In 2025 and 2026, Montreal, Calgary, and Edmonton are the Canadian cities with the highest forecast growth of construction costs. In 2025, the costs were expected to grow *** percent and, in 2026 costs are expected to increase to *** percent in those cities.

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).

Between 2022 and 2025, the construction price of residential and non-residential buildings in Canada has grown at the same pace. The price of both types of buildings was roughly ***** percent higher in the last quarter of 2025 than in 2024, which is the year when the index base was set at 100. Nevertheless, that only considers the cost of buildings in 15 selected metropolitan areas in Canada. Toronto was by far the metropolitan region with the highest construction costs in Canada.

What determines construction costs? The growth rate of the construction price of different types of buildings tends to follow similar trends to some extent. For example, price growth rates in Canada for most types of buildings were more moderate in 2024 than in previous years. However, those figures show a lot of disparity, with the cost of building a high rise apartment building growing much faster than that of other types of buildings. This might be because the construction costs depend on elements such as the location, materials, and complexity of the building, which tend to be quite different for each type of building.

Lumber building materials in Canada In 2024, Canada was the world’s second-largest exporter of wood building materials such as veneer sheets, parquet flooring, particleboard, laminated wood, and builders’ joinery and carpentry. Forestry, logging, and processing wood into ready-to-use materials are important industries in the Canadian economy. High price growth rates of building materials impact negatively the construction industry as their activities become more expensive. However, the forestry and logging industry benefited from the cost of lumber rising in 2020 and 2021. In the past years, the price of lumber, however, has fallen again.

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Data Center Construction Market Size 2025-2029

The data center construction market size is valued to increase USD 41 billion, at a CAGR of 8.8% from 2024 to 2029. Rising demand for data center colocation facilities will drive the data center construction market.

Major Market Trends & Insights

Europe dominated the market and accounted for a 32% growth during the forecast period.
By Application - Enterprise segment was valued at USD 23.20 billion in 2023
By Type - Electrical construction segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 70.71 billion
Market Future Opportunities: USD 41.00 billion
CAGR : 8.8%
Europe: Largest market in 2023

Market Summary

The market is a dynamic and continuously evolving sector, driven by the rising demand for colocation facilities and the growing focus on constructing energy-efficient, or 'green,' data centers. According to recent reports, the global data center colocation market is projected to reach a 35% market share by 2025, underscoring its significant growth potential. However, the industry faces challenges such as high power consumption, which accounts for approximately 2% of global electricity use. To address this issue, there is a push towards adopting advanced core technologies, including renewable energy sources and energy-efficient cooling systems.
Additionally, regulatory compliance and regional variations add complexity to the market landscape. For instance, European data centers must adhere to strict energy efficiency regulations, while the Asia Pacific region is witnessing significant growth due to increasing digital transformation initiatives.

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

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How is the Data Center Construction Market Segmented and what are the key trends of market segmentation?

The data center 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.

Application

  Enterprise
  Cloud
  Colocation
  Hyperscale


Type

  Electrical construction
  Mechanical construction
  General construction


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Application Insights

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

In today's digital economy, the demand for robust data center infrastructure continues to escalate as businesses and consumers generate an unprecedented volume of structured and unstructured data. Approximately 60% of enterprises worldwide are reported to have increased their data center capacity in the last three years, while 40% plan to do so in the next two years. The need for high-performance computing systems has become crucial to support the extensive transformation of existing data center infrastructure, including network, cooling, and storage. Environmental monitoring, redundancy and failover, HVAC infrastructure design, security access control, risk assessment mitigation, generator backup power, IT infrastructure deployment, structural engineering design, remote hands support, project timeline management, server rack density, capacity planning strategies, raised floor systems, permitting and approvals, mechanical system design, physical security measures, construction cost estimation, disaster recovery planning, cable management strategies, network infrastructure cabling, building automation systems, power usage effectiveness, critical infrastructure design, precision cooling systems, thermal management solutions, sustainability certifications, electrical system design, energy efficiency metrics, fire suppression systems, uninterruptible power supply, power distribution units, and building code compliance are all integral components of modern data centers.

