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 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.

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

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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 global construction market size to reach USD 22,076.73 Billion in 2028 and is expected to register a CAGR of 7.4%. Construction industry report classifies global market by share, trend, growth and on the basis of type, building, construction machinery, end-use, and region

In 2024, the U.S. Construction Market reached $1.77 trillion, and is projected to surge to $2.52 trillion by 2030 due to surge in government investment

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US Residential Construction Market Size 2025-2029

The US residential construction market size is forecast to increase by USD 242.9 million at a CAGR of 4.5% between 2024 and 2029.

The Residential Construction Market in the US is experiencing significant growth driven by increasing household formation rates and a rising focus on sustainability in new projects. According to the latest data, household formation is projected to continue growing at a steady pace, fueling the demand for new residential units. This trend is particularly evident in urban areas, where population growth and limited space for new development are driving up demand. Meanwhile, the emphasis on sustainability in residential construction is transforming the market landscape. With consumers increasingly prioritizing energy efficiency and eco-friendly features in their homes, builders and developers are responding by incorporating green technologies and sustainable materials into their projects.
This shift not only appeals to environmentally-conscious consumers but also offers long-term cost savings and regulatory compliance benefits. However, the market is not without challenges. Skilled labor shortages continue to pose a significant hurdle for large-scale residential real estate projects. The ongoing shortage of skilled laborers, including carpenters, electricians, and plumbers, is driving up labor costs and delaying project timelines. To mitigate this challenge, some builders are exploring alternative solutions, such as modular construction and automation, to streamline their operations and reduce their reliance on traditional labor sources. The Residential Construction Market in the US presents significant opportunities for companies seeking to capitalize on the growing demand for new housing units and the shift towards sustainability.
However, navigating the challenges of labor shortages and rising costs will require innovative solutions and strategic planning. By staying informed of market trends and adapting to evolving consumer preferences, companies can effectively position themselves for success in this dynamic market.

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

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The residential construction market in the United States continues to exhibit dynamic activity, driven by various economic factors. Housing supply remains a key focus, with ongoing discussions surrounding the affordable housing trend and efforts to increase inventory, particularly for single-family homes and new constructions. Mortgage and federal funds rates have an impact on residential investment, with fluctuations influencing buyer decisions and construction costs. The labor market plays a crucial role, as workforce availability and wages affect both housing starts and cancellation rates. Inflation and interest rates, monitored closely by the Federal Reserve, also shape the market's direction. Recession risks and economic conditions influence construction spending across various sectors, including multifamily and single-family homes.
Federal programs, such as housing choice vouchers and fair housing initiatives, continue to support home buyers and promote equitable housing opportunities. Building permits and housing starts serve as essential indicators of market health and future growth, with some sectors experiencing double-digit growth. Overall, the residential construction market in the US remains a significant economic driver, shaped by a complex interplay of economic, demographic, and policy factors.

How is this market segmented?

The market 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.

Product

  Apartments and condominiums
  Luxury Homes
  Other types


Type

  New construction
  Renovation


Application

  Single family
  Multi-family


Construction Material

  Wood-framed
  Concrete
  Steel
  Modular/Prefabricated


Geography

  US

By Product Insights

The apartments and condominiums segment is estimated to witness significant growth during the forecast period.

The residential construction market in the US is experiencing growth in both the apartment and condominium sectors, driven by the increasing trend toward urbanization and changing lifestyle preferences. Apartments, typically owned by property management companies, and condominiums, with individually owned units within a larger complex, contribute significantly to the market. The Federal Reserve's influence on the economy through the federal funds rate and mortgage rates impacts borrowing rates and home construction activity. The affordability of housing, particularly for younger generations, is a concern due to factors such as inflation, labor market conditions, and savings

As of 2023, the growth rate of the Turkish construction industry was realized nearly eight percent. The annual growth rate of the construction industry in Turkey followed an increasing trend until 2017 and peaked in the same year at nine percent. From 2018, the size of the Turkish construction industry began to shrink and experienced seven percent degrowth in 2022.

The Global Construction Services market size was USD 8248.9 billion in 2022. Construction Services Industry's Compound Annual Growth Rate will be 6.20% from 2023 to 2030. What are the Drivers Influencing the Growth of the Civil Construction Services Market?

Rise in Disposable Income to Provide Viable Market Output

The increase in disposable income is a key factor driving growth in the Global Civil Engineering Market. This market is expected to experience significant growth in the coming years due to the rise in disposable income and technological advancements within the construction industry. The growing urban population's need for accommodation is also fueling the demand for civil engineering services. Many market players are now prioritizing using green building materials, which are both eco-friendly and energy-efficient, contributing to the construction of sustainable structures.

HDR is extending its technical superiority by acquiring WRECO, a company with expertise in civil engineering, environmental compliance, geotechnical engineering, and water resources planning. WRECO is the second company from California that HDR has bought in 2021. In order to improve the company's multimodal transportation services, HDR hired WKE out of Santa Ana in June.

