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?
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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
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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.
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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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The global market size of Construction is $XX million in 2018 with XX CAGR from 2014 to 2018, and it is expected to reach $XX million by the end of 2024 with a CAGR of XX% from 2019 to 2024.
Global Construction Market Report 2019 - Market Size, Share, Price, Trend and Forecast is a professional and in-depth study on the current state of the global Construction industry. The key insights of the report:
1.The report provides key statistics on the market status of the Construction manufacturers and is a valuable source of guidance and direction for companies and individuals interested in the industry.
2.The report provides a basic overview of the industry including its definition, applications and manufacturing technology.
3.The report presents the company profile, product specifications, capacity, production value, and 2013-2018 market shares for key vendors.
4.The total market is further divided by company, by country, and by application/type for the competitive landscape analysis.
5.The report estimates 2019-2024 market development trends of Construction industry.
6.Analysis of upstream raw materials, downstream demand, and current market dynamics is also carried out
7.The report makes some important proposals for a new project of Construction Industry before evaluating its feasibility.
There are 4 key segments covered in this report: competitor segment, product type segment, end use/application segment and geography segment.
For competitor segment, the report includes global key players of Construction as well as some small players.
The information for each competitor includes:
* Company Profile
* Main Business Information
* SWOT Analysis
* Sales, Revenue, Price and Gross Margin
* Market Share
For product type segment, this report listed main product type of Construction market
* Product Type I
* Product Type II
* Product Type III
For end use/application segment, this report focuses on the status and outlook for key applications. End users sre also listed.
* Application I
* Application II
* Application III
For geography segment, regional supply, application-wise and type-wise demand, major players, price is presented from 2013 to 2023. This report covers following regions:
* North America
* South America
* Asia & Pacific
* Europe
* MEA (Middle East and Africa)
The key countries in each region are taken into consideration as well, such as United States, China, Japan, India, Korea, ASEAN, Germany, France, UK, Italy, Spain, CIS, and Brazil etc.
Reasons to Purchase this Report:
* Analyzing the outlook of the market with the recent trends and SWOT analysis
* Market dynamics scenario, along with growth opportunities of the market in the years to come
* Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
* Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
* Market value (USD Million) and volume (Units Million) data for each segment and sub-segment
* Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
* Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
* 1-year analyst support, along with the data support in excel format.
We also can offer customized report to fulfill special requirements of our clients. Regional and Countries report can be provided as well.
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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% |
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The Chinese Construction Industry Report is Segmented by Sector (Residential, Commercial, Industrial, Infrastructure (transportation), Energy, and Utilities). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.
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Industry operators construct complete residential and non-residential buildings, either on their own account for sale, or on a fee or contract basis for external clients and property developers. Firms may outsource discrete segments of the construction phase to specialist tradespeople classified elsewhere, including electricians, mechanical engineers and scaffolders. Maintenance and repair solutions for residential and non-residential property also fall under the scope of the industry.
The market size of the hotel construction sector in the United States increased from 2022 to 2023. In 2023, the sector's market size reached 19.5 billion U.S. dollars, up from the previous year's total of 18.06 billion U.S. dollars.
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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...
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The Report Covers Investment Analysis of Construction Industry in GCC Countries and the Market is Segmented by Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utilities Construction) and Country (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates).
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The Construction Technology Market report segments the industry into Type (Solutions, Services) and Geography (North America, Europe, Asia, Australia and New Zealand, Latin America, Middle East and Africa). Five years of historical data are available along with market forecasts for the next five years.
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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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The Indonesia Construction Market Report is Segmented by Sector (Commercial, Residential, Industrial, Infrastructure (Transportation) Construction, and Energy and Utilities Construction). The Report Offers Market Size and Forecasts in Terms of Value (USD) for all the Above Segments.
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TBRC construction market report includes buildings construction, heavy and civil engineering construction, specialty trade contractors
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The Construction Industry In Africa market report segments the industry into By Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, Energy and Utilities Construction), By Construction Type (Additions, Demolition, New Constructions), and By Region (Eastern Africa, Western Africa, Southern Africa, Northern Africa).
