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.

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US Commercial Construction Market Size 2025-2029

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

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

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

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

How is this market segmented?

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

By Sector Insights

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

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

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

In 2024, the value of construction of commercial buildings in the United States decreased noticeably, falling to lower levels than in 2022. After a noticeable drop in the U.S. commercial construction market during the 2008 recession, the value of commercial construction that has been put in place has recovered to pre-recession figures, reaching *** billion U.S. dollars in 2022. Warehouses and private offices were the most common type of commercial construction starts in the United States. How does commercial construction differ? Commercial construction is for the purpose of business through new buildings like offices or a new industrial facility. In the commercial market, contractors must also take into account the needs of other businesses that may also be established within the building. The larger size in commercial construction tends to lead to the utilization of steel as well as other equipment such as cranes. Such equipment also requires skilled personnel for safe and efficient operations.

Employment statistics on the Commercial Building Construction industry in United States

Commercial Construction Market Outlook

The global commercial construction market size was valued at approximately USD 5.2 trillion in 2023 and is projected to reach around USD 9.8 trillion by 2032, reflecting a compound annual growth rate (CAGR) of 7.1% during the forecast period. This substantial growth is primarily driven by increasing urbanization, rising investments in infrastructure projects, and the growing demand for modern office and retail spaces.

One of the primary growth factors for the commercial construction market is the rapid urbanization occurring worldwide. As more people migrate to urban areas, there is a heightened demand for commercial spaces such as office buildings, retail centers, and industrial facilities. This urban influx necessitates the development of new infrastructures to accommodate the growing population, thereby fueling the commercial construction activity. Moreover, government policies favoring urban development and infrastructure enhancement are likely to further propel market growth.

Another significant factor contributing to the market's expansion is the increasing investment from both public and private sectors. Governments across various regions are prioritizing infrastructure development as a means to stimulate economic growth, creating a favorable environment for commercial construction projects. Additionally, private investors are channeling substantial funds into commercial real estate, driven by the potential for high returns. This influx of capital is expected to support a variety of construction projects, ranging from new developments to renovations and refurbishments.

Technological advancements in construction techniques and materials are also playing a crucial role in the market's growth. Innovations such as Building Information Modeling (BIM), prefabrication, and modular construction have enhanced efficiency and reduced costs, making commercial construction projects more feasible and attractive. These technologies not only streamline the construction process but also ensure higher quality and sustainability in building practices, meeting the increasing demand for green and energy-efficient buildings.

Regionally, the Asia Pacific region is anticipated to exhibit the fastest growth in the commercial construction market, driven by rapid economic development, large-scale urban projects, and significant investments in infrastructure. North America and Europe are also expected to witness substantial growth, spurred by urban redevelopment initiatives and the modernization of aging infrastructure. Latin America and the Middle East & Africa, although growing at a slower pace, present promising opportunities due to ongoing urbanization and economic diversification efforts.

Building Type Analysis

The commercial construction market, when segmented by building type, includes office buildings, retail buildings, hotels, industrial buildings, and others. Office buildings represent a significant portion of this segment, driven by the demand for modern workspaces in both developed and developing economies. The rise of flexible working arrangements and the proliferation of co-working spaces have further bolstered the demand for office constructions. In addition, the need for high-tech office environments, equipped with advanced IT infrastructure, is pushing the development of smart office buildings, contributing significantly to the market growth.

Retail buildings are another crucial segment within the commercial construction market. The evolution of consumer behavior, coupled with the growth of e-commerce, has transformed retail spaces. Developers are increasingly focusing on creating experiential retail environments that offer more than just shopping, such as entertainment and dining options. The trend of integrating retail spaces with residential and office buildings in mixed-use developments is also gaining traction, enhancing the appeal and functionality of commercial properties.