Increased public-private partnerships help improve infrastructure and stimulate the national economy and jobs in the economy. Now, the world has become a digitized civil engineering industry; along with digitalization, many new technologies have been introduced that will facilitate the growth of the global economy. Buzz needs to develop the civil engineers network and change the construction process. Increasing private financing and assistance for various construction projects will strengthen the private sector in the future.

The Factors are Restricting Growth of Civil Construction Services Market

Regulatory Complexities and Permitting Delays to Hinder Market Growth

Regulatory complexities and permitting delays are key restraints in the civil construction services market, impeding the smooth progression of projects. The construction industry is subject to a multitude of local, regional, and national regulations, codes, and permitting processes that govern various aspects of project planning, design, and execution. Navigating this intricate landscape can be challenging, as compliance requires meticulous attention to detail and a deep understanding of the evolving legal requirements. Additionally, obtaining necessary permits often involves lengthy approval processes, causing delays impacting project timelines and budgets. These delays increase operational costs and hinder construction companies' ability to meet deadlines and client expectations.

Impact Of COVID-19 on the Civil Construction Services Market

The global outbreak of COVID-19 has had a significant impact on the trade relations of major players in various industries worldwide. The growth of the global civil engineering industry, specifically in the structural design sector, can be largely attributed to increased investment and advancements in development projects. However, implementing lockdown measures in different countries has resulted in suspending development activities and halted infrastructure progress, particularly in emerging economies such as India, China, and other Southeast Asian nations.

Opportunity for Construction Services Market

Increase in infrastructure development is presenting key growth opportunity for the market. 

The Construction Services Market has been substantially growing and Increase in infrastructure development present key growth opportunity due to the contracts of new infrastructure projects, rising population and increasing jobs in both public and private sector. The urbanization and is leading to increasing new buildings and residential infrastructure. this growth has resulted in increasing requirement of comprehensive construction services and efficient management for the increasing demand. These factors result in increasing in deployment of construction services. The infrastructure projects like the airport expansions, Train junction development and other public infrastructure is creating additional need for Construction Services. These factors contribute significant for market development and present key market growth opportunity. Introduction of Construction Servic...

The construction tech market is projected to witness significant growth from 2025 to 2035, driven by technological advancements, increasing demand for automation, and the integration of AI and IoT in construction processes. The market was valued at USD 7,000 million in 2025 and is expected to reach USD 30,000 million by 2035, reflecting a compound annual growth rate (CAGR) of 16.9% over the forecast period.

Metric	Value
Market Size (2025E)	USD 7,000 million
Market Value (2035F)	USD 30,000 million
CAGR (2025 to 2035)	16.9%

Country-wise Outlook - Construction Tech Market

Country	CAGR (2025 to 2035)
United States	16.8%

Country	CAGR (2025 to 2035)
United Kingdom	16.3%

Region	CAGR (2025 to 2035)
European Union	16.5%

Country	CAGR (2025 to 2035)
Japan	16.4%

Country	CAGR (2025 to 2035)
South Korea	16.6

Competitive Outlook

Company Name	Estimated Market Share (%)
Autodesk, Inc.	20-25%
Trimble Inc.	15-20%
Oracle Construction and Engineering	10-15%
Procore Technologies, Inc.	8-12%
Bentley Systems	5-10%
Other Tech Providers (Combined)	30-40%

In 2024, the gross domestic product growth rate for the construction sector in Indonesia was estimated to be around ***** percent, indicating a sharp increase from the previous year. Due to the COVID-19 crisis, many infrastructure projects in 2020 in Indonesia had been on hold. A significant increase in growth was seen in 2021, but it slightly decreased in 2022 by about *** percent.

The Construction sector has expanded over the past five years; nonresidential construction activity has been particularly strong, and a surge in materials costs has driven up contractors' rates. Contractors in the sector construct buildings and engineer projects across a wide range of industries and applications, so construction sector revenue tends to correlate with broader macroeconomic conditions. Volatile interest rates, specifically, have impacted sector activity in recent years, with high rates having cooled residential construction activity since 2022. Sector revenue has risen at a CAGR of 4.1% to reach an expected $3.7 trillion in 2025, including an estimated increase of 1.5% in 2025 alone as recent interest rate cuts encourage investment. In recent years, contractors have benefited from easing supply chain issues, with the price of construction materials having slowly fallen from its May 2022 peak (though remaining well above pre-pandemic prices). This more predictable business environment has only had a limited positive effect on the average sector profit margin, however, as the construction sector's perennial labor shortage has kept wage costs high. In 2025, the second Trump administration's policies have disrupted this previously stabilizing business environment, with ever-shifting tariff policies making it harder to plan for the future. A mounting trade war has the potential to disrupt supply chains and drive up the cost of materials, while plans for mass deportations threaten to further limit the sector's labor pool. Still, potential interest rate cuts in the coming years stand to spur increased investment in construction activity. Contractors are set to continue to benefit from increasing commercial and infrastructure construction activity, aided by the 2021 Infrastructure Investment and Jobs Act, the 2022 CHIPS and Science Act and the 2022 Inflation Reduction Act. The Trump administration has looked to disrupt some of the funding included in these bills, particularly that which targets the previous administration's climate goals, however. Basic macroeconomic drivers, including population growth, will continue to expand the construction sector. Areas of the country with lower regulatory burdens, namely the Southeast, will continue to outpace the country as a whole in both construction activity and population growth. Overall, sector revenue is set to climb at a CAGR of 2.0% to reach $4.1 trillion in 2030.