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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.
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Market Size statistics on the Construction industry in United States
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Europe's Residential Construction Market Report is Segmented by Property Type (single-Family and Multi-Family), Construction Type (new Construction and Renovation), and Country (Germany, United Kingdom, France, Italy, and the Rest of Europe). The Europe Residential Construction Market Report Offers the Market Sizes and Forecasts in Value (USD) for all the Above Segments
Artificial Intelligence (AI) in Construction Market Size 2024-2028
The artificial intelligence (AI) in construction market size is forecast to increase by USD 4.06 billion at a CAGR of 30.65% between 2023 and 2028.
Artificial Intelligence (AI) is revolutionizing the construction industry in North America, offering significant growth opportunities. The increasing demand for data integration and visual analytics is a major market driver, enabling more efficient project management and faster decision-making. Post-construction, AI is utilized for building management, including sensors, drones, robotics, and the Internet of Things, to optimize building costs and improve safety systems.
Automatic updating and building of projects using AI algorithms streamline workflows and reduce errors. However, the lack of a skilled workforce for developing and implementing AI solutions poses a challenge. This trend is expected to continue as construction companies seek to enhance productivity, improve quality, and reduce costs through AI technology adoption.
What will be the Size of the Market During the Forecast Period?
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Artificial Intelligence (AI) is revolutionizing various industries, and the construction sector is no exception. The integration of AI in construction is reshaping business models, enhancing productivity, and addressing critical challenges such as safety concerns, labor shortages, and production costs. AI's role in the construction industry extends beyond the traditional engineering and design phases. Its impact is felt throughout the project lifecycle, from bidding and financing to procurement and asset management. By automating repetitive tasks, AI is enabling construction companies to streamline their operations and focus on core business functions.
Moreover, the bidding process is one of the initial stages where AI is making a significant impact. AI-powered tools can analyze historical data, market trends, and project specifications to provide accurate estimates, helping contractors to submit competitive bids. Moreover, AI can assist in financing by assessing the creditworthiness and risk profiles of potential clients, enabling financial institutions to make informed decisions. AI's role in the production phase is equally crucial. It can optimize resource allocation, schedule workflows, and monitor progress in real-time. By analyzing data from various sources, AI can help identify potential issues before they escalate into major problems, ensuring projects stay on schedule and within budget.
Similarly, safety concerns are a major challenge in the construction industry. AI-powered safety systems can monitor construction sites in real-time, detecting potential hazards and alerting workers to take corrective action. By analyzing historical data, AI can identify trends and patterns, helping executives to implement preventive measures and improve overall safety standards. Labor shortages are another pressing issue in the construction industry. AI-powered tools can automate repetitive tasks, reducing the workload on workers and enabling them to focus on more complex tasks.
Moreover, AI can assist in training new workers by providing real-time feedback and guidance, helping to address the issue of labor shortages. Data triangulation is a key aspect of AI's role in construction. By analyzing data from various sources, AI can provide valuable insights into project performance, resource utilization, and cost management. These insights can help executives to make informed decisions and optimize their operations, leading to improved efficiency and reduced production costs. The early movers in the construction industry are already reaping the benefits of AI. By adopting AI-powered tools and systems, they are gaining a competitive edge, improving their operational efficiency, and addressing critical challenges. However, for others to follow suit, there is a need for a clear business model transformation strategy.
In conclusion, AI is transforming the construction industry by streamlining operations, enhancing productivity, and addressing critical challenges such as safety concerns and labor shortages. Its role extends beyond the traditional engineering and design phases, impacting every stage of the project lifecycle. By adopting AI-powered tools and systems, construction companies can gain a competitive edge, improve their operational efficiency, and reduce production costs.
How is this market segmented and which is the largest segment?
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
Solution
Software
Services
Hardware
End-user
Large enterprises
Small and medium enterprises (SMEs)
Geography
North America
US
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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%.
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.
Request Free Sample
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