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 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.

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

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

The UK Construction Market Forecast Report Covers Industry Trends and is Segmented by Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure Construction, and Energy and Utility Construction) and by Key Regions (England, Northern Ireland, Scotland, and Wales). The Report Offers Market Sizes and Forecasts in Value (USD Billion) for all the Above Segments.

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%

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%.

Heavy engineering contractors complete projects such as constructing oceanic navigational channels, beach dredging, mass transit support construction, tunnels, hydroelectric power plants and conservation development. Most of these projects are carried out by state and local governments independently or in conjunction with the federal government, so industry revenue tracks most closely with movements in public funding. Over the past five years, heavy engineering construction revenue has expanded at a CAGR of 5.2% to reach $49.2 billion in 2025, when revenue is set to climb 2.0%. While revenue has expanded, average industry profit has remained relatively level as contractors have been able to adjust to a surge in purchase and wage costs that occurred midway through the past five years. Industry revenue has recently benefited from growing federal funding, particularly as funding from the 2021 Infrastructure Investment and Jobs Act (IIJA) and the 2022 Inflation Reduction Act (IRA) has recently begun translating into shovels in the ground. These projects have included upgrades to the nation's ports, as supply chain issues earlier in the current period highlighted their issues. Growth has been countervailed by heightened interest rates, which have particularly served to discourage private sector heavy engineering construction projects, which account for a minority of the industry's revenue. Rate cuts, which began in 2024 and have continued into 2025, will benefit the industry. Moving forward, the industry will exhibit growth if federal funding and state investments remain steady. Already in 2025, however, the second Trump administration has moved to hamper spending on certain programs included in the IIJA and the IRA. A reduction in federal infrastructure spending would have a negative effect on industry revenue. Still, industry revenue is projected to rise at a CAGR of 1.7% to reach $53.5 billion in 2030. Continued interest rate cuts will benefit the industry, as will increased spending on conservation and development infrastructure and other infrastructure projects meant to deal with the growing impact of climate change.

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.

Divergent trends in the building and infrastructure sectors have constrained the Construction division’s performance through the end of 2024-25, with revenue expected to drop by an annualised 1.2% to $521.2 billion. Rollercoaster-like trends in the residential building market and pandemic-related supply chain disruptions have constrained the performance of homebuilders and many special construction service industries. Still, favourable trends in non-residential building construction and non-building infrastructure construction generate buoyant conditions for some Construction division segments. New house construction surged to a record peak in 2021-22, supported by the Federal Government’s HomeBuilder stimulus and record-low interest rates. Still, new house construction has plunged in recent years following the hike in mortgage interest rates as the RBA seeks to quell inflation. Many small homebuilders have hit the wall in response to intense competition, escalating input costs and plunging profit margins. Conversely, the construction of multi-unit apartments and townhouses has gradually recovered from the deep trough in 2021-22 as investors return to address the severe rental shortages in the face of mounting population pressures. Divisional revenue contracted with the 2023-24 housing slump and is expected to sink 3.2% in 2024-25. Some large prime and specialist trade contractors have derived substantial stimulus from constructing landmark road and rail developments, including the WestConnex motorway in Sydney and the Cross River Rail in Brisbane. Similarly, conditions have been strong for contractors working on non-residential building projects, particularly accelerated growth in the construction of industrial warehouses and distribution facilities. Favourable trends in the residential building market are forecast to underpin modest growth in Construction division revenue at an annualised 1.2% over the five years through 2029-30 to $554.0 billion. Many prime building and special construction contractors will benefit from an upswing in demand for constructing multi-unit dwellings and, to a lesser extent, single-unit housing and home renovations. The housing market will benefit from the initiatives under the National Housing Accord. Construction activity will remain stable in the non-residential market. At the same time, the principal constraint on the Construction division will come from the staged completion of several landmark road and rail projects.

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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

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 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...

Snapshot img { margin: 10px !important; } The dry construction market share is expected to increase by USD 22.56 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 4.75%.

This dry construction market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers dry construction market segmentation by end-user (residential building and commercial building) and geography (North America, Europe, APAC, MEA, and South America). The dry construction market report also offers information on several market vendors, including Armstrong World Industries Inc., Boral Ltd., Compagnie de Saint-Gobain SA, CSR Ltd., Etex NV, Fletcher Building Ltd., Grupo Promax, Knauf Gips KG, Pacific Coast Building Products Inc., and Xella International GmbH among others.

What will the Dry Construction Market Size be During the Forecast Period?

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Dry Construction Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The rise in global construction and infrastructure development activities is notably driving the dry construction market growth, although factors such as higher cost of dry construction than conventional constructions methods in developing regions may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the dry construction industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Dry Construction Market Driver

The rise in global construction and infrastructure development activities is one of the key factors driving the global dry construction market growth. The growing demand for public infrastructure in emerging economies, such as India and China, is contributing to the growth of the construction industry in these economies. Many new hospitals, educational institutions, stadiums, indoor sports complexes, malls, and mega shopping centers have been built in the past few years because of the growing population and the increasing per capita income of individuals. Government initiatives and major investments in new projects have further boosted the growth of the construction industry. Under this mission, the government is also expected to build new water storage facilities, power infrastructure, and social infrastructures, such as indoor sports complexes, livelihood centers, and community centers. Hence, there is a wide scope for utilizing dry construction techniques in these newly constructed buildings owing to their cost-effectiveness and flexibility. Thus, the above construction and infrastructure development activities are expected to raise the demand exponentially for dry construction during the forecast period.

Key Dry Construction Market Trend

The rising demand for luxury vinyl tile (LVT) flooring will fuel the global dry construction markets growth. LVT is produced by fusing several layers of vinyl and composites, and then the required design is printed on it using advanced printing and embossing technology. The production method of LVTs grants it greater durability than VCT, SVT, or mosaic tiles. This also allows manufacturers to produce high-quality floor tiles in various designs, such as natural hardwood, stone, and other non-conventional shapes and geometric designs. LVT flooring is currently available in tile and plank form factors. The tiles come in either self-adhesive type or locking type, which does not require additional flooring adhesive for installing the tiles. The ease of installation of LVT has made it very popular among builders, professional installers, and even do-it-yourself (DIY) enthusiasts. Most of the major dry flooring product companies have already introduced a wide variety of LVT products in the market, and other companies are expected to follow this trend, as the demand for LVT flooring is growing among the customers. Some of the major brands of LVT available in the market are Adura by Mannington Mills, Alterna by Armstrong, and Allura by Forbo Flooring Systems.

Key Dry Construction Market Challenge

The higher cost of dry construction than conventional construction methods in developing regions is a major challenge for the global dry construction market growth. Dry constructions require prefabricated panels and structures that are made in factories using advanced techniques. Moreover, the wood or gypsum used as a base in wallboards and partitions may not be available in abundance in all countries. This makes the raw materials for

In 2024, the UK Construction Market reached $316.38 billion, and it is projected to surge to $439.04 billion by 2030 due to surge in infrastructure sector

The Mexico Data Center Construction Market report segments the industry into By Infrastructure (By Electrical Infrastructure, By Mechanical Infrastructure, General Construction), By Electrical Infrastructure (Power Distribution Solution, Power Backup Solutions, and more), By Mechanical Infrastructure, By Tier Type (Tier-I and II, Tier-III, Tier-IV), and By End User.

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

In 2024, the Asia-Pacific Construction Market reached $5.69 trillion, and is projected to surge to $8.64 trillion by 2030 due to growing government funding

In 2024, the North America Construction Market reached $2.58 trillion, and is projected to surge to $3.53 trillion by 2030 due to rising government investment

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).