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The Enterprise segment was valued at USD 23.20 billion in 2019 and showed a gradual increase during the forecast period.

As businesses continue to prioritize digital transformation, the market is expected to witness significant growth. According to recent estimates, the market is projected to expand by 18% in the upcoming year, with a further 21% increase anticipated within the next five years. These figures underscore the continuous evolution and expansion of the data center industry, driven by the increasing demand for scalable and efficient infrastructure solutions.

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Regional Analysis

Europe is estimated to contribute 32% to the growth of the global marke

Discover the booming Canadian commercial building construction market! This in-depth analysis reveals a CAGR exceeding 5%, driven by economic growth, urbanization, and green building initiatives. Explore market size, key players (Pomerleau, EllisDon, PCL), regional trends (Toronto, Vancouver, Ottawa), and future projections (2025-2033). Recent developments include: March 2022: Anthem Properties (a Canadian development, investment, and management company), along with KingSett Capital (a capital market company), have acquired an 8.34-acre mixed-use site located at Willingdon Avenue and Dawson Street in the City of Burnaby's active Brentwood Town Centre. The company developed this space into a four-phased master-planned community, including 2,100 market condominiums, 340 rental units, and 60,000 square feet of new retail and office spaces., January 2022: Bird Construction Inc. (a Canadian construction company) has entered into a three-year strategic partnership for the Building Good initiative along with Chandos Construction Inc. (North America's commercial builder). Building Good is a thought leadership initiative that aims to catalyze owners and industry partners to change the way the architecture, engineering, and construction industries design and build for the betterment of people and the planet.. Key drivers for this market are: Government Initiatives in the Infrastructure and Construction Sector to Boost the Industry, Need for Precast Concrete Technology Driving the Market. Potential restraints include: Higher Transportation Cost. Notable trends are: Office Building Construction is Expected to Dominate the Market.

Building construction price indexes (BCPI) by type of building. Quarterly data are available from the second 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).

The North American construction market, valued at $2.46 trillion in 2025, exhibits robust growth potential, projected to expand at a compound annual growth rate (CAGR) of 4.82% from 2025 to 2033. This growth is fueled by several key drivers. Increased infrastructure investments, particularly in transportation networks and renewable energy projects, are significantly boosting demand. The residential sector, driven by population growth and ongoing urbanization, is another major contributor. Furthermore, a resurgence in commercial construction, fueled by a recovering economy and the expansion of e-commerce leading to increased warehouse and logistics facility needs, further contributes to market expansion. However, challenges remain. Supply chain disruptions continue to impact project timelines and costs, while labor shortages and rising material prices exert pressure on profitability. Nevertheless, government initiatives promoting sustainable building practices and technological advancements in construction management offer opportunities for mitigating these challenges and further stimulating growth. The market is segmented by construction sector (commercial, residential, industrial, infrastructure, and energy & utilities) and construction type (additions, demolition, and new constructions). Major players, including Aecon Group Inc., D.R. Horton Inc., and Lennar Corporation, among others, are strategically positioned to capitalize on these market dynamics. The market segmentation reveals significant variations in growth trajectories across sectors. While residential construction is projected to maintain steady growth driven by demographic trends, infrastructure spending will likely experience the most significant expansion, particularly in the transportation sector. Commercial construction will follow a moderate growth path, largely influenced by economic conditions and business investment. The industrial construction sector, particularly warehouse and logistics facilities, is expected to witness above-average growth. Finally, energy and utilities construction is poised for considerable expansion due to the increasing focus on renewable energy infrastructure. This diverse sectoral composition contributes to the overall resilience of the North American construction market, even amidst external economic uncertainties. The forecast period (2025-2033) promises further market consolidation, with larger firms potentially acquiring smaller companies to enhance their market share and project diversification. Recent developments include: June 2023: AXA XL's North American construction insurance business launched the Sustainability Circle. It is a network comprising 21 leaders in the sustainable construction industry. The goal of the initiative is to assist clients achieve their sustainability goals and enhance their construction risk management efforts., April 2023: Greystar Real Estate Partners LLC (“Greystar”) opened its flagship manufacturing facility for its modular construction business, Modern Living Solutions (“MLS”), which focuses on attainable and sustainable housing. The milestone was met with a ribbon-cutting ceremony at the western Pennsylvania site where MLS employed 170 full-time employees to execute the ramp-up and operations of its first modular factory.. 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: Residential Construction Segment Holds the Major Share in the Market.

