Graph and download economic data for Total Construction Spending: Commercial in the United States (TLCOMCONS) from Jan 2002 to Jan 2025 about expenditures, commercial, construction, and USA.

Graph and download economic data for Private New Construction Activity, Commercial Buildings for United States (M02187USM398NNBR) from Jan 1939 to Dec 1963 about buildings, commercial, construction, new, private, and USA.

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US Commercial Construction Market Size 2025-2029

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

The Commercial Construction Market in the US is experiencing significant growth driven by the increasing trend towards sustainable building practices and the emergence of smart cities. Green buildings, which incorporate energy-efficient designs and renewable energy sources, are gaining popularity due to their environmental benefits and cost savings over the long term. This trend is expected to continue as more businesses prioritize sustainability and energy efficiency in their operations. However, the market also faces challenges, most notably the lack of skilled labor in the construction industry. The industry's aging workforce and a decline in new entrants have created a labor shortage, leading to delays and increased costs for construction projects. To mitigate this challenge, companies are exploring innovative solutions such as modular construction and automation technologies to streamline processes and reduce reliance on manual labor. In , the US Commercial Construction Market presents significant opportunities for growth, particularly in the area of sustainable building practices and smart city development. However, companies must also address the challenge of the labor shortage by adopting new technologies and innovative construction methods to remain competitive and deliver projects on time and on budget. By staying informed of these trends and challenges, businesses can effectively capitalize on market opportunities and navigate challenges in the ever-evolving construction landscape.

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

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The commercial construction market in the US continues to exhibit activity, driven by the demand for new office buildings, retail spaces, outdoor leisure facilities, and mixed-use developments. Urbanization and infrastructure development programs are significant growth areas, fueling the need for renovation and retrofitting of existing structures, as well as urban regeneration projects. Energy-saving designs and water infrastructure are key trends, with a focus on reducing costs through efficient building materials and product lead times. The non-residential building market is experiencing cost escalation due to fluctuating material prices, particularly for building materials like lumber, and labor shortages, exacerbated by a shrinking labor force. Despite these challenges, investments in commercial construction remain strong, reflecting the market's ongoing importance to the US economy.

How is this market segmented?

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

By Sector Insights

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

The US commercial construction market encompasses the development of various structures, including office buildings, retail establishments, outdoor leisure facilities, and urban infrastructure projects. Notable initiatives in this sector include the construction of the El Paso VA Health Care Center in Fort Bliss, celebrated in August 2024, and the Skymark Reston Town Center, the tallest residential tower in the Capital Region, topped out in October 2023. These projects contribute to the expansion of the market, with a focus on mixed-use developments, infrastructure building, and energy-saving designs. However, challenges such as cost escalation due to fluctuating material prices, labor shortages, and infrastructure development programs require careful planning and management. Key areas of investment include public transportation, broadband internet, electric grid reconstruction, water infrastructure, and multifamily housing. Operational efficiency, service delivery, and safety are essential functional areas in the non-residential building market. Technological advancements in communication linkages, data and communication, and EV units are transforming the industry.

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The Private construction segment was valued at USD 1313.50 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advant

Indonesia Commercial Construction Market size was valued to be USD 14.5 Billion in the year 2024 and it is expected to reach USD 24.3 Billion in 2032, at a CAGR of 6.6% from of 2025 to 2032.

Indonesia Commercial Construction Market: Definition/ Overview

Commercial construction is the design, development, and construction of structures used for business and commercial purposes, such as office buildings, retail spaces, hotels, restaurants, warehouses, and industrial facilities.

This field of construction entails complicated projects that need specialist understanding of building rules, zoning restrictions, and commercial-grade materials, as well as an emphasis on usefulness, durability, and safety compliance.

The Global Commercial Construction Market Size Was Worth USD 13.44 Billion in 2024 and Is Expected To Reach USD 29.56 Billion by 2034, CAGR of 8.20%.

This dataset contains data for all Commercial Demolition Permit applications issued in the last five years, including status and work performed.

United States Commercial Construction Market size was valued at USD 104.42 Billion in 2024 and is projected to reach USD 184.57 Billion by 2031, growing at a CAGR of 7.38% during the forecast period 2024-2031.

United States Commercial Construction Market Drivers

The market drivers for the United States Commercial Construction Market can be influenced by various factors. These may include:

Economic Growth: When the economy grows, there is usually a rise in the demand for commercial real estate, which includes hotels, offices, retail stores, and industrial buildings.
Population Growth: In order to handle the growing number of residents, there is an increasing need for infrastructure and commercial areas.
Urbanisation: The need for commercial construction projects in cities, such as high-rise buildings, mixed-use developments, and infrastructure upgrades, is driven by the trend of urbanisation.
Technological Advancements: By increasing productivity, cutting costs, and satisfying regulations, developments in construction technology, such as prefabrication, Building Information Modelling (BIM), and sustainable building practices, can have an impact on the industry.
Government rules: The commercial construction industry can be greatly impacted by government rules pertaining to zoning, building codes, taxes, and environmental standards. For example, spending packages on infrastructure or incentives for green building techniques might boost construction activity.
Interest Rates and Financing Availability: Developers’ capacity and inclination to take on commercial construction projects are influenced by the cost and accessibility of financing as well as changes in interest rates.

