In 2024, the China Construction Market reached $2.99 trillion, and is projected to surge to $4.11 trillion by 2030 due to government-backed initiatives

The China Construction Market Report is Segmented by Sector (Residential, Commercial, Infrastructure), by Construction Type (New Construction, Renovation), by Construction Method (Conventional On-Site, Modern Methods of Construction), by Investment Source (Public, Private), and by Geography (Jiangsu, Guangdong, Zhejiang, Beijing, Shanghai, Rest of China). The Market Forecasts are Provided in Terms of Value (USD).

China has become the largest construction market in the world. In 2020, the construction industry value in China amounted to ***** billion U.S. dollars. As the government has planned to focus on improving the infrastructure in small and medium-sized cities, the construction industry was forecasted to maintain a continuous growth at around **** percent annually.

China Construction Market size was valued at USD 1.3 Trillion in 2024 and is projected to reach USD 2.2 Trillion by 2032, growing at a CAGR of 7.2% from 2025 to 2032.China Construction Market DriversPopulation Growth and UrbanisationThe need for residential, commercial, and industrial construction is still being driven by rapid urbanisation.Construction is fuelled by the government's ambition to create megacities and urban clusters.Development of InfrastructureNational initiatives like the Belt and Road Initiative (BRI) continue to prioritise large expenditures in infrastructure, including energy projects, water management systems, and transportation (airports, highways, and railroads).The construction landscape is growing as a result of projects targeted at improving rural infrastructure.Stimulus measures and economic policiesLarge-scale construction projects are frequently a part of fiscal plans aimed at economic growth.A balanced building demand is indirectly supported by the central government's emphasis on lowering house speculation while preserving steady real estate expansion.

The China construction market, valued at $4.59 billion in 2025, exhibits robust growth potential, projected to expand at a compound annual growth rate (CAGR) of 5.07% from 2025 to 2033. This expansion is fueled by several key drivers. Government initiatives focused on infrastructure development, particularly in transportation (high-speed rail, road networks) and energy (renewable energy projects), are significantly boosting demand. Rapid urbanization and a growing middle class are driving residential construction, while increased industrial output necessitates new factory buildings and logistics facilities. Furthermore, China's commitment to sustainable development is influencing the market, with a growing emphasis on green building practices and energy-efficient technologies. However, challenges remain. Fluctuations in raw material prices, potential labor shortages, and evolving environmental regulations could impact project timelines and profitability. The market is segmented by sector, with residential, commercial, industrial, infrastructure (transportation), and energy and utilities segments all contributing significantly. Major players such as China State Construction Engineering, China Railway Group, and others dominate the landscape, leveraging their experience and scale to secure large-scale projects. This competitive environment necessitates continuous innovation and adaptation to changing market conditions. The forecast period (2025-2033) anticipates continued growth, driven by ongoing infrastructure investments and sustained economic development. However, maintaining this growth trajectory hinges on effectively managing the identified challenges. Strategic partnerships, technological advancements, and a focus on sustainable practices will be crucial for success in this dynamic market. The sector's diverse segments present opportunities for specialized firms, while established players continue to consolidate their market share through strategic acquisitions and expansion into new geographical areas. The long-term outlook for the China construction market remains positive, with substantial potential for growth and innovation in the coming years. Recent developments include: December 2023: Recently, "Engineering News-Record" (ENR), one of the world's most authoritative academic journals in engineering and construction, announced the winners of the 2023 Global Best Projects Awards. I received awards for two projects. The Lamu Port Berth 1-3 Project was honored with the Award of Merit in the Airport and Port category, while the Peljesac Bridge and its access roads in Croatia received the Award of Merit in the Bridge and Tunnel category., July 2023: The Shaoxing Metro Line 2, constructed by CRCC, officially opened, marking the commencement of a new era of automated and driverless subway systems in Shaoxing. This 10.8-kilometer line, featuring nine stations, represents Shaoxing's inaugural automated and driverless subway and the second in Zhejiang Province. As a co-host city with the most events for the Asian Games, the inauguration of Line 2 will further boost the development of the "Commuting Circle" for the Hangzhou Asian Games, providing robust support for the successful hosting of the event.. Key drivers for this market are: Government Infrastructure Spending, Urbanization and Increasing Disposable Incomes. Potential restraints include: Government Infrastructure Spending, Urbanization and Increasing Disposable Incomes. Notable trends are: Increase in Output value of China Construction Industry.

The China construction market was valued at USD 4.80 Trillion in 2024. The industry is expected to grow at a CAGR of 6.00% during the forecast period of 2025-2034 to reach a value of USD 8.60 Trillion by 2034. This market growth is mainly resulting from a combination of large-scale infrastructure initiatives and sustainability-driven regulations.