Discover the booming Canadian commercial building construction market! This report reveals a CAGR exceeding 5%, a market size exceeding $35 billion CAD in 2025, and key trends shaping the industry. Explore market drivers, restraints, and leading companies. Key drivers for this market are: Government Initiatives in the Infrastructure and Construction Sector to Boost the Industry, Need for Precast Concrete Technology Driving the Market. Potential restraints include: Higher Transportation Cost. Notable trends are: Office Building Construction is Expected to Dominate the Market.

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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?

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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 Canadian unit construction machine market skyrocketed to $140M in 2024, increasing by 30% against the previous year. The market value increased at an average annual rate of +1.2% over the period from 2012 to 2024; the trend pattern remained consistent, with somewhat noticeable fluctuations in certain years. As a result, consumption attained the peak level and is likely to continue growth in the immediate term.

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Modular Construction Market Size 2025-2029

The modular construction market size is valued to increase USD 49.3 billion, at a CAGR of 8.5% from 2024 to 2029. Rising demand to eliminate on-site construction will drive the modular construction market.

Major Market Trends & Insights

North America dominated the market and accounted for a 32% growth during the forecast period.
By Application - Residential segment was valued at USD 49.10 billion in 2023
By Type - Permanent segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 97.18 billion
Market Future Opportunities: USD 49.30 billion
CAGR : 8.5%
North America: Largest market in 2023

Market Summary

The market represents a dynamic and continuously evolving industry, characterized by the adoption of advanced technologies and innovative applications. Core technologies, such as Building Information Modeling (BIM) and 3D printing, are revolutionizing the construction process, enabling faster project completion and reduced costs. In terms of applications, the demand for modular construction in commercial and residential sectors is on the rise, driven by the need to eliminate on-site construction and the increasing awareness of custom-built facilities with minimum budgets. However, challenges persist, including the lack of awareness and volatility in transportation charges.
According to a recent study, the market is expected to account for over 15% of the global construction industry by 2027, underscoring its growing importance and potential for future growth.

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

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How is the Modular Construction Market Segmented and what are the key trends of market segmentation?

The modular 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.

Application

  Residential
  Commercial


Type

  Permanent
  Relocatable


Material

  Wood
  Steel
  Concrete
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    The Netherlands
    UK


  APAC

    China
    India
    Japan


  Rest of World (ROW)

By Application Insights

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

Modular construction, an offsite building technique characterized by component-based design and prefabricated modules, is gaining momentum in various industries. The market's current adoption stands at approximately 10% of the global construction sector, with a growing number of businesses embracing this method for its time-saving advantages. The industrialized assembly process, which takes place concurrently with site preparation, reduces the overall construction time by up to 50%. Modular design principles, such as thermal performance metrics, lifecycle cost analysis, and energy-efficient design, are integral to this approach. Structural engineering analysis, design for manufacturing, and precast concrete components contribute to the robustness and durability of modular building systems.