The Spain construction market size reached USD 110.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 140.0 Billion by 2033, exhibiting a growth rate (CAGR) of 3.17% during 2025-2033. The market is driven by increasing infrastructure investments, rapid urbanization, escalating demand for residential and commercial spaces, favorable government initiatives focusing on sustainable development and green buildings, and the recovery of the tourism sector, which fuels hospitality and related construction projects.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 110.0 Billion
Market Forecast in 2033	USD 140.0 Billion
Market Growth Rate (2025-2033)	3.17%

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on type, sector, category, and end-user.

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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

The China construction market, valued at $4.59 billion in 2025, is projected to experience robust growth, driven by significant investments in infrastructure development, urbanization, and energy transition initiatives. A Compound Annual Growth Rate (CAGR) of 5.07% from 2025 to 2033 indicates a substantial expansion, reaching an estimated market value exceeding $7 billion by 2033. Key growth drivers include government policies promoting sustainable development, rapid economic growth fueling demand for residential and commercial construction, and the ongoing expansion of transportation networks (high-speed rail, roads, and ports). The market is segmented across residential, commercial, industrial, infrastructure (transportation), and energy and utilities sectors, with infrastructure projects playing a dominant role, given the government's focus on modernization. Major players like China State Construction Engineering, China Communications Construction Company, and China Railway Group are leveraging their expertise and scale to capitalize on this growth. While challenges exist, including potential material price fluctuations and environmental regulations, the overall outlook remains positive, supported by sustained government investment and a burgeoning middle class driving housing demand. Despite the promising outlook, the market faces some restraints. These include potential labor shortages, the need for enhanced technological adoption to improve efficiency and sustainability, and managing the environmental impact of large-scale construction projects. Navigating these challenges will be crucial for continued growth. The increasing emphasis on sustainable construction practices presents both a challenge and an opportunity, requiring companies to invest in green technologies and eco-friendly building materials. This focus on sustainability will influence future growth and necessitate adaptation from market players. The ongoing geopolitical landscape and potential economic shifts could also influence the trajectory of this dynamic market in the coming years, requiring continuous monitoring and strategic adjustments by businesses operating within this sector. Recent developments include: December 2023: Recently, "Engineering News-Record" (ENR), one of the world's most authoritative academic journals in engineering and construction, announced the winners of the 2023 Global Best Projects Awards. I received awards for two projects. The Lamu Port Berth 1-3 Project was honored with the Award of Merit in the Airport and Port category, while the Peljesac Bridge and its access roads in Croatia received the Award of Merit in the Bridge and Tunnel category., July 2023: The Shaoxing Metro Line 2, constructed by CRCC, officially opened, marking the commencement of a new era of automated and driverless subway systems in Shaoxing. This 10.8-kilometer line, featuring nine stations, represents Shaoxing's inaugural automated and driverless subway and the second in Zhejiang Province. As a co-host city with the most events for the Asian Games, the inauguration of Line 2 will further boost the development of the "Commuting Circle" for the Hangzhou Asian Games, providing robust support for the successful hosting of the event.. Key drivers for this market are: Government Infrastructure Spending, Urbanization and Increasing Disposable Incomes. Potential restraints include: Oversupply in the Real Estate, Labor Shortages. Notable trends are: Increase in Output value of China Construction Industry.

Trillions are spent every year on the buildings, infrastructure, and industrial installations by the global construction sector. In 2015, China’s construction market reached *** trillion U.S. dollars, while North America’s construction sector had a market size of *** trillion U.S. dollars. The construction market in Asia is expected to account for almost half of global construction spending by 2020. Construction productivity However, in the past decades, the industry has lost a large amount in value due to low labor productivity. The productivity growth of the construction sector has been comparatively lower than that of the total global economy and the manufacturing industry. Low productivity may be attributable to several reasons, including a highly regulated industry and dependency on public sector demand. The difficulties of the market can bring poor project management and execution, a lack of skill, and inadequate design processes. There are known ways to overcome these barriers, however, it is difficult for individual entities, despite high revenues, to change a traditional system.

TBRC construction market report includes buildings construction, heavy and civil engineering construction, specialty trade contractors

The global residential construction market size reached approximately USD 4.92 Trillion in 2024. Further, the residential construction industry is further projected to grow at a CAGR of 5.00% between 2025-2034, reaching a value of USD 8.01 Trillion by 2034.

The Market Report Covers Construction Companies in Brazil and is Segmented by Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utility Construction).

Indian Construction Industry is segmented by Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utility Construction). The report offers market size and forecasts for the Indian construction market in value (USD billion) for all the above segments.