Hotels form a vital component of the commercial construction market, particularly in regions with burgeoning tourism industries. The demand for luxury hotels, budget accommodations, and boutique establishments is on the rise, fueled by increasing global travel and tourism activities. Additionally, the growth of business travel is leading to a surge in the construction of business hotels and conference centers. The emphasis on sustainability and green building practices is also influencing hotel construction, with developers looking to achieve LEED certification and other environmental standards.<

Commercial building construction contractors have endured declines. Interest rate hikes plunged business sentiment, decreasing expansion projects and hindering new commercial construction. Also, the transition to remote and hybrid work environments has hampered demand for office building construction, with office rental vacancies reaching a 30-year high in the fourth quarter of 2024. Industry revenue has been declining at a CAGR of 0.2% over the past five years to total an estimated $40.0 billion in 2025, including an estimated gain of 1.5% in 2025 as interest rate cuts begin to encourage new construction. Contractors have managed to expand profit from lows in 2020 but surging wage costs have strained considerable profit growth. Some of the growth for commercial building construction contractors has been price-based because of rising material costs for commercial buildings. This trend has been particularly true with office building construction, which increased as a share of revenue despite square footage under construction being at its lowest point in twenty years in the fourth quarter of 2024. Still, growth in additions and improvements spending, particularly from hotels, restaurants and bars, have buoyed the performance of contractors. Also, new construction in markets like warehouses, indoor recreational buildings and retail and wholesale outlets has provided contractors with avenues for growth. Commercial building construction contractors will enjoy solid growth. Continued rate cuts through 2025 will incentivize new construction. One market that will greatly benefit contractors is new hotel construction. While other markets will improve, office building construction may lag as vacancy rates remain high and 90.0% of active office building construction is set to be complete in 2025. Contractors will struggle to expand profit as labour shortages persist and push up wage costs. Tariffs may hike construction material prices, particularly HVAC equipment, potentially disincentivizing downstream construction expenditures. Also, contractors will have to adapt to some evolving trends, like the increased use of modular construction and changing building codes to improve commercial building sustainability. Modular construction techniques will help contractors combat labour shortages and higher wage costs because they are less labour-intensive. Overall, industry revenue is forecast to expand at a CAGR of 1.9% to total an estimated $44.0 billion through the end of 2030.

The Indonesia Commercial Construction Market Report is Segmented by Commercial Sector Type (Office, Industrial & Logistics, and Others), by Construction Type (New Construction and Renovation), by Investment Source (Private and Public), and by Region (TDKI Jakarta, West Java (Jawa Barat), and More). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

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%.

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Construction Market Size 2025-2029

The construction market size is forecast to increase by USD 1,288.3 billion at a CAGR of 5.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the rise in residential and commercial infrastructure projects worldwide. This trend is fueled by increasing urbanization, population growth, and economic development in various regions. One key trend is the increasing adoption of green buildings, which are in the Innovator's stage in some regions and the Early Majority in others, leading to varying adoption rates and penetration levels. Furthermore, the integration of Artificial Intelligence (AI) in the construction sector is revolutionizing the industry, enhancing productivity, efficiency, and safety. As the industry evolves, companies must navigate this obstacle by exploring cost-effective solutions, such as shared equipment ownership models or renting, to remain competitive.
To capitalize on the market's potential, businesses should focus on innovation, collaboration, and operational excellence, ensuring they deliver high-quality projects on time and within budget. By addressing these challenges and embracing the opportunities presented by the market, companies can effectively position themselves for long-term success. Another key driver is the integration of Artificial Intelligence (AI) in the construction sector, which is revolutionizing the industry by improving efficiency, reducing costs, and enhancing safety.

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

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the dynamic market, securing permissions for building projects remains a crucial aspect of the industry. Cold storage facilities, a niche segment, continue to gain traction in the hospitality and leisure sectors, driven by innovative technologies and consumer demand. Smart cities are at the forefront of integrating sustainability regulations into commercial buildings, leading to increased usage of eco-friendly construction materials and raw resources. Site preparation and worker safety regulations are under constant scrutiny, ensuring compliance and adherence to industry standards.
The retail sector is also embracing technology, with the integration of automation and smart systems becoming increasingly common. Innovative technologies continue to shape the construction landscape, from 3D printing to modular construction, streamlining processes and reducing costs. Regardless, the industry's focus on sustainability and safety regulations ensures a responsible and forward-thinking approach to construction projects. However, the high cost of construction machinery poses a substantial challenge for market participants.

How is this Construction Industry 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 encompasses various sectors, with buildings construction being a prominent and evolving segment. This segment includes residential, commercial, and multifamily buildings, each contributing significantly to the market's growth. For instance, Egypt's ambitious project to develop a new administrative capital, the New Administrative Capital (NAC), is a notable example. Located approximately 45 kilometers east of Cairo, NAC is designed to alleviate overcrowding and pollution in the current capital. A key player in this transformation is the China State Construction Engineering Corporation (CSCEC), a Chinese state-owned enterprise. Meanwhile, smart cities are emerging as a significant trend in the construction industry.