Seismic design criteria, wind load calculations, and fire safety regulations ensure compliance with building codes. Prefabricated bathroom pods, acoustic insulation methods, and waterproofing techniques are essential elements of modular construction, ensuring a high level of quality control. Three-dimensional modeling and project management software facilitate efficient planning and coordination. The future outlook for modular construction is promising, with industry experts anticipating a 12% increase in market penetration within the next five years. This growth is driven by the advantages of modular expansion capabilities, MEP system integration, and the use of sustainable building materials. Modular kitchen units, on-site assembly, and construction logistics further enhance the versatility and applicability of this construction method across various sectors.

The ongoing evolution of modular construction techniques and their integration with advanced technologies will continue to shape the industry landscape.

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The Residential segment was valued at USD 49.10 billion in 2019 and showed a gradual increase during the forecast period.

The Modular Construction Market is growing rapidly, driven by innovations in prefabricated modules transportation logistics and offsite construction methods cost effectiveness. Structural reliability is ensured through steel frame structures seismic design, precast concrete components structural integrity, and drywall installation methods fire resistance, while safety is enhan

In 2025, the price of reinforcment bars of 16 millimeters in Toronto and Vancouver amounted to 2,500 Canadian dollars per tonne. Meanwhile, structural steel universal l beams cost 4,500 Canadian dollars per tonne. The price of these steel building materials were the same in both cities.

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Construction Management Software Market Size 2025-2029

The construction management software market size is forecast to increase by USD 6.66 billion at a CAGR of 9.6% between 2024 and 2029.

The market is experiencing significant growth due to the increasing demand for large-scale construction projects and the integration of estimation and accounting software for streamlined operations. This trend is particularly prominent in regions with a high concentration of construction activity, such as North America and Asia-Pacific. Field service management and business analytics tools are also key features driving market growth. However, the market faces challenges from open-source construction software platforms, which offer cost-effective alternatives to proprietary solutions. These open-source platforms may lack commercial offerings' advanced features and support, but they are gaining traction among small and medium-sized construction firms. To capitalize on market opportunities, companies should focus on providing value-added services, such as project management consulting and training, to differentiate themselves from competitors.
Additionally, investing in research and development to enhance construction management software's functionality and user experience will be crucial for long-term success. Furthermore, the Internet of Things (IoT) is transforming the industry by providing real-time data and automating various processes. By staying abreast of market trends and addressing the unique needs of construction firms, companies can navigate challenges and seize opportunities in this dynamic market.

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

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The market encompasses a range of platforms designed to streamline and optimize various aspects of construction projects. These solutions cater to diverse sectors, including home builders, remodelers, specialty contractors, and general contractors, among others. Key features include budget management, communication tools, databases, and the ability to replace Excel spreadsheets. Market dynamics are driven by the growing need for efficient project planning, goal setting, and job scheduling. Cloud-based technology, automation, and open-source software are prominent trends, offering advantages such as reduced installation costs and ongoing maintenance requirements.
Construction professionals increasingly leverage business analytics tools, IoT integration, lean management principles, and project management platforms to enhance productivity and profitability. The market continues to expand, driven by the diverse needs of the construction industry and the ongoing digital transformation.

How is the Construction Management Software Industry segmented?

The 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.

End-user

  Builders and constructors
  Construction managers
  Engineers and architects


Deployment

  Cloud-based
  On-premises


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    China
    India
    Japan


  Middle East and Africa



  South America

By End-user Insights

The builders and constructors segment is estimated to witness significant growth during the forecast period.

Construction management software plays a crucial role in optimizing the construction process by facilitating efficient labor management, site event tracking, data capture, and cost control. By implementing this technology, constructors can enhance project profitability and productivity. Construction professionals, including builders, contractors, engineers, architects, and remodelers, rely on construction management software for pre-construction planning, budgeting, and project scheduling. The software also offers features such as real-time collaboration, document management, cost estimation, and resource allocation. Construction management software platforms enable the integration of business analytics tools, IoT, artificial intelligence, machine learning, predictive analytics, and data-driven insights. These advanced technologies offer enhanced project communication, safety and reporting, field service management, and digital transformation.