Government-led projects and international investments are creating extensive opportunities, while policies increasingly emphasize energy efficiency, environmental standards, and innovation in building technologies. Strategic initiatives such as modular construction and smart infrastructure development are helping companies meet growing demand for rapid, cost-effective, and sustainable construction solutions. These trends are reinforced by global connectivity projects that require complex engineering and high-quality execution, further adding to the China construction industry value.

For example, the Belt and Road Initiative (BRI) has enabled substantial investments in roads, railways, ports, and industrial corridors across Asia, Africa, and Europe, with projects like the China-Pakistan Economic Corridor and Indonesia’s high-speed railway showcasing China’s ability to deliver large-scale infrastructure efficiently. Domestically, regulatory efforts are also shaping market growth. In 2024, the Ministry of Housing and Urban-Rural Development mandated that all new public buildings adhere to green building standards. Construction companies have responded by incorporating energy-efficient designs and materials; a recent public building project in Shanghai used solar panels and high-performance insulation, reducing energy consumption by 30%.

These factors are fostering innovation, boosting construction activity, and creating opportunities for both traditional and modular construction projects. As a result, the China construction market development is set to witness sustained growth, backed by policy support, advanced technologies, and an increasing focus on environmentally responsible and resilient infrastructure.

China construction market valued at USD 3 trillion, driven by urbanization, government infrastructure investments, and green building trends for sustainable growth.

In 2023, China Railway Group Ltd. (CREC) reported total revenue of approximately 1263 billion yuan, representing an increase of more than nine percent from the previous year. Over the last decade, CREC's annual revenue has continued to grow by 1.85 times from 442 billion yuan in 2011.

In 2023, the construction industry accounted for about *** percent of China's gross domestic product (GDP), representing a continuation of the figure from the previous year.

A vital industry for the economy Since the 1998 housing reform, China's real estate industry has expanded dramatically and has become one of the country's pillar industries. Similarly, China's infrastructure construction has also boomed since the early 2000s. To mitigate the impact of the 2008 global financial crisis and maintain the country's economic output, the Chinese government launched a four trillion yuan stimulus plan and invested substantial resources in infrastructure development across the country, such as high-speed railway and highway projects. These developments have all made the construction industry one of the most important segments of the Chinese economy.

An important employer nationwide The construction industry also plays a key role in China's labor market, with more than ********** people employed in the sector in 2023. It is also one of the top sectors for China's migrant workers, with more than ** percent working in construction in 2023. However, due to the challenging working environment, more and more young migrant workers are choosing to work in other professions, such as couriers and food delivery. With China's real estate sector facing significant headwinds, infrastructure construction stagnating, and local governments now under substantial fiscal pressure, the future of China's construction industry is becoming increasingly uncertain.

China Construction: Revenue data was reported at 27,313,040.281 RMB mn in 2022. This records an increase from the previous number of 26,789,573.690 RMB mn for 2021. China Construction: Revenue data is updated yearly, averaging 5,507,559.879 RMB mn from Dec 1993 (Median) to 2022, with 30 observations. The data reached an all-time high of 27,313,040.281 RMB mn in 2022 and a record low of 318,722.170 RMB mn in 1993. China Construction: Revenue data remains active status in CEIC and is reported by National Bureau of Statistics. The data is categorized under China Premium Database’s Construction Sector – Table CN.EE: Construction Enterprise: All.

Over the five years through 2023, revenue for the Building Construction industry is expected to have been growing at an average annualized 4.4%, to $3.0 trillion. This includes an anticipated increase of 4.7% in 2023. There are approximately 36,700 construction firms in this industry. Most major players also have operations in civil engineering, real estate development, professional engineering services, plan designing, building materials manufacturing and construction equipment manufacturing. By operating across different sectors, firms can minimize their costs and maintain stable supply sources.Larger general contractors are relatively stable and less vulnerable to external influences due to their broad business scope and established relationships with real estate developers, local government and material supply sources.In 2023, the average profit level for the industry is estimated at 4.6% of industry revenue, although some large firms can earn a profit of 8.0% or more. The industry is generally profitable as the government controls many construction enterprises – particularly large-scale organizations – and provides them with preferable policies.The industry is highly influenced by China's real estate industry. Rapidly increasing housing prices in major cities have resulted in the State Council and first-tier cities issuing a series of measures to curb speculative housing demand and prevent excessive price growth. These policies caused declines in sales volume and average prices of commercial residential buildings and have discouraged real estate investment and new house starts. However, an rise in the number of government-mandated indemnificatory houses is lifting demand for building construction services and offsetting the slowed growth in the commercial residential buildings market. As a result, ACMR-IBISWorld projects that in the five years through 2028, industry revenue is forecast to continue growing at an average annualized 3.8%, to reach $3.6 trillion.