Economic development and retail activities are integral to the market, with developers focusing on creating vibrant and sustainable communities. Civil engineering plays a crucial role in the development of infrastructure, including roads, bridges, and water supply systems. Climate change is a pressing concern, and the construction industry is responding by incorporating green and energy-efficient practices into their projects. Sustainability regulations are becoming increasi

Check out Market Research Intellect's Commercial Construction Market Report, valued at USD 1.5 trillion in 2024, with a projected growth to USD 2.3 trillion by 2033 at a CAGR of 5.2% (2026-2033).

The construction industry grew to a spending value of close to ** trillion U.S. dollars before the coronavirus pandemic, and is expected to grow by ***** 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.

The US commercial office construction market, a significant segment of the broader construction industry, is projected to experience steady growth over the forecast period (2025-2033). While precise figures for the US market within the global $171.26 million (2025) market are unavailable, we can extrapolate based on the global CAGR of 3.51%. Considering the US's significant role in global commercial real estate, a reasonable estimate places the 2025 US market size at approximately $60 billion. This is a substantial market driven by several factors, including ongoing urbanization, increasing demand for modern and sustainable office spaces, and technological advancements leading to improved construction efficiency. Key trends shaping the market include a growing emphasis on sustainable building practices (LEED certifications), the incorporation of smart building technologies, and a shift towards flexible and adaptable workspace designs catering to evolving business needs. However, challenges remain, including fluctuating material costs, labor shortages, and potential economic downturns that could impact investment decisions. The market segmentation, with office buildings as a dominant end-user category, is expected to remain relatively stable, though growth in sectors like tech and flexible workspace may lead to a reallocation of market share within the end-user segments. Growth in the US commercial office construction market will likely be influenced by the overall health of the economy. Strong economic performance usually translates to increased corporate investment in new office spaces and renovations. Conversely, economic uncertainty can lead to project delays or cancellations. The competitive landscape is marked by the presence of major players like Hochteif Construction, Balfour Beatty LLC, and Bechtel Corporation, alongside a number of regional and specialized contractors. These firms are continually adapting to market demands by leveraging technological innovations and focusing on project delivery efficiency to maintain competitiveness. Future growth will depend on continued economic stability, robust investment in infrastructure, and the ongoing adaptation of the industry to technological advancements and sustainability concerns. The forecast period (2025-2033) anticipates a consistent, albeit moderate, growth trajectory, driven by the fundamental demand for commercial office spaces in a dynamic and evolving business environment. Recent developments include: Dec 2022: Global Infrastructure Solutions Inc. (GISI) and Hill International Inc. (NYSE: HIL) announced that their strategic merger had been completed following the completion of final regulatory reviews. This merger expands growth opportunities globally for fee infrastructure consulting markets., May 2022: Hyundai Motor announced in May 2022 that it would break ground on its new facility in Georgia in early 2022, with an annual capacity of 300,000 EV units, with commercial production beginning in the first half of 2025. According to an unnamed auto industry source, Hyundai Motor is considering starting construction later in 2023, with commercial production beginning in the second half of 2024.. Key drivers for this market are: Government Initiatives, Demand for office and retail space. Potential restraints include: Lack of Skilled Labor, Supply chain issues and rising material costs. Notable trends are: The Emergence of Smart Cities is a Key Market Trend.

Commercial Construction Market was valued at USD 21.52 billion in 2024 and is expected to reach USD 29.51 billion by 2030 with a CAGR of 5.25% during the forecast period.

The North America Construction Market report segments the industry into By Country (Canada, United States), By Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, Energy and Utilities Construction), and By Construction Type (Additions, Demolition and New Constructions). Five-year historical trends and forecasts are included.

The Commercial Construction market plays a pivotal role in shaping urban infrastructure and driving economic growth across various sectors. Encompassing a diverse range of projects such as office buildings, retail spaces, hospitality venues, and educational facilities, this sector is crucial for creating environment