Furthermore, the software is available as cloud-based technology, making it accessible from anywhere, at any time. Geographical boundaries are no longer a constraint, as the software caters to commercial and residential projects, commercial buildings, sustainable development, and green commercial buildings. The software's ease of use and flexibility make it an essential tool for general contractors, specialty contractors, and sub-contractors. Th

The Canadian market for clays for construction and industrial use reached $1.1B in 2024, with an increase of 5.7% against the previous year. Overall, consumption posted resilient growth. Over the period under review, the market attained the maximum level in 2024 and is expected to retain growth in the immediate term.

The North American green building market, encompassing the United States, Canada, and Mexico, is poised for moderate growth, driven by increasing environmental awareness, stringent government regulations promoting sustainable construction, and rising demand for energy-efficient buildings. While precise market size data for 2025 is unavailable, we can infer a significant market value based on the provided 1.00% CAGR and the market's established presence. Considering the substantial investment in green infrastructure projects across North America and the continuous development of eco-friendly building materials, a reasonable estimation for the 2025 market size would be in the range of $50-75 billion USD. This range accounts for variations in regional adoption rates and the evolving technological landscape. The market is segmented by product type (exterior, interior, and other products) and end-user sectors (residential, office, retail, institutional, and others), reflecting diverse applications of green building practices across the construction industry. Major players like Forbo International SA, Siemens, CEMEX, and others are actively contributing to market growth through innovative product offerings and strategic partnerships. Growth is expected to be fueled by the expanding adoption of sustainable building materials, the increasing awareness of the environmental impact of traditional construction methods, and supportive government policies offering incentives for green buildings. However, challenges remain, including the higher initial cost of green building materials and technologies compared to conventional options, as well as potential supply chain limitations for certain specialized products. Despite these restraints, the long-term outlook for the North American green building market remains positive, driven by a steady increase in consumer demand for sustainable living spaces and the growing recognition of the economic and environmental benefits associated with green buildings. The market's relatively low CAGR suggests a mature market, however, significant opportunities remain in niche segments and in leveraging technological advancements to further improve efficiency and reduce costs. This comprehensive report provides an in-depth analysis of the North America green buildings market, covering the period from 2019 to 2033. With a base year of 2025 and an estimated year of 2025, this report offers valuable insights into market trends, growth drivers, challenges, and key players. It leverages extensive data analysis to forecast market growth from 2025 to 2033, providing crucial information for stakeholders involved in sustainable construction and real estate. The report utilizes high-search-volume keywords such as "green building materials," "sustainable construction," "LEED certification," "energy-efficient buildings," and "net-zero buildings" to maximize visibility. The market size is analyzed in millions of dollars. Recent developments include: June 2023: In 2025, a new version of Canada's national building code will be published, allowing builders to learn about two significant changes. At the Canada Green Building Council's 2023 Building Lasting Change conference in Vancouver, officials addressed the changes drafters of the 2025 code. The two significant changes coming to the code are introducing technical requirements for existing building stock and including GHG emissions., May 2023: The Biden Administration announced plans to implement new building energy standards for homes built and funded by the Federal Government. These standards will save families over 35% of their electricity consumption. The new building energy codes will apply to approximately 170,000 new homes per year, including newly built or financed subsidized urban and rural housing.. Key drivers for this market are: Energy Efficiency in Construction, Flexibility and Customization Options. Potential restraints include: Limited Availability of Suitable Land for Construction, Lower Quality Compared to Traditional Construction. Notable trends are: Leveraging Smart Buildings and IoT Integration for Enhanced Efficiency and Performance.

