construction processes, improving project efficiency, and mitigating risks associated with material selection and implementation. Major players, including Boston Consulting Group, McKinsey, and others, are leveraging their expertise in various segments like material sourcing, life-cycle analysis, and regulatory compliance to cater to a diverse clientele ranging from developers and contractors to material manufacturers. A conservative estimate suggests a market size of approximately $15 billion in 2025, considering the involvement of numerous large and specialized firms. This figure is projected to grow at a Compound Annual Growth Rate (CAGR) of around 7% over the forecast period (2025-2033), reaching an estimated $27 billion by 2033. This growth trajectory, however, faces certain constraints. Fluctuations in raw material prices, economic downturns impacting construction activity, and the increasing adoption of cost-effective digital tools could pose challenges. Furthermore, intense competition amongst consulting firms demands continuous innovation and value-added services. Regional variations in market penetration exist, with North America and Europe currently dominating the market share due to advanced infrastructure and stringent regulatory environments. However, emerging economies in Asia and the Pacific Rim are expected to witness significant growth in the coming years, creating new opportunities for established players and attracting new entrants. Segmentation within the industry is likely driven by specialized service offerings, such as sustainability consulting, cost optimization, and risk management, catering to the specific needs of different client segments.