Based on planned construction development over the next few years, the value of non-residential construction put in place in 2028 in the United States is expected to reach roughly 870 billion U.S. dollars. Non-residential construction can include segments like the construction of lodging, offices, commercial buildings, health care, and education. Generally, the U.S. construction industry is linked to the economic wellbeing of the country. Construction industry needs Within the non-residential building industry, commercial building construction in the U.S. increased considerably in 2022. However, the construction industry faces challenges such as the rising construction costs. The modernization of a typically conservative industry will be important in the near future to support customer demands and to improve operation models. Integrating sustainable building processes and features in projects as well as establishing technological advancements like building information modeling (BIM) will be essential for the future of the construction industry. Non-residential vs. residential During the past years, new residential construction in the United States usually had a higher value than non-residential construction. Until 2019, the values of new residential and non-residential construction had remained fairly similar. However, the value of new residential construction started quite fast between 2020 and 2022. Nevertheless, the number of permits for private housing construction started decreasing in late 2022 and early 2023.

This dataset contains data for all Commercial Building Permit applications issued in the last five years, including status and work performed.

The Report Covers US Commercial Building Construction Industry Statistics & Growth. The Market is Segmented by End User (Office Building Construction, Retail Construction, Hospitality Construction, Institutional Construction, and Others). The market size and forecasts are provided in terms of value (USD billion) for all the above segments.

Graph and download economic data for Private New Construction Activity, Commercial Buildings, Value in Constant Dollars for United States (A0288AUSA380NNBR) from 1920 to 1946 about buildings, commercial, construction, new, private, real, and USA.

The construction industry grew to a spending value of close to 12 trillion U.S. dollars before the coronavirus pandemic, and is expected to grow by three percent per annum. This includes building projects in real estate - either residential or commercial - but also in infrastructure or industrial structures. Construction spending data includes cost of labor and materials, architectural and engineering work, and taxes.

The United States has one of the largest construction industries in the world, with their total value of new construction having grown since the global Recession. Between 2019 and 2020, Buenos Aires is expected to the have one of the largest growths in the city’s constructions costs. In 2021, Asia Pacific is expected to have the highest construction industry output in the world.

Mozambique CB: General Construction Work: Other Commercial Buildings data was reported at 290,057,000.000 MZN in 2016. This records an increase from the previous number of 217,979,000.000 MZN for 2015. Mozambique CB: General Construction Work: Other Commercial Buildings data is updated yearly, averaging 217,979,000.000 MZN from Dec 2014 (Median) to 2016, with 3 observations. The data reached an all-time high of 290,057,000.000 MZN in 2016 and a record low of 217,979,000.000 MZN in 2015. Mozambique CB: General Construction Work: Other Commercial Buildings data remains active status in CEIC and is reported by National Statistics Institute. The data is categorized under Global Database’s Mozambique – Table MZ.EA001: Construction Activity.

Construction Spending in the United States decreased 0.20 percent in January of 2025 over the previous month. This dataset provides the latest reported value for - United States Construction Spending - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The Report Covers Construction Growth Rate in India and It is Segmented by Type (Office Building, Retail, Hospitality, Institutional, Others).

Saudi Arabia Commercial Activities Permits Issued: Construction Sector: New data was reported at 1,969.000 Unit in 2019. This records a decrease from the previous number of 3,266.000 Unit for 2018. Saudi Arabia Commercial Activities Permits Issued: Construction Sector: New data is updated yearly, averaging 3,266.000 Unit from Dec 2017 (Median) to 2019, with 3 observations. The data reached an all-time high of 5,463.000 Unit in 2017 and a record low of 1,969.000 Unit in 2019. Saudi Arabia Commercial Activities Permits Issued: Construction Sector: New data remains active status in CEIC and is reported by Ministry of Municipal, Rural Affairs and Housing. The data is categorized under Global Database’s Saudi Arabia – Table SA.O010: Commercial Activities Permits Issued: by Activity (Discontinued).

The Report On the North American Construction Market is Segmented by Country (Canada and the United States), Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utilities Construction), and Construction Type (Additions and Demolition and New Construction). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

The volume of commercial building activity in Australia was forecast to increase by about 5.3 percent in the 2025 fiscal year. This was higher than the commercial building activity change in Australia as of financial year 2019, which increased by around 1.5 percent.

Africa Construction Market size was valued to be USD 266.75 Billion in the year 2024 and it is expected to reach USD 448.15 Billion by 2032, at a CAGR of 6.7% from 2026 to 2032.

Africa Construction Market Drivers

Rapid Population Growth and Urbanization:
Africa’s population is growing rapidly, and urbanization is accelerating. This creates a massive demand for housing, infrastructure, and commercial buildings.
Infrastructure Development Needs:
Africa has a significant infrastructure deficit, with needs for roads, bridges, railways, ports, airports, and energy infrastructure.
Governments are investing in infrastructure projects to support economic growth and improve connectivity.
Increased Foreign Investment:
Growing interest from foreign investors in Africa’s infrastructure and real estate sectors is driving construction activity.
Government Initiatives and Policies:
Many African governments are implementing policies to promote infrastructure development and attract investment, including public-private partnerships (PPPs).
Rising Middle Class:
The expanding middle class is driving demand for residential and commercial real estate, as well as retail and leisure facilities.

Saudi Arabia Commercial Activities Permits Issued: Construction Sector: Tabouk: Temporary data was reported at 2.000 Unit in 2019. This records an increase from the previous number of 0.000 Unit for 2018. Saudi Arabia Commercial Activities Permits Issued: Construction Sector: Tabouk: Temporary data is updated yearly, averaging 0.000 Unit from Dec 2017 (Median) to 2019, with 3 observations. The data reached an all-time high of 2.000 Unit in 2019 and a record low of 0.000 Unit in 2018. Saudi Arabia Commercial Activities Permits Issued: Construction Sector: Tabouk: Temporary data remains active status in CEIC and is reported by Ministry of Municipal, Rural Affairs and Housing. The data is categorized under Global Database’s Saudi Arabia – Table SA.O010: Commercial Activities Permits Issued: by Activity (Discontinued).