Homebuilders have endured considerable volatility. Immigration into Canada has led to unprecedented population growth, exacerbating an existing housing crisis. New housing starts haven't kept up with the population growth, making homebuilders more critical than ever to meet housing needs. Home shortages and changes in buying behaviour supported homebuilders during the COVID-19 pandemic early in the recent five year period. Still, the pandemic's disruption to global supply chains didn't spare contractors, with equipment and material costs reaching unprecedented highs. Interest rate hikes in 2022 and 2023 slowed new relevant housing construction, spurring apartment building construction as consumers increasingly sought out renting. Also, the First Time Homebuyer Incentive, which seemed like a potential boon to homebuilders, largely lacked success and was repealed. Industry-wide revenue has been declining at a CAGR of 0.1% over the past five years – totaling an estimated $30.3 billion in 2025 – when revenue will climb an estimated 1.6%. The Bank of Canada raising rates in 2022 and 2023 led to a massive slowdown for homebuilders, even as the Canadian government tried to ramp up the number of housing units constructed. Higher interest rates make developers cautious about new projects, drive up construction costs for builders and push potential homebuyers out of the market. The Bank of Canada has decreased rates in 2024 and 2025 for the first time since 2022, potentially providing a boost to homebuilders. Labour shortages for home builders have hiked wage costs and hindered profit. Homebuilders will enjoy solid growth over the next five years. Interest rate cuts and low housing supply will spur downstream homebuying activity. Still, labour shortages and material costs will continue to strain contractors' capacity. These challenges will impact the broader construction sector, incentivizing federal and provincial governments to fund workforce development and tech adoption programs. Government initiatives like the First-Time Home Buyers’ Tax Credit, the First Home Savings Account (FHSA) and the Home Buyers Plan (HBP) will support homebuilding. Homebuilders' revenue is forecast to expand at a CAGR of 1.7% to $33.0 billion through the end of 2030.

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Road Construction And Maintenance Market Size 2025-2029

The road construction and maintenance market size is valued to increase USD 230.4 billion, at a CAGR of 4.5% from 2024 to 2029. Road construction and maintenance with building infrastructure will drive the road construction and maintenance market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 48% growth during the forecast period.
By Application - New construction segment was valued at USD 426.40 billion in 2023
By Type - Highway segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 47.50 billion
Market Future Opportunities: USD 230.40 billion
CAGR : 4.5%
APAC: Largest market in 2023

Market Summary

The market encompasses the industry dedicated to the building and upkeep of infrastructure for transportation via roads. This dynamic market is shaped by several key factors. Technological advancements, such as the adoption of intelligent transportation systems and the use of innovative materials like geopolymer concrete, are driving growth. Simultaneously, the increasing cost of construction is posing challenges. According to a report by FMI, the global road construction market is anticipated to expand at a significant rate, with Europe holding a substantial market share.
In 2020, Europe accounted for over 35% of the global market share. Regulations, including those related to safety and environmental concerns, continue to influence market trends. The ongoing evolution of the market presents both opportunities and challenges for stakeholders.

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

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How is the Road Construction And Maintenance Market Segmented and what are the key trends of market segmentation?

The road construction and maintenance 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.

Application

  New construction
  Reconstruction
  Repair


Type

  Highway
  Street
  Bridge


End-user

  Government agencies
  Private contractors
  Public-private partnerships (PPP)


Geography

  North America

    US
    Canada


  Europe

    France
    Italy
    Russia
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Application Insights

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

The market is experiencing notable expansion in 2024, fueled by escalating infrastructure investments and the increasing number of vehicles on the road. Traffic management strategies, such as construction scheduling software and real-time traffic simulation modeling, are gaining traction to optimize road network usage and minimize disruptions. Flexible pavement designs and highway safety audits prioritize safety and durability, while construction waste management and heavy equipment maintenance ensure efficient operations. Geosynthetics application, pavement management systems, and pavement distress identification are essential components of modern road construction, enabling proactive maintenance and reducing repair costs. Environmental impact assessments, aggregate properties, and drainage system design are crucial considerations for sustainable infrastructure development.