The China Construction Equipment Market Report is Segmented by Machinery Type (Earth-Moving Machinery, Material-Handling Machinery, and More), Drive Type (Internal-Combustion, Hybrid, and More), Sales Channel (OEM Direct Sales, and Authorized Dealer Sales), and Application (Building Construction, Infrastructure Construction, and More). The Market Forecasts are Provided in Terms of Value (USD).

In 2024, the construction industry in China generated an output of over *********** yuan, representing an increase of more than ***percent from a decade ago. Stimulus from the real estate sector and government-funded projects With the liberalization of the housing market in the late 1990s, China's real estate industry enjoyed a 20-year boom since the early 2000s. Amidst the surge in housing prices, local governments across China received considerable non-tax revenue from land leases and in turn, invested the funds in infrastructure development projects. This led to the continuous prosperity of the country’s construction industry. A vital segment of China’s economy Thanks to the stimulus from housing developments and infrastructure projects, the construction industry is now one of the pillar industries of China's economy, accounting for around ***** percent of the country's GDP. However, with the recent difficulties experienced by many major real estate enterprises, and the stagnation in infrastructure construction owing to local governments' debt situation, China's construction sector faces a somewhat uncertain future.

The China Data Center Construction Market report segments the industry into By Infrastructure (By Electrical Infrastructure, By Mechanical Infrastructure, General Construction), By Tier Type (Tier 1 and 2, Tier 3, Tier 4), and By End User (Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Healthcare, Other End Users).

China Construction Market growth is driven by increasing infrastructure investments, urbanization, and technological advancements in construction methods.

China Construction: Project Cost data was reported at 24,632,363.170 RMB mn in 2022. This records an increase from the previous number of 24,139,114.125 RMB mn for 2021. China Construction: Project Cost data is updated yearly, averaging 4,797,161.861 RMB mn from Dec 1993 (Median) to 2022, with 30 observations. The data reached an all-time high of 24,632,363.170 RMB mn in 2022 and a record low of 265,141.530 RMB mn in 1993. China Construction: Project Cost data remains active status in CEIC and is reported by National Bureau of Statistics. The data is categorized under China Premium Database’s Construction Sector – Table CN.EE: Construction Enterprise: All.

China Building Construction: Value Completed: Total data was reported at 7,863,563.000 RMB mn in 2024. This records a decrease from the previous number of 8,182,805.000 RMB mn for 2023. China Building Construction: Value Completed: Total data is updated yearly, averaging 6,104,224.970 RMB mn from Dec 2003 (Median) to 2024, with 22 observations. The data reached an all-time high of 8,182,805.000 RMB mn in 2023 and a record low of 901,173.500 RMB mn in 2003. China Building Construction: Value Completed: Total data remains active status in CEIC and is reported by National Bureau of Statistics. The data is categorized under China Premium Database’s Construction Sector – Table CN.ED: Construction: Building Construction: Value Completed.

The report covers China Construction Chemicals Suppliers and the market is segmented by Product Type (Concrete Admixture and Cement Grinding Aids, Surface Treatment, Repair and Rehabilitation, Protective Coatings, Industrial Flooring, Waterproofing, Adhesive and Sealants, and Grout and Anchor), End-user Sector (Commercial, Industrial, Infrastructure, Residential, and Public Space).

In 2023, the construction industry in China generated an added value of ******************** yuan.China's leadership in global construction marketWith total construction spending amounting to **** trillion U.S. dollars in 2013, China was by far the largest construction market worldwide. The world’s six largest construction companies in 2023 were all from China. The largest construction company in the world, the China State Construction Engineering Corporation (CSCEC), had generated revenues of exceeding *** trillion yuan in 2022. How important is construction in China? The success of China’s construction industry is closely linked to domestic urbanization efforts and economic development. Thus, it is not surprising that eastern coastal provinces such as Jiangsu or Zhejiang had been among the regions with the highest construction industry revenue in China.The construction industry account for a large proportion of China’s GDP and hence plays an essential role in domestic economy. Added value from the construction industry in China has been increasing by at least *** percent annually in the recent decade, ranging above the average level of China’s GDP growth during the same period. Another significant sector, residential real estate development has been seen as a main driver of China’s economy in the recent decade. Around *********** square meters of floor space had been built in 2023.

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