The global commercial construction market, valued at $1331.26 billion in 2025, is projected to experience steady growth, driven by a Compound Annual Growth Rate (CAGR) of 2.6% from 2025 to 2033. This growth is fueled by several key factors. Firstly, increasing urbanization and population growth in developing economies are creating a significant demand for new commercial spaces, including office buildings, retail centers, and hospitality facilities. Secondly, technological advancements in construction techniques, such as Building Information Modeling (BIM) and prefabrication, are improving efficiency and reducing project timelines, further stimulating market expansion. Finally, government initiatives promoting sustainable and green building practices are driving investment in environmentally friendly construction projects, contributing to the overall market growth. However, challenges remain. Fluctuations in raw material prices, particularly steel and cement, pose a significant risk to project profitability. Additionally, labor shortages and supply chain disruptions can lead to project delays and cost overruns. The market is segmented by sector (private and public construction) and building type (buildings and others). Major players like ACS Actividades de Construccion Y Servicios SA, AECOM, and Bechtel Corp. are actively engaged in leveraging technological advancements and strategic partnerships to maintain their competitive edge. Regional variations in market growth are anticipated, with North America and Asia-Pacific expected to be significant contributors due to robust economic activity and ongoing infrastructure development. The competitive landscape is characterized by a mix of large multinational corporations and regional players. Companies are employing various strategies, including mergers and acquisitions, expansion into new markets, and diversification of their service offerings, to enhance market share and profitability. Industry risks include geopolitical instability, economic downturns, and environmental regulations. The long-term outlook for the commercial construction market remains positive, although careful risk management and adaptation to evolving market conditions will be crucial for sustained success. The continued adoption of sustainable building practices and technological innovation will play a pivotal role in shaping the future of this dynamic sector. Effective strategies for addressing labor shortages and supply chain volatility will also be essential to ensure consistent and predictable growth.

In 2024, global Construction market size was valued at $11.39 Tn, and it is expected to reach $16.11 Tn by 2030 with a CAGR of 5.5% from 2025 to 2030

The US Commercial Office Construction market, a significant segment of the broader commercial construction industry, is projected to experience steady growth over the next decade. With a global market size of $171.26 billion in 2025 and a Compound Annual Growth Rate (CAGR) of 3.51%, the US market, while lacking precise figures in the provided data, can be reasonably estimated to represent a substantial portion of this global total. Drivers of market growth include increasing urbanization, expanding corporate sectors requiring modern office spaces, and a continued demand for technologically advanced and sustainable buildings. Trends such as the adoption of modular construction techniques to accelerate project timelines and reduce costs, along with a growing emphasis on incorporating smart building technologies, are shaping the market landscape. However, challenges remain. Economic fluctuations, rising material costs, and labor shortages can constrain growth. Furthermore, the increasing popularity of remote work arrangements might moderate the demand for traditional office space, though this effect is likely to be offset by companies seeking to retain a physical office presence for collaboration and team building. The segmentation by end-user (Office Building Construction, Retail Construction, Hospitality Construction, Institutional Construction, and Other End Users) indicates diverse market opportunities, with office building construction remaining the dominant segment. The competitive landscape is characterized by both large multinational corporations and regional players. Key players such as Kiewit Corporation, Bechtel Corporation, and Balfour Beatty LLC are leveraging their expertise and experience to secure prominent projects. However, the market also exhibits a fragmented nature, with numerous smaller construction firms contributing significantly to the overall volume. Regional variations in economic conditions, regulatory frameworks, and construction costs will influence market dynamics. North America is expected to maintain its leading position, driven by strong economic growth and ongoing infrastructural development in the US. However, other regions such as Asia-Pacific are also experiencing significant growth, particularly in rapidly developing economies with booming urban centers. The future of the US Commercial Office Construction market is expected to be characterized by a blend of continued growth, driven by long-term economic trends and technological advancements, alongside ongoing challenges related to cost, labor, and evolving work patterns. Strategic partnerships, technological innovation, and effective risk management will be crucial for companies seeking to thrive in this dynamic market. Recent developments include: Dec 2022: Global Infrastructure Solutions Inc. (GISI) and Hill International Inc. (NYSE: HIL) announced that their strategic merger had been completed following the completion of final regulatory reviews. This merger expands growth opportunities globally for fee infrastructure consulting markets., May 2022: Hyundai Motor announced in May 2022 that it would break ground on its new facility in Georgia in early 2022, with an annual capacity of 300,000 EV units, with commercial production beginning in the first half of 2025. According to an unnamed auto industry source, Hyundai Motor is considering starting construction later in 2023, with commercial production beginning in the second half of 2024.. Key drivers for this market are: Government Initiatives, Demand for office and retail space. Potential restraints include: Government Initiatives, Demand for office and retail space. Notable trends are: The Emergence of Smart Cities is a Key Market Trend.