Construction safety protocols, roadway lighting systems, and bituminous materials are other essential elements that contribute to the market's growth. Market dynamics are continuously evolving, with advancements in asphalt pavement design, pavement preservation techniques, infrastructure asset management, soil stabilization techniques, and structural design software driving innovation. Intelligent transportation systems, work zone safety, and bridge deck rehabilitation are critical areas of focus for enhancing road safety and efficiency. Project cost estimation and geotechnical investigation methods are essential tools for effective planning and execution. Despite these advancements, challenges persist, including rising construction costs and the need for ongoing maintenance and repair.

The market is expected to grow further, with an estimated 21.3% of road construction projects adopting advanced technologies in 2024. Additionally, future industry growth is projected to reach 25.7%, driven by increasing demand for efficient and sustainable infrastructure solutions.

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The New construction segment was valued at USD 426.40 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 48% to the growth of the g

The North American construction adhesives market, valued at approximately $XX million in 2025, is projected to experience robust growth with a CAGR exceeding 5% from 2025 to 2033. This expansion is fueled by several key drivers. The ongoing surge in residential and commercial construction activities across the United States, Canada, and Mexico is a primary catalyst. Furthermore, increasing infrastructure development projects, particularly in areas requiring advanced adhesive solutions, contribute significantly to market growth. The rising adoption of sustainable and high-performance adhesives, such as water-borne and reactive technologies, reflects a broader industry shift towards eco-friendly and efficient construction practices. While economic fluctuations and potential material cost increases pose some restraints, the overall positive outlook for construction in North America suggests a consistently expanding market for construction adhesives over the forecast period. The market is segmented by resin type (acrylics, epoxies, polyurethanes, PVA, silicones, others), technology (water-borne, reactive, hot-melt, others), and end-use sector (residential, commercial, infrastructure, industrial). Acrylics and water-borne technologies currently hold significant market share but are expected to face competition from other high-performance options as the industry evolves. Major players like 3M, Arkema, Ashland, and others are actively engaged in product innovation and strategic expansion to capitalize on market opportunities. The regional breakdown within North America reveals that the United States is the largest market, followed by Canada and Mexico. However, all three countries are expected to show considerable growth throughout the forecast period. Growth in Mexico is particularly promising, driven by increased government investment in infrastructure development and a growing construction sector. This growth is further supported by the continued adoption of advanced adhesive technologies that improve construction efficiency, durability, and sustainability. The competitive landscape is characterized by both established multinational corporations and specialized regional players, leading to a dynamic market with continuous innovation and a wide range of product offerings to cater to diverse construction needs. Future growth will hinge on further technological advancements, successful adaptation to environmental regulations, and the continued expansion of the North American construction industry. Key drivers for this market are: , Growing Demand for Residential Construction in the United States. Potential restraints include: , Growing Demand for Residential Construction in the United States. Notable trends are: Waterborne Technology to Dominate the Market.

The health of the construction sector varies significantly based on factors such as macroeconomic conditions, interest rates, foreign demand and public investment, making construction machinery producers susceptible to considerable revenue volatility. During the early stages of the 2020 pandemic, demand for new equipment slowed sharply, primarily due to weaker nonresidential construction activity. The Bank of Canada responded by cutting interest rates to stimulate the economy, leading to a revenue boom in 2021. Although rates began to rise in 2022, the recovering construction sector sustained revenue and profit gains, although at a slower pace. As macroeconomic conditions improved, interest rates started to fall in 2024. Although lower rates typically support construction activity, an extended period of high rates limited revenue growth, resulting in relatively small changes in revenue in 2024 and 2025. Construction machinery producers have benefited from public sector infrastructure initiatives. Government investment in projects such as roads, bridges and energy and manufacturing facilities supports demand for construction companies, which rely heavily on machinery. Higher commodity prices have boosted machinery demand from the mining, agriculture and forestry sectors, driving machinery sales. Overall, these factors are set to cause revenue to strengthen at a CAGR of 8.3% to $3.9 billion by the end of 2025, including a 0.5% gain in that year. Canadian producers continue to face significant competition from the international market. The Canadian dollar’s recent depreciation has boosted the value of exports, supporting revenue gains. Despite this, imported equipment satisfies more than 80.0% of domestic demand, while exports generate over half of producers’ revenue, making the sector highly sensitive to global macroeconomics and construction trends. Strong import competition also limits manufacturers’ ability to pass on fluctuating input costs, as offering competitive pricing remains key. Despite these trends, a strong domestic market has reduced import penetration and made exports a smaller share of revenue. Demand for new construction equipment is expected to continue growing, though at a slower pace. Public investment in infrastructure will be a key driver for manufacturers as large-scale projects require significant machinery. Producers will also benefit from ongoing construction activity in the US market, driven by demand from the residential sector and potential interest rate cuts by the Federal Reserve. While declining input prices will help producers remain competitive, significant price-based competition from foreign manufacturers, primarily from the United States, Japan and China, will limit profit gains. Producers will face some uncertainty over the coming years surrounding trade conditions. Revenue is set to grow at a CAGR of 1.1% to $4.2 billion through the end of 2030.

The global green building materials market, valued at $272.05 million in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 9.73% from 2025 to 2033. This expansion is driven by several key factors. Increasing awareness of environmental sustainability and the urgent need to mitigate climate change are fueling strong demand for eco-friendly construction materials. Stringent government regulations promoting green building practices, coupled with rising consumer preference for sustainable living, are further bolstering market growth. Technological advancements leading to the development of innovative, high-performance green building materials, such as recycled content products and bio-based materials, are also contributing to this upward trajectory. The diverse applications of green building materials across residential, commercial, industrial, and infrastructure sectors present significant opportunities for market expansion. Framing, roofing, exterior siding, and interior finishing are major application segments, while regional growth is expected to be particularly strong in Asia-Pacific, fueled by rapid urbanization and infrastructure development in countries like China and India. However, challenges remain, such as the often higher initial cost of green building materials compared to conventional options and the need for greater standardization and certification to ensure quality and performance. Despite these challenges, the long-term outlook for the green building materials market remains exceptionally positive. The increasing availability of financing options for green building projects and ongoing research and development efforts to improve the cost-effectiveness and performance of green materials are expected to overcome initial barriers to adoption. Moreover, the growing integration of green building principles into broader sustainability strategies within the construction industry points towards sustained and accelerated growth in the coming years. The market is highly competitive, with major players like BASF, Dupont, Holcim, and Saint-Gobain actively involved in innovation and expansion. This competition is driving further improvements in product quality, efficiency, and cost-effectiveness, making green building materials increasingly accessible and appealing to a wider range of consumers and businesses. Recent developments include: October 2022: Holcim acquired Wiltshire Heavy Building Materials, one of the leading companies providing building solutions and material circularity in the United Kingdom. This acquisition will strengthen Holcim's market presence in the United Kingdom's green building materials market., August 2022: Saint-Gobain acquired Kaycan, a manufacturer and distributor of exterior building materials in Canada and the United States. Saint-Gobain strengthened its global leadership in light and sustainable construction with this acquisition, becoming the leading player for sidings in Canada and expanding its vinyl offering across the United States with complementary solutions in aluminum and engineered wood., January 2022: Binderholz GmbH acquired the UK-based sawmill group, BSW Timber Ltd, which is a subsidiary of the Austrian Binderholz Group. BSW Timber Ltd produces more than 1.2 million cu. m of sawn timber per annum. This acquisition made Binderholz GmbH the largest sawmill and solid wood processing company in Europe.. Key drivers for this market are: Increasing Demand for Insulation and Energy-efficient Buildings, Favorable Government Policies for Green Buildings. Potential restraints include: Increasing Demand for Insulation and Energy-efficient Buildings, Favorable Government Policies for Green Buildings. Notable trends are: Increasing Consumption of Green Building Materials in the Residential End-use Industry.